Shares of Ito En, the Japanese maker of green tea and other beverages, experienced a significant boost on Monday following the release of their first-quarter earnings report. The company reported a remarkable 62% increase in net profit, attributed in part to higher product prices.
At the time of writing, Ito En shares were trading 11% higher at 4,859 yen, reaching as high as 14% earlier in the day.
According to the company’s announcement after the market closed on Friday, net profit for the quarter ending July 31 rose to Y6.83 billion ($46.7 million) compared to Y4.22 billion in the same period last year.
Ito En’s revenue also saw a notable surge of 7.0%, reaching Y121.15 billion. This growth can be partly attributed to the price increases implemented by the company. Moreover, while advertising expenses only rose by 1.2%, transportation costs and depreciation expenses showed a decline.
The operating profit from Ito En’s coffee-shop business witnessed a solid 24% increase, reaching Y953 million.
Looking ahead, Ito En has decided to maintain its earnings forecasts for the fiscal year ending in April 2024. The company expects revenue to rise by 1.9% to Y440.00 billion, while projecting a 4.7% increase in net profit to Y13.50 billion.
In summary, Ito En’s impressive first-quarter performance reflects an upward trajectory for the company, driven by higher product prices and efficient cost management.