KANMONKAI Co., Ltd. Revises Earnings Forecast Down 31% on Cost Pressures
KANMONKAI Co., Ltd. (TSE:3372) has cut its full-year earnings guidance for the fiscal year ending March 2026, citing deteriorating consumer demand, rising input costs, and elevated labor expenses amid Middle East geopolitical tensions.
| Item | Before | After | Change |
|---|---|---|---|
| Consolidated Revenue | JPY 5.36bn | JPY 5.27bn | -1.6% |
| Operating Profit | JPY 265M | JPY 189M | -28.7% |
| Ordinary Income | JPY 230M | JPY 176M | -23.5% |
| Net Profit | JPY 180M | JPY 123M | -31.7% |
| EPS | JPY 13.14/share | JPY 9.03/share | -31.3% |
The restaurant operator attributed the downward revision to multiple headwinds: worsening Middle East conditions have dampened dining-out demand, while persistent inflation has weakened consumer sentiment. Raw material costs have surged, compressing gross margins, and the company faces mounting labor expenses due to recruitment difficulties and higher temporary worker wages. Additionally, KANMONKAI recorded special losses totaling JPY 37M, comprising JPY 31M in asset impairment charges and JPY 6M in fixed asset disposal losses. The company also took a JPY 11M deferred tax asset write-down.
The 28.7% decline in operating profit and 31.7% drop in net profit signal material margin compression across the business. Rising advertising and digital marketing costs (SEO/MEO) have further pressured profitability. International investors should note that ordinary income (keijo rieki)—a Japan-specific metric capturing non-operating financial items—fell 23.5%, indicating the earnings weakness extends beyond core operations. The guidance revision reflects a challenging operating environment for Japan’s restaurant sector, with demand uncertainty likely to persist through the fiscal year.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.