Ito En Shares Rise Over 8% After Strong Q1 Earnings
Shares of Japanese beverage maker Ito En surged more than 8%, bucking broader market declines, following the release of stronger-than-expected fiscal first-quarter results. The company reported an operating profit of 10.2 billion yen for May through July—up 22% year-on-year—and revenue increased by 3.3%. Citi analysts highlighted that the vending machine business turned profitable after operational integration in May, contributing significantly to the earnings beat. Ito En's tea and beverage segment saw a 23.5% rise in operating profit due to reduced promotional expenses and depreciation costs offsetting higher raw material prices. The company aims to expand its overseas presence into more than 60 countries by fiscal year 2029, up from the current 52. It also noted rising sales volumes of beverages and tea bags in existing markets.
