June 10, 2022 | |
Company name: | RAKSUL INC. |
Representative: | Yasukane Matsumoto |
Representative Director, President and CEO | |
(TSE Prime Market Code No. 4384) | |
Contact: | Yo Nagami |
Director, CFO |
Announcement of revision of consolidated financial forecast
After reviewing recent business trends, RAKSUL INC. (the "Company") has decided to revise the consolidated financial forecast for the fiscal year ending July 31, 2022, which was announced on Februrary 1, 2022, as follows.
The Company also expects to record deferred tax assets for the fourth quarter of the fiscal year ending July 31, 2022, as the Company resolved to transfer the Hacobell (logistics platform) business through company split and establish a joint venture (the "JV") as per "Notice on Establishment of a Joint Venture with Seino Holdings Co., Ltd. through a Company Split (Simplified Incorporation-type Company Split), Transfer of Shares and Capital Increase by Third Party Allotment of the New Subsidiary" disclosed today.
1. Revision of consolidated financial forecast for FY2022 (August 1, 2021 - July 31, 2022)
non-GAAP | Ordinary | Net Profit | |||||
Gross | Operating | Attribute to | Earnings | ||||
Revenue | Operating | Profit | |||||
Profit | Profit | Owners of | per Share | ||||
Profit | (Loss) | ||||||
Parent | |||||||
Previously | In JPY | In JPY | In JPY | In JPY | In JPY | In JPY | In JPY |
announced forecast | MM | MM | MM | MM | MM | MM | |
(A) | 35,600 | 10,200 | 330 | 1,440 | (210) | 320 | 11.06 |
~36,600 | ~10,600 | ~380 | ~1,540 | ~ (160) | ~370 | ~12.78 | |
Revised forecast | 33,400 | 9,600 | 330 | 1,440 | (250) | 880 | 30.00 |
(B) | ~33,800 | ~9,800 | ~380 | ~1,540 | ~ (200) | ~930 | ~32.00 |
Difference (B-A) | (2,200) | (600) | - | - | (40) | 560 | 18.94 |
~ (2,800) | ~ (800) | ~ (40) | ~560 | ~19.22 | |||
Difference in | (6.2) | (5.9) | - | - | (19.0) | 151.4 | 150.4 |
percentage (%) | ~ (7.7) | ~ (7.5) | ~ (25.0) | ~175.0 | ~171.2 | ||
Notes:
- Non-GAAPprofits are calculated by deducting or adjusting non-recurring items and other specific adjustable items from GAAP profits (Japan GAAP) based on certain rules. We disclose non-GAAP figures as we believe they are useful in understanding our fundamental business performance. Specifically, we adjust certain one-off profits and losses that we deem deductible (mainly stock-based compensation expenses).
- Results for the previous year ended July 31, 2021 is not shown as consolidated accounting was introduced from the third quarter of the fiscal year ending July 31, 2022.
2. Reasoning for the revision of forecast
For the revenue of the current fiscal year, we expected to see a decrease from the previously announced figures. The Raksul segment has been affected by the external environment as semi-state of emergency COVID-19
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measures were continuously extended, while the revenue from Novasell segment decreased as demand from startup companies, our main customers of this segment, weakened resulting from changes in the financing environment. Regarding profits, as we have been focused on improving gross margins in each business, we expect the gross profit, which is the source of enrterprise value, to be ¥9.6 billion - ¥9.8 billion. This is mainly due to growth of SaaS profits and profit contribution from DANBALL ONE. Inc. ("DANBALL ONE"), which became our wholly owned subsidiary in February 2022.
Based on our continuous efforts on cost management with a stronger focus on return on investment for SG&A expenses, we expect the EBITDA (non-GAAP) to be ¥1.44 billion - ¥1.54 billion and the operating profit to be ¥330 million - ¥380 million, the same level as the previously announced forecast.
The figures for ordinary profit and below include the equity method investment gains and losses as we prepared consolidated financial statements retrospectively from the beginning of the fiscal year due to the commencement of consolidated accounting in the middle of the fiscal year, as well as the valuation gain (gain on step acquisition) of DANBALL ONE due to the additional acquisition as per previous announcement. It also factors in the recording of deferred tax assets as described in section 3 below.
Notes:
- The forecasts presented are based on the information currently available to the Company. The actual results may differ depending on a range of factors.
- For further details, please refer to "Financial Results for the 3rd Quarter of Fiscal Year Ending July 31, 2022" (excerpts below) diclosed today.
FY2022 Full-year | FY2021 Full-year | Financial Implications | ||||||
(2021/8-2022/7) | (2020/8-2021/7) | |||||||
FY2022 Full-Year | Disclosed on 2022/2 | Non- | Gross profit | |||||
Revised | Previously | YoY | Continuous achievement of more | |||||
Difference | consolidated | |||||||
Announced | ||||||||
Consolidated Forecast | (in JPY Bn) | Forecast | Forecast | Result | than 35% gross profit growth while | |||
maintaining EBITDA Margin | ||||||||
Revenue | 33.4 - 33.8 | 35.6 - 36.6 | -7.7%- -6.2% | 25.5 | +31% - +32% | |||
■ Although both revenue and gross profit | Gross Profit | 9.6 - 9.8 | 10.2 - 10.6 | -7.5%- -5.9% | 7.09 | +35% - +38% | Gross Margin | |
has been revised downward by around | Companywide gross margin is | |||||||
expected to improve to around | ||||||||
6% from the February forecast due to | Gross Margin | 28.7% - 29.0% | 28.7% - 29.0% | +0.0pt - +0.1pt | 27.8% | +1.0pt - +1.2pt | 29%, driven by pricing of | |
continuously extension of semi-state of | organic business and the | |||||||
acquisition of DANBALL ONE as | ||||||||
emergency COVID-19 measures and | EBITDA | 1.44 - 1.54 | 1.44 - 1.54 | - | 1.03 | +40% - +49% | a wholly owned subsidiary | |
other changes in the macro | (non-GAAP) | |||||||
environment, we will continue to | Operating Profit | 1.0 - 1.1 | 1.0 - 1.1 | - | 0.83 | +20% - +32% | EBITDA (non-GAAP) | |
achieve strong growth of more than | (non-GAAP) | Operating Profit (non-GAAP) | ||||||
Profits are expected to be in line | ||||||||
30%. Profits are expected to be in line | ||||||||
Reference index | with the previous forecast; | |||||||
with the previous forecast | EBITDA | EBITDA (non-GAAP) growth to | ||||||
4.3% - 4.6% | 4.0% - 4.2% | +0.3pt - +0.3pt | 4.0% | +0.3pt - +0.5pt | exceed gross margin growth | |||
Margin | ||||||||
■ As for 4Q, a quiet period for all | ||||||||
EBITDA | ||||||||
businesses, revenue growth is expected | Around 4.2 | 4.3 - 4.4 | -4.5%- -2.3% | 2.98 | +41% | ROE | ||
(excl. Ad Spend, non-GAAP) | ||||||||
to be 39-45% YoY, gross profit growth | ROE is expected to land at | |||||||
Around 11% | 4.2 - 4.8% | +6.2pt - +6.8pt | 2.3% | +8.7pt | around 11% for the current | |||
to be 43-54% YoY, and EBITDA (non- | ROE (1) | |||||||
fiscal year | ||||||||
GAAP) to be around JPY 490-590MM | ||||||||
Notes | ||||||||
(1) As the fiscal year ending July 2022 is the first year of consolidation, the figures are calculated by dividing the forecast for Profit (loss) attributable to owners of the parent | 38 | |||||||
by the assumed amount of equity capital at the end of the fiscal year |
3. Recording of deferred tax assets
As a result of careful consideration of the recoverability of deferred tax assets based on the latest forecast of the Company and DANBALL ONE taking into account the JV announced today, we have decided to record deferred tax assets for the portion where recoverability is probable (including temporarily recoverable portion generated by the JV), and incorporate deferred tax assets of approximately ¥745 million as adjustments to income taxes (gain) in the fourth quarter of the fiscal year ending July 31, 2022.
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Raksul Inc. published this content on 10 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 June 2022 06:21:05 UTC.