Demae-Can (2484) Q4 2024 earnings summary

Executive summary

• FY8/2024 revenue reached ¥50,411 million, a 2.0% year-over-year decrease, with an operating loss of ¥5,991 million, significantly reduced from the prior year's ¥12,259 million loss.

• Ordinary loss improved to ¥5,853 million from ¥12,122 million year-over-year; net loss attributable to owners of parent was ¥3,705 million, down from ¥12,154 million.

• Strategic priorities for FY8/2024 progressed well, including transformation initiatives and a stock buyback.

• Revenue and operating income underperformed revised guidance due to lower order volumes and higher costs from hot weather.

• Gross profit margin improved to 23% due to cost optimization and controlled marketing expenses.

Financial highlights

• Total assets decreased to ¥47,943 million from ¥54,746 million year-over-year.

• Net assets fell to ¥36,548 million from ¥42,340 million year-over-year.

• Cash and cash equivalents at year-end were ¥34,511 million, down ¥6,395 million from the previous year.

• Net cash used in operating activities was ¥4,582 million, a significant improvement from ¥12,290 million used in the prior year.

• Active users declined to 5.42 million, 83% of the previous year.

• Orders totaled 70.32 million, 91% year-over-year.

• GMV reached ¥190.5 billion, 93% year-over-year.

Outlook and guidance

• FY8/2025 revenue guidance is ¥53.0 billion, a 5% increase year-over-year, with operating profit of ¥1.0 million expected.

• Operating income is expected to return to profitability in FY8/2025.

• Negative order trend anticipated to turn positive in the second half of FY8/2025, with new product releases scheduled.

• Continued investment in product and service improvements, with a focus on profitability and expense optimization.