By Kosaku Narioka
Ito En shares rose sharply early Monday after the company reported a 62% gain in first-quarter net profit thanks partly to higher product prices.
The shares were recently 11% higher at 4,859 yen after rising as much as 14% earlier.
The Japanese maker of green tea and other beverages said Friday after market close that net profit climbed to Y6.83 billion ($46.7 million) for the quarter ended July 31 from Y4.22 billion in the year-earlier period.
Revenue increased 7.0% to Y121.15 billion thanks partly to price increases. Advertising expenses only rose 1.2%, while transportation costs dropped as did depreciation expenses.
Operating profit from its coffee-shop business increased 24% to Y953 million.
Ito En kept its earnings forecasts unchanged for the fiscal year ending April 2024. It continues to project revenue to rise 1.9% to Y440.00 billion and net profit to increase 4.7% to Y13.50 billion.
Write to Kosaku Narioka at [email protected]
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