Kanro cuts profit forecast as Middle East raw material costs surge

Japanese confectionery maker Kanro Co., Ltd. held its 2026 fiscal‑year second‑quarter earnings briefing on July 31, 2026. CFO Mitsuki Sato said the company will lower its full‑year profit outlook because raw‑material and fuel costs have risen sharply due to tensions in the Middle East. To offset the cost pressure, Kanro will introduce a price revision in September and continue growth‑focused investments.

Sales for the first half rose 2.4% year‑on‑year to ¥197.8 billion, driven by growth in tablet and soft‑drink confectionery. However, the candy segment fell 1.8% to ¥64.9 billion while gummies grew 2.8% to ¥68.3 billion. Brands such as “Gold Milk” and the 70th‑anniversary “Kanro Candy” project posted gains, whereas flagship gummy lines like “Pure Gumi” saw declines.

Operating profit fell as packaging costs tied to naphtha and other expenses rose, leading to an expected operating and ordinary profit of ¥42 billion each and net profit of ¥30 billion on unchanged sales of ¥365 billion. The company also highlighted its balance‑sheet management, reduction of policy‑holdings, and investment in a new gummy production line. CEO Tetsuya Murata reaffirmed the 2030 medium‑term plan targeting a ¥1.5 trillion gummy market.