Leopalace21 (8848) Q4 2024 earnings summary

Executive summary

• Net sales rose 2.2% year-over-year to JPY 431,831 million, driven by higher average unit rent despite a slight decline in occupancy rates.

• Operating profit increased 25.4% year-over-year to JPY 29,231 million, reflecting improved profitability and cost structure.

• Recurring profit surged 38.3% year-over-year to JPY 26,936 million, aided by reduced interest expenses from refinancing.

• Net income attributable to shareholders dropped 57.5% year-over-year to JPY 17,861 million, mainly due to a partial reversal of deferred tax assets.

• EBITDA grew 17.0% year-over-year to JPY 32,734 million.

Financial highlights

• Gross profit increased 12.3% year-over-year to JPY 77,293 million, with gross margin improving by 1.6 points to 17.9%.

• Total assets rose 5.7% to JPY 216,625 million, while net assets climbed 23.1% to JPY 88,268 million.

• Equity ratio improved to 37.5%, up 6.3 points from the previous year.

• Cash and cash equivalents at year-end were JPY 87,075 million, up JPY 18,931 million year-over-year.

• Free cash flow reached JPY 25,295 million, an increase of JPY 3,022 million year-over-year.

Outlook and guidance

• Fiscal year ending March 31, 2026 guidance: net sales JPY 441,400 million (+2.2%), operating profit JPY 32,400 million (+10.8%), recurring profit JPY 30,900 million (+14.7%), net income JPY 18,100 million (+1.3%).

• Annual dividend forecast for FY2026 is JPY 10 per share, with a target payout ratio of 30% by FY2028.