Baltes Holdings ＜4442＞ announced consolidated financial results for the fiscal year ending 2024/3 on the 14th. Net sales increased 14.4% from the previous fiscal year to 10.362 billion yen, operating profit decreased 13.3% to 840 million yen, ordinary profit decreased 13.5% to 850 million yen, and net income attributable to parent company shareholders decreased 20.5% to 518 million yen.

Sales in the software testing service business increased 10.6% from the same period last year to 9.074 billion yen. Meanwhile, segment profit decreased 12.9% from the same period to 851 million yen due to an increase in policy investment costs such as personnel costs, training costs, recruitment costs, and M&A. In addition to a steady trend in sales in the enterprise sector centered on the financial industry, DX demand was taken in, and orders for web service projects also expanded. Also, as participation in upstream processes, PMO, and QMO for new large-scale reconstruction projects and large-scale migration projects has increased, the increase in the size of projects is accelerating. Meanwhile, in the second half of the year, growth slowed due to the shortage of PM layers/senior layers and sales personnel as bottlenecks in response to the expanding business. Mainly in the fourth quarter, efforts have been made to improve management efficiency, such as implementing measures aimed at resolving these bottlenecks and proceeding with suppression of SG&A expenses.

Sales in the web/mobile application development service business increased 54.4% from the same period to 1,256 billion yen, and segment profit decreased 56.9% to 30 million yen. In addition to the steady increase in development projects, sales steadily expanded due to the new consolidation of Shinfo and Fairness Consulting. Meanwhile, the number of handling man-hours associated with larger development projects increased, and profit margins declined.

Sales in the offshore service business fell 23.1% from the same period to 31 million yen, and segment losses were 0.24 million yen (profit of 83 thousand yen in the same period last year). Expenses related to education were incurred ahead of time, putting pressure on earnings from the first quarter to the third quarter.

As for the consolidated earnings forecast for the full year ending 2025/3, we expect sales to increase 11.0% from the previous fiscal year to 1150 billion yen, operating income to 980 million yen, up 15.4% from the same period, ordinary profit to 981 million yen, and net income attributable to parent company shareholders to increase 22.2% to 633 million yen.