Jelly Beans Group managed the hard part and missed the easier-looking one: in the three months to April, it returned to operating profit, but still ended with a net loss. The reason sits below the operating line, and a separate June cash-outflow disclosure means controls, not just growth, now deserve equal billing.
Revenue jumped to ¥1,801 million from ¥228 million a year earlier, while operating profit reached ¥46 million and ordinary profit ¥15 million. The lifestyle segment, which includes the core footwear business plus newer activities such as 361° stores and Gold Star's ice-cream business, generated ¥1,743 million of sales and ¥93 million of segment profit. Yet the group still reported a ¥36 million net loss. Jelly Beans separately said it booked a ¥31.16 million loan-loss allowance on operating-fund loans to a partner medical institution through JB Medical, and the quarter also carried ¥51 million in income taxes. That combination turned a small pretax profit into another loss.
Then came the post-quarter complication. On June 3, the company said, a third party posing as company personnel issued a false remittance instruction, and Jelly Beans transferred about ¥45 million from its account to an outside bank account. The company said it asked its bank for a reversal, consulted police the same day, underwent interviews on June 10 and planned to file a damage report on June 12. The final loss and any effect on the full-year outlook are still under review, although management also said it has enough liquidity and that operations and funding are not expected to be disrupted.
Jelly Beans left its full-year forecast unchanged and kept a going-concern note, saying the group still remains in a situation that raises material doubt because net losses persist despite the return to operating profit. That makes the collectability of group loans, payment approvals and what the company discloses next just as important as the jump in sales.