Omikenshi Co., Ltd. Revises Earnings Forecast — Operating Profit Swings to Loss

Omikenshi Co., Ltd. Revises Earnings Forecast — Operating Profit Swings to Loss

Omikenshi Co., Ltd. (TSE:3111) has downwardly revised its earnings forecast for the fiscal year ending March 2026, citing persistent weakness in food business sales, China market deterioration, and rising raw material and currency headwinds.

The company attributed the revision to three primary factors: sluggish food business performance, weakness in Chinese sales, and sustained cost pressures from elevated raw material prices and yen depreciation. Management noted that these headwinds have proven more severe and prolonged than previously anticipated, impacting both top-line and profitability metrics. The operating profit forecast has swung from a JPY 30M gain to a JPY 23M loss. Ordinary income (keijo rieki), a Japan-specific metric that includes non-operating items, is projected to deteriorate to a JPY 230M loss from JPY 200M.

For international investors, the revision signals structural challenges in Omikenshi’s core markets and cost structure. However, the company expects to record JPY 26M in foreign exchange gains, which will partially offset the operating loss and limit the net profit decline relative to the operating profit deterioration. The net loss is now forecast at JPY 460M versus JPY 440M previously, with earnings per share (EPS) revised to △69.73 yen/share from △71.04 yen/share. The modest improvement in per-share metrics reflects the stabilizing effect of forex gains on the bottom line, though the underlying operational challenges remain material.

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.