By Kosaku Narioka
Nisshin Seifun Group shares rose sharply after the Japanese food company posted a rose in its profit in its first half thanks to flour-price increases and stronger demand for prepared food, and raised its full-year earnings guidance.
The shares were recently 12% higher at 2,092.5 yen after rising as much as 14% earlier Monday morning.
Nisshin Seifun said after the market closed Friday that net profit climbed to Y18.45 billion ($123.3 million) for the six months ended Sept. 30, compared with a Y37.795 billion net loss in the year-earlier period.
First-half revenue grew 9.8% to Y426.88 billion due partly to price increases of flour and other products, the company said. Its prepared food business saw a recovery in demand thanks to the lifting of pandemic-related restrictions and a return of international travelers to Japan, it said.
For the fiscal-year ending March 2024, Nisshin Seifun now projects revenue will increase 6.4% to Y850.00 billion, up from its previous projection of Y820.00 billion, and net profit will rise to Y30.00 billion, compared with Y10.38 billion net loss the previous fiscal year and its previous projection of Y26.00 billion.
Write to Kosaku Narioka at [email protected]