Japanese baking group Yamazaki Baking Co. has issued mixed financial forecasts for 2011, with the company’s sales and operating profit expected to rise but net profit predicted to fall.

Yamazaki is targeting annual revenue of JPY929bn (US$11.12bn) in 2011, up from JPY928.24bn in 2010. Operating profit is forecast to rise, reaching JPY28bn at the end of this year, against JPY26.99bn in 2010.

However, the group is predicting that its net profit will stand at JPY6.7bn at the end of 2011, down from the JPY12.72bn recorded for 2010, thanks to one-off charges.

Yamazaki made its forecasts for 2011 as it reported its 2010 financial figures. Revenue was up 4.8% to JPY928.24bn in 2010 despite challenging economic conditions, including lower domestic consumer spending and the appreciation of the yen affecting exports.

Operating profit rose 18.7% to JPY26.99bn, while net profit climbed 47.2% to JPY12.72bn.