AKIKAWA FOODS & FARMS CO.,LTD. [1380.T]
TOKYO, May 15 (Pulse News Wire) – Akikawa Foods & Farms CO.,LTD. (1380.T) reported lower-than-expected fiscal year 2026 profits due to impairment losses totaling ¥94 million for its direct sales business and ¥48 million for its Chinese subsidiary.
Additionally, the company recorded a related-party equity evaluation loss of ¥97 million individually but noted this would be offset in consolidated results. Despite these challenges, the firm saw operating profit exceed forecasts by 40.2%, driven by strong performance in frozen processed food sales and cost savings in indirect departments. However, net income fell short of expectations by 69.1% due to the aforementioned impairments. For the fiscal year ending March 31, 2026, the company's consolidated revenue was revised downward by 77 million yen compared to previous estimates, while individual revenue decreased by the same amount.
Operating profit increased by 66 million yen, outperforming initial projections, thanks to higher sales and reduced expenses. Ordinary profit also exceeded expectations by 55.7%. Net profit per share declined significantly, falling below the projected value by 69.1%. The company attributed the shortfall in revenue primarily to declining consumer spending, resulting in fewer new members and lower order rates for its direct sales operations.
Despite these setbacks, AKIKAWA FOODS & FARMS remains committed to enhancing its competitive edge through targeted marketing strategies and operational improvements aimed at boosting sales and profitability moving forward.
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