Lesaka Technologies Reveals Profitability Milestones for FY 2025

Lesaka Technologies Achieves FY 2024 Profitability Goals

Lesaka Technologies, Inc. (NASDAQ: LSAK; JSE: LSK) has released positive financial results for the fourth quarter (Q4 2024) and for the fiscal year ending June 30, 2024 (FY 2024). The company experienced substantial growth, with revenue increasing by 11% in South African Rand (ZAR), reaching ZAR 10.6 billion, equivalent to $564.2 million.

Impressive Growth Across Key Financial Metrics

In FY 2024, Lesaka reported significant improvements in operational income, with a shift from a loss of ZAR 275.3 million (FY 2023) to an operating income of ZAR 67.3 million. This turnaround reflects an operating income of $3.6 million for the fiscal year. Additionally, the company’s net loss improved by 48% year-over-year, dropping from ZAR 629.2 million to ZAR 326.1 million. GAAP loss per share also reflected improvement, decreasing by 49% to ZAR 5.07.

• Fundamental earnings per share (non-GAAP) improved markedly to $0.06 (ZAR 1.06), highlighting a solid recovery from a fundamental loss per share of $0.15 (ZAR 2.66) in FY 2023.
• The Merchant Division reported a revenue increase of 12%, reaching ZAR 9.3 billion ($498.3 million), while the Consumer Division enjoyed a remarkable 15% increase in revenue, reaching ZAR 1.3 billion ($69.2 million), backed by a 361% surge in Segment Adjusted EBITDA to ZAR 274.2 million.
• Importantly, the net debt to Group Adjusted EBITDA ratio improved significantly to 2.5 times from the previous year’s 4.5 times, indicating enhanced financial health.

Quarterly Performance Highlights for Q4 2024

During Q4 2024, Lesaka continued its upward trajectory with a 9% revenue increase in ZAR compared to Q4 2023, achieving ZAR 2.7 billion ($146.0 million). Operating income also saw an increase to ZAR 5.6 million, contrasting with an operating loss of ZAR 124.3 million from the same quarter last year. The company recorded an impressive 58% reduction in net loss, amounting to ZAR 93.2 million.

Future Outlook for FY 2025

Looking ahead, Lesaka’s chairman, Ali Mazanderani, announced that the company is targeting a Group Adjusted EBITDA for FY 2025 of between ZAR 900 million and ZAR 1 billion. This ambitious target indicates the company’s commitment to increasing profitability as they build upon their recent successes.

Focus onConsumer and Merchant Growth

Lesaka's Chief Executive Officer for Southern Africa, Lincoln Mali, expressed enthusiasm about the Consumer Division’s performance, emphasizing its role as a critical contributor to profit and cash flow. The integration of acquisitions such as Adumo and Touchsides with existing fintech solutions is expected to further empower both consumers and merchants in Southern Africa.

Financial Guidance for Q1 and FY 2025

For the first quarter of FY 2025 (ending September 30, 2024), Lesaka anticipates revenue between ZAR 2.5 billion and ZAR 2.7 billion, alongside a targeted Group Adjusted EBITDA ranging from ZAR 160 million to ZAR 180 million. The guidance for the full fiscal year ending June 30, 2025, estimates revenue between ZAR 10 billion and ZAR 11 billion, highlighting strong anticipated growth in the company’s market performance.

Frequently Asked Questions

What financial milestone did Lesaka Technologies achieve in FY 2024?

Lesaka Technologies achieved significant revenue growth of 11%, totaling $564.2 million.

What challenges did Lesaka face in FY 2023?

Lesaka faced substantial operating losses in FY 2023 amounting to $15.3 million, but turned this around in FY 2024.

What is the projected revenue for Lesaka in FY 2025?

Lesaka aims for FY 2025 revenue between ZAR 10 billion and ZAR 11 billion, indicating strong growth potential.

How did the Consumer Division perform in FY 2024?

The Consumer Division reported a remarkable 15% revenue increase and a Segment Adjusted EBITDA growth of 361%.

What acquisitions are influencing Lesaka's growth strategy?

The integration of Adumo and Touchsides is central to Lesaka's growth strategy, enhancing its fintech solutions.

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