Raksul (4384) Q1 2025 earnings summary

Executive summary

• Q1 revenue grew 31% year-over-year to JPY 14,709 million, gross profit up 38.3%, and EBITDA reached a record JPY 1,531 million (+63% YoY), driven by organic growth and M&A synergies.

• Operating profit was JPY 1,360 million (non-GAAP) and net income JPY 819 million (non-GAAP), with cost synergies realized earlier than expected.

• Net profit attributable to owners of parent declined 65.2% YoY to JPY 431 million, reflecting a drop in bottom-line profitability despite strong top-line growth.

• Segment reporting was updated to Procurement Platform, Marketing Platform, and Other Businesses to address SME management issues with technology.

• Progress in Q1 exceeded historical averages, putting the company ahead of schedule for annual guidance.

Financial highlights

• Q1 FY2025 revenue: JPY 14,709 million (+31% YoY); gross profit: JPY 5,062 million (+38.3% YoY); EBITDA: JPY 1,531 million (+63.1% YoY); operating profit: JPY 1,360 million (+64.8% YoY); net income: JPY 819 million (-46.3% YoY due to prior year one-time gain).

• Gross margin improved by 1.8pt YoY to 34.4%.

• EBITDA margin exceeded 30% for the first time.

• Revenue CAGR since IPO is 27.7%, gross profit CAGR 34%, and EBITDA CAGR 62%.

• Earnings per share dropped to JPY 7.42 from JPY 21.27 YoY.

Outlook and guidance

• Q2 revenue growth expected to continue at similar rates; Procurement Platform to grow ~20% YoY, Marketing Platform revenue expected to be flat YoY.

• Q2 EBITDA projected to decline slightly due to one-time expenses and investments in new initiatives.

• Full-year EBITDA guidance is JPY 5.5–6 billion; on track to achieve four-year guidance, with 27.8% of EBITDA target already met.

• FY2025 net sales forecast is JPY 61,000–63,000 million, up 19.3–23.2% YoY; operating profit projected at JPY 3,200–3,700 million.

• Mid-term targets for FY2027: gross profit JPY 30 billion, EBITDA JPY 10 billion.