Morozoff sees Q2 profit plummet, cuts full-year outlook

Morozoff Limited announced its consolidated financial results for the second quarter ended July 31, 2025, showing a decline in performance. Net sales for the interim period decreased by 1.7% to JPY 16,192 million, while operating profit saw a substantial 41.7% drop to JPY 424 million. Ordinary profit also fell by 37.4% to JPY 468 million, and profit attributable to owners of parent decreased by 44.2% to JPY 271 million. Basic earnings per share were JPY 13.43, down from JPY 23.43 in the prior corresponding period. The company attributed the sales decrease to an earlier Valentine's Day selling season and reduced demand for fresh Western-style confectionery.

Despite the downturn, the company maintained an equity-to-asset ratio of 74.7% with total assets at JPY 26,068 million and net assets at JPY 19,467 million as of July 31, 2025. Cash and deposits increased to JPY 6,676,638 thousand from JPY 4,594,650 thousand at the end of the previous fiscal year.

For the full fiscal year ending January 31, 2026, the company forecasts net sales of JPY 35,920 million (down 0.3%), operating profit of JPY 1,030 million (down 50.0%), ordinary profit of JPY 1,060 million (down 49.5%), and profit attributable to owners of parent of JPY 580 million (down 59.0%). The forecast for the annual dividend per share is JPY 14.00.