Leopalace21 (8848) Q1 2024 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 2.4% year-over-year to JPY 108,917 million, with operating profit up 35.0% to JPY 10,289 million and net income attributable to shareholders up 47.4% to JPY 9,767 million, marking the third consecutive year of growth in both net sales and net income.

• Profitability improved due to higher average unit rent and controlled cost of sales, despite a slight decline in occupancy rates.

• The Japanese economy showed gradual recovery, though global risks such as monetary tightening and concerns over China persisted.

Financial highlights

• Gross profit increased 18.4% year-over-year to JPY 21,398 million, with gross margin rising to 19.6% from 17.0%.

• EBITDA for Q1 FY2025 was JPY 11,216 million, up 25.2% year-over-year.

• Net income per share for Q1 FY2025 was JPY 30.75, compared to JPY 22.53 in Q1 FY2024.

• Comprehensive income for Q1 FY2025 was JPY 11,470 million, up 64.8% year-over-year.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales of JPY 428,600 million (+1.4% YoY), operating profit of JPY 26,600 million (+14.1% YoY), and net income attributable to shareholders of JPY 14,500 million (-65.5% YoY).

• Interim and year-end dividend forecast unchanged at JPY 5.00 per share each, totaling JPY 10.00 for the year.