Bleach,Inc. Q2 FY2025 earnings call

• Core business strategy progress
  • Executed on medium-to-long-term growth foundation plans published in September 2024, focused on expanding product portfolio by actively investing in advertising for new products and categories
  • Reallocated marketer resources from existing products to new products to accelerate new product launches, successfully improving portfolio diversification and reducing dependence on single products or clients
• Key operational initiatives
  • Strengthened video advertising: Continued expansion of video advertising utilization on platforms including Meta and TikTok, conducted platform validation and user insight analysis, driving sales growth centered on the daily necessities and cosmetics category
  • Increased team size: Average marketer headcount grew from 78 to 85 from the prior period, with expanded talent recruitment and enhanced marketer training programs
  • Improved operational cost structure: Selling, general and administrative expenses decreased year-over-year, as higher recruitment and training costs and increased office rent from August 2024 office expansion were offset by lower outsourcing fees following the end of initial listing-related contracts
• Financial performance
  • Total half-year revenue: 8.294 billion yen, +11.7% YoY
  • Advertising profit: 1.647 billion yen, +28.1% YoY, driven by growth from newly core products (pharmaceuticals and functional labeled foods) despite higher advertising spend
  • Operating profit: 186 million yen, +147 million yen YoY, achieving operating profit
  • Net income: 121 million yen, supported by lower non-operating expenses (no listing-related fees seen in the prior year)
  • Balance sheet: Net cash position reached 7.657 billion yen, equity ratio hit 70.9%, maintaining strong financial health; cash and cash equivalents increased 173 million yen YoY to 9.802 billion yen

New product segment: Total revenue for the half-year period was 8.294 billion yen, with new product segment revenue reaching 2.382 billion yen, driven by successful launches of functional labeled foods, pharmaceuticals, online medical care, and human resources recruitment categories. The number of core products (average monthly revenue ≥ 10 million yen) increased from 13 year-over-year to 22, and the number of A-rank products (average monthly revenue ≥ 100 million yen) held at 4, with A-rank product revenue growing from 1.9 billion yen in Q1 to 2.3 billion yen in Q2. Existing product segment: Existing products saw a revenue decline due to resource reallocation to new products and negative external environment impacts, but this decline was fully offset by growth from the new product segment.

• Management does not disclose formal full-year or second half performance guidance at this time
• The company will maintain its core focus on expanding new product lines to drive continued growth in total revenue and advertising profit
• Portfolio expansion has already delivered early results of more stabilized earnings
• The company is progressing with new business development and potential M&A activity in parallel, and will disclose updates at an appropriate future timing
• The company will use its abundant cash position to continue aggressive advertising investment for existing business growth, and invest in M&A and new businesses to build out a broader business portfolio

• Negative external environment conditions continue to pressure performance
• Reallocating resources to support new product development has caused a revenue decline in the existing product segment
• All earnings growth relies on the successful scaling of newly launched products and categories, which carries inherent execution and scaling risk

No formal Q&A section is included in the provided transcript.