BuySell Technologies (7685) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record ¥59,973m, up 40.9%; operating income rose 69.3% to ¥4,733m and net income attributable to owners of the parent rose 65.9% to ¥2,411m.

• Record results reflected home-visit purchasing recovery, store growth and strong performance from newly consolidated subsidiaries.

• FY2024 operating margin improved 1.3pt YoY to 7.9%; strategic Q4 inventory carry shifted sales into FY2025 after profit progress exceeded plan.

• Comprehensive income rose 66.4% to ¥2,415m; a 2-for-1 stock split took effect January 1, 2025.

Financial highlights

• FY2024 gross profit was ¥31,655m, up 29.2%; Adjusted EBITDA was ¥6,398m, up 60.2%, and ordinary income was ¥4,198m, up 52.4%.

• Gross margin fell 4.7pt to 52.8% as consolidated store subsidiaries changed the sales mix; standalone gross margin was 64.1%.

• Q4 sales rose 23.7% YoY to ¥15,782m, while operating income fell 18.0% to ¥1,022m, reflecting deliberate inventory carry at BuySell and Timeless.

• FY2024 basic EPS was ¥83.97 versus ¥50.05; diluted EPS was ¥83.63, and ROE improved to 23.4% from 17.5%.

• Operating cash flow was ¥2,126m, investing cash flow was -¥14,437m and financing cash flow was ¥17,824m; year-end cash and cash equivalents were ¥13,196m.

Outlook and guidance

• FY2025 forecast: sales ¥99,790m, up 66.4%; operating income ¥6,500m, up 37.3%; and net income attributable to owners of the parent ¥3,330m, up 38.1%.

• FY2025 operating margin is forecast at 6.5%, down 1.4pt, primarily reflecting Rext HD consolidation mix and strategic growth investment; operating income before goodwill amortization is forecast at ¥7,890m, up 41.9%.

• FY2027 targets, excluding new M&A, are sales of ¥140.0bn and operating income of ¥11.0bn, with FY2024–FY2027 CAGRs of 32.7% and 32.5%.

• FY2025 dividend is forecast at ¥20 per share post-split, up ¥5; the policy benchmarks consolidated payout at 20% while prioritizing growth investment.