TOKYO, Apr 10 (Pulse News Wire) – Chiyoda CO.,LTD. (8185.T) adjusted its fiscal year 2026 outlook due to lower-than-expected revenue.
According to the company's latest report, the revised figures show a significant deviation from previous forecasts. For the fiscal year ending February 28, 2026, the consolidated operating profit decreased by 35.8%, while net income per share fell by 76.2%. The individual performance also saw a decline, with net income per share dropping to ¥0.43 compared to the previously forecasted value. Increased expenses due to rising prices and higher personnel costs contributed to the overall shortfall.
Additionally, inventory adjustments and aggressive price competition led to reduced gross margins. Despite mid-year promotional efforts aimed at long-term growth, these initiatives did not yield immediate results in customer traffic, contributing further to the revenue miss. Moreover, the company decided to deplete deferred tax assets based on future business plans, impacting earnings negatively. While subsidiary performances remained stable, the primary driver was the individual sector’s poor showing.
Chiyoda attributed the discrepancies primarily to unforeseen challenges in managing inventory levels and competitive pricing pressures, leading to a substantial deviation from initial projections.
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