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Presentation materials for financial results2810House Foods Group Inc.Food

Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter, revenue declined due to the exclusion of the prepared foods business from the scope of consolidation, while operating income and net income increased as sales volumes recovered and prices were revised. Incorporating higher procurement costs stemming from the situation in the Middle East, the full-year operating income and ordinary income forecasts were each lowered by ¥1 billion.

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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-10
¥100 million (full-year operating income and ordinary income forecasts each revised downward by ¥1 billion)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst 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 Sales751 Hundreds of millions of yen-0.7%
Operating profit40 Hundreds of millions of yen+17.1%
Ordinary income45 Hundreds of millions of yen+22.6%
Net income51 Hundreds of millions of yen+185.3%
Operating profit margin5.3 %
Results for the three months of the current quarterRevenue: ¥75.1 billion; operating income: ¥4.0 billion; EBITDA: ¥7.2 billion; ordinary income: ¥4.5 billion; net income attributable to owners of the parent: ¥5.1 billion
Full-year earnings forecast
Net Sales
3,225 Hundreds of millions of yen
Operating profit
175 Hundreds of millions of yen
Ordinary income
187 Hundreds of millions of yen
Net income for the current fiscal year
170 Hundreds of millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Spices and seasonings processed foods business+¥500 million
  • Health Food Business+¥200 million
  • Overseas Food Business+¥200 million
  • Food-Service Business-¥0.2 billion
  • Other food-related businesses+¥0.0 billion
  • Adjustments (eliminations)-¥100 million
  • Change in consolidated operating income+¥600 million
  • Revenue change in the spices and seasonings processed foods business+¥0.8 billion
  • Change in the cost ratio of the spices and seasonings processed foods business+¥100 million
  • Other expenses of the spices and seasonings processed foods business-¥0.5 billion
  • U.S. business of the international foods business-¥0.2 billion
  • China business of the international foods business+¥0.3 billion
  • Southeast Asian business of the international foods business+¥200 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Potential increase in procurement costs due to the situation in the Middle EastApproximately ¥1.5 billion to ¥3.0 billion
New initiatives
  • Full-scale operation of the industrial retort foods plant in Tohoku
  • Decision to close the Parsippany plant in the United States
  • Launch of an organizational reform project in the first quarter
  • Holding tasting events in 10 cities nationwide in China
  • Launch of new products including Kokumaro Stew and Curry-ya Curry EX
Key KPIsA metric the company considers important as a management benchmark.
  • Spices and seasonings processed foods business ROS5.2 %
    Year on year against the same period last year+1.3pt
  • International foods business ROS9.4 %
    Year on year against the same period last year+1.0pt
  • Health foods business ROS12.8 %
    Year on year against the same period last year+4.0pt
  • Food service business ROS4.4 %
    Year on year against the same period last year-1.5pt
  • Curry roux value share61.8 %
  • Domestic sales across all stores103.1 Year on year
  • Existing-Store Sales in Japan102.5 Year on year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Average market selling price for curry roux¥260
    Year on year against the same period last year¥17 higher year on year
  • House Foods average selling price¥271
    Year on year against the same period last year¥15 higher year on year
  • Ichibanya customer count100.5 Year on year
  • Ichibanya average spend per customer101.9 Year on year
Segment results
Spices and seasonings processed foods business
Net Sales
313 Hundreds of millions of yen+5.3%
Operating profit
16 Hundreds of millions of yen+39.7%
Health Food Business
Net Sales
42 Hundreds of millions of yen+4.2%
Operating profit
5 Hundreds of millions of yen+52.1%
Overseas Food Business
Net Sales
166 Hundreds of millions of yen+4.4%
Operating profit
16 Hundreds of millions of yen+17.1%
Food-Service Business
Net Sales
170 Hundreds of millions of yen+7.8%
Operating profit
8 Hundreds of millions of yen-19.3%
Other food-related businesses
Net Sales
89 Hundreds of millions of yen-30.6%
Operating profit
2 Hundreds of millions of yen+10.7%
Financial targets
ROE
Target6.0%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
DetailsHigher procurement costs stemming from the situation in the Middle East
Impact of higher costs¥2.4 billion
Offsetting and absorption¥1.4 billion
Market Size / Share
Curry roux value share61.8%
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales751 Hundreds of millions of yen (YoY -0.7%)
Operating profit40 Hundreds of millions of yen (YoY +17.1%)
Ordinary income45 Hundreds of millions of yen (YoY +22.6%)
Net income51 Hundreds of millions of yen (YoY +185.3%)
Operating profit margin5.3 %
Results for the three months of the current quarterRevenue: ¥75.1 billion; operating income: ¥4.0 billion; EBITDA: ¥7.2 billion; ordinary income: ¥4.5 billion; net income attributable to owners of the parent: ¥5.1 billion
Full-year earnings forecastNet Sales 3,225 Hundreds of millions of yen / Operating profit 175 Hundreds of millions of yen / Ordinary income 187 Hundreds of millions of yen / Net income for the current fiscal year 170 Hundreds of millions of yen
Segment resultsSpices and seasonings processed foods business Net Sales 313 Hundreds of millions of yen (YoY +5.3%) / Operating profit 16 Hundreds of millions of yen (YoY +39.7%) / Health Food Business Net Sales 42 Hundreds of millions of yen (YoY +4.2%) / Operating profit 5 Hundreds of millions of yen (YoY +52.1%) / Overseas Food Business Net Sales 166 Hundreds of millions of yen (YoY +4.4%) / Operating profit 16 Hundreds of millions of yen (YoY +17.1%) / Food-Service Business Net Sales 170 Hundreds of millions of yen (YoY +7.8%) / Operating profit 8 Hundreds of millions of yen (YoY -19.3%) / Other food-related businesses Net Sales 89 Hundreds of millions of yen (YoY -30.6%) / Operating profit 2 Hundreds of millions of yen (YoY +10.7%)
Breakdown of Factors Affecting the ChangeFactors Spices and seasonings processed foods business / Amount +¥500 million, Factors Health Food Business / Amount +¥200 million, Factors Overseas Food Business / Amount +¥200 million, Factors Food-Service Business / Amount -¥0.2 billion, Factors Other food-related businesses / Amount +¥0.0 billion, Factors Adjustments (eliminations) / Amount -¥100 million, Factors Change in consolidated operating income / Amount +¥600 million, Factors Revenue change in the spices and seasonings processed foods business / Amount +¥0.8 billion, Factors Change in the cost ratio of the spices and seasonings processed foods business / Amount +¥100 million, Factors Other expenses of the spices and seasonings processed foods business / Amount -¥0.5 billion, Factors U.S. business of the international foods business / Amount -¥0.2 billion, Factors China business of the international foods business / Amount +¥0.3 billion, Factors Southeast Asian business of the international foods business / Amount +¥200 million
Key KPIsIndicator name Spices and seasonings processed foods business ROS / Value 5.2 % / Year on year against the same period last year +1.3pt, Indicator name International foods business ROS / Value 9.4 % / Year on year against the same period last year +1.0pt, Indicator name Health foods business ROS / Value 12.8 % / Year on year against the same period last year +4.0pt, Indicator name Food service business ROS / Value 4.4 % / Year on year against the same period last year -1.5pt, Indicator name Curry roux value share / Value 61.8 % / Year on year against the same period last year Not disclosed, Indicator name Domestic sales across all stores / Value 103.1 Year on year, Indicator name Existing-Store Sales in Japan / Value 102.5 Year on year
Unit price and quantity metricsIndicator name Average market selling price for curry roux / Value ¥260 / Year on year against the same period last year ¥17 higher year on year, Indicator name House Foods average selling price / Value ¥271 / Year on year against the same period last year ¥15 higher year on year, Indicator name Ichibanya customer count / Value 100.5 Year on year, Indicator name Ichibanya average spend per customer / Value 101.9 Year on year
Assumptions Underlying the Business OutlookPotential increase in procurement costs due to the situation in the Middle East Approximately ¥1.5 billion to ¥3.0 billion
Risk amount incorporated into the outlookDetails Higher procurement costs stemming from the situation in the Middle East / Impact of higher costs ¥2.4 billion / Offsetting and absorption ¥1.4 billion
Financial targetsROE Target 6.0% / Actual results Not disclosed
Market Size / ShareCurry roux value share 61.8%
New initiativesFull-scale operation of the industrial retort foods plant in Tohoku, Decision to close the Parsippany plant in the United States, Launch of an organizational reform project in the first quarter, Holding tasting events in 10 cities nationwide in China, Launch of new products including Kokumaro Stew and Curry-ya Curry EX
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesMedium-term management plan targetsAnnual DividendPayout ratioAcquisition 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 first quarter, revenue declined as the prepared foods business was excluded from the scope of consolidation following its transfer, but higher sales volumes and the effect of price revisions for certain products absorbed rising costs, resulting in higher operating income. The full-year forecast was revised downward to reflect the impact of higher procurement costs stemming from the situation in the Middle East.

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Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | House Foods Group Inc. (2810) timely disclosure | Komori