By Kosaku Narioka
Heiwado shares rose sharply Monday morning after the Japanese supermarket operator raised its fiscal-year earnings forecasts, citing strong first-half results due partly to higher unit prices on sustained inflation.
The shares were recently 6.0% higher at 2,611 yen after rising as much as 7.3% earlier.
Heiwado said after Friday’s market close that it projects net profit to climb 10% to Y8.30 billion ($56.0 million) for the year ending Feb. 20, up from Y4.60 billion forecast previously.
The company now expects full-year revenue to increase 2.7% to Y427.00 billion, up from Y420.00 billion projected earlier. Uncertainty over the outlook remains, as consumers are worried about elevated energy costs and inflation, it said.
Heiwado said first-half results were likely better than previously thought, as selling prices increased on sustained inflation and the number of customers rose thanks to easing pandemic-related restrictions.
The company said utility costs didn’t increase as much as feared and labor costs were lower than anticipated previously. For the half year ended Aug. 20, Heiwado estimated net profit rose 38% from a year earlier to Y4.13 billion as revenue likely increased 2.3% to Y207.96 billion.
Write to Kosaku Narioka at [email protected]
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