Leopalace21 (8848) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 2.3% year-over-year to JPY 323,970 million, marking the third consecutive year of growth in both net sales and net income attributable to shareholders of the parent.

• Operating profit increased 27.2% year-over-year to JPY 25,456 million, and recurring profit surged 50.2% to JPY 24,880 million.

• Net income attributable to shareholders of the parent grew 3.4% year-over-year to JPY 15,391 million, despite higher income taxes due to a partial reversal of deferred tax assets.

• EBITDA rose 19.1% year-over-year to JPY 28,131 million.

Financial highlights

• Gross profit margin improved to 18.4% from 16.7% year-over-year.

• Net income per share was JPY 48.45, up from JPY 35.34 in the prior year period.

• Total assets at December 31, 2024, were JPY 204,043 million, down 0.5% from March 31, 2024.

• Shareholders’ equity ratio increased to 37.3% from 31.2% at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales forecast revised upward to JPY 433,300 million, a 2.5% increase year-over-year.

• Operating profit forecast raised to JPY 31,000 million (+33.0%), and net income attributable to shareholders of the parent to JPY 17,300 million (+58.9%).

• Net income per share for the full year is projected at JPY 54.45.