Leopalace21 (8848) Q2 2024 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, rose 2.0% year-over-year to JPY 216,165 million, with operating profit up 17.5% to JPY 17,426 million and recurring profit up 27.6% to JPY 16,729 million.

• Net income attributable to shareholders fell 10.6% year-over-year to JPY 10,596 million, mainly due to higher income taxes despite improved operating results.

• EBITDA increased 11.4% year-over-year to JPY 19,272 million.

Financial highlights

• Gross profit margin improved to 18.5% from 16.9% year-over-year.

• Net income per share was JPY 33.35, up from JPY 24.38 year-over-year.

• Total assets increased 1.5% from March 31, 2024, to JPY 208,137 million; net assets rose 17.1% to JPY 83,939 million.

• Shareholders’ equity ratio improved to 36.6% from 31.2% at the previous fiscal year-end.

• Cash and cash equivalents at period-end were JPY 75,219 million, up JPY 17,097 million year-over-year.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2025, remains unchanged: net sales JPY 428,600 million (+1.4%), operating profit JPY 26,600 million (+14.1%), recurring profit JPY 24,900 million (+27.8%), net income JPY 14,500 million (-65.5%), and EPS JPY 45.64.

• Dividend forecast for FY2025 is JPY 10.00 per share (interim JPY 5.00, year-end JPY 5.00).