Ichimasa Kamaboko Cuts FY2026 Profit Forecast by Over 50% on Cost Pressures

Ichimasa Kamaboko Cuts FY2026 Profit Forecast by Over 50% on Cost Pressures

Ichimasa Kamaboko Co., Ltd. (TSE:2904) has revised downward its earnings forecast for the fiscal year ending June 2026, citing raw material inflation and weakened consumer demand amid persistent economic headwinds.

The kamaboko and mushroom products manufacturer attributed the shortfall to multiple headwinds. Revenue is expected to decline 1.8% to JPY 35.5bn as consumer cost-consciousness intensified following the March 2025 price adjustment, offsetting gains in stick-type crab-flavored surimi products. Mushroom segment sales fell short of plan despite higher volumes and new customer wins, hampered by prolonged summer heat that delayed seasonal demand.

Profitability deteriorated sharply as productivity improvements failed to offset surging input costs. Operating profit is forecast to plunge 44.5% to JPY 611M, while ordinary income (keijo rieki)—a Japan-specific metric combining operating profit with non-operating items—will fall 54.0% to JPY 529M. Net profit is projected to halve to JPY 326M. The company also recorded a JPY 86M goodwill impairment charge related to subsidiary PT. ICHIMASA KAIA FOODS, whose operating environment has deteriorated, and established JPY 505M in loan loss provisions against that entity.

The revision underscores mounting margin pressure in Japan’s processed seafood sector, where manufacturers face simultaneous demand softness and cost inflation with limited pricing power. Investors should monitor whether management can stabilize margins through operational efficiency gains or if further restructuring becomes necessary.

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.