Sakura Rubber Co., Ltd. Revises FY2027 Earnings Forecast on Supply Stabilization

Sakura Rubber Co., Ltd. Revises FY2027 Earnings Forecast on Supply Stabilization

Sakura Rubber Co., Ltd. (TSE:5189) has released revised earnings and dividend forecasts for the fiscal year ending March 2027, citing improved visibility on raw material procurement following resolution of Middle East supply constraints.

The company had previously suspended earnings guidance due to supply chain disruptions stemming from Middle East tensions. With alternative sourcing channels now secured, management has established concrete forecasts. However, raw material and subsidiary input costs are expected to remain elevated, preventing significant margin recovery. Operating profit and ordinary income (keijo rieki) are forecast to decline year-over-year despite the supply stabilization. The net profit forecast of JPY 800M reflects a gain on the sale of policy-held equity securities, offsetting operational headwinds and delivering year-over-year growth at the bottom line.

The company will maintain its annual dividend at JPY 120.00 per share, comprising an interim dividend of JPY 50.00 and a year-end dividend of JPY 70.00, consistent with its 30% consolidated payout ratio target. The revised guidance implies a payout ratio of approximately 29%. While the resolution of supply constraints removes near-term uncertainty, investors should monitor raw material price trends and margin trajectory as the fiscal year progresses, given the company’s expectation of sustained cost pressures.

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.