Raksul (4384) Q4 2024 earnings summary

Executive summary

• Achieved full-year revenue growth of 24.6% YoY and gross profit growth of 39.8% YoY, with EBITDA up 44.6% to JPY 4.54Bn, exceeding the upwardly revised forecast.

• Six M&As executed in FY2024, driving cross-selling, higher gross margins, and segment expansion.

• ROE improved to 15.8%, progressing toward a mid- to long-term target of over 20%.

• Q4 saw revenue up 24.5% YoY, gross profit up 43.8% YoY, and EBITDA of JPY 990MM, with one-time expenses totaling JPY 0.48Bn.

• Continued focus on "Quality Growth" with sustained gross profit and EBITDA expansion.

Financial highlights

• FY2024 revenue: JPY 51.1Bn (+24.6% YoY); gross profit: JPY 17.2Bn (+39.8% YoY); EBITDA: JPY 4.55Bn (+44.6% YoY); net profit (non-GAAP): JPY 3.53Bn (+40.3% YoY); EPS: JPY 60.5 (+17.2 YoY).

• Q4 revenue: JPY 13.56Bn (+24.5% YoY); gross profit: JPY 4.57Bn (+43.8% YoY); EBITDA: JPY 990MM (+52.6% YoY).

• Gross margin improved to 33.6% for the year (+3.6pt YoY).

• Raksul segment revenue grew 24.8% YoY; Novasell segment declined 5.8% YoY.

• Net debt to EBITDA ratio at 0.3x, indicating strong financial flexibility.

Outlook and guidance

• FY2025 revenue forecast: JPY 61.0–63.0Bn (+19.3–23.2% YoY); gross profit: JPY 21.0–22.0Bn (+22.1–28.0% YoY); EBITDA: JPY 5.5–6.0Bn (+20.9–31.9% YoY).

• Operating profit (J-GAAP): JPY 3.2–3.7Bn (+26.8–46.6% YoY); non-GAAP: JPY 4.7–5.2Bn (+19.6–32.3% YoY).

• Net profit growth expected to be moderate due to absence of extraordinary gains seen in FY2024.

• Medium-term targets for FY2027: gross profit JPY 30Bn, EBITDA JPY 10Bn, driven by organic growth and M&A.

• Q1 FY2025 revenue expected to grow 25–30% YoY, with gross profit up 30–35% YoY.