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- Strong revenue growth of 19% in ZAR for Q1 2024
- Return to operating profitability with an operating profit of $0.2 million (ZAR 4.2 million)
- Net loss narrowed by 42% in ZAR
- Group Adjusted EBITDA improved by 108% compared to Q1 2023
- Continued growth in the Merchant Division and fourth consecutive quarter of profitability for the Consumer Division
- None.
Performance highlights for Q1 2024:
-
Revenue of
$136.1 million ZAR 2.5 billion )1 in Q1 2024, compared to$124.8 million ZAR 2.1 billion )1 for the first quarter ended September 30, 2022 (“Q1 2023”). In South African Rand (“ZAR”) revenue grew19% , driven by strong year-on-year growth in both the Merchant and Consumer Divisions. -
A return to operating profitability with Operating Profit of
$0.2 million ZAR 4.2 million ) for the quarter, improving from an Operating Loss of$4.7 million ZAR 80.0 million ) in Q1 2023, driven by the turnaround in the Consumer Division and growth in the Merchant Division. -
The Net Loss continued to narrow, at
$5.7 million ZAR 105.6 million )1. This compares to a net loss of$10.7 million ZAR 183.2 million )1 in Q1 2023 and represents a42% improvement in ZAR. -
Group Adjusted EBITDA, a non-GAAP measure and reconciled in Attachment B, of
$8.7 million ZAR 162.5 million )1 representing an improvement of108% compared to the Q1 2023 Group Adjusted EBITDA of$4.2 million ZAR 71.9 million )1. In ZAR Group Adjusted EBITDA increased by126% . -
Continued year-on-year growth in profitability in the Merchant Division, delivering Segment Adjusted EBITDA of
$8.1 million ZAR 150.2 million )1 in Q1 2024 compared to$7.9 million ZAR 135.2 million ) in Q1 2023, an increase of11% in ZAR. The outlook remains positive as the Merchant business extends its footprint in Southern Africa’s informal market. -
The Consumer Division reported its fourth consecutive quarter of profitability, delivering Segment Adjusted EBITDA of
$2.5 million ZAR 46.6 million )1 in Q1 2024, compared to a loss of$1.4 million ZAR 23.9 million )1 in Q1 2023. With the divisional turnaround complete, initiatives to grow the Consumer Division are yielding positive results with revenue increasing13% in ZAR, off a reduced cost base and in a challenging operating environment. -
Continued momentum in achieving positive net cash provided by operating activities of
$3.4 million ZAR 63.2 million ) in Q1 2024, compared to net cash used in operating activities of$7.7 million ZAR 131.2 million ) in Q1 2023. - Guidance for fiscal 2024 re-affirmed.
(1) Average exchange rates applicable for the quarter:
Lesaka Group CEO Chris Meyer said: “It has been yet another encouraging quarter for us. We achieved a major milestone by returning to profitability at an operating level for the quarter.”
Mr. Meyer added, “In a tough economic environment the continued growth in all our key revenue drivers demonstrates the resilience of our business model and the relevance of our services to our customers. We will continue to innovate and extend the positive impact we are having on the lives of South Africa’s small merchants and grant beneficiaries as the digitalization trend in the informal economy continues.”
Full release and webcast details at https://ir.lesakatech.com/.
The discussion of our consolidated overall results of operations is based on amounts as reflected in our unaudited condensed consolidated financial statements which are prepared in accordance with
Use of Non-GAAP Measures
Below is the reconciliation between our GAAP measure and our non-GAAP measures.
|
FY24 Q1 |
FY23 Q4 |
FY23 Q1 |
FY24 Q1 |
FY23 Q4 |
FY23 Q1 |
||||||||||||
For the quarter |
$’000 |
$’000 |
$’000 |
ZAR’000 |
ZAR’000 |
ZAR’000 |
||||||||||||
Average exchange rate for conversion from ZAR to $ |
18.71 |
|
18.74 |
|
17.13 |
|
18.71 |
|
18.74 |
|
17.13 |
|
||||||
Loss attributable to Lesaka – GAAP |
(5,651 |
) |
(11,909 |
) |
(10,696 |
) |
(105,635 |
) |
(223,192 |
) |
(183,231 |
) |
||||||
Loss from equity accounted investments |
1,405 |
|
2,535 |
|
2,617 |
|
26,657 |
|
47,509 |
|
44,831 |
|
||||||
Net loss before loss from equity-accounted investments |
(4,246 |
) |
(9,374 |
) |
(8,079 |
) |
(78,978 |
) |
(175,683 |
) |
(138,400 |
) |
||||||
Income tax (benefit) expense |
264 |
|
(1,844 |
) |
31 |
|
4,825 |
|
(34,560 |
) |
532 |
|
||||||
Loss before income tax expense |
(3,982 |
) |
(11,218 |
) |
(8,048 |
) |
(74,153 |
) |
(210,243 |
) |
(137,868 |
) |
||||||
Reversal of allowance for doubtful EMI loans receivable |
(250 |
) |
- |
|
- |
|
(4,741 |
) |
- |
|
- |
|
||||||
Net loss (gain) on disposal of equity-accounted investment |
- |
|
12 |
|
(248 |
) |
- |
|
225 |
|
(4,248 |
) |
||||||
Impairment loss |
- |
|
7,039 |
|
- |
|
- |
|
131,921 |
|
- |
|
||||||
Unrealized loss FV for currency adjustments |
102 |
|
179 |
|
- |
|
1,947 |
|
3,355 |
|
- |
|
||||||
Operating income/(loss) after PPA amortization and net interest (non-GAAP) |
(4,130 |
) |
(3,988 |
) |
(8,296 |
) |
(76,947 |
) |
(74,742 |
) |
(142,116 |
) |
||||||
PPA amortization (amortization of acquired intangible assets) |
3,608 |
|
3,590 |
|
3,928 |
|
67,266 |
|
67,266 |
|
67,267 |
|
||||||
Operating income/(loss) before PPA amortization after net interest (non-GAAP) |
(522 |
) |
(398 |
) |
(4,368 |
) |
(9,681 |
) |
(7,476 |
) |
(74,849 |
) |
||||||
Interest expense |
4,909 |
|
5,159 |
|
4,036 |
|
91,429 |
|
96,687 |
|
69,140 |
|
||||||
Interest income |
(449 |
) |
(584 |
) |
(411 |
) |
(8,368 |
) |
(10,945 |
) |
(7,041 |
) |
||||||
Operating income/(loss) before PPA amortization and net interest (non-GAAP) |
3,938 |
|
4,177 |
|
(743 |
) |
73,380 |
|
78,266 |
|
(12,750 |
) |
||||||
Depreciation (excluding amortization of intangibles) |
2,248 |
|
2,203 |
|
2,070 |
|
41,900 |
|
41,303 |
|
35,482 |
|
||||||
Stock-based compensation charges |
1,759 |
|
1,354 |
|
1,462 |
|
32,797 |
|
25,376 |
|
25,045 |
|
||||||
Lease adjustments |
696 |
|
651 |
|
812 |
|
12,961 |
|
12,201 |
|
13,910 |
|
||||||
Once-off items |
78 |
|
64 |
|
598 |
|
1,465 |
|
1,199 |
|
10,245 |
|
||||||
Group Adjusted EBITDA (non-GAAP) |
8,719 |
|
8,449 |
|
4,199 |
|
162,503 |
|
158,345 |
|
71,932 |
|
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107247751/en/
Investor Relations Contacts:
Phillipe Welthagen
Email: phillipe.welthagen@lesakatech.com
Mobile: +27 84 512 5393
FNK IR: Rob Fink / Matt Chesler, CFA
Email: lsak@fnkir.com
Media Relations Contact:
Janine Bester Gertzen
Email: janine@thenielsennetwork.com
Source: Lesaka Technologies, Inc.
FAQ
What were Lesaka Technologies, Inc.'s (LSAK; LSK) Q1 2024 revenue and operating profit?
How did the net loss compare between Q1 2024 and Q1 2023 for Lesaka Technologies, Inc.?
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What is the Group Adjusted EBITDA for Lesaka Technologies, Inc. in Q1 2024?
How did the Merchant Division and the Consumer Division perform in Q1 2024 for Lesaka Technologies, Inc.?
