Heiwa Corp. cut its annual profit forecast by 40% as Japan’s pachinko machine maker grapples with slower sales and mounting costs from its golf business acquisition.
The Tokyo-based company expects net income of 12.1 billion yen ($81.7 million) for the year ending March 2025, down from its previous estimate of 20 billion yen. Revenue is projected to reach 145.4 billion yen, an 8% reduction from earlier forecasts.
The downward revision reflects lower-than-expected sales of pachinko and pachislot machines. Adding to the pressure, Heiwa booked 1.8 billion yen in advisory fees related to its purchase of PJC Investments, the parent company of Accordia Golf. The deal also led to 6 billion yen in financing costs.
Despite the setback, Heiwa still projects a 6.6% year-on-year revenue growth. The company said Accordia Golf’s performance will be consolidated into its financial results starting from fiscal 2026.
The revised earnings per share forecast stands at 122.68 yen, compared with the previous projection of 202.78 yen.
