WATANABE SATO CO.,LTD. [1807.T]
TOKYO, May 21 (Pulse News Wire) – Watanabe Sato CO.,LTD. (1807.T) reported its fiscal year 2026 earnings, showing a decline in operating profit due to administrative penalties affecting project timelines.
Despite efforts to improve cost management, the company's operating profit fell below initial forecasts. However, net profit exceeded expectations thanks to additional non-operating income. Revenue was slightly higher than last year but still missed initial targets. For the fiscal year ending March 31, 2026, revenue reached ¥34.03 billion, while operating profit stood at ¥883 million, down from the previous year’s ¥891 million.
Net profit came in at ¥883 million, surpassing the initial forecast of ¥850 million. The company also noted a significant increase in cash flow from improved receivables collection. Looking ahead, Watanabe Sato expects to recover from regulatory setbacks and achieve higher sales in fiscal year 2027, though profitability goals remain cautious due to ongoing geopolitical risks. The firm aims to maintain robust capital efficiency and enhance environmental sustainability initiatives.
The company plans to continue its dividend policy, targeting a payout ratio of 56.5%, with annual dividends expected to reach ¥80 per share for the fiscal year ending March 31, 2027.
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