Infomart 2492

インフォマート

Recent Updates

2022-05-02

Q1 FY12/22 flash update

2022-03-15

Full-Year FY12/21 report update

2022-02-16

Full-year FY12/21 flash update

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Shiodome Shiba Rikyu Building 1-2-3 Kaigan, Minato-ku Tokyo, Japan 105-0022

https://www.infomart.co.jp/index.asp

03-5776-1147

Summary

Infomart aims to establish itself as a platform by offering apps designed to enhance operational efficiency through B2B Platform Ordering for the food industry and B2B Platform Invoicing for general corporations.

Internet Software & ServicesSoftware

Key dates

2012-02-14

Coverage initiation

Full Report

2022-05-02

Q1 FY12/22 flash update

2022-05-02

Full-year FY12/21 flash update

2022-02-16

Q3 FY12/21 flash update

2021-10-29

Q2 FY12/21 flash update

2021-07-30

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Executive summary

Business

Infomart Corporation is a provider of online platforms for commercial transactions mainly to the food industry. It receives a monthly system usage fee from customers based on a fixed price or pay-per-use plan as well as a system set-up fee from new customers. The company has a stable earnings base, because monthly system usage fees account for around 95% of sales and churn rates are low. Whereas some upfront spending such as system development expenses arise before services are launched, the business model ensures high marginal profit rates after the service goes live. In FY12/21, sales were JPY9.8bn (+12.1% YoY), operating profit was JPY1.0bn (-30.0% YoY), and operating profit margin was 10.5% (16.8% in FY12/20). The company operates in two segments: B2B Platform Food and B2B Platform ES.

B2B Platform Food: Sales of JPY7.0bn (71.2% of total sales), operating profit of JPY2.2bn, and operating profit margin of 30.9%. In this segment, Infomart provides online platforms that connect restaurant operators (both restaurant chains and independent restaurants) with wholesalers. Key platforms include B2B Platform Ordering (an online platform that links restaurant companies with wholesalers, and wholesalers with food manufacturers) and B2B Platform Standards Database (a platform of manufacturers’ food standards for processed foods converted to a database for use by wholesalers and restaurant companies). B2B Platform Ordering must be adopted by buyers and sellers of food ingredients to function, and its convenience increases in tandem with growth in the user base (network effect). Excluding special circumstances such as discontinued operations, cancellations are rare because platform users risk losing suppliers or sales channels when they cancel their contract.

B2B Platform ES: Sales of JPY2.8bn (28.8% of total sales) and an operating loss of JPY1.1bn. In this segment, Infomart operates platforms to digitize invoices, contracts, and other documents for companies across all business industries. Key platforms include B2B Platform Invoicing (a platform for easy issue, receipt, and management of electronic invoices), B2B Platform Matching (a one-stop service for finding buyers and sellers, negotiating prices, price estimates, ordering, and payments), and B2B Platform Contract (a platform for conclusion, management, workflow, and internal authorization of contracts between companies in electronic form and controlled centrally online).

Growing user base: As of end-December 2021, B2B Platform users totaled 679,684 companies (+30.1% YoY) and 1,309,477 offices (+26.8% YoY). In FY12/21, the total transaction value for the company’s platforms reached JPY18.5tn (+45.3% YoY). As of end-December 2021, the core B2B Platform Ordering service facilitated orders between 3,439 buyer companies (restaurants, hotel chains, and other parties procuring food ingredients) (+8.0% YoY, penetration rate of roughly 45%), and 40,120 seller companies (manufacturers and wholesalers) (+5.8% YoY, penetration rate of roughly 55%). However, a survey sent by the company to food wholesalers in 2021 revealed that roughly 80% of orders are still conducted via telephone or fax. As of end-December 2021, B2B Platform Invoicing users totaled 670,528 companies (+30.7% YoY), and the service is also attracting users outside of the food industry. At the same time, B2B Platform Contract, a relatively new service launched in 2018, had signed up 27,296 users (number of companies logging in; +103.3% YoY).

Trends and outlook

In FY12/21, Infomart reported sales of JPY9.8bn (+12.1% YoY), operating profit of JPY1.0bn (-30.0% YoY), and net income attributable to owners of the parent of JPY539mn (-46.9% YoY). Sales in the B2B Platform Food segment were up 4.7% YoY, as new starts by buyer companies seeking to use cloud-based management systems for B2B Platform Ordering and B2B Platform Standards Database services increased, resulting in higher system usage fees from buyer companies. Sales in the B2B Platform ES segment were up 36.0% YoY, driven by an increase in the number of companies under paid contract for the company's B2B Platform Invoicing service. Operating profit declined due to an increase in personnel expenses and higher data center expenses stemming from an expansion of the company's server infrastructure and the implementation of disaster recovery measures.

The company's FY12/22 forecast calls for sales of JPY11.0bn (+11.7% YoY), operating profit of JPY100mn (-90.3% YoY), and net income attributable to owners of the parent of JPY43mn (-92.0% YoY). Infomart forecasts sales in the B2B Platform Food segment to rise 8.8% YoY. The company looks for an increase in system usage fees due to an expansion in the number of companies using the B2B Platform Ordering service, as more companies are adopting digital technology in the food industry. In the B2B Platform ES segment, the company expects sales to grow 18.8% YoY, aided by revisions to the Electronic Books Maintenance Act and the launch of a new invoice system. The company anticipates operating profit to drop 90.3% YoY on an increase in personnel expenses and higher data center expenses stemming from the expansion of the company's server infrastructure and the implementation of disaster recovery measures.

In February 2022, Infomart unveiled a medium-term business plan calling for FY12/26 sales of JPY20.0bn and operating profit of JPY5.0bn. The two pillars of the plan are "aggressive investment to fuel growth" and "accelerated diversification of earnings sources." The plan looks for overall sales to expand at a CAGR of 16% in the five years through FY12/26, breaking down into CAGRs of 8% for the B2B Platform Food segment (B2B Platform Ordering 5%, B2B Platform Ordering Light 10%) and 30% for the B2B Platform ES segment (B2B Platform Invoicing 35%).

Strengths and weaknesses

Shared Research sees the company’s strengths as market dominance, a robust earnings structure supported by monthly usage fees, and solid financials. We think its weaknesses are small size, cost of launching new services, and yet to become an industry standard. (See the Strengths and weaknesses section for details.)

Key financial data

Income statement				FY12/13	FY12/14	FY12/15	FY12/16	FY12/17	FY12/18	FY12/19	FY12/20	FY12/21	FY12/22
(JPYmn)				Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Est.
Sales				4,339	4,980	5,633	6,155	6,709	7,640	8,541	8,777	9,836	10,986
	YoY			14.7%	14.8%	13.1%	9.3%	9.0%	13.9%	11.8%	2.8%	12.1%	11.7%
Gross profit				2,849	3,835	4,104	4,340	4,311	5,233	6,252	6,083	6,208	5,954
	YoY			15.0%	34.6%	7.0%	5.8%	-0.7%	21.4%	19.5%	-2.7%	2.1%	-4.1%
	Gross profit margin			65.7%	77.0%	72.9%	70.5%	64.2%	68.5%	73.2%	69.3%	63.1%	54.2%
SG&A expenses				1,754	1,890	2,009	2,383	2,545	2,880	3,782	4,611	5,177	5,854
	YoY			5.5%	7.7%	6.3%	18.6%	6.8%	13.2%	31.3%	21.9%	12.3%	13.1%
	SG&A ratio			40.4%	37.9%	35.7%	38.7%	37.9%	37.7%	44.3%	52.5%	52.6%	53.3%
Operating profit				1,095	1,945	2,095	1,957	1,766	2,354	2,470	1,472	1,031	100
	YoY			34.3%	77.7%	7.7%	-6.6%	-9.8%	33.3%	4.9%	-40.4%	-30.0%	-90.3%
	Operating profit margin			25.2%	39.1%	37.2%	31.8%	26.3%	30.8%	28.9%	16.8%	10.5%	0.9%
Recurring profit				1,107	1,962	2,041	1,947	1,752	2,336	2,460	1,458	1,022	41
	YoY			35.8%	77.2%	4.0%	-4.6%	-10.0%	33.4%	5.3%	-40.7%	-29.9%	-96.0%
	Recurring profit margin			25.5%	39.4%	36.2%	31.6%	26.1%	30.6%	28.8%	16.6%	10.4%	0.4%
Net income				631	1,178	1,309	1,205	384	1,553	1,695	1,014	539	43
	YoY			27.1%	86.6%	11.1%	-7.9%	-68.1%	304.3%	9.2%	-40.2%	-46.9%	-92.0%
	Net margin			14.5%	23.7%	23.2%	19.6%	5.7%	20.3%	19.8%	11.6%	5.5%	0.4%
Per-share data (split-adjusted; JPY)
Shares outstanding (year-end; mn)				236.3	241.4	259.4	259.4	228.6	228.6	228.6	228.6	228.6
EPS (JPY)				2.72	4.97	5.35	4.65	1.59	6.80	7.41	4.44	2.36	0.19
EPS (fully diluted; JPY)				2.62	4.97	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Dividend per share (JPY)				1.33	2.42	2.94	2.95	3.27	3.67	3.71	3.71	1.43	0.18
Payout ratio				48.9%	48.8%	55.0%	63.5%	206.3%	54.0%	50.0%	83.6%	60.6%	94.0%
Book value per share (JPY)				13.8	16.7	36.3	38.0	41.5	44.9	48.6	49.4	49.6
Balance sheet (JPYmn)
	Total current assets			1,786	2,233	7,205	6,490	6,652	7,995	9,054	8,811	9,144
			Cash and deposits	620	801	5,601	4,863	5,116	6,338	7,268	7,056	6,915
			Accounts receivable	1,036	1,277	1,441	1,494	1,413	1,538	1,671	1,657	1,846
			Other	130	154	163	133	123	119	116	99	383
	Total fixed assets			3,202	3,457	3,841	4,936	4,527	4,136	3,889	4,205	4,600
		Tangible fixed assets		45	37	77	232	223	184	161	201	161
		Intangible assets		2,849	3,221	3,451	3,874	3,095	2,769	2,410	2,473	2,682
			Software	2,725	2,768	2,970	3,408	2,915	2,650	2,364	2,256	2,463
			Software in progress	109	438	466	453	168	103	32	205	205
			Other	15	15	14	12	12	16	14	13	14
		Investments and other assets		307	200	313	830	1,208	1,183	1,318	1,530	1,757
Total assets				4,988	5,690	11,046	11,426	11,179	12,130	12,943	13,016	13,744
	Total current liabilities			1,689	1,647	1,627	1,537	1,655	1,841	1,797	1,691	2,276
			Accounts payable	160	157	151	139	114	104	88	88	100
			Short-term debt	688	520	520	520	820	770	770	770	770
			Other	841	970	956	878	721	967	940	833	1,406
	Total fixed liabilities			13	13	4	28	28	28	28	31	42
			Long-term debt	-	-	-	-	-	-	-	-	-
			Other	13	13	4	28	28	28	28	31	42
Total liabilities				1,702	1,661	1,631	1,565	1,683	1,870	1,826	1,722	2,318
			Shareholders' equity	3,326	4,117	9,503	9,945	9,572	10,332	11,186	11,351	11,373
			Total valuation and translation adjustments	-68	-88	-89	-84	-77	-71	-69	-58	-37
			Non-controlling interests	28	-	-	-	-	-	-	-	89
Total net assets				3,286	4,029	9,414	9,861	9,495	10,261	11,118	11,294	11,425
Cash flow statement (JPYmn)
Cash flows from operating activities				1,710	1,878	2,078	2,394	2,529	3,113	2,678	1,982	1,678
	Pre-tax profit			1,077	1,929	2,038	1,789	570	2,216	2,240	1,409	808
	Depreciation			1,113	749	981	1,214	1,378	1,249	1,002	997	1,045
	Impairment loss			-	32	-	158	1,181	119	210	-	188
Cash flows from investing activities				-1,186	-1,145	-1,369	-2,398	-1,818	-1,047	-907	-1,343	-1,804
	Purchase of investment securities			8	4	3	4	-	-	-3	-50	-628
	Purchase of tangible fixed assets			-	-	26	-	-30	-28	-14	-67	-75
	Purchase of intangible assets			-	0	3	-	-1,788	-1,011	-787	-988	-1,181
	Other			-1,193	-1,149	-1,401	-2,402	-0	-8	-104	-238	79
Cash flows from financing activities				-491	-555	4,091	-733	-457	-843	-841	-849	-533
	Change in short-term borrowings			-	120	-	-	300	-50	-	-	-
	Change in long-term borrowings			-288	-288	-	-	-	-	-	-	-
	Dividends paid			-258	-443	-608	-733	-757	-793	-840	-849	-533
	Proceeds from issuance of shares			56	56	4,285	-	-	-	-	-	-
Financial ratios
Shareholders' equity				3,258	4,029	9,414	9,861	9,495	10,261	11,118	11,294	11,336
Total interest-bearing debt				688	520	520	520	820	770	770	770	770
Net cash				-68	281	5,081	4,343	4,296	5,568	6,498	6,286	6,145
ROE				20.6%	32.3%	19.5%	12.5%	4.0%	15.7%	15.9%	9.1%	4.8%
ROA (RP-based)				23.0%	36.8%	24.4%	17.3%	15.5%	20.0%	19.6%	11.2%	7.6%
Equity ratio				65.3%	70.8%	85.2%	86.3%	84.9%	84.6%	85.9%	86.8%	82.5%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.
Note: The company carried out 2-for-1 stock splits on January 1, 2014 (effective date), on January 1, 2015 (effective date), on January 1, 2017 (effective date), and on January 1, 2020 (effective date). Per share data above is adjusted for the stock splits.

Trends and outlook

Quarterly trends and results

Cumulative		FY12/20				FY12/21				FY12/22				FY12/22
(JPYmn)		Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	% of Est.	1H Est.
Sales		2,180	4,207	6,411	8,777	2,300	4,693	7,154	9,836	2,561				49.0%	5,227
	YoY	9.0%	2.7%	2.2%	2.8%	5.5%	11.6%	11.6%	12.1%	11.4%					11.4%
Gross profit		1,563	2,951	4,468	6,083	1,535	3,126	4,576	6,208	1,457				50.7%	2,874
	YoY	5.4%	-3.5%	-4.7%	-2.7%	-1.8%	5.9%	2.4%	2.1%	-5.1%					-8.1%
	Gross profit margin	71.7%	70.2%	69.7%	69.3%	66.7%	66.6%	64.0%	63.1%	56.9%					55.0%
SG&A expenses		1,078	2,202	3,415	4,611	1,151	2,419	3,667	5,177	1,273				44.9%	2,839
	YoY	30.5%	27.6%	29.5%	21.9%	6.8%	9.9%	7.4%	12.3%	10.6%					17.4%
	SG&A ratio	49.4%	52.3%	53.3%	52.5%	50.1%	51.5%	51.3%	52.6%	49.7%					54.3%
Operating profit		485	749	1,053	1,472	384	707	909	1,031	184				524.9%	35
	YoY	-26.1%	-43.7%	-48.7%	-40.4%	-20.8%	-5.7%	-13.7%	-30.0%	-52.1%					-95.0%
	Operating profit margin	22.2%	17.8%	16.4%	16.8%	16.7%	15.1%	12.7%	10.5%	7.2%					0.7%
Recurring profit		484	747	1,046	1,458	402	728	922	1,022	170				3,395.4%	5
	YoY	-26.1%	-43.4%	-48.7%	-40.7%	-16.9%	-2.6%	-11.9%	-29.9%	-57.8%					-99.3%
	Recurring profit margin	22.2%	17.8%	16.3%	16.6%	17.5%	15.5%	12.9%	10.4%	6.6%					0.1%
Net income		333	514	717	1,014	285	462	586	539	110				344.8%	32
	YoY	-44.6%	-51.4%	-53.8%	-40.2%	-14.4%	-10.2%	-18.3%	-46.9%	-61.3%					-93.1%
	Net margin	15.3%	12.2%	11.2%	11.6%	12.4%	9.8%	8.2%	5.5%	4.3%					0.6%
Quarterly		FY12/20				FY12/21				FY12/22				FY12/22
(JPYmn)		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	% of Est.	FY Est.
Sales		2,180	2,027	2,204	2,366	2,300	2,393	2,461	2,682	2,561				23.3%	10,986
	YoY	9.0%	-3.3%	1.3%	4.4%	5.5%	18.1%	11.7%	13.3%	11.4%					377.7%
Gross profit		1,563	1,389	1,517	1,614	1,535	1,591	1,450	1,632	1,457				24.5%	5,954
	YoY	5.4%	-11.8%	-7.0%	3.3%	-1.8%	14.6%	-4.4%	1.1%	-5.1%					287.9%
	Gross profit margin	71.7%	68.5%	68.8%	68.2%	66.7%	66.5%	58.9%	60.9%	56.9%					54.2%
SG&A expenses		1,078	1,124	1,214	1,196	1,151	1,268	1,248	1,510	1,273				21.8%	5,854
	YoY	30.5%	24.8%	33.2%	4.5%	6.8%	12.8%	2.8%	26.3%	10.6%					408.6%
	SG&A ratio	49.4%	55.4%	55.1%	50.5%	50.1%	53.0%	50.7%	56.3%	49.7%					53.3%
Operating profit		485	265	303	419	384	323	202	122	184				183.7%	100
	YoY	-26.1%	-60.8%	-57.9%	0.0%	-20.8%	22.1%	-33.3%	-70.9%	-52.1%					-73.9%
	Operating profit margin	22.2%	13.1%	13.8%	17.7%	16.7%	13.5%	8.2%	4.5%	7.2%					0.9%
Recurring profit		484	264	298	412	402	326	194	100	170				414.1%	41
	YoY	-26.1%	-60.4%	-58.4%	-2.3%	-16.9%	23.7%	-35.1%	-75.7%	-57.8%					-89.8%
	Recurring profit margin	22.2%	13.0%	13.5%	17.4%	17.5%	13.6%	7.9%	3.7%	6.6%					0.4%
Net income		333	181	203	297	285	177	124	-47	110				256.6%	43
	YoY	-44.6%	-60.4%	-59.0%	109.9%	-14.4%	-2.4%	-38.9%	-	-61.3%					-84.9%
	Net margin	15.3%	8.9%	9.2%	12.6%	12.4%	7.4%	5.0%	-	4.3%					0.4%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Results by segment

By segment			FY12/20				FY12/21				FY12/22				FY12/22
Cumulative (JPYmn)			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	% of Est.	1H Est.
Sales			2,180	4,207	6,411	8,777	2,300	4,693	7,154	9,836	2,561				49.0%	5,227
	YoY		9.0%	2.7%	2.2%	2.8%	5.5%	11.6%	11.6%	12.1%	11.4%					11.4%
	B2B Platform Food		1,713	3,253	4,935	6,688	1,657	3,360	5,108	7,000	1,807				48.7%	3,711
		YoY	5.6%	-1.7%	-2.1%	-2.0%	-3.3%	3.3%	3.5%	4.7%	9.0%					10.4%
		% of total	78.6%	77.3%	77.0%	76.2%	72.1%	71.6%	71.4%	71.2%	70.6%					71.0%
	B2B Platform ES		466	952	1,472	2,085	643	1,333	2,046	2,835	754				49.8%	1,515
		YoY	23.3%	21.2%	19.7%	22.0%	37.9%	40.0%	39.0%	36.0%	17.3%					13.7%
		% of total	21.4%	22.6%	23.0%	23.8%	27.9%	28.4%	28.6%	28.8%	29.4%					29.0%
	Other		11	22	34	45	3	4	4	4	-
		YoY	-0.1%	-0.1%	2.4%	0.9%	-69.1%	-84.0%	-89.4%	-91.9%	-
		% of total	0.5%	0.5%	0.5%	0.5%	0.2%	0.1%	0.0%	0.0%	0.0%
	Adjustments		-10	-20	-30	-41	-3	-4	-4	-4	-
Operating profit			485	749	1,053	1,472	384	707	909	1,031	184				524.9%	35
	YoY		-26.1%	-43.7%	-48.7%	-40.4%	-20.8%	-5.7%	-13.7%	-30.0%	-52.1%					-95.0%
	Operating profit margin		22.2%	17.8%	16.4%	16.8%	16.7%	15.1%	12.7%	10.5%	7.2%					0.7%
	B2B Platform Food		763	1,308	1,993	2,687	605	1,189	1,666	2,164	490				51.9%	944
		YoY	-6.3%	-21.8%	-22.1%	-20.3%	-20.7%	-9.1%	-16.4%	-19.5%	-19.1%					-20.6%
		Operating profit margin	44.5%	40.2%	40.4%	40.2%	36.5%	35.4%	32.6%	30.9%	27.1%					25.4%
		% of total	158.1%	175.6%	190.3%	183.6%	159.1%	169.6%	184.9%	212.2%	271.3%					2,551.4%
	B2B Platform ES		-280	-562	-945	-1,219	-221	-484	-760	-1,138	-310				-	-907
		YoY	-	-	-	-	-	-	-	-	-					-
		Operating profit margin	-60.0%	-59.0%	-64.2%	-58.4%	-34.5%	-36.3%	-37.1%	-40.1%	-41.1%					-59.9%
		% of total	-58.0%	-75.4%	-90.2%	-83.2%	-58.2%	-69.0%	-84.3%	-111.6%	-171.6%					-2,451.4%
	Other		-1	-1	-1	-5	-4	-5	-5	-6	1
		YoY	-	-	-	-	-	-	-	-	-
		Operating profit margin	-6.0%	-5.0%	-4.2%	-10.4%	-101.7%	-127.7%	-152.6%	-174.2%	-
		% of total	-0.1%	-0.1%	-0.1%	-0.3%	-0.9%	-0.6%	-0.6%	-0.6%	0.3%
	Adjustments		2	5	5	8	3	6	8	11	3
By segment			FY12/20				FY12/21				FY12/22				FY12/22
Quarterly (JPYmn)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	% of Est.	FY Est.
Sales			2,180	2,027	2,204	2,366	2,300	2,393	2,461	2,682	2,561				23.3%	10,986
	YoY		9.0%	-3.3%	1.3%	4.4%	5.5%	18.1%	11.7%	13.3%	11.4%					377.7%
	B2B Platform Food		1,713	1,540	1,683	1,753	1,657	1,703	1,748	1,893	1,807				23.7%	7,619
		YoY	5.6%	-8.8%	-2.8%	-1.9%	-3.3%	10.6%	3.9%	8.0%	9.0%					359.8%
		% of total	78.6%	76.0%	76.4%	74.1%	72.1%	71.2%	71.0%	70.6%	70.6%					69.4%
	B2B Platform ES		466	486	520	613	643	690	713	789	754				22.4%	3,367
		YoY	23.3%	19.3%	17.2%	27.8%	37.9%	41.9%	37.2%	28.7%	17.3%					423.9%
		% of total	21.4%	24.0%	23.6%	25.9%	27.9%	28.8%	29.0%	29.4%	29.4%					30.6%
	Other		11	11	12	11	3	0	0	0	-
		YoY	-0.1%	-0.1%	7.6%	-3.3%	-69.1%	-99.4%	-99.8%	-99.5%	-
		% of total	0.5%	0.5%	0.5%	0.5%	0.2%	0.0%	0.0%	0.0%	0.0%
	Adjustments		-10	-10	-10	-10	-3	-0	-0	-0	-
Operating profit			485	265	303	419	384	323	202	122	184				183.7%	100
	YoY		-26.1%	-60.8%	-57.9%	0.0%	-20.8%	22.1%	-33.3%	-70.9%	-52.1%					-73.9%
	Operating profit margin		22.2%	13.1%	13.8%	17.7%	16.7%	13.5%	8.2%	4.5%	7.2%					0.9%
	B2B Platform Food		763	545	686	694	605	584	477	498	490				25.7%	1,903
		YoY	-6.3%	-36.5%	-22.7%	-14.6%	-20.7%	7.1%	-30.4%	-28.3%	-19.1%					214.4%
		Operating profit margin	44.5%	35.4%	40.7%	39.6%	36.5%	34.3%	27.3%	26.3%	27.1%					25.0%
		% of total	158.1%	207.8%	226.5%	166.6%	159.1%	182.1%	238.7%	418.6%	271.3%
	B2B Platform ES		-280	-282	-383	-274	-221	-262	-276	-378	-310				-	-1,796
		YoY	-	-	-	-	-	-	-	-	-					-
		Operating profit margin	-60.0%	-58.0%	-73.6%	-44.7%	-34.5%	-38.0%	-38.7%	-47.9%	-41.1%					-53.3%
		% of total	-58.0%	-107.6%	-126.4%	-65.8%	-58.2%	-81.7%	-138.2%	-317.9%	-171.6%
	Other		-1	-0	-0	-3	-4	-1	-1	-1	1
		YoY	-	-	-	-	-	-	-	-	-
		Operating profit margin	-	-	-	-	-	-	-	-	-
		% of total	-0.1%	-0.2%	-0.1%	-0.8%	-0.9%	-0.3%	-0.5%	-0.7%	0.3%
	Adjustments		2	2	1	2	3	2	2	3	3

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Main management indicators

Overall B2B Platform			FY12/20				FY12/21				FY12/22
Cumulative (No. of companies)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
No. of user companies			412,391	437,615	475,619	522,576	566,446	604,568	641,129	679,684	716,260
	YoY		37.0%	33.3%	34.2%	34.8%	37.4%	38.2%	34.8%	30.1%	26.4%
No. of user locations			866,854	903,929	958,713	1,032,672	1,101,158	1,175,773	1,241,830	1,309,477	1,381,740
	YoY		27.2%	24.0%	24.3%	25.2%	27.0%	30.1%	29.5%	26.8%	25.5%

B2B Platform Food			FY12/20				FY12/21				FY12/22
Cumulative (No. of companies)			Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Ordering
Total number of user companies			39,858	40,210	40,591	41,117	41,593	42,396	43,048	43,559	44,082
	YoY		6.3%	5.4%	4.7%	4.7%	4.4%	5.4%	6.1%	5.9%	6.0%
	Buyers		3,132	3,101	3,123	3,185	3,230	3,298	3,360	3,439	3,509
		YoY	12.7%	7.6%	4.4%	3.9%	3.1%	6.4%	7.6%	8.0%	8.6%
	Sellers		36,726	37,109	37,468	37,932	38,363	39,098	39,688	40,120	40,573
		YoY	5.8%	5.2%	4.7%	4.8%	4.5%	5.4%	5.9%	5.8%	5.8%
Store count (buyers)			60,288	59,614	59,700	60,543	61,511	63,087	64,258	66,010	67,203
	YoY		10.9%	7.6%	5.0%	4.0%	2.0%	5.8%	7.6%	9.0%	9.3%
Standards Database
Total number of user companies			9,474	9,883	10,075	10,312	10,425	10,576	10,787	10,909	10,973
	YoY		10.1%	13.1%	12.7%	11.9%	10.0%	7.0%	7.1%	5.8%	5.3%
	Buyers		761	771	792	806	815	840	865	892	910
		YoY	14.3%	11.3%	10.6%	9.8%	7.1%	8.9%	9.2%	10.7%	11.7%
	Wholesalers		674	678	687	697	698	698	707	709	710
		YoY	8.4%	7.4%	5.5%	4.5%	3.6%	2.9%	2.9%	1.7%	1.7%
	Manufacturers		7,365	7,756	7,909	8,112	8,214	8,340	8,508	8,599	8,643
		YoY	10%	14%	14%	13%	12%	8%	8%	6%	5%

B2B Platform ES			FY12/20				FY12/21				FY12/22
Cumulative (No. of companies)			Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4	Q1	Q1–Q2	Q1–Q3	Q1–Q4
Invoicing
Total number of paid contracts			4,654	4,790	5,032	5,336	5,551	5,874	6,198	6,528	6,971
	YoY		20.2%	18.2%	18.4%	20.0%	19.3%	22.6%	23.2%	22.3%	25.6%
	Receiver model		3,197	3,253	3,361	3,514	3,640	3,834	4,026	4,192	4,435
		YoY	17.1%	14.4%	13.6%	13.9%	13.9%	17.9%	19.8%	19.3%	21.8%
	Issuer model		1,457	1,537	1,671	1,822	1,911	2,040	2,172	2,336	2,536
		YoY	27.5%	27.2%	29.3%	33.8%	31.2%	32.7%	30.0%	28.2%	32.7%
	No. of user companies (logins)		402,534	427,835	465,971	513,040	557,008	595,240	631,921	670,528	707,168
		YoY	38.5%	34.4%	35.4%	35.8%	38.4%	39.1%	35.6%	30.7%	27.0%
Contract
No. of user companies (logins)			5,424	8,241	10,697	13,426	16,751	20,289	23,496	27,296	31,344
	YoY		-	-	-	-	208.8%	146.2%	119.7%	103.3%	87.1%
Matching
No. of user companies			8,964	8,869	8,849	8,901	8,921	8,954	8,982	9,043	9,118
	YoY		1.1%	-0.6%	-1.5%	-0.7%	-0.5%	1.0%	1.5%	1.6%	2.2%
	Buyers		7,489	7,433	7,429	7,477	7,494	7,541	7,573	7,615	7,665
		YoY	3.6%	1.8%	0.4%	0.5%	0.1%	1.5%	1.9%	1.8%	2.3%
	Sellers		1,475	1,436	1,420	1,424	1,427	1,413	1,409	1,428	1,453
		YoY	-10.2%	-11.3%	-10.4%	-6.8%	-3.3%	-1.6%	-0.8%	0.3%	1.8%

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Q1 FY12/22 results (out April 28, 2022)

Overview

Sales: JPY2.6bn (+11.4% YoY)
Operating profit: JPY184mn (-52.1% YoY)
Recurring profit: JPY170mn (-57.8% YoY)
Net income attributable to owners of the parent: JPY110mn (-61.3％ YoY)

Results summary

Progress rate

Q1 progress versus the 1H FY12/22 company forecast was 49.0% for sales (49.0% of 1H FY12/21 results in Q1 FY12/21), 524.9% for operating profit (54.3%), 3,395.4% for recurring profit (55.2%), and 344.8% for net income attributable to owners of the parent (61.8%).

Against the full-year forecast, Q1 progress was 23.3% for sales (23.4% of FY12/21 results in Q1 FY12/21), 183.7% for operating profit (37.2%), 414.4% for recurring profit (39.3%), and 256.6% for net income attributable to owners of the parent (53.0%).

Sales

Sales were up 11.4% YoY to JPY2.6bn. In the B2B Platform Food segment, sales rose 9.0% YoY. Among users of the B2B Platform Ordering and B2B Platform Standards Database services, new starts by buyer companies seeking to use cloud-based management systems increased. As a result, system usage fees from buyer companies grew.

In the B2B Platform ES segment, sales grew 17.3% YoY. System usage fees rose, driven by the spread of teleworking and heightened interest in operational efficiency and adoption of digital technology among users of the B2B Platform Invoicing service.

As of end-Q1 FY12/22, B2B Platform users totaled 716,260 companies (+26.4% YoY) and 1,381,740 offices (+25.5% YoY).

Costs and profits

Operating profit fell 52.1% YoY to JPY184mn. Sales growth of JPY149mn in B2B Platform Food and JPY111mn in B2B Platform ES was absorbed by higher expenditures. Expense increases included data center costs (+JPY323mn) stemming from the expansion of the company’s server infrastructure to accommodate increased usage and the implementation of disaster recovery measures. Higher promotion expenses (+JPY40mn) and personnel expenses owing to the hiring of more sales and sales support staff (+JPY13mn) also weighed down the operating profit.

Segment results

B2B Platform Food segment

Sales: JPY1.8bn (+9.0% YoY)

Operating profit: JPY490mn (-19.1% YoY)

Sales rose 9.0% YoY to JPY1.8bn. In the B2B Platform Ordering service, system usage fees from buyer companies rose in line with an increase in new customer count among operators seeking to introduce cloud-based management systems. These included operators of izakaya (Japanese-style pubs), restaurants, hotels, meal services, and new services such as takeout and delivery. Seller companies benefited from the easing of restrictions associated with the COVID-19 pandemic. Transaction volumes of food materials and other goods rose, and system usage fees from seller companies (charged on a pay-per-use basis) improved YoY. Users of the B2B Platform Standards Database service grew, and system usage fees were up YoY.

The combined number of buyer and seller companies using the platform’s two services increased, with users of the B2B Platform Ordering service up 6.0% YoY to 44,082 companies and users of the B2B Platform Standards Database service rising 5.3% YoY to 10,973 companies.

Operating profit fell 19.1% YoY to JPY490mn.

B2B Platform ES segment

Sales: JPY754mn (+17.3% YoY)

Operating loss: JPY310mn (operating loss of JPY221mn in Q1 FY12/21)

Sales expanded 17.3% YoY to JPY754mn. In the B2B Platform Invoicing service, operational efficiencies, progress in digital transformation, and spread of teleworking led to an increase in new companies under paid contract, both on the receiving and issuing end of invoicing. New customers were not limited to the food industry but covered a wide range of industries. In addition, system usage fees rose as utilization (shift to electronic invoicing) steadily progressed.

The number of companies using the B2B Platform Invoicing service (those that log into the system) increased 27.0% YoY to 707,168 companies. Of this number, 4,435 (+21.8% YoY) were companies that have signed a paid contract on the receiving end, and 2,536 (+32.7% YoY) were those that have signed a paid contract on the issuing end.

The operating loss came to JPY310mn. This primarily reflected an increase in personnel expenses owing to the hiring of sales staff needed to expand the B2B Platform Invoicing service. Promotion expenses rose as well, as the company stepped up marketing initiatives.

FY12/22 company forecast

			FY12/20			FY12/21			FY12/22
(JPYmn)			1H	2H	FY	1H	2H	FY	1H Est.	2H Est.	FY Est.
Sales			4,207	4,570	8,777	4,693	5,143	9,836	5,227	5,759	10,986
	YoY		2.7%	2.9%	2.8%	11.6%	12.5%	12.1%	11.4%	12.0%	11.7%
	B2B Platform Food		3,253	3,434	6,687	3,360	3,640	7,000	3,711	3,908	7,619
		YoY	-1.7%	-2.4%	-2.1%	3.3%	6.0%	4.7%	10.4%	7.4%	8.8%
	B2B Platform ES		952	1,133	2,085	1,333	1,502	2,835	1,515	1,852	3,367
		YoY	21.2%	22.6%	22.0%	40.0%	32.6%	36.0%	13.7%	23.3%	18.8%
	Other		22	22	44	4	0	4
		YoY	-0.1%	-0.8%	-0.5%	-84.0%	-99.6%	-91.8%
Cost of sales			1,256	1,439	2,695	1,567	2,078	3,645	2,352	2,679	5,031
	YoY		20.7%	15.3%	17.7%	24.8%	44.4%	35.3%	50.1%	28.9%	38.0%
	B2B Platform Food		768	887	1,655	953	1,331	2,284	1,449	1,590	3,039
		YoY	18.1%	31.1%	24.7%	24.1%	50.1%	38.0%	52.0%	19.5%	33.1%
	B2B Platform ES		495	558	1,053	619	733	1,352	902	1,094	1,996
		YoY	26.0%	-3.3%	8.6%	25.1%	31.4%	28.4%	45.7%	49.2%	47.6%
	Other		16	17	33	-5	-3	-8
		YoY	-11.9%	7.3%	-2.9%	-	-	-
Gross profit			2,951	3,131	6,083	3,126	3,082	6,208	2,874	3,080	5,954
	YoY		-3.5%	-2.0%	-2.7%	5.9%	-1.6%	2.1%	-8.1%	-0.1%	-4.1%
	Gross profit margin		70.2%	68.5%	69.3%	66.6%	59.9%	63.1%	55.0%	53.5%	54.2%
	B2B Platform Food		2,484	2,548	5,032	2,406	2,309	4,715	2,262	2,322	4,584
		YoY	-6.6%	-10.3%	-8.5%	-3.1%	-9.4%	-6.3%	-6.0%	0.6%	-2.8%
		Gross profit margin	76.4%	74.2%	75.3%	71.6%	63.4%	67.4%	61.0%	59.4%	60.2%
	B2B Platform ES		456	575	1,031	713	769	1,482	612	758	1,370
		YoY	16.0%	66.2%	39.5%	56.4%	33.7%	43.7%	-14.2%	-1.4%	-7.6%
		Gross profit margin	47.9%	50.8%	49.4%	53.5%	51.2%	52.3%	40.4%	40.9%	40.7%
	Other		5	6	11	7	4	11
		YoY	25.0%	20.0%	22.2%	38.8%	-37.6%	-2.9%
		Gross profit margin	22.6%	27.4%	25.0%	38.8%	-37.6%	-2.9%
SG&A expenses			2,202	2,409	4,611	2,419	2,758	5,177	2,839	3,015	5,854
	YoY		27.6%	17.2%	21.9%	9.9%	14.5%	12.3%	17.4%	9.3%	13.1%
	SG&A ratio		52.3%	52.7%	52.5%	51.5%	53.6%	52.6%	54.3%	52.4%	53.3%
	B2B Platform Food		1,176	1,168	2,344	1,217	1,335	2,552	1,317	1,363	2,680
		YoY	19.4%	2.5%	10.3%	3.5%	14.3%	8.9%	8.2%	2.1%	5.0%
		SG&A ratio	36.2%	34.0%	35.1%	36.2%	36.7%	36.5%	35.5%	34.9%	35.2%
	B2B Platform ES		1,018	1,232	2,250	1,197	1,422	2,619	1,519	1,648	3,167
		YoY	39.1%	36.0%	37.4%	17.6%	15.4%	16.4%	26.9%	15.9%	20.9%
		SG&A ratio	106.9%	108.8%	107.9%	89.8%	94.7%	92.4%	100.3%	89.0%	94.1%
	Other		6	10	16	5	1	6
		YoY	-14.3%	-9.1%	-11.1%	-14.5%	-90.8%	-62.2%
		SG&A ratio	27.1%	45.7%	36.4%	-
Operating profit			749	722	1,472	707	324	1,031	35	65	100
	YoY		-43.7%	-36.6%	-40.4%	-5.7%	-55.2%	-30.0%	-95.0%	-79.9%	-90.3%
	Operating profit margin		17.8%	15.8%	16.8%	15.1%	6.3%	10.5%	0.7%	1.1%	0.9%
	B2B Platform Food		1,307	1,380	2,687	1,189	975	2,164	944	959	1,903
		YoY	-21.9%	-18.8%	-20.3%	-9.0%	-29.4%	-19.5%	-20.6%	-1.6%	-12.0%
		Operating profit margin	40.2%	40.2%	40.2%	35.4%	26.8%	30.9%	25.4%	24.5%	25.0%
	B2B Platform ES		-561	-657	-1,218	-484	-654	-1,138	-907	-889	-1,796
		YoY	-	-	-	-	-	-	-	-	-
		Operating profit margin	-	-	-	-	-	-	-	-	-
	Other		-1	-3	-4	-5	-2	-6
		YoY	-	-	-	-	-	-
		Operating profit margin	-	-	-	-

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.

Overview

Sales: JPY11.0bn (+11.7% YoY)
Operating profit: JPY100mn (-90.3% YoY)
Recurring profit: JPY41mn (-96.0% YoY)
Net income attributable to owners of the parent: JPY43mn (-92.0% YoY)

Initiatives: Infomart expects sales to decline in FY12/22, but it has positioned the year as a period of investment to accelerate sales growth over the medium term. Specifically, it plans to strengthen its server infrastructure in line with user growth to ensure reliable services. It also looks to invest in development and sales promotion to launch new services and refocus on existing fields.

Sales: The company forecasts sales in the B2B Platform Food segment to rise 8.8% YoY. The COVID-19 pandemic spurred the need for increasingly sophisticated management in the food industry through the adoption of digital technology. The company aims to properly respond to this demand and increase revenue from system usage fees by growing the number of companies using the B2B Platform Ordering service. The company also expects an increase in sales from seller companies using the B2B Platform Ordering service that are charged on a pay-per-use basis (charges are based on food transaction volume). In the B2B Platform ES segment, Infomart expects sales to grow 18.8% YoY. The company looks for sustained strong growth in the B2B Platform Invoicing service as companies are increasingly adopting digital technology in their operations, driven by greater use of teleworking, revisions to the Electronic Books Maintenance Act, and the upcoming launch of a new qualified invoice system in 2023.

Operating profit: The company forecasts a 53.2% YoY increase in data center costs as it will incur expenses related to the disaster recovery measures launched in July 2021 over the full year. It sees the increase in data center costs easing from FY12/23. The company also projects a 22.2% YoY increase in software amortization as a result of ongoing investment in software development. It looks for a 7.9% YoY increase in personnel expenses driven mainly by growth in sales staff. As a result of these expenditures, the company forecasts operating profit to drop 90.3% YoY to JPY100mn.

Cost projections

			FY12/18	FY12/19	FY12/20	FY12/21	FY12/22
(JPYmn)			Cons.	Cons.	Cons.	Cons.	Est.
Sales			7,640	8,541	8,777	9,836	10,986
		YoY	13.9%	11.8%	2.8%	12.1%	11.7%
Costs (cost of sales + SG&A expenses)			5,286	6,071	7,306	8,805	10,886
		YoY	6.9%	14.8%	20.3%	20.5%	23.6%
	Data center expenses		539	661	1,027	1,736	2,659
		YoY	-	22.6%	55.4%	69.0%	53.2%
	Software amortization		1,418	1,284	1,277	1,354	1,654
		YoY	-	-9.4%	-0.5%	6.0%	22.2%
	Commissions		448	343	389	536	717
		YoY	-	-23.4%	13.4%	37.8%	33.8%
	Personnel expenses		1,545	2,116	2,545	2,815	3,036
		YoY	-	37.0%	20.3%	10.6%	7.9%
	Promotion expenses		128	251	590	662	738
		YoY	-	96.1%	135.1%	12.2%	11.5%
	Other		1,208	1,416	1,478	1,702	2,082
		YoY	-	17.2%	4.4%	15.2%	22.3%
Operating profit			2,354	2,470	1,472	1,031	100
		YoY	33.3%	4.9%	-40.4%	-30.0%	-90.3%

Source: Shared Research based on company data

By segment

B2B Platform Food segment

Sales: JPY7.6bn (+8.8% YoY)
Operating profit: JPY1.9bn (-12.0% YoY)

The company forecasts sales of JPY7.6bn (+8.8% YoY). It plans to promote the digitization of transactions between restaurant operators and wholesalers in an effort to meet the needs of restaurant chains, outlets, and wholesalers. Specifically, it looks to increase the number of companies using the B2B Platform Ordering service, and expand related system usage fees. In addition, it forecasts an increase in sales from seller companies using the B2B Platform Ordering service that are charged on a pay-per-use basis (charges are based on food transaction volume).

B2B Platform ES segment

Sales: JPY3.4bn (+18.8% YoY)
Operating loss: JPY1.8bn (operating loss of JPY1.1bn in FY12/21)

The company forecasts sales of JPY3.4bn (+18.8% YoY). It looks for sustained strong growth in the B2B Platform Invoicing service driven by digital transformation (DX) amid growing adoption of telework, revisions to the Electronic Books Maintenance Act, and the launch of a new invoice system in 2023.

Outlook

Medium-term business plan

In February 2022, Infomart unveiled a new medium-term business plan calling for FY12/26 sales of JPY20.0bn and operating profit of JPY5.0bn. The two pillars of the plan are "aggressive investment to fuel growth" and "accelerated diversification of earnings sources."

Aggressive investment to fuel growth

The company will pursue collaborations with other companies and business acquisitions, and work to expand and solidify the value of its B2B platforms in the B2B Platform Food and B2B Platform ES segments. In the B2B Platform Invoicing service of the B2B Platform ES segment, the company intends to capture digital transformation (DX) needs driven by the new invoice system slated to be rolled out in October 2023. It will also aim to secure a favorable competitive position through aggressive investment in sales promotion to increase the number of companies that use its services, as well as in system development and personnel expansion.

Under the new invoice system, taxable business operators will be required to issue qualified invoices. Sellers in a transaction will need to provide such invoices if so requested by buyers, and buyers will in principle need to preserve the invoices received from sellers. Companies that still use an accounting system that does not support the new invoice system will need to either upgrade their existing system or adopt a new system.

Accelerated diversification of earnings sources

To diversify its earnings sources, the company will accelerate existing and new initiatives, jointly create new business models underpinned by a massive corporate member base with partners, and aim to make its services de-facto standard in various fields.

Numerical targets

As numerical targets, the plan calls for FY12/26 sales of JPY20.0bn and operating profit of JPY5.0bn. It looks for overall sales to grow at a CAGR of 16% in the five years through FY12/26, breaking down into CAGRs of 8% for the B2B Platform Food business (B2B Platform Ordering 5%, B2B Platform Ordering Light 10%) and 30% for the B2B Platform ES business (B2B Platform Invoicing 35%).

Business

Company overview

Infomart provides platforms for commercial transactions mainly to the food industry, receiving a monthly system usage fee from customers based on a fixed price or pay-per-use plan as well as a system set-up fee from new customers. The company has a stable earnings base, because monthly system usage fees account for around 95% of sales and churn rates are low.

In FY12/21, sales were JPY9.8bn and operating profit was JPY1.0bn. The company operates in two segments: B2B Platform Food (71.2% of sales in FY12/21) and B2B Platform ES (28.8%). The B2B platforms offered in each segment are as follows.

Main B2B platforms

Segment	Services	Overview
B2B Platform Food	B2B Platform Ordering	Platform that digitizes ordering operations between restaurants, wholesalers, and food manufacturers, contributing to significant efficiency gains over traditional ordering via telephone or fax. Also reduces cross-checking processes needed to share daily transaction data, and substantially reduces work to determine monthly settlement amounts.
	B2B Platform Standards Database	Management tool for allergens and food origin data that promotes safe and secure food. Improves efficiency by digitally managing product standards of different formats using a unified format.
B2B Platform ES	B2B Platform Invoicing	System that digitizes the issuance and receipt of invoices regardless of industry, and streamlines accounting operations.
	B2B Platform Contract	Platform that uses blockchain technology to digitize contracts between companies, and provides internal workflow functions, further improving the convenience of business dealings between companies and contributing to a reduction in paper usage.
	B2B Platform Matching	A matching website that facilitates online negotiations between nationwide food ingredient sellers and buyers, providing a one-stop service for finding buyers and sellers, negotiating prices, price estimates, ordering, and payments.

Source: Shared Research based on company data

Infomart was founded in 1998, listed on TSE Mothers in 2006, and had a listing change to TSE1 in 2015. The company had 613 employees (506 full-time and 107 part-time) at end-December 2021.

Business model

Provider of B2B platforms

Infomart provides platforms that digitize ordering and invoicing operations via the cloud. Its revenue model centers on monthly fees received for providing companies with services to improve the efficiency of B2B transactions. While the business requires substantial upfront software development costs, booked as intangible fixed assets on the balance sheet and then amortized, it offers a high marginal profit rate, because cost of sales is unlikely to increase once the service is launched. Infomart offers seven platforms, including Ordering, Standards Database, Invoicing, Matching, and Contract. Penetration rates are high in the food industry for B2B Ordering and Standards Database platforms, which are targeted at food industry*, and these platforms are becoming industry standards.

*The “food industry” refers to the food and retail industries, as well as some service businesses. Specifically, it refers to businesses involved in food manufacturing, sellers of local specialty products, agricultural and fishing cooperatives, wholesalers, producers, restaurants, hotels, ryokan (Japanese-style inns), supermarkets, retailers, department stores, and companies that handle side dishes and provide prepared meals and boxed lunches.

Cloud service, recurring revenue model

The B2B e-commerce platform’s features:
1) Cloud service offering online solutions for daily business transactions—since the system is intended to be general purpose, there is no need to customize it for individual customers who pay monthly fees to use the services online without having to build their own systems
2) A monthly fee-generating structure that provides a steady source of revenue for the company

Infomart’s business has additional features:
1) Provision of a “one-stop” service lets users use the four systems described above to develop new accounts, engage in business negotiations and transactions, place and receive orders, and settle accounts
2) Leverage of groupware to share information between the company and existing customer accounts to increase business efficiency

Segments and major system offerings (as of December 2021)

Source: Shared Research based on company data

B2B Platform Food business

In the B2B Platform Food business, Infomart operates platforms that include B2B Platform Ordering and B2B Platform Standards Database for customers in the restaurant industry. The company also offers Ordering and Standards Database as a package called Safe & Secure Food and Ordering.

B2B Platform Ordering

The B2B Platform Ordering business offers an ordering management system for the restaurant industry that processes orders and invoices between sellers and buyers via the cloud. The company has been increasing its market share, partly thanks to the addition of new clients introduced by alliance partners and existing customers. It wants to create a platform that grows on its own accord without requiring sales expenses.

BtoB-PF Ordering		FY12/12	FY12/13	FY12/14	FY12/15	FY12/16	FY12/17	FY12/18	FY12/19	FY12/20	FY12/21
(JPYmn)		Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.	Cons.
Sales		2,353	2,631	2,945	3,358	3,730	4,127	4,573	-	-	-
	YoY	13.6%	11.8%	11.9%	14.0%	11.1%	10.6%	10.8%	-	-	-
Gross profit		1,844	1,979	2,269	2,553	2,853	3,024	3,457	-	-	-
	YoY	17.1%	7.3%	14.7%	12.5%	11.8%	6.0%	14.3%	-	-	-
	Gross profit margin	78.4%	75.2%	77.1%	76.0%	76.5%	73.3%	75.6%	-	-	-
SG&A expenses		651	768	794	818	870	1,111	1,325	-	-	-
	YoY	22.6%	18.0%	3.4%	3.0%	6.4%	27.7%	19.3%	-	-	-
	SG&A ratio	27.7%	29.2%	27.0%	24.4%	23.3%	26.9%	29.0%	-	-	-
Operating profit		1,194	1,210	1,475	1,735	1,983	1,913	2,131	-	-	-
	YoY	14.3%	1.4%	21.8%	17.6%	14.3%	-3.5%	11.4%	-	-	-
	Operating profit margin	50.7%	46.0%	50.1%	51.7%	53.2%	46.4%	46.6%	-	-	-
Buyers (No. of companies)		1,082	1,265	1,458	1,706	2,026	2,356	2,690	3,064	3,185	3,439
Sellers (No. of companies)		21,842	24,046	26,356	28,240	29,895	31,939	34,095	36,196	37,932	40,120
Store count (buyers)		23,053	27,013	30,304	35,314	41,068	46,441	52,648	58,236	60,543	66,010

Source: Shared Research based on company data
Note: Figures may differ from company data due to differences in rounding methods.
Note: The company has not disclosed FY12/19 sales and operating profit data due to a change in segmentation.

Ordering system: benefits to clients

The system cuts costs by improving the efficiency of, and digitizing, ordering procedures between buyers placing orders (such as head offices and stores), and those product sellers receiving orders. The system can systemize and organize information on the status of sales and product stock, plus handle store management and accounts payable/receivable in real time.

Seeks to expand outside the restaurant industry

The Ordering System was launched in 2003 and experienced rapid growth with the segment becoming Infomart’s core business. The majority of buyers are restaurant chains and izakaya (Japanese-style pubs), but meal catering services, ready-made meal companies, hotels, wedding halls, golf courses, and other similar establishments are using the system too. Initially, the platform’s focus was on catering to chain operators with at least 15 restaurants. Thereafter, Infomart extended service coverage to small restaurant chains with as few as five establishments, as many such chains aim to digitize and streamline their operations. From 2020, it has extended service to companies operating even just one restaurant and is seeking to expand sales to hotels, meal-catering companies, and commercial facilities. Business expansion in these areas is steadily progressing.

System becoming de-facto standard for food wholesalers

Sellers on the system are general and specialized commercial food wholesalers. The system is becoming a de-facto industry standard as user numbers increase. Of the estimated 7,600 restaurant chains with five or more stores in Japan, 3,439 companies were using Infomart’s B2B Platform Ordering as of end-December 2021 for a penetration rate of roughly 45%. Of approximately 73,000 restaurant-related wholesalers, 40,120 companies were using the B2B Platform Ordering service as of end-December 2021 for a penetration rate of about 55%. However, a survey sent by the company to food wholesalers in 2021 revealed that roughly 80% of orders are still being conducted via telephone or fax.

Examples of companies using B2B Platform Ordering (chains with over 101 outlets, as of May 2021)