After ITO EN disclosed the abolition of its shareholder benefit program on 29 September, its share price rose from the 29 September closing price of ¥3,046 to ¥3,120 on 30 September. Reports indicate that the focus of shareholder returns is shifting from benefits to dividends.
Following ITO EN's disclosure on 29 September that it would abolish its shareholder benefit program, its share price rose on 30 September from the closing price on 29 September. The share price rose from ¥3,046 to ¥3,120, an increase of 2.43%.
Trading volume on 30 September was 827,000 shares, a substantial increase from the previous day, and the market continued to respond favorably to the review of shareholder return measures. Reports indicate that the focus of shareholder returns is shifting from benefits to dividends.
According to the earnings information, first-quarter revenue for the fiscal year ending April 2027 rose 3.3% year on year to ¥135.2 billion, operating profit rose 22.0% to ¥10.2 billion, and net income rose 14.8% to ¥6.6 billion. Full-year operating profit and ordinary profit are forecast to decline, drawing attention to future earnings trends.
Performance over the past 12 quarters has been somewhat weak, with reports pointing to a recent decline in net profit margin and no marked improvement in the equity ratio. Future growth drivers include the penetration of price revisions, expansion of overseas sales and restraint in promotional spending, while risk factors include fluctuations in tea-leaf raw material prices and rising logistics costs.