S Foods revises downward earnings forecasts due to subsidiary loss

S Foods (TSE:2292) has revised its full-year earnings forecast downward due to an operating loss incurred by its New Zealand-based SFJ Holdings Limited, which conducts cattle fattening operations. The loss stems from a JPY 2,560 million valuation loss on inventories due to sluggish sales to China. Consequently, S Foods has adjusted its forecasts as follows: net sales decreased from JPY 445,000 million to JPY 444,500 million, operating income decreased from JPY 7,300 million to JPY 5,110 million, ordinary income decreased from JPY 8,300 million to JPY 6,350 million, and net income attributable to owners of the parent decreased from JPY 4,200 million to JPY 2,650 million, impacting earnings per share, which decreased from JPY 132.70 to JPY 83.75. The company cited high raw material costs, worsened profitability due to high live cattle prices in the US, and the inventory valuation loss as reasons for the revision.