Demae-Can (2484) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 FY8/2025 was ¥9.8bn, down ¥2.0bn year-over-year, with operating loss improving by ¥2.3bn to ¥0.9bn loss due to better unit economics and fixed cost optimization.

• Net sales for the six months ended February 28, 2025, decreased by 18.3% year-over-year to ¥20,873 million, reflecting a challenging market and changes in promotional cost accounting.

• Operating loss narrowed to ¥1,286 million from ¥4,394 million year-over-year, with ordinary loss at ¥1,338 million and net loss attributable to owners at ¥1,344 million.

• Introduction of "Targeting coupons" led to coupon costs being deducted from revenue, impacting reported figures from Q2 FY8/2025 onward.

• Focused on enhancing merchant lineup, improving delivery accuracy, and optimizing costs, including targeted marketing and coupon strategies.

Financial highlights

• Gross margin dropped to 11.5% in Q2 FY8/2025 from 24.0% (reference, before coupon deduction), reflecting the new coupon accounting.

• Gross profit declined to ¥4,238 million from ¥5,039 million year-over-year.

• Selling, general, and administrative expenses reduced to ¥5,524 million from ¥9,433 million year-over-year.

• Cash and cash equivalents at period end were ¥31,237 million, down ¥3,274 million from prior year.

• GMV for Q2 FY8/2025 was ¥44.3bn, down from ¥51.0bn year-over-year.

Outlook and guidance

• Strategic focus on maximizing user experience, improving unit economics, and establishing new revenue models to achieve positive profits.

• Full-year forecast for fiscal year ending August 31, 2025, remains unchanged: sales of ¥53,000 million, operating profit of ¥13 million, and EPS of ¥0.01.

• No dividend is planned for the fiscal year ending August 31, 2025.