Hoshizaki has revised its financial forecasts for 2022 due to the easing of supply constraints and changing foreign exchange rates.
The ice maker and refrigeration manufacturer – which is one of the world’s largest catering equipment companies – had initially predicted sales of JPY2.9 billion ($2.09 billion) for the 12 months to 31 December 2022.
But it has now revised its forecast upwards to JPY3.14 billion ($2.27 billion), which would represent an 8% increase on what it was initially expecting.
Last year, it made sales of JPY274 billion ($1.97 billion).
Although the company has revised its sales intentions upwards, it is still predicting an operating profit of JPY26.5 billion (£191m).
In a statement, Hoshizaki said restrictions on product supply due to parts procurement difficulties in Japan during the first half of the year had eased, while sales were boosted by the restaurant’s sector recovery from the pandemic.
Hoshizaki revealed it had experienced “prolonged supply constraints” in the Americas due to difficulties in procuring parts and materials and soaring parts and materials prices, as well as costs to secure human resources due to labour shortages, and rising labour costs. However, it said sales in Europe and Asia had remained strong.
“In the fourth quarter, the business environment is expected to continue to be affected by supply constraints and rising labor costs in the Americas. However, demand is expected to remain firm, especially in Japan.”
The company said it has also revised its earnings forecast due to a review of foreign exchange rates.
The foreign exchange rate assumptions for the forecast of financial results are estimated to be JPY130 to the US dollar and JPY135 to the euro, based on recent trends in foreign exchange rates.
