Belc lowered its consolidated profit forecast for the fiscal year ending February 2027. Net profit is expected to decline from the previous fiscal year amid greater consumer frugality due to rising prices and higher costs.
Belc, a supermarket operator specializing in food, announced that it had revised its consolidated earnings forecast for the fiscal year ending February 2027. While the previous forecast range indicated the level of operating revenue, net profit is now expected to decline to ¥9.9 billion, from ¥12.6 billion in the previous fiscal year.
The revised outlook reflects stronger consumer frugality amid rising prices and intensifying price competition with rival companies, which have led to declines in customer numbers and the number of items purchased per customer. Sales falling below plan in the interim period also had an impact.
The company is also finding it more difficult to absorb costs through higher revenue, while rising procurement prices for packaging materials and higher energy costs are putting pressure on profits. Uncertainty in the external environment and the trend toward higher costs are expected to continue in the second half.
The company said it will continue taking appropriate measures in response to market conditions and fluctuations in raw material prices.