Demae-Can (2484) Q1 2025 earnings summary

Executive summary

• Q1 FY8/2025 revenue was 11.0bn yen, down 1.1bn yen year-over-year, with operating loss improving by 0.9bn yen to -0.4bn yen due to better unit economics and cost optimization.

• Net sales for the three months ended November 30, 2024, decreased by 8.7% year-over-year to ¥11,048 million, with an operating loss of ¥400 million, significantly reduced from a ¥1,256 million loss in the prior year.

• Gross profit margin improved to 28.1% from 22.7% year-over-year, driven by cost of sales optimization and controlled marketing expenses.

• Focused on improving service fundamentals and user experience to reverse negative order trends in the second half.

• Expansion of the "Yahoo! Quick Mart" service increased member stores and delivery coverage to 43 prefectures as of November 2024.

Financial highlights

• Revenue declined 9% year-over-year to 11.0bn yen, in line with FY8/2025 guidance.

• Operating loss narrowed to ¥400 million from ¥1,256 million year-over-year; ordinary loss was ¥462 million, down from ¥1,209 million.

• Net loss attributable to owners was ¥465 million, compared to ¥1,211 million in the prior year.

• Operating expenses reduced to 86% of prior year, supporting profitability improvement.

• Comprehensive income loss improved to ¥465 million from ¥1,192 million.

Outlook and guidance

• FY8/2025 revenue guidance set at 53.0bn yen, with Q1 progress at 21%.

• Full-year forecast for FY2025 remains unchanged: sales of ¥53.0 billion (up 5.1% year-over-year) and operating profit of ¥1.0 billion.

• Targeting a return to positive operating profit for the full year.

• No dividends are forecast for the fiscal year ending August 31, 2025.