Snow Brand Milk Products Co. said Tuesday it has lowered its earnings forecast for the six months to Sept. 30 and expects group net losses to grow to 14 billion yen, up from the previously estimated 11.5 billion yen.
The major dairy product manufacturer, which is struggling to recover from a food-poisoning outbreak last year, said its earnings were hit mainly by a continued slump in consumer spending coupled with deflation.
It expects group pretax losses of 15 billion yen for the first half instead of the 12.5 billion yen in losses estimated in May, with group sales revised down to 618 billion yen from 627 billion yen.
It recorded group net losses of 30.66 billion yen and group pretax losses of 24.34 billion yen on sales of 598.03 billion yen in the half year to Sept. 30 last year.
On an unconsolidated basis, the company expects net losses of 15.6 billion yen for the half-year period against losses of 11.5 billion yen projected in May, and pretax losses of 17.6 billion yen, up from 14 billion yen in losses, on sales of 209.3 billion yen, down from 216 billion yen.
The company's parent-only net losses came to 29.68 billion yen and net pretax losses 24.42 billion yen on sales of 186.57 billion yen in the first half of the previous year.
Snow Brand said it will release its full-year forecast when it publishes its interim earnings report in November.