Nichirei, a major frozen-food company hit by a cyberattack, has revised downward its nine-month earnings outlook through December. Revenue is expected to decline by ¥5 billion in total across the food and logistics businesses, while net income has been lowered to ¥20.4 billion and ¥1 billion will be recorded as an extraordinary loss.
In its nine-month earnings outlook released on the 7th, Nichirei said that the system outage is expected to reduce revenue by approximately ¥2 billion in the food business and approximately ¥3 billion in the logistics business. Supply chain disruptions and delays to operations are expected to weigh on earnings.
After factoring in the impact of the situation in the Middle East and other factors, net income for the current period is expected to be ¥20.4 billion, representing a downward revision of approximately ¥4.8 billion from the previous forecast. Net income is expected to decline by approximately 12% year on year.
Nichirei also plans to record an extraordinary loss of ¥1 billion for costs related to addressing the system outage. These factors are leading to a reduction in the overall earnings outlook.
The revision is primarily attributable to the impact of the cyberattack, and the company will need to monitor the recovery ahead and whether additional costs arise.