Lesaka Technologies Hits Profitability Targets for FY 2024
Lesaka Technologies, Inc. (NASDAQ: LSAK; JSE: LSK) has just announced encouraging financial results for the fourth quarter (Q4 2024) and the fiscal year ending June 30, 2024 (FY 2024). The company saw robust growth, with revenue rising by 11% in South African Rand (ZAR) to reach ZAR 10.6 billion, which equals $564.2 million.
Strong Growth in Key Financial Figures
In FY 2024, Lesaka reported notable advancements in operational income, bouncing back from a loss of ZAR 275.3 million in FY 2023 to an operating income of ZAR 67.3 million. This marks an operating income of $3.6 million for the year. Furthermore, the company's net loss also showed considerable improvement, decreasing by 48% year-over-year, from ZAR 629.2 million down to ZAR 326.1 million. The GAAP loss per share improved as well, dropping by 49% to ZAR 5.07.
- Fundamental earnings per share (non-GAAP) saw a significant boost, increasing to $0.06 (ZAR 1.06) after recovering from a fundamental loss per share of $0.15 (ZAR 2.66) in FY 2023.
- The Merchant Division noted a 12% rise in revenue, reaching ZAR 9.3 billion ($498.3 million). Meanwhile, the Consumer Division achieved an impressive 15% revenue increase, totaling ZAR 1.3 billion ($69.2 million), supported by a remarkable 361% jump in Segment Adjusted EBITDA to ZAR 274.2 million.
- Most importantly, the ratio of net debt to Group Adjusted EBITDA improved significantly to 2.5 times from 4.5 times in the previous year, signifying enhanced financial health.
Q4 2024 Performance Highlights
In Q4 2024, Lesaka maintained its positive momentum with a 9% revenue increase in ZAR compared to Q4 2023, hitting ZAR 2.7 billion ($146.0 million). Operating income increased to ZAR 5.6 million, a stark contrast to an operating loss of ZAR 124.3 million in the same quarter last year. Additionally, the company recorded an impressive 58% reduction in net loss, amounting to ZAR 93.2 million.
A Look Ahead: FY 2025
As they look to the future, Lesaka’s chairman, Ali Mazanderani, shared that the company is aiming for Group Adjusted EBITDA in FY 2025 to be between ZAR 900 million and ZAR 1 billion. This ambitious target reflects the company's dedication to enhancing profitability as they build on their recent achievements.
Emphasis on Consumer and Merchant Growth
Lincoln Mali, Lesaka's Chief Executive Officer for Southern Africa, expressed excitement about the performance of the Consumer Division, underlining its vital role in driving profit and cash flow. He noted that the integration of acquisitions like Adumo and Touchsides with existing fintech solutions is set to further empower both consumers and merchants in Southern Africa.
Financial Projections for Q1 and FY 2025
Looking forward to the first quarter of FY 2025 (ending September 30, 2024), Lesaka expects revenue between ZAR 2.5 billion and ZAR 2.7 billion. They also target Group Adjusted EBITDA to range from ZAR 160 million to ZAR 180 million. For the entire fiscal year ending June 30, 2025, projected revenue is set between ZAR 10 billion and ZAR 11 billion, indicating strong anticipated growth in the company’s market performance.
Frequently Asked Questions
What financial milestone did Lesaka Technologies achieve in FY 2024?
Lesaka Technologies saw a significant revenue increase of 11%, totaling $564.2 million.
What challenges did Lesaka face in FY 2023?
In FY 2023, Lesaka dealt with considerable operating losses amounting to $15.3 million, but successfully turned this around in FY 2024.
What is the projected revenue for Lesaka in FY 2025?
Lesaka is aiming for revenue between ZAR 10 billion and ZAR 11 billion in FY 2025, indicating strong growth potential.
How did the Consumer Division perform in FY 2024?
The Consumer Division experienced a remarkable 15% revenue growth alongside a 361% increase in Segment Adjusted EBITDA.
What acquisitions are influencing Lesaka's growth strategy?
The integration of Adumo and Touchsides plays a crucial role in Lesaka's growth strategy, enhancing their fintech solutions.
