BuySell Technologies (7685) Q2 2024 earnings summary

Executive summary

• 1H FY24 sales reached ¥28,720m, up 46.8% YoY, and operating income reached ¥2,420m, up 84.2%; results exceeded the May forecast and full-year guidance was raised for a second time.

• Strong at-home purchasing and store operations, together with recent acquisitions, drove growth; higher purchase volume and disciplined SG&A supported profit expansion.

Financial highlights

• 1H sales were ¥28,720m, up 46.8% YoY; gross profit was ¥15,329m, up 33.9%.

• Operating income rose 84.2% to ¥2,420m; ordinary income rose 78.6% to ¥2,307m; adjusted EBITDA rose 68.1% to ¥3,173m.

• Net income attributable to parent owners rose 90.4% to ¥1,210m; basic EPS was ¥84.65, versus ¥43.66 a year earlier.

• Consolidated additions contributed ¥3.25bn of 1H sales and ¥420m of operating income before goodwill amortization.

• Total assets at June 30, 2024, were ¥31,499m and net assets were ¥9,589m.

Outlook and guidance

• FY24 forecast raised to sales of ¥61,850m, operating income of ¥4,680m, adjusted EBITDA of ¥6,332m and net income of ¥2,240m.

• Revised operating margin is 7.6%, versus 6.4% in the May forecast; adjusted EBITDA margin is 10.2%, versus 9.2%.

• Annual year-end dividend forecast increased from ¥25 to ¥30 per share; forecast payout ratio is 25.0%.

• 2H plan anticipates higher sales and gross profit while securing FY25 inventory; expenses remain near the prior forecast, with added recruitment and human-capital investment.