Iwatsuka Confectionery revises FY26 outlook due to cost pressures

IWATSUKA CONFECTIONERY CO.,LTD. [2221.T]

TOKYO, Apr 27 (Pulse News Wire) – Iwatsuka Confectionery CO.,LTD. (2221.T) revised its fiscal year 2026 (FY26) earnings forecast, citing increased costs despite strong sales growth.

The company now expects consolidated revenue of ¥1.35 billion, up from the previous estimate of ¥1.55 billion, while operating profit is projected at ¥850 million compared to ¥300 million previously. The revision reflects challenging market conditions, particularly rising raw material prices and higher operational expenses such as labor and logistics costs. Despite these challenges, IWATSUKA reported robust performance through the third quarter, achieving sales of ¥21.9 billion and operating profits of ¥8 billion.

However, the fourth quarter is expected to face seasonal production and sales declines, coupled with higher manufacturing costs due to elevated raw material prices. In light of these factors, the company anticipates overall revenue growth but sees operating profit surpassing initial projections thanks to efforts to minimize the impact of rising input costs and improve profitability through product mix adjustments. Specifically, revenue is forecast at ¥1.35 billion (down slightly from plan but up year-over-year), while operating profit is estimated at ¥8 billion (up significantly from plan).

IWATSUKA’s CFO Masaki Daishoku noted, “While we continue to experience significant cost pressures, our strategic initiatives have enabled us to maintain solid sales momentum and achieve better-than-expected operating results.”.

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