JAPAN: Snack firm Calbee lifts FY profit forecast
Japanese snacks group Calbee has raised its forecast for annual profits after booking an increase in half-year earnings.
Calbee sees annual net income hitting JPY8.5bn in the year to the end of March, up from an earlier forecast of JPY7.5bn.
The improved guidance came as Calbee reported its half-year net income more than doubled to JPY3.78bn in the six months to the end of September. Operating profit was up over 72% at JPY6.71bn.
The company, which sells snacks across Asia and in the US, said last year's profits and sales had been hit by the earthquake and tsunami in Japan. A recovery in demand had boosted the business, it said.
Lower production costs and higher sales also helped profits, Calbee said. Net sales increased 13.4% to JPY86.08bn.
However, Calbee issued a cautious outlook. "Due to global recessionary concerns, the continuing strength of the yen and the affects of deflation, the outlook continues to remain uncertain. In the snack foods industry, the operating environment remains difficult."
For more on Calbee's first-half results, click here.
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