Investor Relations
Top Message
TO OUR SHAREHOLDERS AND INVESTORS,
THE SIX-MONTH PERIOD ENDED SEPTEMBER 30,2024(INTERIM)
Shunichiro Ninomiya, President
Honyaku Center Inc.
For the six-month period ended September 30, 2024 (Interim), the Honyaku Center Group (Group) posted net sales of 5,467 million yen, up 0.6% on a year-on-year basis, as the performance of the Translation Business, which is the core business, remained at the same level on a year-on-year basis, while the Interpretation Business saw continued growth. In terms of profit, the Group posted operating income of 352 million yen, up 0.4% on a year-on-year basis; ordinary income of 355 million yen, down 2.4% on a year-on-year basis mainly due to a decline in the share of profit of entities accounted for using the equity method; and net income attributable to the parent company’s shareholders of 232 million yen, down 2.0% on a year-on-year basis.
Financial results forecasts for the fiscal year ending March 31, 2025
For the financial results forecasts for the fiscal year ending March 31, 2025, the Group expects net sales of 12,100 million yen, up 7.0% on a year-on-year basis; operating income of 1,050 million yen, up 16.3% on a year-on-year basis; ordinary income of 1,080 million yen, up 15.0% on a year-on-year basis; and net income attributable to the parent company’s shareholders of 720 million yen, up 1.2% on a year-on-year basis.
Dividend forecasts for the fiscal year ending March 31, 2025
The Group recognizes the return of profits to shareholders to be a significant managerial issue, sets the basic policy of distributing profits by comprehensively taking into account stable dividends and internal reserves for future business expansion, aiming for a consolidated dividend payout ratio of 35%. Based on this basic policy, the Company plans to pay a dividend of 75 yen per share for the fiscal year ending March 31, 2025 (up 10 yen from the previous year), a record high for the second consecutive year, taking into consideration the financial position, profit level, and other factors comprehensively.
The 5th Medium-Term Management Plan (FY2022 - FY2024)
The Group formulated its 5th Medium-Term Management Plan (from the fiscal year ended March 31, 2023 to the fiscal year ending March 31, 2025) in May 2022.The Group will continue to work toward the management vision of being a “language concierge that connects all companies to the world,” and will aim to be a company that offers high added value and responds to the increasingly diversified and sophisticated needs of customers. The Group has set consolidated operating margin and return on equity (ROE) as management indicators and will achieve, in the mid- to long-term, an operating margin of 9% through increasing sales and profit and an ROE of 12% through the improvement of capital efficiency.