CERES INC.

Business Details

Comprised of "Point," centered on Japan's largest point site "Moppy" and the company's proprietary affiliate program "AD.TRACK," and "D2C," which plans, manufactures, and sells cosmetics, health foods, and similar products. This core segment accounts for approximately 93% of consolidated net sales, and the company aims to build a vertically integrated business model extending from Moppy's media strength through to D2C. Horizontal deployment of the operational know-how of "Point Income," whose business was acquired in the previous consolidated fiscal year, is also progressing.

Recent Overview

Sharp increase in revenue and profit driven by strong Moppy performance and Point Income contribution, while D2C struggled

In the first quarter of FY2026 (ending December 2026), the Mobile Services Business recorded net sales of ¥8,882 million (up 18.1% year on year) and segment profit of ¥2,320 million (up 50.7% year on year), a substantial increase in both revenue and profit. Moppy's membership reached 6.75 million (up 14.4% year on year), with the pace of growth accelerating, and profit margins also improved due to strengthened collaboration with AD.TRACK. Point Income, whose business was acquired in the previous fiscal year, also contributed to revenue growth through the horizontal deployment of operational know-how. On the other hand, the D2C business saw lower revenue and profit due to struggling sales of its core product, "Pitsole."

Key Products

Growth Drivers

• Continued increase in active membership through Moppy's large-scale awareness campaigns (6.75 million as of end-March 2026, up 14.4% year on year)
• Improved profit margins through strengthened collaboration with AD.TRACK (segment profit margin of 26.1%, an improvement of 5.6 percentage points year on year)
• Expansion of domestic point media market share and horizontal deployment of Moppy's operational know-how through the acquisition of the "Point Income" business
• Expansion of the smartphone advertising market, driven by the spread of cashless payments and point-based activities
• Expansion of the value of the vertically integrated business model extending from Moppy's media strength through to D2C
• D2C business synergies with SQUIZ (operator of the "Oops" online medical consultation series), which became a subsidiary on April 1, 2026 as a subsequent event

Risks

• Risk of struggling sales of the core D2C product "Pitsole" and inventory valuation loss risk
• Risk of slowing growth in active membership and usage rates due to intensifying competition among point sites
• Cash flow pressure due to an increase in point-related provisions (¥7,733 million as of end-March 2026, up ¥737 million from end-December 2025)
• Risk of delays in PMI for "Point Income" and impairment risk related to goodwill (¥2,127 million as of end-March 2026)
• PMI risk and uncertainty regarding the amount of goodwill arising from SQUIZ (acquisition cost of ¥3,600 million), which became a subsidiary as a subsequent event