Japan Cash Machine Co Ltd, also known as JCM Global, has revised upward its earnings forecast for the year ending March 31, 2023. The company said in a recent filing that the revision was based on higher-than-expected sales in the second half of its financial year.
JCM, a firm listed on the Tokyo Stock Exchange, makes machines that validate banknotes and handle currency, as well as manufacturing printers for casino gaming machines and other gaming hardware-related devices.
The firm said it now expected net sales of JPY24.4 billion (US$171.0 million) for the 12 months to March 31, 2023. That compared with a previously-announced forecast of JPY21.6 billion.
JCM revised its net profit forecast to JPY2.3 billion, up from JPY1.4 billion in its original projection.
“At the time of our previous earnings forecast disclosure (August 3, 2022), it was not certain whether we would be able to secure semiconductors and other electronic components during the second half of the current fiscal year,” stated the firm.
But the firm added that it had now “reached a certain point” where it had more clarity about its supply chain, and “as a result, sales are expected to increase.”
It added: “The increase in net sales is expected to be accompanied by an improvement in profits at each stage of the business process.”
The company said however that its profit margin in the fiscal second half was “expected to decline” compared to the first half, “due to inevitable increases in manufacturing costs and expenses caused by soaring raw material prices worldwide and disruptions in the supply chain.”
In an English language version of its latest update, the firm also said it recorded JPY982-million in foreign exchange gains as non-operating income during its fiscal first half.
JCM reported a net profit of JPY605.4 million for its financial year ended March 31, 2022. That compared to a net loss of JPY7.56 billion a year earlier.