Kewpie (KWPCY, $31.73) shares plunge, on H1 net profit's -7.6% decrease

Kewpie Corp. shares plunged  Friday morning, after the Japanese mayonnaise company  posted its first-half net profit’s -7.6% decrease. The revenue decline was  partly attributed to higher costs of raw materials.

Following Thursday market close, Kewpie's  net profit came in at Y8.89 billion ($65.4 million) for the six-month period ending May, compared to Y9.62 billion a year ago. Product-price hikes could not adequately offset sharp rises in raw-material costs.

The company’s first-half revenue climbed +4.3% to Y207.52 billion.

For the fiscal year ending in November, Kewpie boosted  its revenue outlook citing stronger international sales. However, it reaffirmed its profit guidance.

The company anticipates continued increases in  oilseeds prices, on concerns about supply disruptions from Ukraine.