Itoham Yonekyu Holdings announced its summary of financial results for the second quarter of the fiscal year ending March 2027. The company plans to expand its overseas business and pursue acquisitions while domestic sales volumes decline.
Itoham Yonekyu Holdings announced its consolidated summary of financial results for the second quarter of the fiscal year ending March 2027. For the interim period, revenue fell 0.6% year on year and operating profit declined 12.1% year on year. It has been pointed out that lower domestic sales volumes cannot be offset through price increases alone, and that recovery in earning power will require improvements in overall market demand and the product lineup.
The company indicated that it plans to pursue overseas expansion, including the acquisition of Greenlea, and will revise its full-year forecast. The revised forecast calls for revenue to be increased by ¥80 billion and operating profit by ¥1 billion, while ordinary profit is to be reduced by ¥500 million. Balancing the burden of acquisition funding with investment in labor-saving measures and productivity improvements in Japan has been identified as a challenge. The focus will be on pursuing overseas expansion and reforming the domestic earnings structure at the same time.
Market participants have pointed out that the decline in domestic sales volumes reflects the complexity of factors involving the balance between passing on price increases and maintaining volumes. Some believe that earnings should be improved by strengthening best-selling products, improving production and logistics efficiency, and expanding sales of high-value-added products that capitalize on the company's brand strength.