Materials for the Second-Quarter Financial Results Briefing and Medium-Term Management Plan Briefing for the Fiscal Year Ending March 2027 | NAKAMURAYA CO.,LTD. (2204) timely disclosure

Worth reading

69In focus

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

¥ million (year-on-year reduction in operating loss)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending March 202711 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥12,598 million+0.8%

Operating profit¥-1,880 million

Ordinary income¥-1,717 million

Net income¥-1,217 million

Gross Profit Margin27.7 %

Selling, general and administrative expenses¥5,376 million

Results for the three months of the current quarterAlthough revenue, operating profit and other figures for the three months of the second quarter of the fiscal year ending March 2027 are shown in the quarterly trend chart, they are not presented in a comparative table by line item.

Full-year earnings forecast

Net Sales

¥37,700 million

Operating profit

¥1,400 million

Ordinary income

¥1,600 million

Net income

¥950 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Exceeded the initial plan (first-half operating profit)

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Net Sales

Steamed buns and bread products160

Confectionery products-134

Restaurants-8

Commercial food products219

Prepared foods for household use and other products-124

Real estate rental income-10

Operating profit

Revenue growth29

Labor cost reduction21

Material costs-83

Distribution processing and storage fees-44

Other expenses21

Selling, general and administrative expenses106

Breakdown of selling, general and administrative expenses

Repair expenses146

Promotional expenses23

Transportation costs-32

Other-31

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Raw material costs and selling-related expensesIncorporates increases attributable to geopolitical risks

Selling, general and administrative expensesExpects an increase due to wage hikes and other factors

New initiatives

Formulation of the new medium-term management plan, KYOSO 2030
Launch of commemorative products, promotional activities and fan-building events leveraging the 100th anniversary in 2027
Expansion of permanent office-based employee meal services for corporations and the planned launch of 2 new products
Considering M&A and entry into new B2B businesses
Introduction of a new benefit for long-term shareholders
Flexible Share Repurchases
Introduction of a Stock-Based Compensation Plan

Segment results

Confectionery
Net Sales¥7,175 million (YoY -0.2%)
Segment profit¥-1,248 million
Food
Net Sales¥4,970 million (YoY +2.5%)
Segment profit¥243 million (YoY -23.4%)
Real Estate Leasing
Net Sales¥454 million (YoY -1.3%)
Segment profit¥221 million (YoY -2.2%)

Medium-term management plan targets

Plan nameKYOSO 2030

Target fiscal yearFiscal year ending March 2031

Net Sales

¥41,000 million

Operating profit

¥2,600 million

ROE

8 %

ROIC

7 % range

Financial targets

ROE

Actual results3.3

Results unit%

Target8

Target unit% range

ROIC

Actual results3.6

Results unit%

Target7

Target unit% range

Equity ratio

Current statusApproximately 57%

TargetApproximately 46%

Minimum equity ratio40% or more

Capital expenditures

¥50 billion cumulative from the end of March 2027 through the end of March 2031, regular capital expenditures

Annual Dividend

Planned for the fiscal year ending March 202775 yen per share

Payout ratio

Planned for the fiscal year ending March 202745.5 %

Medium-term target50% or more

DOE target3% or more for the fiscal year ending March 2031

Total shareholder return ratio targetAt least 100%

Acquisition of treasury shares

The company plans to conduct flexible share repurchases. The amount, number of shares and period of the repurchase authorization are Not disclosed.

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending March 2027
Net Sales	¥12,598 million (YoY +0.8%)
Operating profit	¥-1,880 million
Ordinary income	¥-1,717 million
Net income	¥-1,217 million
Gross Profit Margin	27.7 %
Selling, general and administrative expenses	¥5,376 million
Results for the three months of the current quarter	Although revenue, operating profit and other figures for the three months of the second quarter of the fiscal year ending March 2027 are shown in the quarterly trend chart, they are not presented in a comparative table by line item.
Full-year earnings forecast	Net Sales ¥37,700 million / Operating profit ¥1,400 million / Ordinary income ¥1,600 million / Net income ¥950 million
Self-assessment against the plan	Exceeded the initial plan (first-half operating profit)
Segment results	Segment Confectionery / Net Sales ¥7,175 million (YoY -0.2%) / Segment profit ¥-1,248 million, Segment Food / Net Sales ¥4,970 million (YoY +2.5%) / Segment profit ¥243 million (YoY -23.4%), Segment Real Estate Leasing / Net Sales ¥454 million (YoY -1.3%) / Segment profit ¥221 million (YoY -2.2%)
Breakdown of Factors Affecting the Change	Net Sales Steamed buns and bread products 160 / Confectionery products -134 / Restaurants -8 / Commercial food products 219 / Prepared foods for household use and other products -124 / Real estate rental income -10 / Operating profit Revenue growth 29 / Labor cost reduction 21 / Material costs -83 / Distribution processing and storage fees -44 / Other expenses 21 / Selling, general and administrative expenses 106 / Breakdown of selling, general and administrative expenses Repair expenses 146 / Promotional expenses 23 / Transportation costs -32 / Other -31
Assumptions Underlying the Business Outlook	Raw material costs and selling-related expenses Incorporates increases attributable to geopolitical risks / Selling, general and administrative expenses Expects an increase due to wage hikes and other factors
Medium-term management plan targets	Plan name KYOSO 2030 / Target fiscal year Fiscal year ending March 2031 / Net Sales ¥41,000 million / Operating profit ¥2,600 million / ROE 8 % / ROIC 7 % range
Financial targets	ROE Actual results 3.3 / Results unit % / Target 8 / Target unit % range / ROIC Actual results 3.6 / Results unit % / Target 7 / Target unit % range / Equity ratio Current status Approximately 57% / Target Approximately 46% / Minimum equity ratio 40% or more
Annual Dividend	Planned for the fiscal year ending March 2027 75 yen per share / Interim and Year-End Breakdown Not disclosed
Payout ratio	Planned for the fiscal year ending March 2027 45.5 % / Medium-term target 50% or more / DOE target 3% or more for the fiscal year ending March 2031 / Total shareholder return ratio target At least 100%
Acquisition of treasury shares	The company plans to conduct flexible share repurchases. The amount, number of shares and period of the repurchase authorization are Not disclosed.
Capital expenditures	¥50 billion (cumulative from the end of March 2027 through the end of March 2031, regular capital expenditures)
New initiatives	Formulation of the new medium-term management plan, KYOSO 2030, Launch of commemorative products, promotional activities and fan-building events leveraging the 100th anniversary in 2027, Expansion of permanent office-based employee meal services for corporations and the planned launch of 2 new products, Considering M&A and entry into new B2B businesses, Introduction of a new benefit for long-term shareholders, Flexible Share Repurchases, Introduction of a Stock-Based Compensation Plan

Items this document does not state (10)

Operating profit marginProgress against full-year forecastKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited efforts to stimulate spring and summer demand for Chinese-style steamed buns, steady performance in food products for commercial use, the effect of higher revenue, improvements in selling, general and administrative expenses, the reduction of unprofitable products, consolidation of sales channels, and price revisions and specification changes. It also expects higher raw material costs, promotional expenses and labor costs.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.