Yokohama Reito revises medium-term targets downward amid challenging conditions

Yokohama Reito Co., Ltd. revised its medium-term management targets for the fiscal year ending September 30, 2026. The company now forecasts net sales of JPY 118 bn, down from the initial JPY 150 bn, and operating income of JPY 4.8 bn, a decrease from JPY 6.5 bn. EBITDA, however, remains unchanged at JPY 13 bn. The revised targets align with the consolidated earnings forecast for the fiscal year ending September 30, 2026, released concurrently.

The revision is primarily attributed to a strategic shift in the Food Sales Business towards profit margins, leading to a review of low-profitability transactions and inventory management. This is expected to result in lower net sales and segment operating income, although the segment’s operating income margin target of 2.2% will be maintained. In the Refrigerated Warehousing Business, higher-than-expected depreciation expenses from soaring construction costs and increased energy costs are projected to impact operating income, despite ongoing profitability improvement initiatives.

These adjustments are based on information available as of the announcement date, and actual results may vary due to economic conditions, competitive landscape, natural disasters, and interest rates. The fundamental policy of "The Power to Connect" and the priority measures outlined in the Medium-Term Management Plan remain unchanged, with continued implementation aimed at enhancing corporate value.