Ito En Shares Surge More Than 8% After First-Quarter Profit Beats Citi Forecast

According to CNBC, Japanese beverage maker Ito En's shares jumped more than 8% Wednesday after the company reported fiscal first-quarter results that beat Citi's expectations. Ito En posted operating profit of 10.2 billion yen ($63.7 million) for the three months from May through July, up 22% from a year earlier, while revenue rose 3.3% to 135.18 billion yen. The company said more than half of the 2.5 billion yen profit beat came from its vending machine business, which delivered a 4% operating profit margin after Ito En integrated its vending machine-related businesses in May to improve profitability and efficiency. Citi said the results were positive for the shares and noted that the May-to-July period is the peak demand season for soft drinks. Ito En also said operating profit in its tea leaves and beverages segment rose 23.5% to 8.99 billion yen, with sales up 2.7%, and it plans to expand its overseas business to more than 60 countries and regions by the fiscal year ending April 2029 from 52 currently.