Japanese beverage maker Ito En reported fiscal first-quarter operating profit of ¥10.2 billion, up 22% year on year and above Citi’s ¥7.7 billion forecast. Revenue for the May-through-July period rose 3.3% to ¥135.18 billion, while shares gained more than 8% Wednesday. More than half of the ¥2.5 billion profit beat came from the vending machine business, which posted a 4% operating margin after May’s integration of related operations. Operating profit in the tea leaves and beverages segment rose 23.5% to ¥8.99 billion as lower promotional expenses and depreciation offset higher input costs. Ito En plans to expand its overseas business to more than 60 countries and regions by the fiscal year ending April 2029, from 52 currently.