Demae-Can (2484) Q3 2024 earnings summary

Executive summary

• Q3 FY8/2024 GMV reached JPY 46.8 billion, up 93% year-over-year, with 17.21 million orders and 5.58 million active users, reflecting strong platform engagement.

• Net sales for the nine months ended May 31, 2024, decreased 0.8% year-over-year to ¥38,114 million, with operating loss narrowing to ¥5,198 million from ¥10,746 million.

• Service quality and delivery experience improved, with late deliveries reduced to less than 5% and average delivery times consistently below 30 minutes.

• Quick commerce service on Yahoo! Shopping is set to launch this summer, expanding last-mile delivery capabilities.

• Focus remained on enhancing user, rider, and merchant satisfaction and service quality.

Financial highlights

• Revenue for Q3 FY8/2024 was JPY 12.56 billion, 96% of the prior year, while operating expenses decreased to 89% of the previous year.

• Gross margin improved to 27% due to optimized delivery costs and cost controls.

• Operating loss reduced to ¥5,198 million from ¥10,746 million year-over-year.

• Net loss attributable to owners of parent was ¥5,046 million, down from ¥10,699 million.

• Approximately 80% of orders contributed positive profit, and fixed cost ratio declined, strengthening financial structure.

Outlook and guidance

• Dynamic pricing to be introduced this winter to optimize service pricing and stabilize unit economics.

• Press release scheduled for early August regarding the Yahoo! Shopping quick commerce launch.

• Revised FY24 forecast: sales JPY 51.0 billion, operating loss JPY 12.2 billion, net loss JPY 12.1 billion.

• Forecasts for FY2024: sales ¥51,000 million, operating loss ¥5,500 million, net loss ¥3,300 million, EPS ¥(24.97).

• No dividend is planned for FY2024.