Shofu revises first-half earnings up despite sales dip

Shofu Inc. has revised its consolidated earnings forecasts for the first half of the fiscal year ending March 31, 2026. The company now expects net income attributable to owners of parent to reach 2,597 million yen, a substantial increase from the previously forecast 1,908 million yen. Similarly, operating income is projected to rise to 2,813 million yen from 2,489 million yen, and ordinary income to 2,962 million yen from 2,580 million yen. This positive revision in profits comes despite a downward adjustment in net sales, now anticipated to be 19,095 million yen, down from 19,943 million yen.

The revised sales forecast reflects lower-than-expected demand for certain products in Japan and challenging overseas business conditions. However, the boosted profit outlook is attributed to the timing of selling, general, and administrative expenses being pushed to the second half, alongside higher-than-expected extraordinary income from the sale of cross-shareholdings executed ahead of schedule.

Shofu emphasized that while first-half profits are strong, full-year earnings are still expected to align with original plans, and the company remains focused on maintaining profitability amid a dynamic business environment. The company also confirmed a two-for-one stock split effective October 1, 2024, impacting per-share calculations.