Morozoff Limited Revises Earnings & Dividend Forecast Down Sharply
Morozoff Limited (TSE:2217) has significantly downgraded its earnings and dividend guidance for fiscal 2027 (ending January 31, 2027), citing raw material cost inflation and operational headwinds.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 16.4bn | JPY 16.2bn | -1.1% |
| Operating Profit | JPY 450M | JPY 70M | -84.4% |
| Ordinary Income | JPY 480M | JPY 170M | -64.6% |
| 親会社株主に帰属する中間純利益 | JPY 370M | JPY 70M | -81.1% |
| １株当たり中間純利益 | JPY 18M | JPY 3M | -81.1% |
For the full fiscal year, the confectionery maker cut operating profit guidance by 60.3% to JPY 520M and ordinary income (keijo rieki)—a Japan-specific metric combining operating profit with non-operating items—by 54.1% to JPY 620M. Net profit attributable to parent shareholders fell 62.3% to JPY 290M. The company also reduced full-year earnings per share to JPY 14.45/share from JPY 38.34/share.
Management attributed the downgrade to Valentine’s Day sales shifting earlier than expected into the prior fiscal period, summer season weakness due to weather, and sharply elevated naphtha-derived raw material costs. Additional pressures include accelerated depreciation from the new Funabashi factory and rising logistics expenses. Cost-reduction initiatives including price adjustments and product redesign proved insufficient to offset these headwinds.
The dividend cut reflects the earnings deterioration: annual payout reduced to JPY 10.00/share from JPY 16.00/share, comprising an interim dividend of JPY 5.00/share and year-end dividend of JPY 5.00/share. Despite the reduction, Morozoff raised its dividend payout ratio to approximately 69.2%, signaling commitment to shareholder returns amid operational challenges. Raw material cost management remains critical for near-term recovery.
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.