Latest Tokyo Brief coverage on KOBE BUSSAN CO., LTD., tracking filings, financial news, and market signals from Japan.
TSE:3038
Kobe Bussan resolved to issue a zero-coupon ¥60bn convertible, with about ¥30bn for an airline-catering acquisition and ¥30bn for a buyback of up to ¥40bn, starting with a ¥2,969-a-share order on 30 September to absorb hedge selling.
Kobe Bussan grew nine-month sales 5.2% to ¥432.9bn but net profit fell 10.9% on a currency-hedging base effect and merger costs, and it separately completed a ¥57bn purchase of 15 overseas in-flight caterers after the quarter closed.
Kobe Bussan's July sales rose 7.6% and store openings kept pace, but a reversal in yen forward valuation gains dropped ordinary profit to about a fifth of last year's level, a swing the company calls temporary and non-operational.
Kobe Bussan paid about ¥1.68bn for a 13.28% stake in Makiya to cement a franchise alliance, but it signed a standstill barring further accumulation above the closing-level ratio, plus a lock-up and right of first refusal favoring Makiya.
Sales rose 5.1% to ¥286,172 million and operating profit increased 10.2% to ¥21,037 million in the six months to April, while net profit attributable to owners rose 15.7% to ¥16,501 million. Management nevertheless left full-year earnings guidance and its ¥32.00 dividend forecast unchanged.