IDOM Inc. (7599) on Oct. 14 lowered its net profit forecast for the fiscal year ending February 2027 by 26.0% to ¥10.5 billion from ¥14.2 billion, while raising its sales forecast to ¥655.0 billion from ¥629.0 billion.
For the first half through Aug. 31, sales rose 17.7% year on year to ¥318.1 billion, beating the company's April 13 forecast by 5.7%. Operating profit of ¥8.77 billion and net profit of ¥5.2 billion fell 26.3% and 26.2% short of forecast, respectively.
IDOM cited three factors. Retail sales totaled 88,000 units against a plan of 90,000 as mid-career hires needed time to be trained. A steeper-than-usual drop in used-car auction prices in the second quarter, on top of first-quarter disposal of slow-moving inventory, pushed wholesale gross profit per unit below expectations. Selling, general and administrative expenses rose to ¥43.2 billion from an initial assumption of ¥41.0 billion on higher personnel costs and digital-transformation spending, including CRM development.
The higher sales forecast reflects plans to open 13 large stores instead of 10 and an expected rise in wholesale volumes. The profit cut incorporates the ¥3.1 billion first-half operating profit shortfall and heavier second-half growth spending, including preparation costs for 10 large stores opening in the period, staffing and advertising to boost vehicle purchases. Full-year operating profit is now forecast at ¥18.5 billion, down from ¥24.0 billion, with the second half projected at ¥9.7 billion.
Under its performance-linked policy targeting a consolidated payout ratio of about 30%, IDOM set its interim dividend at ¥15.54 per share, compared with a previous forecast of ¥21.06, and lowered its annual dividend forecast to ¥31.38 from ¥42.43. The company said it is reviewing that policy and will end its current digital-gift shareholder benefit program after the distribution to shareholders of record at the end of August 2027.
The interim dividend takes effect Nov. 13, 2026. A new dividend policy and shareholder benefit program will be announced in April 2027 with full-year results and the next medium-term management plan.
| Hikari Tsushin, Inc. | |
| Offer price | ¥1,000 per common share |
| M&A / TOB | 1 |
| Guidance | 0 |
| Buybacks | 0 |
| Dividends | 0 |
| Capital | 0 |
| Earnings | 0 |
| People | 0 |
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