■Performance trends for Logizard (4391)
1. Summary of financial results for the fiscal year ending 2024/6
Financial results for the fiscal year ended 2024/6 were sales of 1,977 million yen, up 6.7% from the previous fiscal year; operating profit of 346 million yen, up 32.8%; ordinary profit of 346 million yen, up 32.9%; and net income of 252 million yen, up 36.7% from the same period. All services were doing well with increased sales and profits, with the main cloud service as the driving force. As a result, sales increased for 24 consecutive terms, and final profit recorded a record high. In particular, each profit below operating profit showed a 2-digit increase and a rapid increase exceeding the sales growth rate, and the operating profit margin increased to 17.5%, which is 3.4 points higher than the previous fiscal year. In addition to the fact that new accounts were steadily built up with highly profitable cloud services, it looks like improvements in gross margin ratios for development/implementation services and equipment sales services contributed. Also, in addition to the increase in gross margin ratio, controlling cost growth to an appropriate level while actively investing in human resources and product development under the medium term budget also contributed to the rapid increase in profits.
In comparison with the initial earnings forecast against the backdrop of improved profitability, gross profit was plus 0.7%, operating profit was plus 4.5%, ordinary profit was plus 4.5%, and net profit was plus 11.5%. It looks like the profits at each stage have surpassed expectations and landed. Meanwhile, in terms of sales, the progress rate was 97.7%. The cloud service progressed as expected, and although the equipment sales service showed strong performance that exceeded expectations, it resonated that the progress of development/implementation services was sluggish. The reason is that BtoB enterprise systems have complicated requirements and high individuality, etc., so the lead time required for order acceptance and delivery has been longer than expected. However, by promoting standardization of functions and improving the efficiency of proposals until the end of the term, we succeeded in improving the efficiency of receiving orders and shortening lead times. From the 2025/6 fiscal year onwards, it is our policy to respond quickly to strong customer needs and accelerate the speed of business expansion.
As for performance by service, sales of the main cloud services increased 7.0% from the previous fiscal year to 1,564 million yen, and gross profit increased 7.8% from the same period to 933 million yen. The acquisition of new BtoB companies progressed smoothly under the medium-term budget policy of focusing on customer acquisition in the BtoB market. Additionally, inquiries from BtoC companies, which are our main customers in the past, were also strong. As a result, the number of accounts as of the end of the 2024/6 fiscal year was 1,759, plus 144 cases compared to the end of the previous fiscal year, and MRR expanded to 136 million yen, up 8.8% from the same period. In addition to continuing to implement cooperation with external systems and enhancements to product functions, the accumulation of new customers while keeping the cancellation rate at a low level due to active implementation of online/offline promotion activities, etc., contributed to the expansion of business performance.
Sales of development and implementation services were 317 million yen, up 0.1% from the previous fiscal year, and gross profit was 103 million yen, up 85.8% from the same period. In response to the fact that the lead time required for orders and delivery was longer than expected in BtoB projects, and although the progress rate against the initial forecast fell below expectations, an increase in sales was secured in response to the fact that there were many large-scale BtoB projects and that continuing projects from existing business partners were going well. On the profit side, gross profit margin increased rapidly to 32.5%, plus 15.0 points from the previous fiscal year. Profitability per project was improved in response to shortening the lead time for BtoB projects towards the end of the fiscal year, and the completion of EOS support, which had been carried out until the previous fiscal year, also contributed to an increase in profitability.
Sales of equipment sales services were 96 million yen, up 28.7% from the previous fiscal year, and gross profit was 40 million yen, up 23.3% from the same period. In addition to strong sales of dedicated printers and supplies, which are conventional main products, strong sales of large equipment such as material handling equipment boosted business results. As customer companies' demand for automation increased, it looks like inquiries for large machines with high unit prices and high profits were going well. As a result, the same business, which was expected to decrease in sales at the beginning of the fiscal year, completely reversed and landed with a drastic increase in sales.
Furthermore, steady progress has been observed in various measures set forth in the medium-term management plan. In addition to promoting cooperation with external applications for the purpose of labor saving and cooperation with core systems specialized in BtoB, construction of new personnel systems and expansion of internal organizational systems were promoted.
(Written by FISCO Visiting Analyst Yoichiro Shimizu)
