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Heiwado Raises Earnings Forecast Due to Strong First-Half Results


Japanese supermarket operator, Heiwado, experienced a significant increase in its shares on Monday morning following the announcement of raised fiscal-year earnings forecasts. The company attributed its success to strong first-half results, partially due to higher unit prices caused by sustained inflation.

Positive Market Response

Heiwado’s shares surged by 6.0% to 2,611 yen, with an earlier peak increase of 7.3%.

Upgraded Projections

After the market closed on Friday, Heiwado announced an upgraded net profit projection of Y8.30 billion ($56.0 million) for the fiscal year ending on Feb. 20. This marks a 10% increase from the previously forecasted Y4.60 billion.

The company also revised its full-year revenue forecast to Y427.00 billion, reflecting a 2.7% increase from the earlier projection of Y420.00 billion. However, Heiwado acknowledged the existence of uncertainties in the outlook due to consumers’ concerns over elevated energy costs and inflation.

Remarkable First-Half Performance

Heiwado stated that its first-half results surpassed initial expectations. The company witnessed an increase in selling prices due to sustained inflation and a rise in customer numbers as pandemic-related restrictions eased.

Additionally, Heiwado noted that utility costs were lower than anticipated, and labor costs were also well-managed during this period.

For the half year ending on Aug. 20, Heiwado estimated a remarkable 38% year-on-year growth in net profit to Y4.13 billion, accompanied by a likely 2.3% increase in revenue to Y207.96 billion.

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