GA Technologies kept its full-year framework intact even after first-half IFRS results showed the familiar growth-company tension: sales climbed quickly, profits did not. For the six months to April 30, revenue rose 28.5% to ¥142.4 billion and company-defined net revenue rose 24.5% to ¥25.5 billion, but business profit fell 7.8% to ¥3.86 billion and operating profit slipped 9.6% to ¥3.76 billion. The company left its full-year targets unchanged.
GA Tech defines net revenue as RENOSY marketplace gross profit plus revenue from ITANDI, other businesses and adjustments. It defines business profit as revenue minus cost of sales and selling, general and administrative expenses.
| Metric | First half to April 30 | Year on year | Full-year outlook |
|---|---|---|---|
| Revenue | ¥142,403m | +28.5% | ¥323,000m |
| Company-defined net revenue | ¥25,513m | +24.5% | ¥55,900m |
| Business profit | ¥3,863m | -7.8% | ¥10,000m |
| Operating profit | ¥3,759m | -9.6% | ¥10,000m |
| Profit attributable to owners of the parent | ¥1,997m | -6.8% | ¥5,460m |
A better second quarter, at least on management's telling
The supplementary presentation shows why management is still comfortable holding the annual plan. It said second-quarter business profit reached a record ¥4.17 billion, up 38.0% from a year earlier, after a one-off cost weighed on the first quarter. RENOSY's domestic marketplace remained the main engine, with net revenue up 34.9% to ¥10.55 billion and business profit up 51.2% to ¥5.27 billion. The US marketplace also moved into the black, posting ¥37 million of business profit versus a ¥213 million loss a year earlier.
Where the squeeze showed up
Not every line was as cheerful. ITANDI's recurring net revenue rose 22.1% to ¥2.03 billion, but business profit slipped to ¥431 million from ¥456 million. The presentation attributes that decline to personnel investment for future growth. A separate recurring subscription line was almost flat at ¥1.16 billion, and profit fell to ¥609 million from ¥698 million because the previous year included a ¥280 million one-off tied to a management-plan change.
The balance sheet also shows the cost of pushing volume. Inventories rose to ¥19.09 billion from ¥11.68 billion at the end of October, current borrowings climbed to ¥21.67 billion from ¥12.49 billion, and operating cash flow swung to a ¥5.25 billion outflow from a ¥5.65 billion inflow. The cash-flow statement shows a ¥7.41 billion increase in inventories during the half.
What the second half now has to prove
For the full year, GA Tech still guides for ¥323.0 billion of revenue, ¥55.9 billion of company-defined net revenue, ¥10.0 billion of business profit and ¥5.46 billion of profit attributable to owners of the parent. It also kept its annual dividend forecast at ¥13 per share.
That leaves management arguing that the first-half profit squeeze was more about timing, one-offs and growth spending than a broken growth engine. The second quarter gives that case some support. The second half still has to do the heavy lifting.