Lesaka Technologies (LSAK) Q4 2024 earnings summary

Executive summary

• Group-adjusted EBITDA rose 55% to ZAR 691 million, meeting guidance, with operating income turning from a ZAR 275 million loss in FY 2023 to a ZAR 67 million profit in FY 2024.

• Revenue grew 11% to ZAR 10.6 billion, with strong double-digit growth in both merchant and consumer divisions.

• Net loss attributable to the company narrowed by 48% to ZAR 326 million, and fundamental EPS improved to ZAR 1.06 from a loss of ZAR 2.66.

• Net debt to group-adjusted EBITDA improved to 2.5x from 4.5x a year ago.

• Positive cash flow from operations of ZAR 538 million for FY 2024.

Financial highlights

• FY 2024 revenue rose 11% to ZAR 10.6 billion; group-adjusted EBITDA up 55% to ZAR 691 million.

• Operating income improved by ZAR 343 million to ZAR 67 million; net loss before tax narrowed to ZAR 239 million from ZAR 579 million.

• Cash from operating activities rose to ZAR 538 million from ZAR 7.4 million a year ago.

• Over ZAR 1 billion cash on hand at year-end.

• Fundamental EPS turned positive to ZAR 1.06; GAAP loss per share improved to ZAR 5.07 from ZAR 9.89.

Outlook and guidance

• FY 2025 revenue expected between ZAR 10–11 billion, with group-adjusted EBITDA of ZAR 900 million to ZAR 1 billion, implying over 30% growth.

• Q1 FY 2025 guidance: revenue ZAR 2.5–2.7 billion, adjusted EBITDA ZAR 160–180 million.

• Guidance includes Adumo acquisition, new interest expense on consumer loan book, and change in revenue recognition for Easyload.

• Medium-term objective to reduce net debt to adjusted EBITDA ratio to 2x.

• Updated medium-term financial objectives to be provided after Adumo acquisition closes in Q2 FY 2025.