Cookpad (2193) Q2 2024 earnings summary

Executive summary

• Sales revenue for the six months ended 30 June 2024 was ¥3,018 million, down 27.9% year-over-year, mainly due to a decline in premium memberships and loss of revenue from discontinued operations.

• Operating income turned positive at ¥442 million, compared to a loss of ¥2,645 million in the prior year period, driven by significant cost reductions.

• Net profit attributable to shareholders was ¥747 million, reversing a loss of ¥2,405 million a year earlier.

• Comprehensive income reached ¥1,572 million, reflecting both net profit and favorable foreign exchange impacts.

• Focus remains on making everyday cooking enjoyable through technology and product development, with profits reinvested into future initiatives.

Financial highlights

• SG&A expenses dropped 60.3% year-over-year, mainly due to a 70.1% reduction in personnel expenses and a 60.1% decrease in headcount.

• Cash and cash equivalents stood at ¥11,953 million as of 30 June 2024, down ¥70 million from year-end 2023.

• Share buybacks totaled ¥2,053 million, contributing to a decrease in total equity.

• Earnings per share (basic) was ¥8.44, compared to a loss per share of ¥24.40 in the prior year period.

• 2Q 2024 sales revenue fell 26.0% year-over-year to ¥1,479 million.

Outlook and guidance

• No specific full-year earnings forecast was provided due to uncertainties and the need for flexible estimates amid changing business conditions.

• Ongoing investments will be aligned with external environment changes.