Ito En announced its financial results for the first quarter of the fiscal year ending April 2027, with net sales of 135.18 billion yen (up 3.3% year-on-year) and operating income of 10.2 billion yen (up 22.0% year-on-year), marking an increase in both sales and profit. The stock price closed the day after the announcement at 3,273 yen, up 262 yen (8.70%) from the previous day, hitting a new high for the year. The leaf and drink-related business, which is the main profit driver, recorded net sales of 120.629 billion yen (up 2.7% year-on-year), accounting for about 90% of the company's total, and operating income of 8.993 billion yen (up 23.5% year-on-year), a significant increase. The factors behind the profit growth include the suppression of promotional expenses, as well as a one-time effect from the reduced depreciation burden on assets that were impaired in the previous fiscal year in the vending machine business. Marketing initiatives featuring baseball player Shohei Ohtani and the global expansion of the 'Oi Ocha' brand (currently sold in 52 countries and regions, with a goal to expand to over 60 by the fiscal year ending April 2029) continued during this period. The full-year forecast remains unchanged, with net income expected to recover sharply to 11.43 billion yen (up 229.7% year-on-year), but this is due to the rebound from the previous year's impairment losses.
ITO EN,Ltd.First-quarter operating income up 22.0% and sales up 3.3%, beating expectations, driving stock up 8.7%.
