Message to investors

GMO Pepabo, Inc. Representative Director and CEO

We would like to extend our best wishes to all our shareholders. We are very grateful for their continued support and understanding.

During the fiscal year ended December 31, 2023, the results achieved by our recurring businesses, including Lolipop!, a rental server service, and Color Me Shop, an e-commerce site creation service, were positive and strong. This is attributable to the effect of price revisions. On the other hand, impacted by changing consumption trends due to resumed economic activities, the gross merchandise values of SUZURI, an original goods creation and sale service, and minne, one of Japan’s largest handmade products markets, were lower than in the previous year.

On the profit front, FREENANCE, a financial support business, posted a loss due to bad debt-related expenses for receivables in arrears recorded in the first half of the fiscal year.

As a result, consolidated net sales increased 3.5% year on year to 10,900 million yen while an operating loss of 340 million yen was posted. As we have posted a loss attributable to owners of parent, we will not be paying year-end dividends. We sincerely apologize to our shareholders.

In the fiscal year ending December 31, 2024, we expect that we will earn profits from our recurring businesses, such as Lolipop! and Color Me Shop. Moreover, we will continue to take steps to enhance the gross merchandise values of SUZURI and minne, which will contribute to better outcomes.

Reflecting the above, our targets are consolidated net sales of 10,900 million yen and operating profit of 700 million yen.

Finally, we would like to ask our shareholders for their continued support and guidance, as we will strive to achieve sustained growth and increase corporate value, so that our shareholders can invest in us with a sense of security.

*The above year-on-year comparisons are calculated based on retroactively adjusted figures for the fiscal year ended December 31, 2021, by applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc.

Kentaro Sato
Representative Director and CEO
GMO Pepabo, Inc.