Kanro ＜2216＞ announced financial results for the 1st quarter (January to March 24) of the fiscal year ending 2024/12 on the 26th. Net sales increased 1.3% from the same period last year to 7.613 billion yen, operating profit increased 2.0% to 1,212 billion yen, ordinary profit increased 2.1% to 1,217 billion yen, and quarterly net profit increased 11.7% to 941 million yen.
The company's corporate purpose is “Sweeten the Future: One Heart, Grow Bigger.” Under this, the three business strategies (“value creation,” “ESG management,” and “expansion of business areas”) have been steadily promoted even in the current fiscal year, which is the final year of the “Mid-Term Management Plan 2024,” and sales for the first quarter increased.
Candy was 3.938 billion yen, down 0.3% from the same period last year, which was a record high due to narrowing down product items and improving production systems such as personnel increases, while maintaining inventory levels necessary for stable supply while maintaining inventory levels necessary for stable supply. In product forms, compact forms have increased as mobility opportunities and dining scenes have increased. By product, the drop in discontinued and discontinued products was covered by the throat candy group and “gold milk candy,” which has been undergoing price revisions since February. As for gummies, the “Pure Gummy” series, which is the main brand, saw a significant increase in sales due to price revisions from March, and the high value-added product “Gummitzel” on the directly managed store Hitotsubukanro digital platform “Kanro Pocket” is still well received. As a result, despite sluggish growth of “marosh” and a decline in sales of imported products, it was 3.538 billion yen, up 3.5% from the same period last year. Raw confectionaries decreased 7.1% from the same period last year to 135 million yen.
On the profit side, the trend of rising raw material prices continued along with the depreciation of the yen, and price revisions and content changes for some products were implemented in the first quarter of this year. Although the variable cost ratio rose from the same period last year, it was absorbed by an increase in marginal profit due to productivity improvements, etc., and gross profit increased 0.8% from the same period last year to 3.258 billion yen. As for operating income, there was no major change in SG&A expenses, and profit increased. Ordinary income also increased, and quarterly net profit increased due to the recording of special profit due to a reduction in strategic holdings.
As for the full-year earnings forecast for the fiscal year ending 2024/12, the initial plan for sales is 30.300 billion yen, up 4.4% from the previous fiscal year, operating income of 3.450 billion yen, up 1.1% from the same period, ordinary profit of 3.47 billion yen, and net income of 2.50 billion yen, up 1.5% from the same period.