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Presentation materials for financial results2700KITOKU SHINRYO CO.,LTD.Trading & Wholesale

Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026

In the first half, revenue increased, mainly due to higher rice prices, but the gross margin in the rice business declined as the company cut prices and increased promotional activity to reduce inventories, resulting in significant declines in operating income and interim net income. The feed and egg businesses recorded higher revenue and earnings, supporting overall performance.

Worth reading
46Recurring
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
-4377
Millions of yen (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter (interim period) of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥88,428 million+5.3%
Operating profit¥880 million-83.3%
Ordinary income¥851 million-84.1%
Net income¥732 million-80.2%
Operating profit margin1 %
Selling, general and administrative expenses¥3,371 million
Full-year earnings forecast
Net Sales
2,000 Hundreds of millions of yen
Operating profit
40 Hundreds of millions of yen
Annual Dividend
¥60
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Rice business operating income¥-4,483 million
  • Feed business operating income¥21 million
  • Egg business operating income¥36 million
  • Rice business revenue¥3,828 million
  • Feed business revenue¥374 million
  • Egg business revenue¥211 million
New initiatives
  • Development and efficacy testing of agricultural materials using rice-derived by-products
  • Development and introduction of new high-yield rice varieties
  • Demonstration testing of dry direct-seeding cultivation technology
  • Participation in the Next-Generation Agribusiness Council
  • Strengthening the procurement base with agricultural cooperatives and producer corporations
  • Establishment of a joint venture, 『日本精米センター株式会社』, with 株式会社神明
Key KPIsA metric the company considers important as a management benchmark.
  • Rice business sales volume18.9 10,000 tonnes-11.5%
  • Overseas sales volume KPI3.45 10,000 tonnes
  • Procurement results for 2025-crop rice22,000 tonnes
  • Equity ratio42.6 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Rice business selling priceHigher
  • Rice business sales volume18.9 10,000 tonnes
    Year on year against the same period last year-11.5%
  • General egg sales weightDecreased
Segment results
Rice business
Net Sales
¥77,552 million+5.2%
Operating profit
¥1,043 million-81.1%
Feed business
Net Sales
¥5,374 million+7.5%
Operating profit
¥261 million+9.0%
Chicken egg business
Net Sales
¥5,501 million+4.0%
Operating profit
¥170 million+27.5%
Medium-term management plan targets
FY2027.12
Net Sales
2,140 Hundreds of millions of yen
Operating profit
50 Hundreds of millions of yen
FY2028 December
Net Sales
2,500 Hundreds of millions of yen
Operating profit
60 Hundreds of millions of yen
Financial targets
DOE
Indicative dividend level2 % or higher
Equity ratio
Actual results42.6 %
Annual Dividend
¥60
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending December 2026
Net Sales¥88,428 million (YoY +5.3%)
Operating profit¥880 million (YoY -83.3%)
Ordinary income¥851 million (YoY -84.1%)
Net income¥732 million (YoY -80.2%)
Operating profit margin1 %
Selling, general and administrative expenses¥3,371 million
Full-year earnings forecastNet Sales 2,000 Hundreds of millions of yen / Operating profit 40 Hundreds of millions of yen / Annual Dividend ¥60 / Ordinary income Not disclosed / Net income Not disclosed
Segment resultsRice business Net Sales ¥77,552 million (YoY +5.2%) / Operating profit ¥1,043 million (YoY -81.1%) / Feed business Net Sales ¥5,374 million (YoY +7.5%) / Operating profit ¥261 million (YoY +9.0%) / Chicken egg business Net Sales ¥5,501 million (YoY +4.0%) / Operating profit ¥170 million (YoY +27.5%)
Breakdown of Factors Affecting the ChangeFactors Rice business operating income / Amount ¥-4,483 million, Factors Feed business operating income / Amount ¥21 million, Factors Egg business operating income / Amount ¥36 million, Factors Rice business revenue / Amount ¥3,828 million, Factors Feed business revenue / Amount ¥374 million, Factors Egg business revenue / Amount ¥211 million
Key KPIsRice business sales volume 18.9 10,000 tonnes (YoY -11.5%), Overseas sales volume KPI 3.45 10,000 tonnes, Procurement results for 2025-crop rice 22,000 tonnes, Equity ratio 42.6 %
Unit price and quantity metricsRice business selling price Higher, Rice business sales volume 18.9 10,000 tonnes, General egg sales weight Decreased
Medium-term management plan targetsFY2027.12 Net Sales 2,140 Hundreds of millions of yen / Operating profit 50 Hundreds of millions of yen / FY2028 December Net Sales 2,500 Hundreds of millions of yen / Operating profit 60 Hundreds of millions of yen
Financial targetsDOE Indicative dividend level 2 % or higher / Equity ratio Actual results 42.6 %
Annual Dividend¥60
New initiativesDevelopment and efficacy testing of agricultural materials using rice-derived by-products, Development and introduction of new high-yield rice varieties, Demonstration testing of dry direct-seeding cultivation technology, Participation in the Next-Generation Agribusiness Council, Strengthening the procurement base with agricultural cooperatives and producer corporations, Establishment of a joint venture, 『日本精米センター株式会社』, with 株式会社神明
Items this document does not state (14)
Gross Profit MarginResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders 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.

In the rice business, the gross margin declined and pressured operating income because the company prioritized inventory reduction through pricing measures against a backdrop of rising distribution inventories. In contrast, expanded sales and appropriate inventory management in the feed business, as well as price revisions, a review of procurement terms and expanded sales in the egg business, contributed to higher earnings.

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Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 | KITOKU SHINRYO CO.,LTD. (2700) timely disclosure | Komori