At its earnings briefing for the second quarter of the fiscal year ending February 2027, BASE FOOD,Inc. explained that net sales rose 16.7% year on year to ¥4.37 billion, including ¥2.85 billion from direct-to-consumer e-commerce, up 14.4%, ¥1.12 billion from wholesale, up 18.2%, and ¥40 million from overseas operations, down 36.0%. The company also said that, with an operating loss of ¥10 million, there was no current outlook for a return to profitability.
At the earnings briefing, the company reported net sales of ¥4.37 billion for the second quarter of the fiscal year ending February 2027, representing year-on-year growth. Direct-to-consumer e-commerce generated ¥2.85 billion, up 14.4% year on year, wholesale generated ¥1.12 billion, up 18.2%, and sales through other e-commerce platforms were ¥340 million, up 54.5%, making the main channels the drivers of growth. Overseas sales, meanwhile, fell 36.0% year on year to ¥40 million, with the company explaining that lower promotional spending and its strategy for launching in the Chinese market were factors. The operating loss was ¥10 million, with a margin of -0.3%, and was described as being in line with the planned loss trajectory. The company also explained that investments related to SBIR are expected to be recovered through the recognition of subsidies in the following fiscal year. These initiatives are expected to contribute to profit from the third quarter onward.
Under its mission of “innovating staple foods and making health the norm,” the company said it would continue strengthening its growth strategy as it marks its 10th anniversary. It outlined a long-term vision of achieving taste and price points comparable to those of conventional bread by improving both product quality and costs, increasing production speed, and refining its formulations and supply chain. The company emphasized a strategy of diversifying sales channels, centered on highly efficient advertising investments and expanding the number of subscription customers as sources of profit from the second quarter onward.
The company said it would seek to restore sales growth across all channels, including direct-to-consumer e-commerce, wholesale, convenience stores, and supermarkets. It described initiatives aimed at encouraging continued customer use and acquiring new customers by strengthening its product portfolio through the renewal of BASE BREAD Chocolate, large-scale promotions, and the launch of the LITE series. Going forward, the company plans to stabilize profitability while restoring its sales growth rate through promotional campaigns such as television commercials and the development of in-house advertising capabilities using AI.