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Cawachi Posts Profit Slump but Lifts Dividend as It Braces for Weaker Margins

Story Highlights
  • Cawachi reported lower sales and sharply reduced profit, yet maintained a stable balance sheet and stronger operating cash flow.
  • The company boosted its dividend, including an anniversary payout, while guiding for flat sales and weaker profits next year.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Cawachi Posts Profit Slump but Lifts Dividend as It Braces for Weaker Margins

Meet Samuel – Your Personal Investing Prophet

The latest announcement is out from Cawachi Limited ( (JP:2664) ).

Cawachi Limited reported a slight 1.2% decline in net sales to ¥284.5 billion for the fiscal year ended March 15, 2026, with operating profit down 9.1% and profit attributable to owners of the parent plunging 34.5%. Despite weaker earnings and lower profitability ratios, total assets and equity were essentially flat, and operating cash flow improved, indicating continued financial stability.

The company raised its annual dividend to ¥100 per share for FY2026, including a special 65th anniversary component, pushing the payout ratio to nearly 70%. For the year ending March 15, 2027, Cawachi forecasts flat sales and a sharp drop in operating and ordinary profit, but expects earnings per share to remain above pre-pandemic levels, signaling a cautious stance amid margin pressure while still prioritizing shareholder returns.

More about Cawachi Limited

Cawachi Limited is a Japanese company listed on the Tokyo Stock Exchange that operates in the retail sector, focusing on consumer-related sales across its consolidated group. The company targets domestic customers and maintains a stable asset base, with an equity ratio around 58%, positioning it as a relatively solid player in its market.

Average Trading Volume: 135,985

Technical Sentiment Signal: Buy

Current Market Cap: Yen62.84B

See more insights into 2664 stock on TipRanks’ Stock Analysis page.

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