Rheon Automatic Machinery raises earnings and dividend forecasts on strong sales

Rheon Automatic Machinery announced an upward revision to its consolidated full-year earnings forecast for the fiscal year ending March 2026, citing robust machine sales in the U.S. and Asia, alongside a weaker yen. The revised forecast projects net sales of JPY 40,520 million, operating income of JPY 5,230 million, ordinary income of JPY 5,320 million, and net income attributable to owners of the parent of JPY 3,600 million. This represents an increase from the previous forecast, with net sales up JPY 1,360 million (3.5%), operating income up JPY 490 million (10.3%), ordinary income up JPY 720 million (15.7%), and net income up JPY 400 million (12.5%).

The company also declared an interim dividend of JPY 27.00 per share, an increase of JPY 3.00 from the previous forecast of JPY 24.00 per share. The year-end dividend forecast has also been raised by JPY 3.00 to JPY 27.00 per share, bringing the total annual dividend to JPY 54.00 per share. This aligns with the company's policy of maintaining a consolidated dividend payout ratio of 40% or more, emphasizing stable and progressive dividends.

The positive revisions are largely due to strong performance in food processing machinery sales in North America and Asia, which offset weaker sales in Japan and Europe. Food processing machinery sales in North America and South America increased by 45.4% in local currency terms, while Asian sales saw a 52.0% increase. The company expects continued strong performance in food processing machinery sales for the remainder of the fiscal year.