Lawson Inc, the Japanese convenience retailer, today (12 October) cut its targets for annual turnover and profits after posting lower half-year results.
The company is now forecasting revenues of JPY430bn (US$5.24bn) for the year to the end of February, down from earlier guidance of JPY435bn.
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Lawson said it now sees annual net profit reaching JPY22bn against an earlier forecast of JPY23.8bn. Nevertheless, Lawson’s net profit in its last fiscal year stood at JPY12.56bn after a fraud scandal at its ticket-sales business.
The net profit Lawson earned in the first half of its current fiscal year fell by more than 22% thanks to a series of one-off losses.
The company booked net profit of JPY12.29bn for the six months to the end of August, a drop of 22.6%. Impairment losses at Lawson’s Ninety-nine Plus subsidiary weighed on the bottom line.
Lawson’s operating profit was flat at JPY30.15bn as the figure improved from a first quarter when operating profit was down by more than 8%.
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By GlobalDataThe retailer’s revenues dipped 2.4% to JPY221.21bn thanks to a “delayed recovery” in personal consumption in Japan, although the hot summer in the country boosted ice-cream sales in the convenience channel.
