Sansan Inc (SNSNF) Q4 2019 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for joining our briefing today. I am Chika Terada, CEO of Sansan Inc., and I will explain the results. This is a table of contents, and I would like to explain the highlights of the first half of the fiscal year results and the growth strategies. First, I'll give the highlights of the first half of the fiscal year financial results. Page 5, net sales increased by 32.5%, and contrasting with the loss in the same period in the previous year, operating profit returned to black. Although the progress rate of operating profit against the full-year forecast seems lower, this was due to the advertising activities centered on TV commercials in the second quarter. This measure was in line with the plan. In the first half, both net sales and operating profit made steady progress against the full-year forecast announced at the beginning of the fiscal year. In the second quarter, we actively promoted the Sansum business in new and peripheral areas. Page 6. Here's an overview of our consolidated figures. Net sales increased by 32.5% year-on-year to 6.294 billion yen. Operating profit increased to 109 million yen. The gross profit margin improved by 2 points to 85.5% and remained at a high level. Next page, here are the detailed results by segment. In the sansan business, net sales increased by 27.5% year-on-year to 5.78 billion yen. Operating profit increased by 65.3% to 2.112 billion yen. The growth rate is slowing down as the scale of net sales increases, but we are currently working on increasing the number of salespeople and expect that the effects will gradually appear from the second half onwards. Eight business net sales increased 139.8% year-on-year to 504 million yen, and high growth continued. In accordance with the increase in net sales, the operating loss de...