By Kosaku Narioka
Ain Holdings shares were sharply lower early Monday after the Japanese pharmacy operator projected a 11% drop in the current fiscal-year net profit on higher costs despite stronger sales.
Shares were recently 11% lower at 5,176 yen after falling as much as 12% earlier.
Ain said Friday after market close that it expected net profit to fall to Y8.25 billion ($58.9 million) for the fiscal year that started in May from Y9.23 billion in the previous year.
The company said it planned to invest more to improve its mobile pharmacy app, while costs of fuel and raw materials were likely to continue rising.
Ain said it expected revenue to climb 4.5% to Y375.00 billion this fiscal as it expands the pharmacy business, partly through acquisitions, and opens more drug stores.
For the fiscal year ended April 30, the company’s revenue increased 13% and net profit rose 30% on higher earnings from its retail business.
Write to Kosaku Narioka at [email protected]
Read the full article here
