RIZAP Group <2928> saw mixed trading on the 15th as profit-taking offset an upbeat earnings outlook. After the market close on the 14th, the company announced its full-year forecast for the fiscal year ending March 2027, projecting revenue of 180 billion yen, up 7.6% year-on-year, and operating profit between 12 billion yen and 16 billion yen, an increase of 8.2% to 44.3%. Net profit is expected to reach 4 billion yen to 6 billion yen, or 2.8 to 4.2 times the previous year.

Despite a planned dividend hike to between 1.34 yen and 1.84 yen, up from 0.67 yen, buying interest from Retail Investors remained limited. The stock faced pressure from investors locking in gains following its recent price recovery.

The chocoZAP business has emerged as the company’s primary engine, generating more than half of consolidated operating profit in the previous fiscal year. RIZAP Group plans to re-accelerate store openings through direct and franchise models, targeting 8,000 domestic locations. The company is also expanding in Hong Kong and Taiwan while implementing a "selection and concentration" strategy to divest low-growth sectors. For the fiscal year ended March 2026, revenue was 167.257 billion yen, down 2.2%, while operating profit jumped 5.9 times to 11.086 billion yen and net profit rose 5.5 times to 1,440 million yen.

Simultaneously, the company announced a share buyback of up to 11 million shares, representing 1.84% of outstanding stock, or 2.6 billion yen. The acquisition period runs from May 15, 2026, to May 14, 2027.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.