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Financial results presentation2810House Foods Group Inc.Food

Full-Year Financial Results Briefing Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue increased, while operating income and net income declined due to higher business costs, including raw materials, energy and logistics. In response to the gap with the Eighth Medium-Term Plan, the company presented structural reforms centered on focusing resources on its curry and spice business, organizational reform and ROE improvement, together with a new plan for the fiscal year ending March 2027.

Worth reading
71In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-18
¥100 million (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results Briefing MaterialsFiscal year ending March 2026, full year15 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales3,170 Hundreds of millions of yen+0.5%
Operating profit182 Hundreds of millions of yen-8.8%
Ordinary income195 Hundreds of millions of yen-8.9%
Net income74 Hundreds of millions of yen-41.1%
Operating profit margin5.8 %
Full-year earnings forecast
Net Sales
3,225 Hundreds of millions of yen
Operating profit
185 Hundreds of millions of yen
Ordinary income
197 Hundreds of millions of yen
Net income for the current fiscal year
170 Hundreds of millions of yen
ROE
6 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and profit growth and improvements in capital efficiency did not progress as expected, resulting in a gap versus the Eighth Medium-Term Plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Spices and seasonings processed foods business0 Hundreds of millions of yen
  • Health Foods Business-9 Hundreds of millions of yen
  • Overseas Food Business3 Hundreds of millions of yen
  • Food-Service Business-2 Hundreds of millions of yen
  • Other food-related businesses-3 Hundreds of millions of yen
  • Adjustments (eliminations)-6 Hundreds of millions of yen
  • Change in consolidated operating income-18 Hundreds of millions of yen
  • Impairment losses related to U.S.-based Keystone and other entities75 Hundreds of millions of yen
  • Gain on sale of cross-held shares47 Hundreds of millions of yen
  • Gain on the transfer of the Delica Chef business26 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Impact of consolidated cost increases in FY ending March 2027-50 Hundreds of millions of yen
  • Potential increase in procurement costs due to the situation in the Middle East15～30
New initiatives
  • Concentration of management resources on the spice-based value chain
  • Launch of an organizational reform project reporting directly to the president and review of the group headquarters structure
  • Change to a progressive dividend policy from the fiscal year ending March 2027, targeting a DOE of at least 3%
  • Share buybacks of up to ¥26.0 billion
  • Investment to strengthen production of retort products for commercial use at the Tohoku Plant
  • Construction of a new curry roux plant in Indonesia
  • Expansion of primary spice-processing capacity in Malaysia
Key KPIsA metric the company considers important as a management benchmark.
  • ROE2.5 %
    Year on year against the same period last year-1.8%
  • ROIC4.1 %
    Year on year against the same period last year-0.4%
  • ROS5.8 %
    Year on year against the same period last year-0.6%
  • EBITDA318 Hundreds of millions of yen
    Year on year against the same period last year-21.0%
  • Overseas revenue ratio25.7 %
    Year on year against the same period last year+0.8%
  • Company-wide ROIC4.1 %
    Year on year against the same period last year-0.4%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Ichibanya domestic same-store customer count-3.5 %
    Year on year against the same period last year-3.5%
  • Ichibanya domestic same-store average spend per customer4.2 %
    Year on year against the same period last year+4.2%
Segment results
  • Spices and seasonings processed foods business
    Net Sales1,321 Hundreds of millions of yen
    Revenue_yoy7
    Operating profit128 Hundreds of millions of yen
    Operating income_yoy0
  • Health Foods Business
    Net Sales169 Hundreds of millions of yen
    Revenue_yoy-2
    Operating profit15 Hundreds of millions of yen
    Operating income_yoy-9
  • Overseas Food Business
    Net Sales634 Hundreds of millions of yen
    Revenue_yoy10
    Operating profit34 Hundreds of millions of yen
    Operating income_yoy3
  • Food-Service Business
    Net Sales655 Hundreds of millions of yen
    Revenue_yoy45
    Operating profit34 Hundreds of millions of yen
    Operating income_yoy-2
  • Other food-related businesses
    Net Sales501 Hundreds of millions of yen
    Revenue_yoy-43
    Operating profit9 Hundreds of millions of yen
    Operating income_yoy-3
  • Adjustments (eliminations)
    Net Sales-110 Hundreds of millions of yen
    Revenue_yoy-2
    Operating profit-38 Hundreds of millions of yen
    Operating income_yoy-6
Medium-term management plan targets
  • Revenue
    Target value3,600
    Target fiscal yearFY27.3
    Comparison with actual resultsFY ended March 2026 actual: ¥317.0 billion; gap: △¥43.0 billion
  • Operating income
    Target value270
    Target fiscal yearFY27.3
    Comparison with actual resultsFY ended March 2026 actual: ¥18.2 billion; gap: △¥8.8 billion
  • ROS
    Target value7.5
    Target fiscal yearFY27.3
    Comparison with actual resultsFY ended March 2026 actual: 5.8%; gap: △2.0 pts
  • ROIC
    Target value6
    Target fiscal yearFY27.3
    Comparison with actual resultsFY ended March 2026 actual: 4.1%; gap: △1.9 pts
  • ROE
    Target value7
    Target fiscal yearFY27.3
    Comparison with actual resultsFY ended March 2026 actual: 2.5%; gap: △4.5 pts
Financial targets
  • ROE
    Target value6
    Target fiscal yearFY27.3
  • ROE
    Target value8
    Target fiscal yearEarly implementation
  • ROIC
    Actual value4.1
    Target value6
    Target fiscal yearEighth Medium-Term Plan
  • Equity ratio
    Actual value67
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
15～30
DetailsHigher procurement costs for packaging materials, energy and logistics due to the situation in the Middle East. Not included in the plan for the fiscal year ending March 2027.
Number of stores and locations
  • LocationIchibanya domestic, all formats
    Number at period end1,285 Location
    Change during the period21 Location
  • LocationIchibanya overseas, all formats
    Number at period end218 Location
    Change during the period2 Location
Capital expenditures
167 Hundreds of millions of yen
Annual Dividend
Annual dividend per share¥70
Interim¥24
End of period¥46
Payout ratio
87.8 %
Total payout ratio
223.2 %
Acquisition of treasury shares
Maximum amount260 Hundreds of millions of yen
Resolution date11 May 2026
Contents of this document
ItemDetails
Document typeFinancial Results Briefing Materials
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales3,170 Hundreds of millions of yen (YoY +0.5%)
Operating profit182 Hundreds of millions of yen (YoY -8.8%)
Ordinary income195 Hundreds of millions of yen (YoY -8.9%)
Net income74 Hundreds of millions of yen (YoY -41.1%)
Operating profit margin5.8 %
Full-year earnings forecastNet Sales 3,225 Hundreds of millions of yen / Operating profit 185 Hundreds of millions of yen / Ordinary income 197 Hundreds of millions of yen / Net income for the current fiscal year 170 Hundreds of millions of yen / ROE 6 %
Self-assessment against the planRevenue and profit growth and improvements in capital efficiency did not progress as expected, resulting in a gap versus the Eighth Medium-Term Plan
Segment resultsSegment Spices and seasonings processed foods business / Net Sales 1,321 Hundreds of millions of yen / Revenue_yoy 7 / Operating profit 128 Hundreds of millions of yen / Operating income_yoy 0, Segment Health Foods Business / Net Sales 169 Hundreds of millions of yen / Revenue_yoy -2 / Operating profit 15 Hundreds of millions of yen / Operating income_yoy -9, Segment Overseas Food Business / Net Sales 634 Hundreds of millions of yen / Revenue_yoy 10 / Operating profit 34 Hundreds of millions of yen / Operating income_yoy 3, Segment Food-Service Business / Net Sales 655 Hundreds of millions of yen / Revenue_yoy 45 / Operating profit 34 Hundreds of millions of yen / Operating income_yoy -2, Segment Other food-related businesses / Net Sales 501 Hundreds of millions of yen / Revenue_yoy -43 / Operating profit 9 Hundreds of millions of yen / Operating income_yoy -3, Segment Adjustments (eliminations) / Net Sales -110 Hundreds of millions of yen / Revenue_yoy -2 / Operating profit -38 Hundreds of millions of yen / Operating income_yoy -6
Breakdown of Factors Affecting the ChangeSpices and seasonings processed foods business 0 Hundreds of millions of yen, Health Foods Business -9 Hundreds of millions of yen, Overseas Food Business 3 Hundreds of millions of yen, Food-Service Business -2 Hundreds of millions of yen, Other food-related businesses -3 Hundreds of millions of yen, Adjustments (eliminations) -6 Hundreds of millions of yen, Change in consolidated operating income -18 Hundreds of millions of yen, Impairment losses related to U.S.-based Keystone and other entities 75 Hundreds of millions of yen, Gain on sale of cross-held shares 47 Hundreds of millions of yen, Gain on the transfer of the Delica Chef business 26 Hundreds of millions of yen
Key KPIsROE 2.5 %, ROIC 4.1 %, ROS 5.8 %, EBITDA 318 Hundreds of millions of yen, Overseas revenue ratio 25.7 %, Company-wide ROIC 4.1 %
Unit price and quantity metricsIchibanya domestic same-store customer count -3.5 %, Ichibanya domestic same-store average spend per customer 4.2 %
Number of stores and locationsLocation Ichibanya domestic, all formats / Number at period end 1,285 Location / Change during the period 21 Location, Location Ichibanya overseas, all formats / Number at period end 218 Location / Change during the period 2 Location
Assumptions Underlying the Business OutlookImpact of consolidated cost increases in FY ending March 2027 -50 Hundreds of millions of yen, Potential increase in procurement costs due to the situation in the Middle East 15～30
Risk amount incorporated into the outlook15～30
Medium-term management plan targetsIndicator Revenue / Target value 3,600 Hundreds of millions of yen / Target fiscal year FY27.3 / Comparison with actual results FY ended March 2026 actual: ¥317.0 billion; gap: △¥43.0 billion, Indicator Operating income / Target value 270 Hundreds of millions of yen / Target fiscal year FY27.3 / Comparison with actual results FY ended March 2026 actual: ¥18.2 billion; gap: △¥8.8 billion, Indicator ROS / Target value 7.5 % / Target fiscal year FY27.3 / Comparison with actual results FY ended March 2026 actual: 5.8%; gap: △2.0 pts, Indicator ROIC / Target value 6 % / Target fiscal year FY27.3 / Comparison with actual results FY ended March 2026 actual: 4.1%; gap: △1.9 pts, Indicator ROE / Target value 7 % / Target fiscal year FY27.3 / Comparison with actual results FY ended March 2026 actual: 2.5%; gap: △4.5 pts
Financial targetsIndicator ROE / Target value 6 % / Target fiscal year FY27.3, Indicator ROE / Target value 8 % / Target fiscal year Early implementation, Indicator ROIC / Actual value 4.1 % / Target value 6 % / Target fiscal year Eighth Medium-Term Plan, Indicator Equity ratio / Actual value 67 %
Annual DividendAnnual dividend per share ¥70 / Interim ¥24 / End of period ¥46
Payout ratio87.8 %
Acquisition of treasury sharesMaximum amount 260 Hundreds of millions of yen / Period Not disclosed / Resolution date 11 May 2026
Capital expenditures167 Hundreds of millions of yen
New initiativesConcentration of management resources on the spice-based value chain, Launch of an organizational reform project reporting directly to the president and review of the group headquarters structure, Change to a progressive dividend policy from the fiscal year ending March 2027, targeting a DOE of at least 3%, Share buybacks of up to ¥26.0 billion, Investment to strengthen production of retort products for commercial use at the Tohoku Plant, Construction of a new curry roux plant in Indonesia, Expansion of primary spice-processing capacity in Malaysia
Items this document does not state (8)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of employeesOrders 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 decline in earnings was primarily attributable to higher business costs and the recognition of impairment losses associated with the cancellation of the new facility plan by U.S.-based Keystone and other factors. The company explained that revenue and profit growth and improvements in capital efficiency under the Eighth Medium-Term Plan did not progress as expected, resulting in a gap versus the plan.

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Full-Year Financial Results Briefing Materials for the Fiscal Year Ending March 2026 | House Foods Group Inc. (2810) timely disclosure | Komori