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

Worth reading

81Important

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Deterioration

Direction inferred from the company’s description.

Scale

-23

¥100 million (year-on-year change in first-half ordinary profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2027: First Half (April–September 2026)11 items taken from the company’s own explanation

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

Net Sales¥5,391 billion-0.6%

Operating profit¥116 billion-12.1%

Ordinary income¥113 billion-17.0%

Net income¥75 billion-21.1%

Gross Profit Margin13.2 %

Operating profit margin2.1 %

Selling, general and administrative expenses¥598 billion

Results for the three months of the current quarter

Processed Food Operations

Ordinary income

Q1¥13 billion

Q2¥11 billion

Meat Business

Ordinary income

Q1¥85 billion

Q2¥16 billion

Full-year earnings forecast

Net Sales

¥11,200 billion

Operating profit

¥280 billion

Ordinary income

¥275 billion

Net income for the current fiscal year

¥180 billion

Processed Foods Business Revenue

¥4,000 billion

Processed Foods Business ordinary profit

¥85 billion

Meat Business Revenue

¥7,200 billion

Meat Business ordinary profit

¥210 billion

What the company explained in this material

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

Company-wide year-on-year change in ordinary profit
Processed Food Operations-13
Meat Business-4
Other / adjustments-6
Processed foods business year-on-year change in ordinary profit
Volume factor-11
Unit-price and expense factors33
Raw material and utility cost impact-26
Logistics unit-price impact-10
Non-operating Income (Loss) and Other0
Meat business year-on-year change in ordinary profit
Volume factor-11
Domestic unit-price and expense factors11
Market price and feed cost impact-3
Logistics unit-price impact-7
Overseas business factors7
Non-operating Income (Loss) and Other-1

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

In line with the prior-year period
BasisSecond-half processed foods sales volume
Primary raw materials: -¥2.2 billion; secondary raw materials: -¥3.3 billion; utilities and other costs: -¥1.0 billion (full-year year-on-year change)
BasisCost increases due to raw material costs and the situation in the Middle East
Lower profit due to the reversal of the previous year's strong performance
BasisSecond-half imported chicken and ANZCO in the meat business

New initiatives

Acquisition of all shares of Greenlea Group Limited and commencement of consolidation
Completion of the Mishima Plant and start of commercial production
Scheduled closure of the Otaru plant
Alto Bayern product refresh
Expansion of exports of domestically produced beef to North America

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

Ham and sausage market share21.8 %
Year-on-year change (points)-0.6
Wiener sausage market share20.6 %
Year-on-year change (points)-0.2
Ham and bacon market share23.6 %
Year-on-year change (points)-1.1
Chilled chicken, cooked market share21.7 %
Year-on-year change (points)0.6
Chilled pizza and snack market share27.4 %
Year-on-year change (points)-5.4
Share of beef processing in New Zealand25 %

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

Processed foods sales volume-2.3 % year-on-year, by weight
Ham and sausage sales volume-2.4 % year-on-year, by weight
Prepared and processed foods sales volume-2.2 % year-on-year, by weight
Processed foods unit selling priceHigher

Segment results

Processed Food Operations
Net Sales1,970
Revenue unit¥ billion
Year-on-year sales-0.8
Operating profit22
Ordinary income25
Ordinary profit, year on year-35
Meat Business
Net Sales3,420
Revenue unit¥ billion
Year-on-year sales-0.5
Operating profit104
Ordinary income101
Ordinary profit, year on year-3.4

Medium-term management plan targets

TargetOrdinary profit of ¥50 billion

Target fiscal yearFY2035

Financial targets

ROE

6.1 %

ROIC

5 %

DOE

3.2 %

Market Size / Share

Ham and sausages
Company market share21.8
Beef processing in New Zealand
Company market share25

Annual Dividend

Annual¥155 per share

Interim¥75 per share

End of period¥80 per share

Payout ratio

48.9 %

DOE

3.2 %

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending March 2027: First Half (April–September 2026)
Net Sales	¥5,391 billion (YoY -0.6%)
Operating profit	¥116 billion (YoY -12.1%)
Ordinary income	¥113 billion (YoY -17.0%)
Net income	¥75 billion (YoY -21.1%)
Gross Profit Margin	13.2 %
Operating profit margin	2.1 %
Selling, general and administrative expenses	¥598 billion
Results for the three months of the current quarter	Processed Food Operations Ordinary income Q1 ¥13 billion / Q2 ¥11 billion / Meat Business Ordinary income Q1 ¥85 billion / Q2 ¥16 billion
Full-year earnings forecast	Net Sales ¥11,200 billion / Operating profit ¥280 billion / Ordinary income ¥275 billion / Net income for the current fiscal year ¥180 billion / Processed Foods Business Revenue ¥4,000 billion / Processed Foods Business ordinary profit ¥85 billion / Meat Business Revenue ¥7,200 billion / Meat Business ordinary profit ¥210 billion
Segment results	Segment Processed Food Operations / Net Sales 1,970 / Revenue unit ¥ billion / Year-on-year sales -0.8 / Operating profit 22 / Ordinary income 25 / Ordinary profit, year on year -35, Segment Meat Business / Net Sales 3,420 / Revenue unit ¥ billion / Year-on-year sales -0.5 / Operating profit 104 / Ordinary income 101 / Ordinary profit, year on year -3.4
Breakdown of Factors Affecting the Change	Subject Company-wide year-on-year change in ordinary profit / Processed Food Operations ¥-13 billion / Meat Business ¥-4 billion / Other / adjustments ¥-6 billion, Subject Processed foods business year-on-year change in ordinary profit / Volume factor ¥-11 billion / Unit-price and expense factors ¥33 billion / Raw material and utility cost impact ¥-26 billion / Logistics unit-price impact ¥-10 billion / Non-operating Income (Loss) and Other ¥0 billion, Subject Meat business year-on-year change in ordinary profit / Volume factor ¥-11 billion / Domestic unit-price and expense factors ¥11 billion / Market price and feed cost impact ¥-3 billion / Logistics unit-price impact ¥-7 billion / Overseas business factors ¥7 billion / Non-operating Income (Loss) and Other ¥-1 billion
Key KPIs	Indicator Ham and sausage market share / Value 21.8 % / Year-on-year change (points) -0.6 %, Indicator Wiener sausage market share / Value 20.6 % / Year-on-year change (points) -0.2 %, Indicator Ham and bacon market share / Value 23.6 % / Year-on-year change (points) -1.1 %, Indicator Chilled chicken, cooked market share / Value 21.7 % / Year-on-year change (points) 0.6 %, Indicator Chilled pizza and snack market share / Value 27.4 % / Year-on-year change (points) -5.4 %, Indicator Share of beef processing in New Zealand / Value 25 %
Unit price and quantity metrics	Indicator Processed foods sales volume / Value -2.3 % (year-on-year, by weight), Indicator Ham and sausage sales volume / Value -2.4 % (year-on-year, by weight), Indicator Prepared and processed foods sales volume / Value -2.2 % (year-on-year, by weight), Indicator Processed foods unit selling price / Value Higher
Assumptions Underlying the Business Outlook	Basis Second-half processed foods sales volume / Value In line with the prior-year period, Basis Cost increases due to raw material costs and the situation in the Middle East / Value Primary raw materials: -¥2.2 billion; secondary raw materials: -¥3.3 billion; utilities and other costs: -¥1.0 billion (full-year year-on-year change), Basis Second-half imported chicken and ANZCO in the meat business / Value Lower profit due to the reversal of the previous year's strong performance
Medium-term management plan targets	Target Ordinary profit of ¥50 billion / Target fiscal year FY2035
Financial targets	ROE 6.1 % / ROIC 5 % / DOE 3.2 %
Annual Dividend	Annual ¥155 per share / Interim ¥75 per share / End of period ¥80 per share
Payout ratio	48.9 %
Market Size / Share	Market Ham and sausages / Company market share 21.8 %, Market Beef processing in New Zealand / Company market share 25 %
New initiatives	Acquisition of all shares of Greenlea Group Limited and commencement of consolidation, Completion of the Mishima Plant and start of commercial production, Scheduled closure of the Otaru plant, Alto Bayern product refresh, Expansion of exports of domestically produced beef to North America

Items this document does not state (9)

Progress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders 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, the decline in sales volume and higher raw material and logistics costs outweighed improved profitability from price revisions and internal improvements. In the meat business, the decline in profit from domestic operations could not be fully offset by the solid performance of overseas operations.

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