Izumi revises full-year forecast downward, cuts management plan targets

Izumi Co., Ltd. has revised its consolidated operating revenue forecast for the fiscal year ending February 28, 2026, to JPY 570.3 billion, a JPY 19.8 billion decrease from the previous JPY 590.1 billion. Operating profit is now projected at JPY 26.4 billion, down JPY 4.3 billion from JPY 30.7 billion. This adjustment also lowers the forecast for profit attributable to owners of parent to JPY 15.2 billion, a JPY 3.1 billion reduction from the previous JPY 18.3 billion, leading to revised earnings per share of JPY 215.20.

The revisions are attributed to prolonged inflation, which has increased costs across various items including raw materials, electricity, personnel expenses, and logistics. Additionally, changes in consumer purchasing behavior, marked by increased budget consciousness and sluggish growth in customer numbers and average sales, have negatively impacted sales. In response, Izumi will intensify cost management and strengthen product strategies, including new private brand releases.

Consequently, the numerical targets for the final fiscal year of the Second Medium-term Management Plan have also been updated. Consolidated operating revenue is now targeted at JPY 570.3 billion, down from JPY 590.1 billion, and operating profit at JPY 26.4 billion, a JPY 4.3 billion decrease. ROA and ROIC targets have been lowered to 4.5% and 4.2% respectively, with ROE revised to 5.3%.