Supplementary Materials for the Consolidated Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [IFRS] | KAGOME CO.,LTD. (2811) timely disclosure

Worth reading

67In focus

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

5103

¥ millions (year-on-year change in revenue)

Wording

Definitive

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportSecond 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¥143,785 million+3.7%

Operating profit¥9,089 million-14.5%

Ordinary income¥8,249 million-17.4%

Net income¥4,683 million-24.2%

Selling, general and administrative expenses¥38,510 million

Gross Profit Margin

Rate32.7%

Year on year against the same period last yearDown 0.3 percentage points year on year

Operating profit margin

Rate6.3%

Year on year against the same period last yearDown 1.4 percentage points year on year

Results for the three months of the current quarterRevenue of ¥76,220 million and business profit of ¥4,997 million (profit margin: 6.6%). Year on year, revenue increased by ¥4,706 million and business profit decreased by ¥727 million.

What the company explained in this material

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

Increase in gross profit1,175
Increase in personnel expenses (SG&A)-1,055
Increase in sales promotion expenses-300
Increase in Advertising Expenses-388
Increase in freight and warehousing costs-771
Decrease in depreciation and amortization25
Increase in other SG&A expenses-610

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

Average exchange rate for the U.S. dollar during the period158.18 yen
Average exchange rate for the euro during the period184.52 yen
Average exchange rate for the pound sterling during the period212.77 yen
Average Australian dollar exchange rate during the period111.1 yen
Average exchange rate for the Taiwan dollar during the period5.01 yen

New initiatives

Early adoption of IFRS 18. Change in the scope of consolidation following the inclusion of Silbury Marketing Ltd as a consolidated subsidiary.

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

Basic interim earnings per share51.74 yen
Year on year against the same period last year-22.6%
ROE2.4 %
Year on year against the same period last yearDown 1.1 percentage points year on year
ROA2.3 %
Year on year against the same period last yearDown 0.7 percentage points year on year
Equity ratio attributable to owners of the parent54.1 %
Year on year against the same period last yearIncrease of 2.1 percentage points
Cash flow from operating activities¥21,803 million
Year on year against the same period last year-10.8%
Free cash flow¥12,710 million
Year on year against the same period last year-32.8%
Research and Development Expenses¥2,830 million
Year on year against the same period last year+18.7%
Advertising expenses¥4,290 million
Year on year against the same period last year+10.0%

Segment results

Domestic Processed Foods
Revenue73,077
Profit5,019
Year on year against the same period last year
Revenue -0.2 / Profit -8.8
International Operations
Revenue68,576
Profit5,192
Year on year against the same period last year
Revenue 11.9 / Profit -10.2
Other
Revenue11,848
Profit67
Year on year against the same period last year
Revenue -0.2 / Profit -82.7

Financial targets

Actual ROE: 2.4%; actual ROA: 2.3%; equity ratio attributable to owners of the parent: 54.1%. Target value: Not disclosed

Capital expenditures

¥5,562 million

Acquisition of treasury shares

Share repurchases of ¥1,343 million (actual)

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending December 2026
Net Sales	¥143,785 million (YoY +3.7%)
Operating profit	¥9,089 million (YoY -14.5%)
Ordinary income	¥8,249 million (YoY -17.4%)
Net income	¥4,683 million (YoY -24.2%)
Gross Profit Margin	Rate 32.7% / Year on year against the same period last year Down 0.3 percentage points year on year
Operating profit margin	Rate 6.3% / Year on year against the same period last year Down 1.4 percentage points year on year
Selling, general and administrative expenses	¥38,510 million
Results for the three months of the current quarter	Revenue of ¥76,220 million and business profit of ¥4,997 million (profit margin: 6.6%). Year on year, revenue increased by ¥4,706 million and business profit decreased by ¥727 million.
Segment results	Segment Domestic Processed Foods / Revenue 73,077 / Profit 5,019 / Year on year against the same period last year Revenue -0.2 / Profit -8.8, Segment International Operations / Revenue 68,576 / Profit 5,192 / Year on year against the same period last year Revenue 11.9 / Profit -10.2, Segment Other / Revenue 11,848 / Profit 67 / Year on year against the same period last year Revenue -0.2 / Profit -82.7
Breakdown of Factors Affecting the Change	Factors Increase in gross profit / Amount 1,175, Factors Increase in personnel expenses (SG&A) / Amount -1,055, Factors Increase in sales promotion expenses / Amount -300, Factors Increase in Advertising Expenses / Amount -388, Factors Increase in freight and warehousing costs / Amount -771, Factors Decrease in depreciation and amortization / Amount 25, Factors Increase in other SG&A expenses / Amount -610
Key KPIs	Indicator name Basic interim earnings per share / Value 51.74 yen / Year on year against the same period last year -22.6 yen, Indicator name ROE / Value 2.4 % / Year on year against the same period last year Down 1.1 percentage points year on year, Indicator name ROA / Value 2.3 % / Year on year against the same period last year Down 0.7 percentage points year on year, Indicator name Equity ratio attributable to owners of the parent / Value 54.1 % / Year on year against the same period last year Increase of 2.1 percentage points, Indicator name Cash flow from operating activities / Value ¥21,803 million / Year on year against the same period last year ¥-10.8 million, Indicator name Free cash flow / Value ¥12,710 million / Year on year against the same period last year ¥-32.8 million, Indicator name Research and Development Expenses / Value ¥2,830 million / Year on year against the same period last year ¥18.7 million, Indicator name Advertising expenses / Value ¥4,290 million / Year on year against the same period last year ¥10 million
Assumptions Underlying the Business Outlook	Item Average exchange rate for the U.S. dollar during the period / Value 158.18 yen, Item Average exchange rate for the euro during the period / Value 184.52 yen, Item Average exchange rate for the pound sterling during the period / Value 212.77 yen, Item Average Australian dollar exchange rate during the period / Value 111.1 yen, Item Average exchange rate for the Taiwan dollar during the period / Value 5.01 yen
Financial targets	Actual ROE: 2.4%; actual ROA: 2.3%; equity ratio attributable to owners of the parent: 54.1%. Target value: Not disclosed
Acquisition of treasury shares	Share repurchases of ¥1,343 million (actual)
Capital expenditures	¥5,562 million
New initiatives	Early adoption of IFRS 18. Change in the scope of consolidation following the inclusion of Silbury Marketing Ltd as a consolidated subsidiary.

Items this document does not state (13)

Full-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioOrders 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 company stated that, while gross profit increased by ¥1,175 million, increases in personnel expenses of ¥1,055 million, sales promotion expenses of ¥300 million, advertising expenses of ¥388 million, freight and warehousing costs of ¥771 million, and other SG&A expenses of ¥610 million put downward pressure on business profit. Personnel expenses and freight and warehousing costs increased mainly at overseas subsidiaries, while sales promotion expenses increased mainly in the domestic business. Revenue from the international business also includes a foreign exchange impact of ¥5,331 million.

How to read this page

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