Hiraki lowered its forecast for net income for the fiscal year ending March 2027 to a ¥160 million loss. Weakness in its mail-order business and an impairment loss on its logistics center are expected to weigh on results, with the company expected to pay no dividend for the first time since listing.
Hiraki lowered its forecast for net income for the current fiscal year to a ¥160 million loss. The company is now expected to post a loss, reversing its previous forecast for a profit. It disclosed plans to record an impairment loss on its logistics center. The impairment marks the end of the company's no-dividend-free record since its initial listing.
Revenue is expected to rise 3% year on year to ¥12.3 billion, while operating income is projected at ¥10 million. The previous forecast called for revenue of ¥12.5 billion and operating income of ¥150 million. The mail-order business is expected to benefit from a new catalogue distribution strategy that should increase purchase values, but the effects are expected to persist through the second half.
The company will withdraw its policy of maintaining the previous fiscal year's annual dividend at ¥20 and will pay no dividend for the first time since listing. Cuts to management compensation will also be expanded, with a portion of executive compensation to be reduced from the December payment.