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Heiwado’s shares escalated by 6.0% to 2,611 yen on Monday, after reaching an earlier peak increase of 7.3%. This rise came after Heiwado announced on Friday that it anticipates a 10% rise in net profit for the year ending February 20th, reaching Y8.30 billion ($56.0 million). This is an increase from the previously forecasted Y4.60 billion.
In addition to revising its net profit forecast, Heiwado also increased its full-year revenue forecast. The company now expects a 2.7% increase to Y427.00 billion from the prior estimate of Y420.00 billion. However, these projections are subject to uncertainty due to concerns among consumers about high energy costs and inflation.
Heiwado’s first-half results were reportedly stronger than initially expected, driven by rising selling prices amidst sustained inflation and an increase in customer numbers as pandemic-related restrictions began to ease. For the half-year period ending August 20th, Heiwado estimated that their net profit rose 38% from the previous year to Y4.13 billion, while revenue likely saw a 2.3% increase to Y207.96 billion.
The company also reported that utility costs did not surge as much as initially feared and labor costs were lower than previous estimates. These factors contributed to the company’s robust financial performance in the first half of the fiscal year and have led to an increased optimism reflected in the revised full-year forecasts.
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