Kenko Mayonnaise reports lower full-year net profit

5 articles · Updated · MarketWatch · May 11

For the year ended 31 March, net profit fell to Y2.93 billion from Y3.50 billion, while revenue edged up to Y92.35 billion from Y91.70 billion.
Operating profit declined to Y4.16 billion from Y4.85 billion, pretax profit slipped to Y4.33 billion from Y5.00 billion, and earnings per share dropped to Y198.99 from Y221.62.
The Japanese food company's results were prepared under Japanese accounting standards, showing weaker profitability despite a modest increase in annual sales.

With profits falling despite higher sales, is Kenko's strategy a long-term play or a sign of deeper trouble?

Will Kenko's pivot to premium products work when Japanese consumers are cutting back on household spending?