Nafco Misses FY26 Profit Estimates Due to Cost Pressures and Intense Competition

TOKYO, May 08 (Pulse News Wire) – Nafco CO.,LTD. (2790.T) reported its fiscal year 2026 earnings results, which fell short of previous forecasts due to increased costs and heightened competition.

For the fiscal year ending March 31, 2026, the company's net profit was significantly lower than anticipated, coming in at ¥223 million compared to the previously forecasted ¥1.260 billion. Operating revenue exceeded expectations, reaching ¥175.3 billion against the earlier projection of ¥173.1 billion. However, operating profit, ordinary profit, and net profit all declined sharply, down 39.3%, 46.1%, and 82.2% respectively.

The shortfall was attributed to rising raw material prices and high operational expenses related to logistics centers and store deliveries. Despite efforts to reduce distribution and general administrative costs through improved operations, intense competition from various sectors hindered the company’s ability to achieve expected profit margins. In comparison to the prior fiscal year ended March 31, 2025, the company saw significant fluctuations in performance metrics, reflecting ongoing challenges in maintaining profitability amid cost pressures and competitive dynamics.