Hikari Food Service Co.,Ltd., The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 30% Decrease, Dividend Revised to 40 yen

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Fri Oct 11, 2024 3:30 pm JST Earnings

138A Hikari Food Service Co.,Ltd. 【J-GAAP】

Earnings Report

Hikari Food Service Co.,Ltd. <138A> [TSE-G] announced its financial results after the market closed on October 11th (15:30). The ordinary profit (non-consolidated) for the cumulative third quarter of the fiscal year ending November 2024 (December 2023 to August 2024) decreased by 15.8% from the same period last year to 155 million yen.

In addition, the full-year ordinary profit has downwardly by 38.7%, from the previous forecast of 292 million yen to 179 million yen (compared to 255 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 29.8% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the ordinary profit for the June to November period (second half) has downwardly by 66.5%, from the previous forecast of 170 million yen to 57 million yen (compared to 132 million yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 56.8% decrease in profit.

At the same time, the company, which had previously planned no dividend for the current fiscal year, has decided to implement a year-end lump-sum dividend of 40 yen (compared to no dividend in the prior term).

In the most recent three-month period, from June to August (3Q), the ordinary profit dropped to 33 million yen, a 45.9% decrease compared to the same period last year. The operating profit margin sharply declined from 10.9% in the same period last year to 5.1%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Dec - Aug, 2023	1,918	176	155	89	100.8	86.6	Oct 11, 2024	J-GAAP
YoY	－	－	－	－	－

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jun - Nov, 2024 Prev	1,274	169	170	127	128.0	0	Jul 12, 2024	J-GAAP
Jun - Nov, 2024 New	1,265	59	57	23	23.2	40	Oct 11, 2024	J-GAAP
Revision Rate	-0.7%	-65.1%	-66.5%	-81.9%	-81.9%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Nov, 2024 Prev	2,542	312	292	203	204.6	0	Feb 28, 2024	J-GAAP
Nov, 2024 New	2,533	202	179	99	99.8	40	Oct 11, 2024	J-GAAP
Revision Rate	-0.4%	-35.3%	-38.7%	-51.2%	-51.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Nov, 2024 Guidance	2,533	202	179	99	99.8	40	Oct 11, 2024	J-GAAP
YoY	0.0%	0.0%	0.0%	0.0%	0.0%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Dec - Feb, 2023	605	67	51	29	42.8	11.1	Apr 12, 2024	J-GAAP
Mar - May, 2024	663	76	71	47	56.5	11.5	Jul 12, 2024	J-GAAP
Jun - Aug, 2024	650	33	33	13	14.7	5.1	Oct 11, 2024	J-GAAP
YoY	－	－	－	－	－