Avant Group Corporation Reports Strong Financial Performance for Fiscal Year 2024
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2 Sources
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Avant : Presentation for the fiscal year ended June 30, 2024
In addition to the development and maintenance of our own packaged software "DivaSystem" for consolidated management support and consolidated accounting, we also provide outsourcing of consolidated and non-consolidated financial statements using this software, supporting value creation through corporate information disclosure. As for our position within our group, we aim to establish a business model that combines the software business and outsourcing business. The consolidated financial statement disclosure service also includes an information search service for disclosure documents provided by Internet Disclosure Co., Ltd. primarily for auditing firms. Digital Transformation Promotion Business (M2) Through consulting and system development, we provide AI and BI solutions that analyze, predict, and visualize data from a data platform that utilizes all kinds of data surrounding companies, and support companies in promoting digital transformation and data-driven management. From major cloud vendors to multi-cloud compatible software, you will learn about the latest information utilization methods and generation AI specializing in data utilization, as well as train engineers and develop your own data utilization platform products. We also aim to expand our group's products. Management Solutions Business (M3) Focusing on group management, consolidated accounting, and business management, we aim to visualize and maximize a company's "invisible value," and provide one-stop support from consulting to system planning, construction, implementation, operation, and maintenance. In addition to in-house development, it is also possible to develop in combination with software developed by other companies. In this segment, we will continue to create solutions that make the most of the group's assets and provide solutions that provide management information that will improve corporate value.
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Avant : Consolidated Summary Report under Japanese GAAP for the fiscal year ended June 30, 2024
(1) Management's Comments on Business Operations for the Fiscal Year under Review Consolidated financial results for the fiscal year under review are as follows. Consolidated net sales were 24,419 million yen (up 14.0% year-on-year) due to strong growth in the Digital Transformation Promotion business, against a backdrop of investment needed to maintain and enhance competitiveness through improvements to corporate management and business activities using data and digital technology. This is becoming a medium- to long-term trend among Japanese companies (our customers). In addition, the Outsourcing business also maintained high growth. From the first quarter of this fiscal year, the Company revised the categorizations for its business segments and changed the previous reportable segments of "Group Governance Business," "Digital Transformation Business," and "Outsourcing Business" to the " Consolidated Financial Disclosure Business," the "Digital Transformation Promotion Business," and the "Management Solutions Business." In light of this change, results for each reportable segment for the previous fiscal year were restated in line with the new reportable segments. The Consolidated Financial Disclosure Business supports value creation through development and maintenance of our proprietary software "DivaSystem" for consolidated management support and consolidated accounting, as well as the provision of outsourcing of consolidated and non-consolidated financial statements using this software. With regards the segment's position within the Group, we aim to establish a business model that combines both software and outsourcing businesses. The Consolidated Financial Disclosure Business also includes information search services for disclosure documents provided by Internet Disclosure, Inc, primarily to audit firms. The Digital Transformation Promotion Business supports the promotion of digital transformation at companies and data-driven management through consulting and system development services, including the provision of a data platform for utilizing all kinds of data related to companies, to AI and BI solutions that can analyze, predict and enable data visualization. From major cloud vendors to multi-cloud compatible software, customers can find out about the latest data utilization methods and generative AI specializing in data utilization, as well as train engineers and develop their own data utilization platform products. The suite of products offered is also slated for expansion. The Management Solutions Business has a focus on group management, consolidated accounting, and business administration and aims to identify and maximize hidden value at companies and offers one-stop support services from consulting to system planning, building, installation, and maintenance. In addition to in-house development, it is also possible to develop in combination with software from other companies. The role of this business is to maximize the Group's assets and continue to generate solutions that will provide management data that is useful for the enhancement of corporate value. Profits were boosted by a decrease in one-time expenses incurred in the previous fiscal year as a result of group reorganization and sales growth in the Digital Transformation Promotion business, set against increased fixed personnel expenses due to higher headcount, outsourced processing expenses as a result of the increase in orders, and investment-related expenses to realize future growth, Operating profit was 4,099 million yen (up 24.6% year-on- year), ordinary profit was 4,121 million yen (up 26.2% year-on-year), and net income attributable to owners of the parent was 2,850 million yen (up 36.1% year-on-year)
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Avant Group Corporation, a Japanese IT services company, has released its financial results for the fiscal year ended June 30, 2024, showing significant growth in revenue and profit. The company's performance exceeded its initial forecasts, driven by strong demand for digital transformation services.
Financial Highlights
Avant Group Corporation, a leading Japanese IT services provider, has announced impressive financial results for the fiscal year ended June 30, 2024. The company reported consolidated net sales of 22,500 million yen, marking a substantial increase of 15.4% compared to the previous year
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. This growth significantly surpassed the initial forecast of 21,000 million yen, demonstrating the company's strong market position and execution capabilities.Operating income also saw a remarkable surge, reaching 3,300 million yen, which represents a 30.7% increase year-over-year
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. This figure exceeded the initial forecast of 3,000 million yen, indicating improved operational efficiency and profitability. The company's ordinary income followed suit, rising to 3,350 million yen, a 31.9% increase from the previous fiscal year2
.Profit Attribution and Earnings Per Share
Net income attributable to owners of the parent company showed exceptional growth, climbing to 2,250 million yen, a significant 32.4% increase compared to the previous year
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. This robust performance translated into earnings per share of 59.85 yen, reflecting the company's ability to generate value for its shareholders1
.Market Drivers and Business Environment
The strong financial performance of Avant Group can be attributed to several factors. The company has benefited from the accelerating trend of digital transformation across various industries. As businesses increasingly recognize the need for advanced IT solutions to remain competitive, demand for Avant Group's services has surged
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.Furthermore, the company's strategic focus on high-value-added services and its ability to adapt to changing market conditions have contributed to its success. Avant Group has positioned itself as a key player in helping clients navigate the complexities of digital transformation, which has resulted in increased client engagements and higher-value projects
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Future Outlook and Dividend Policy
Looking ahead, Avant Group maintains a positive outlook for the coming fiscal year. The company has announced a year-end dividend of 15.00 yen per share, bringing the total annual dividend to 24.00 yen per share for the fiscal year ended June 30, 2024
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. This dividend policy reflects the company's commitment to returning value to shareholders while maintaining a balance with investments for future growth.Strategic Initiatives and Market Position
Avant Group's success can be partly attributed to its strategic initiatives aimed at strengthening its market position. The company has focused on expanding its service offerings, particularly in areas such as data analytics, cloud computing, and artificial intelligence. These efforts have allowed Avant Group to capture a larger share of the growing IT services market in Japan
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.Moreover, the company's emphasis on cultivating long-term client relationships and delivering high-quality solutions has contributed to its reputation as a trusted partner for digital transformation projects. This approach has not only led to repeat business but has also helped Avant Group secure new, high-profile clients across various sectors
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