Earnings Presentation Materials for Q1 (April–June) of the Fiscal Year Ending March 2027 | ITOHAM YONEKYU HOLDINGS INC. (2296) timely disclosure

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Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202714 items taken from the company’s own explanation

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

Net Sales2,811 Hundreds of millions of yen-5.4%

Operating profit91 Hundreds of millions of yen+0.3%

Ordinary income92 Hundreds of millions of yen-0.1%

Net income61 Hundreds of millions of yen-3.9%

Selling, general and administrative expenses299 Hundreds of millions of yen

Gross Profit Margin

Rate13.9%

Year-on-year change (points)+0.3 percentage points

Operating profit margin

Rate3.3%

Year-on-year change (points)+0.2 percentage points

Results for the three months of the current quarterFor Q1 (April–June) alone, net sales were ¥281.1 billion, operating profit was ¥9.1 billion, ordinary profit was ¥9.2 billion and net profit was ¥6.1 billion. The Processed Foods Business recorded net sales of ¥97.6 billion and ordinary profit of ¥1.3 billion, while the Meat Business recorded net sales of ¥183.4 billion and ordinary profit of ¥8.5 billion.

Full-year earnings forecast

Net Sales

10,400 Hundreds of millions of yen

Operating profit

270 Hundreds of millions of yen

Ordinary income

280 Hundreds of millions of yen

Net income for the current fiscal year

185 Hundreds of millions of yen

ROE

6.2 %

ROIC

5.4 %

What the company explained in this material

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

The Meat Business is progressing broadly in line with plan for the first half

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

Consolidated ordinary income
Processed Food Operations-¥900 million
Meat business+¥1.2 billion
Processed Foods Business ordinary profit
Volume factor-¥600 million
Unit-price and expense factors+¥1.3 billion
Raw material and utility cost impact-¥1.1 billion
Logistics unit-price impact-¥0.5 billion
Non-Operating Income and Expenses±¥0 billion
Other±¥0 billion
Meat Business ordinary profit
Domestic volume factors-¥0.2 billion
Domestic unit-price and expense factors+¥1 billion
Domestic market-price and feed impact±¥0 billion
Domestic logistics unit-price impact-¥0.2 billion
Overseas business factors+¥500 million
Non-Operating Income and Expenses+¥100 million
Other±¥0 billion

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

For processed foods, sales volumes from Q2 onward are expected to benefit from a rebound from the decline in volumes in the previous year, while the assumption is that volumes will be broadly in line with the previous year
Price revisions will be implemented from July 2026
For processed foods, the full-year impact of raw material and utility costs is -¥8.5 billion, and the logistics unit-price impact is -¥1.4 billion
In the Meat Business, a decline in the second half is expected in imported chicken, domestic production and the ANZCO business, following the previous year's performance

New initiatives

Strengthening the overseas business platform through the acquisition of Greenlea Group Limited
Consolidating production through the closure of the Chikushi Factory
Refreshing the Alto Bayern product line and airing new TV commercials
Expanding Wagyu export sales

Key KPIsA metric the company considers important as a management benchmark.

Ham and sausage market share21.9 %
Year on year against the same period last year-0.5 percentage points
Wiener sausage market share20.7 %
Year on year against the same period last year-0.3 percentage points
Ham and bacon market share23.9 %
Year on year against the same period last year-0.8 percentage points
Chilled chicken, cooked market share22.1 %
Year on year against the same period last year-0.2 percentage points
Chilled pizza and snack market share27.6 %
Year on year against the same period last year-4.0 percentage points
Wagyu export sales19 Hundreds of millions of yen
Year on year against the same period last year+52.6%

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Processed Foods Business sales volumes were down 2.4% year on year for ham and sausages, 3.8% for prepared processed foods and 3.1% for processed foods overall. The unit-price impact from price revisions and other factors was +¥700 million for ham and sausages and +¥600 million for prepared processed foods. For the Meat Business, the presentation includes growth rates for sales by volume and value.

Segment results

Processed Food Operations
Net Sales976 Hundreds of millions of yen (YoY -2.6%)
Operating profit12 Hundreds of millions of yen
Ordinary income13 Hundreds of millions of yen (YoY -39.4%)
Meat business
Net Sales1,834 Hundreds of millions of yen (YoY -6.8%)
Operating profit86 Hundreds of millions of yen
Ordinary income85 Hundreds of millions of yen (YoY +17.0%)

Medium-term management plan targets

Ordinary profit of ¥50.0 billion in FY2035
ROE of at least 8%
ROIC of at least 6%
DOE of at least 3.0% and progressive dividends

Financial targets

ROE

Target8% or higher

Full-year outlook6.2 %

ROIC

TargetAt least 6%

Full-year outlook5.4 %

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

For processed foods, the impact of raw material and utility costs is -¥8.5 billion and the logistics unit-price impact is -¥1.4 billion. This includes higher costs for secondary materials and utilities due to the situation in the Middle East, as well as higher contracted trucking charges.

Market Size / Share

Market shares by category and product for major household products are provided. Examples: ham and sausages 21.9%, wiener sausages 20.7%, ham and bacon 23.9%.

Capital expenditures

Mishima Plant 300, Other 260, Domestic 90, ANZCO 90, Greenlea 760 주요 investment items accumulated for FY2024–FY2026

Annual Dividend

Annual¥155 per share

Interim¥75 per share

End of period¥80 per share

Payout ratio

DOE3.2%; policy of at least 3.0%

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	2,811 Hundreds of millions of yen (YoY -5.4%)
Operating profit	91 Hundreds of millions of yen (YoY +0.3%)
Ordinary income	92 Hundreds of millions of yen (YoY -0.1%)
Net income	61 Hundreds of millions of yen (YoY -3.9%)
Gross Profit Margin	Rate 13.9% / Year-on-year change (points) +0.3 percentage points
Operating profit margin	Rate 3.3% / Year-on-year change (points) +0.2 percentage points
Selling, general and administrative expenses	299 Hundreds of millions of yen
Results for the three months of the current quarter	For Q1 (April–June) alone, net sales were ¥281.1 billion, operating profit was ¥9.1 billion, ordinary profit was ¥9.2 billion and net profit was ¥6.1 billion. The Processed Foods Business recorded net sales of ¥97.6 billion and ordinary profit of ¥1.3 billion, while the Meat Business recorded net sales of ¥183.4 billion and ordinary profit of ¥8.5 billion.
Full-year earnings forecast	Net Sales 10,400 Hundreds of millions of yen / Operating profit 270 Hundreds of millions of yen / Ordinary income 280 Hundreds of millions of yen / Net income for the current fiscal year 185 Hundreds of millions of yen / ROE 6.2 % / ROIC 5.4 %
Self-assessment against the plan	The Meat Business is progressing broadly in line with plan for the first half
Segment results	Segment Processed Food Operations / Net Sales 976 Hundreds of millions of yen (YoY -2.6%) / Operating profit 12 Hundreds of millions of yen / Ordinary income 13 Hundreds of millions of yen (YoY -39.4%), Segment Meat business / Net Sales 1,834 Hundreds of millions of yen (YoY -6.8%) / Operating profit 86 Hundreds of millions of yen / Ordinary income 85 Hundreds of millions of yen (YoY +17.0%)
Breakdown of Factors Affecting the Change	Subject Consolidated ordinary income / Processed Food Operations -¥900 million / Meat business +¥1.2 billion, Subject Processed Foods Business ordinary profit / Volume factor -¥600 million / Unit-price and expense factors +¥1.3 billion / Raw material and utility cost impact -¥1.1 billion / Logistics unit-price impact -¥0.5 billion / Non-Operating Income and Expenses ±¥0 billion / Other ±¥0 billion, Subject Meat Business ordinary profit / Domestic volume factors -¥0.2 billion / Domestic unit-price and expense factors +¥1 billion / Domestic market-price and feed impact ±¥0 billion / Domestic logistics unit-price impact -¥0.2 billion / Overseas business factors +¥500 million / Non-Operating Income and Expenses +¥100 million / Other ±¥0 billion
Key KPIs	Indicator name Ham and sausage market share / Value 21.9 % / Year on year against the same period last year -0.5 percentage points, Indicator name Wiener sausage market share / Value 20.7 % / Year on year against the same period last year -0.3 percentage points, Indicator name Ham and bacon market share / Value 23.9 % / Year on year against the same period last year -0.8 percentage points, Indicator name Chilled chicken, cooked market share / Value 22.1 % / Year on year against the same period last year -0.2 percentage points, Indicator name Chilled pizza and snack market share / Value 27.6 % / Year on year against the same period last year -4.0 percentage points, Indicator name Wagyu export sales / Value 19 Hundreds of millions of yen / Year on year against the same period last year 52.6 Hundreds of millions of yen
Unit price and quantity metrics	Processed Foods Business sales volumes were down 2.4% year on year for ham and sausages, 3.8% for prepared processed foods and 3.1% for processed foods overall. The unit-price impact from price revisions and other factors was +¥700 million for ham and sausages and +¥600 million for prepared processed foods. For the Meat Business, the presentation includes growth rates for sales by volume and value.
Assumptions Underlying the Business Outlook	For processed foods, sales volumes from Q2 onward are expected to benefit from a rebound from the decline in volumes in the previous year, while the assumption is that volumes will be broadly in line with the previous year, Price revisions will be implemented from July 2026, For processed foods, the full-year impact of raw material and utility costs is -¥8.5 billion, and the logistics unit-price impact is -¥1.4 billion, In the Meat Business, a decline in the second half is expected in imported chicken, domestic production and the ANZCO business, following the previous year's performance
Risk amount incorporated into the outlook	For processed foods, the impact of raw material and utility costs is -¥8.5 billion and the logistics unit-price impact is -¥1.4 billion. This includes higher costs for secondary materials and utilities due to the situation in the Middle East, as well as higher contracted trucking charges.
Medium-term management plan targets	Ordinary profit of ¥50.0 billion in FY2035, ROE of at least 8%, ROIC of at least 6%, DOE of at least 3.0% and progressive dividends
Financial targets	ROE Target 8% or higher / Full-year outlook 6.2 % / ROIC Target At least 6% / Full-year outlook 5.4 %
Annual Dividend	Annual ¥155 per share / Interim ¥75 per share / End of period ¥80 per share
Payout ratio	Rate Not disclosed / DOE 3.2%; policy of at least 3.0%
Capital expenditures	Mishima Plant 300, Other 260, Domestic 90, ANZCO 90, Greenlea 760
Market Size / Share	Market shares by category and product for major household products are provided. Examples: ham and sausages 21.9%, wiener sausages 20.7%, ham and bacon 23.9%.
New initiatives	Strengthening the overseas business platform through the acquisition of Greenlea Group Limited, Consolidating production through the closure of the Chikushi Factory, Refreshing the Alto Bayern product line and airing new TV commercials, Expanding Wagyu export sales

Items this document does not state (6)

Progress against full-year forecastNumber of stores and locationsNumber of employeesAcquisition of treasury sharesOrders received and order backlogKey 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.

In the Processed Foods Business, lower sales volumes and higher raw material and logistics costs reduced profit. The Meat Business posted higher profit, driven by higher ANZCO export prices, strong lamb sales and increased profitability in imported chicken.

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