Kanro Inc. Revises FY2026 Earnings Down 14% on Cost Pressures
Kanro Inc. (TSE:2216), a Japanese confectionery maker, has downwardly revised its full-year earnings forecast for the fiscal year ending December 2026, citing sustained inflationary pressures on raw materials and energy costs stemming from Middle East geopolitical tensions.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 36.5bn | JPY 36.5bn | +0.0% |
| Operating Profit | JPY 4.90bn | JPY 4.20bn | -14.3% |
| Ordinary Income | JPY 4.90bn | JPY 4.20bn | -14.3% |
| 親会社株主に帰属する当期純利益 | JPY 3.45bn | JPY 3.00bn | -13.0% |
| １株当たり当期純利益 | JPY 82M | JPY 71M | -13.1% |
The company maintained its revenue guidance at JPY 36.5bn, as second-half promotional initiatives and price increases are expected to offset first-half headwinds from warm weather depressing throat lozenge demand and slowing gummy market growth. However, operating profit and ordinary income (keijo rieki) both fell JPY 700M to JPY 4.20bn, while net profit declined JPY 450M to JPY 3.00bn. Earnings per share dropped to JPY 71.12/share from JPY 81.87/share. Management attributed the downward revision to cost inflation in packaging materials and energy that emerged in the second quarter and is expected to persist through year-end, outpacing margin gains from product price adjustments.
Despite the earnings cut, Kanro held its year-end dividend at JPY 18.00/share, signaling management confidence that cost pressures are temporary. The company believes revenue-boosting price increases will gain traction in the second half, enabling profitability recovery. Investors should monitor whether pricing power materializes and production efficiency improvements materialize as management guides.
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.