Shinobu Foods revises earnings forecast, cites impairment loss

Shinobu Foods announced a downward revision to its consolidated earnings forecast for the fiscal year ending March 31, 2025. The company now projects net sales of JPY 57.65 billion, compared to the previous forecast of JPY 56 billion, but expects operating income to decline to JPY 2.33 billion from JPY 2.48 billion. Net income attributable to shareholders is now forecast at JPY 985 million, a significant drop from the prior estimate of JPY 1.7 billion. The revision is attributed to higher raw material prices and a JPY 937 million impairment loss at the Hiroshima plant, stemming from underperformance. The company also revised its non-consolidated earnings forecast, with sales increasing but profit declining due to similar reasons.