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The 30%-plus drop in profits in 2013 was a wake-up call to Yamazaki, which has since doubled its operation margins after rolling out a groupwide plan to revamp operations. A change in its product strategies to emphasize the selected 100 core products and expand offerings in the premium and economy segments, along with a sizable reduction in stock-keeping units, or SKUs, has not only helped restore profits but also boosted operating margins to the highest level over the past decade.The ability to…

Narrow-moat Yamazaki Baking reported another disappointing quarter with a 1.3% decline in sales and 23% plunge in operating profits, compared with our expectations of flat sales and a low-single-digit growth in profits. While rising overhead and personnel expenses are well expected, sales weakness in the moaty bakery business and subsidiaries including Fujiya and Yamazaki Biscuit further weighed on profits. We have lowered our profit forecasts by 5% and fair value estimate to JPY 1,900 from JPY…

Narrow-moat Yamazaki Baking’s fourth-quarter profits came in significantly below its revised guidance and our forecasts. The miss is attributable to a sizable cost increase in the moaty bakery business while profits contributed by the subsidiaries improved during the quarter. Management has taken a more cautious stance after missing the guidance for two years in a row and guided a more conservative outlook for 2019, indicating a 17% growth in operating profits with a 1.4% growth in the top line…

Narrow-moat Yamazaki Baking saw profit decline widened in the third quarter with flat sales and a 38% decline in profits. While we had expected a downward revision, the 23% cut in operating profits is greater than our expectation. We have slashed our 2018 profit forecasts by 16% and 8% for the rest of the five-year explicit forecast period, and lowered our fair value of estimate to JPY 2,100 from JPY 2,300. The shares have corrected by 27% over the last three months and are now fairly valued…

Narrow-moat Yamazaki Baking’s second-quarter profits came in significantly below our expectation and the company’s target, although we had projected the company to miss its guidance. The disappointing profit result is attributable to increased logistic costs of the bakery food business, as well as a slowdown in top-line growth. While the company has maintained its full-year guidance, we find the guidance, implying 60% growth during the second half, fairly challenging. Given the price hikes of…

Japan

YAMAZAKI BAKING CO., LTD. produces baking foods including bread, pastry, and cake.  The Company operates nationwide sales network.  YAMAZAKI BAKING also operates franchised cafeterias and convenience stores.

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