Generation Pass <3195> announced its consolidated financial results for the fiscal year ending October 2024 on the 13th. Revenue increased by 7.2% compared to the previous period to 16.235 billion yen, with operating profit at 0.081 billion yen (compared to a loss of 0.004 billion yen in the previous period), ordinary profit decreased by 69.0% to 0.022 billion yen, and the net loss attributable to parent shareholders was 0.138 billion yen (compared to a loss of 0.023 billion yen in the previous period).

In the EC marketing business, revenue increased by 3.6% compared to the previous period to 13.287 billion yen, and segment profit increased by 15.3% to 0.29 billion yen. By accurately capturing the changing consumer needs such as the established telecommuting and stay-at-home demand, and by continuously implementing various sales and introducing new lifestyle items, sales of Furniture, home appliances, and living goods have been progressing favorably, leading to an increase in revenue compared to the same period last year. Regarding profitability, although impacted by upfront investments in new businesses and rising procurement costs due to abrupt exchange rate volatility, increased revenue, the expansion of D2C product sales, and ongoing efforts to improve various profits, such as suppressing rising delivery costs and concentrating on partnered warehouses, resulted in increased profits compared to the same period last year.

In the Commodity ETF planning-related business, revenue increased by 30.6% to 2.899 billion yen, and segment profit increased by 78.1% to 0.082 billion yen. Although there was a shipping delay due to sluggish sales from clients in the first quarter, the shipment and delivery progressed after the cumulative period of the second quarter, and robust orders from Qingdao Xinzhang Textile Trade Co., Ltd. contributed to the increased revenue compared to the same period last year. In terms of profit, although there was a temporary decline in profit margins due to concentrated delivery times at Genepa Vietnam Co., Ltd. and strategically taking numerous small-lot orders to expand client relationships, overall operating profit for the business increased compared to the same period last year.

For the consolidated performance forecast for the fiscal year ending October 2025, revenue is expected to increase by 7.8% compared to the previous period to 17.5 billion yen, operating profit is expected to increase by 46.8% to 0.12 billion yen, ordinary profit is expected to increase by 438.4% to 0.12 billion yen, and net income attributable to parent shareholders is expected to be 0.09 billion yen.

As for the expected outlook, in the EC marketing business, aiming for accelerated growth in revenue, the focus will be on quickly bringing the new business, the USP project, to a fully operational phase, and in the existing mall-centric marketing business, it is anticipated that increasing the range of handled commodities and accelerating the introduction of D2C products will improve profit margins.

In the Commodity ETF planning-related business, efforts will be made to diversify sales destinations, and to respond to the increasing orders, production at the new base in Laos will start, while strengthening relationships with partnering suppliers will lead to ongoing growth. Additionally, there is a policy to focus on developing private label products within the company group.

For the financial exchange risk, measures will be implemented to reduce exchange rate volatility risks. Additionally, as significant impairment losses were recognized in the headquarters and overseas subsidiaries for the October 2024 period, an improvement in profit margins is expected from the next fiscal year onwards.