FamilyMart Co, Japan's third-largest convenience store operator, said profit for the six months ended Feb. 28 rose 50 percent on increased sales. It also said profit would rise this year as the chain steps up expansion in Asia.
Group net income for the second half of its business year rose to ¥4.75 billion (US$40 million) compared with ¥3.16 billion a year earlier, according to a company press release. Sales in the half rose 12 percent to ¥111.9 billion.
"It was positive in the fiscal year that just ended," said Credit Suisse First Boston analyst Yasuyuki Sasaki, aided by growth of FamilyMart's E-commerce and Taiwan subsidiary.
"The company's [net income] forecast is conservative," said Sasaki.
FamilyMart, an affiliate of Itochu Corp, Japan's third-biggest trading company, is pursuing expansion in Asia because growth prospects are limited at home, where customers are trimming spending on worries about wage and job cuts.
Sales growth in the current business year will be aided in part by the opening of FamilyMart's first shores in China, company president Junji Ueda said.
"We want to open at least 25 stores this year" in China, Ueda said.
In the past year, the company opened stores in Taiwan, Thailand and South Korea, increasing its total in the three markets in the year by 782 to 3,110 stores.
In Japan, FamilyMart opened outlets in hotels, office buildings, and service areas located along highways in the past year. The company added a net 78 stores to total 5,593 outlets nationwide in the six months ended Feb. 28, opening 226 stores and closing 148.
Tokyo-based FamilyMart expects to report profit of ¥13.7 billion on sales of ¥229 billion in the year that started March 1.
The company said it will seek approval from shareholders to buy back as many as 4.5 million shares for as much as ¥10 billion at a meeting scheduled on May 28.
For the full year ended Feb. 28, net income rose to ¥12.9 billion yen, or ¥132.96 a share, from ¥8.55 billion, or ¥88.25, in the year. The company was expected to earn ¥128.72 a share.
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