Demae-Can (2484) investor relations material

Executive summary

• Strategic initiatives launched to expand the food delivery market, focusing on user growth, retention, and order frequency.

• Nationwide rollout of "Demae-can at Dine-in Price" and free shipping, driving significant order growth.

• Orders exceeded 100% year-over-year in March, with over 10,000 merchants participating; April saw expansion to 15,000+ merchants and resumed marketing, with double-digit order growth expected.

• Net sales for the six months ended February 28, 2026, decreased by 13.9% year-over-year to 17,979 million yen, reflecting a challenging food delivery market and changes in promotional cost accounting.

• Focused on improving service quality, optimizing costs, and introducing targeted coupons to enhance user engagement and transaction value.

Financial highlights

• Q2 FY8/2026 revenue was ¥9.0 billion, down ¥0.8 billion year-over-year (91% YoY).

• Net sales: 17,979 million yen (down 13.9% year-over-year).

• Operating loss widened to ¥1.5 billion in Q2 FY8/2026 and to 3,200 million yen for the six months, both increasing year-over-year.

• Gross profit margin improved to 5.4% in Q2 FY8/2026 from 2.4% in Q1.

• GMV for Q2 FY8/2026 was ¥37.5 billion, 85% of the previous year.

Outlook and guidance

• No change to FY8/2026 guidance; proactive investments in pricing, free shipping, and advertising to accelerate growth.

• Fiscal year ending August 31, 2026, forecasts: sales of 44,100 million yen (up 11.0%), operating loss of 4,000 million yen, ordinary loss of 3,990 million yen, and net loss of 4,000 million yen.

• No dividend is forecast for the fiscal year ending August 31, 2026.

• Earnings forecast under review to reflect recent developments; updates to be disclosed as needed.