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Earnings presentation2282NH Foods Ltd.Foods

Earnings Presentation Materials: Fiscal Year Ending March 2027, Second Quarter

For the first half of the fiscal year ending March 2027, revenue increased 6.5% year on year, while business profit decreased 20.7% and interim profit attributable to owners of the parent decreased 25.0%. The full-year forecast remains unchanged, but following the first-half results, the business profit forecast has been lowered from ¥61.0 billion as of the first quarter to ¥50.0 billion.

Worth reading
85Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
75
¥100 million (year-on-year change in first-half business profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,694 hundred million+6.5%
Operating profit¥23,919 million-32.3%
Ordinary income¥30,832 million-19.4%
Net income¥17,394 million-25.0%
Gross Profit Margin15.8%
Operating profit margin3.1% (operating profit of ¥23,919 million ÷ revenue of ¥769,358 million)
Selling, general and administrative expenses¥97,949 million
Results for the three months of the current quarter
Net Sales
¥3,844 hundred million
Business profit
¥94 hundred million
By segment
Processed Foods Business Division
Net Sales1,382
Business profit6
Meat Business Division
Net Sales2,711
Business profit50
Sports and Entertainment Business Division
Net Sales126
Business profit47
Full-year earnings forecast
Net Sales
¥1,500,000 million
Business profit
¥50,000 million
Operating profit
¥42,000 million
Profit before tax
¥52,000 million
Profit for the period attributable to owners of the parent
¥35,000 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Processed Foods Business Division¥-9 hundred million
  • Meat Business Division¥-74 hundred million
  • Sports and Entertainment Business Division¥12 hundred million
  • Eliminations, adjustments and other items¥-4 hundred million
  • Processed Foods: External factors¥-24 hundred million
  • Processed Foods: Internal improvements¥-5 hundred million
  • Meat: External factors¥-18 hundred million
  • Meat: Expenses¥-51 hundred million
  • Meat: Internal improvements¥63 hundred million
  • Meat: Australia¥-64 hundred million
  • Meat: Impact of fire¥-26 hundred million
New initiatives
  • Establishment of the Sports and Entertainment Business Division and changes to reportable segments
  • Launch of new products and stepped-up promotional activities in the Processed Foods Business
  • Production efficiency improvements at 4 plants in the Meat Business, strengthening of the domestic upstream business, and expansion of the Australian feedlot
  • Development of surrounding facilities ahead of the opening of a new station in 2028
Key KPIsA metric the company considers important as a management benchmark.
  • ROE3.3 %
    Year on year against the same period last year-1.1%
  • ROIC2.5 %
    Year on year against the same period last year-0.7%
  • EPS¥62.3
    Year on year against the same period last year-16.1%
  • Attendance at Hokkaido Ballpark F Village332 10,000 people
    Year on year against the same period last year-2.4%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The disclosure includes sales volume and value by livestock category for the Meat Business, sales volume by channel for the Food Sales Group, and year-on-year sales value for processed products.
Segment results
  • Processed Foods Business Division
    Net Sales2,704
    Revenue unit¥ hundred million
    Year-on-year change in revenue4.7
    Business profit13
    Operating profit unit¥ hundred million
    Year-on-year change in business profit-40.1
  • Meat Business Division
    Net Sales5,519
    Revenue unit¥ hundred million
    Year-on-year change in revenue8.9
    Business profit203
    Operating profit unit¥ hundred million
    Year-on-year change in business profit-26.8
  • Sports and Entertainment Business Division
    Net Sales252
    Revenue unit¥ hundred million
    Year-on-year change in revenue10.6
    Business profit96
    Operating profit unit¥ hundred million
    Year-on-year change in business profit14.6
Financial targets
ROE
Full-year forecast6.7 %
ROIC
Full-year forecast4.4 %
Debt-to-equity ratio
Actual results0.56 times
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Impact of the fire¥38 hundred million
DetailsReduced production of domestically produced chicken and other effects from the fire at the Shiretoko Food Factory
Capital expenditures
¥17,600 million first-half actual) / ¥60,000 million (full-year plan
Acquisition of treasury shares
¥300 hundred million
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥7,694 hundred million (YoY +6.5%)
Operating profit¥23,919 million (YoY -32.3%)
Ordinary income¥30,832 million (YoY -19.4%)
Net income¥17,394 million (YoY -25.0%)
Gross Profit Margin15.8%
Operating profit margin3.1% (operating profit of ¥23,919 million ÷ revenue of ¥769,358 million)
Selling, general and administrative expenses¥97,949 million
Results for the three months of the current quarterNet Sales ¥3,844 hundred million / Business profit ¥94 hundred million / By segment Processed Foods Business Division Net Sales 1,382 / Business profit 6 / Meat Business Division Net Sales 2,711 / Business profit 50 / Sports and Entertainment Business Division Net Sales 126 / Business profit 47
Full-year earnings forecastNet Sales ¥1,500,000 million / Business profit ¥50,000 million / Operating profit ¥42,000 million / Profit before tax ¥52,000 million / Profit for the period attributable to owners of the parent ¥35,000 million
Segment resultsSegment Processed Foods Business Division / Net Sales 2,704 / Revenue unit ¥ hundred million / Year-on-year change in revenue 4.7 / Business profit 13 / Operating profit unit ¥ hundred million / Year-on-year change in business profit -40.1, Segment Meat Business Division / Net Sales 5,519 / Revenue unit ¥ hundred million / Year-on-year change in revenue 8.9 / Business profit 203 / Operating profit unit ¥ hundred million / Year-on-year change in business profit -26.8, Segment Sports and Entertainment Business Division / Net Sales 252 / Revenue unit ¥ hundred million / Year-on-year change in revenue 10.6 / Business profit 96 / Operating profit unit ¥ hundred million / Year-on-year change in business profit 14.6
Breakdown of Factors Affecting the ChangeItem Processed Foods Business Division / Amount ¥-9 hundred million, Item Meat Business Division / Amount ¥-74 hundred million, Item Sports and Entertainment Business Division / Amount ¥12 hundred million, Item Eliminations, adjustments and other items / Amount ¥-4 hundred million, Item Processed Foods: External factors / Amount ¥-24 hundred million, Item Processed Foods: Internal improvements / Amount ¥-5 hundred million, Item Meat: External factors / Amount ¥-18 hundred million, Item Meat: Expenses / Amount ¥-51 hundred million, Item Meat: Internal improvements / Amount ¥63 hundred million, Item Meat: Australia / Amount ¥-64 hundred million, Item Meat: Impact of fire / Amount ¥-26 hundred million
Key KPIsIndicator ROE / Value 3.3 % / Year on year against the same period last year -1.1 %, Indicator ROIC / Value 2.5 % / Year on year against the same period last year -0.7 %, Indicator EPS / Value ¥62.3 / Year on year against the same period last year ¥-16.1, Indicator Attendance at Hokkaido Ballpark F Village / Value 332 10,000 people / Year on year against the same period last year -2.4 10,000 people
Unit price and quantity metricsThe disclosure includes sales volume and value by livestock category for the Meat Business, sales volume by channel for the Food Sales Group, and year-on-year sales value for processed products.
Risk amount incorporated into the outlookImpact of the fire ¥38 hundred million / Details Reduced production of domestically produced chicken and other effects from the fire at the Shiretoko Food Factory
Financial targetsROE Full-year forecast 6.7 % / ROIC Full-year forecast 4.4 % / Debt-to-equity ratio Actual results 0.56 times
Acquisition of treasury sharesAmount ¥300 hundred million / Period Not disclosed
Capital expenditures¥17,600 million (first-half actual) / ¥60,000 million (full-year plan)
New initiativesEstablishment of the Sports and Entertainment Business Division and changes to reportable segments, Launch of new products and stepped-up promotional activities in the Processed Foods Business, Production efficiency improvements at 4 plants in the Meat Business, strengthening of the domestic upstream business, and expansion of the Australian feedlot, Development of surrounding facilities ahead of the opening of a new station in 2028
Items this document does not state (11)
Progress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookMedium-term management plan targetsAnnual DividendPayout ratioOrders 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.

Higher sales volumes and price pass-through in the Meat Business, as well as overseas processing, core brands and dairy products in the Processed Foods Business, drove revenue growth. On the other hand, profits were pressured by soaring livestock prices and sluggish selling prices in the Australian business, higher costs for main raw materials, packaging materials, fuel and feed, failure to achieve the planned volume expansion in the Processed Foods Business, and the impact of the fire at the Shiretoko Food Factory.

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Earnings Presentation Materials: Fiscal Year Ending March 2027, Second Quarter | NH Foods Ltd. (2282) timely disclosure | Komori