Warabeya Nichiyo Holdings, the Tokyo-listed maker of convenience-store rice balls, bento and sandwiches, lowered its profit forecasts for the year to February 2027 on 7 October. It now expects operating profit of ¥6.0bn, down from ¥7.7bn in the April forecast and below last year's ¥7.44bn.
| Measure | April forecast | Revised forecast | Change |
|---|---|---|---|
| Sales | ¥241bn | ¥238bn | -1.2% |
| Operating profit | ¥7.7bn | ¥6.0bn | -22.1% |
| Ordinary profit | ¥7.65bn | ¥6.05bn | -20.9% |
| Net profit attributable to owners | ¥4.8bn | ¥3.5bn | -27.1% |
Costs, mostly at home
The company says the cut to operating and ordinary profit comes mainly from its domestic food business, where it now expects packaging material prices and energy costs to exceed its original assumptions because of the prolonged Middle East situation. Sales are also forecast lower, mainly because of the food ingredient business.
The earnings presentation gives the split. Of the ¥1.70bn cut to operating profit against the April forecast, domestic food accounts for ¥1.55bn, overseas ¥120mn and related businesses ¥30mn. The company says the revised forecast newly builds in the Middle East effect on top of earlier pressures, which lifts the manufacturing costs it expects.
A first half that already missed
First-half results, for March to August 2026, were below the company's own forecast. Sales rose 1.0% to ¥120.85bn, but operating profit fell 25.0% to ¥3.97bn against a ¥4.35bn forecast. Net profit attributable to owners fell 34.1% to ¥2.64bn, against a ¥2.7bn forecast.
In the food segment, the company cites higher raw material and labor costs and the effect of the Sapporo plant's suspended operations. It says earnings at another plant improved. Segment operating profit fell 24.7% to ¥3.73bn. The presentation's profit bridge puts second-half operating profit at ¥2.03bn, against ¥2.15bn a year earlier.
The Ohio loss is separate
The net-profit cut is larger in percentage terms: ¥3.5bn, down 27.1% from ¥4.8bn. The company attributes it to the operating pressures above plus a special loss it expects to book for halting operation of its new plant in Columbus, Ohio, in the US Midwest. The presentation puts that loss at ¥700mn.
The presentation says the company will consolidate the production planned for the new plant into its Virginia plant, and that North America's place in the business is unchanged. The notice does not detail the plant's cost or the reason for the halt.
What stays put
The dividend forecast is unchanged at ¥120 a share for the year, split ¥60 and ¥60. The revised forecast assumes ¥155 to the dollar, and the company estimates a one-yen weaker yen would add ¥15mn to annual operating profit. The company has scheduled a briefing for institutional investors and analysts on 8 October.