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Presentation materials for financial results2811KAGOME CO.,LTD.Food

Materials for the First-Half (Interim) Financial Results Briefing for the Fiscal Year Ending December 2026

In the first half of FY2026, revenue increased, while business profit, operating profit and interim profit declined. Taking into account higher costs arising from the situation in the Middle East, the full-year business profit forecast was revised downward from ¥23 billion to ¥19 billion.

Worth reading
87Important
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
-40
¥100 million (versus the initial full-year business profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst half of FY2026 (interim period)12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,437 Hundreds of millions of yen+3.7%
Operating profit90 Hundreds of millions of yen-14.5%
Ordinary income¥82 100 million -17.4%interim profit before tax
Net income¥46 100 million -24.2%interim profit attributable to owners of the parent
Operating profit margin6.3 %
Results for the three months of the current quarter
Domestic processed foods business
Revenue
1Q333 Hundreds of millions of yen
2Q396 Hundreds of millions of yen
Business profit
1Q17 Hundreds of millions of yen
2Q32 Hundreds of millions of yen
International Business
Revenue
1Q342 Hundreds of millions of yen
2Q343 Hundreds of millions of yen
Business profit
1Q28 Hundreds of millions of yen
2Q22 Hundreds of millions of yen
Full-year earnings forecast
Revenue
3,100 Hundreds of millions of yen
Business profit
190 Hundreds of millions of yen
Operating profit
195 Hundreds of millions of yen
Profit for the period
105 Hundreds of millions of yen
EPS
¥116.04
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The international business is progressing largely in line with the initial plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Domestic processed foods business profit
Profit increase from price revisions19 Hundreds of millions of yen
Decrease in sales volume-10 Hundreds of millions of yen
Cost fluctuations-9 Hundreds of millions of yen
Cost reductions, etc.5 Hundreds of millions of yen
Increase in sales promotion expenses-2 Hundreds of millions of yen
Increase in logistics unit costs-2 Hundreds of millions of yen
Increase in Advertising Expenses-4 Hundreds of millions of yen
Other-1 Hundreds of millions of yen
International business profit
Profit decline in primary processing-7 Hundreds of millions of yen
Profit increase in secondary processing3 Hundreds of millions of yen
Adjustments (within the international business)-1 Hundreds of millions of yen
Revision to the full-year business profit forecast
Impact of the situation in the Middle East-28 Hundreds of millions of yen
Smaller revenue benefit-18 Hundreds of millions of yen
Cost reduction and efficiency improvements20 Hundreds of millions of yen
Impact of Silbury-6 Hundreds of millions of yen
Other-8 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Crude Oil PricesUS$80/BBL
Exchange rate
US dollars
2025148.6
2026158.18
Euro
2025162.15
2026184.52
New initiatives
  • Renewed communication of the health and functional benefits of the vegetable beverage category
  • Additional ¥500 million investment in advertising and sales promotion expenses in the second half
  • ¥1.2 billion cost reduction target at domestic production sites
  • ¥500 million cost reduction target across 7 global sites
  • Establishment of a new solutions center in New Delhi, India
  • Expansion of sales and marketing personnel in the United States
  • Establishment of a new Chief Commercial Officer position in the United States
  • Introduction of a new production line for oil-based sauces at the California site
  • Launch of the Well-Farming Field
  • Expansion of CVC investee companies
Key KPIsA metric the company considers important as a management benchmark.
  • Annual tomato juice purchase rate21.6 %
  • Annual Kagome tomato juice purchase rate13.5 %
  • U.S. foodservice sales volume6.7 % year on year
  • Number of CVC investee companies6 companies
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • First-half tomato juice sales value121 % year on year
  • First-half tomato juice sales volume114 % year on year
  • First-half Yasai Ichinichi Kore-Ippon sales value88 % year on year
  • First-half Yasai Ichinichi Kore-Ippon sales volume86 % year on year
  • First-half Yasai Seikatsu 100 sales value88 % year on year
  • First-half Yasai Seikatsu 100 sales volume84 % year on year
Segment results
Domestic processed foods business
Revenue
730 Hundreds of millions of yen-0.2%
Business profit
50 Hundreds of millions of yen-8.8%
International Business
Revenue
685 Hundreds of millions of yen+11.9%
Business profit
51 Hundreds of millions of yen-10.2%
Other and adjustments
Revenue
21 Hundreds of millions of yen-48.8%
Business profit
-17 Hundreds of millions of yen
Medium-term management plan targets
International secondary processing revenue CAGR
8 %
Target fiscal year2,028
International secondary processing business margin
9 %
Target fiscal year2,028
Financial targets
ROE
9 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Impact of the situation in the Middle East on results
First half5 Hundreds of millions of yen
Second half23 Hundreds of millions of yen
Full year28 Hundreds of millions of yen
Market Size / Share
  • European foodservice market¥19.8 trillion
    Base year2,025
    CAGR4.1
  • Indian foodservice market¥0.8 trillion
    Base year2,025
    CAGR8.4
  • U.S. foodservice market¥48.5 trillion
    Base year2,025
    CAGR6.1
  • U.S. chicken restaurant chain market55.7 US$ billion
    Base year2,025
Acquisition of treasury shares
Actual results
12 Hundreds of millions of yen
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst half of FY2026 (interim period)
Net Sales1,437 Hundreds of millions of yen (YoY +3.7%)
Operating profit90 Hundreds of millions of yen (YoY -14.5%)
Ordinary income¥82 100 million (interim profit before tax) (YoY -17.4%)
Net income¥46 100 million (interim profit attributable to owners of the parent) (YoY -24.2%)
Operating profit margin6.3 %
Results for the three months of the current quarterDomestic processed foods business Revenue 1Q 333 Hundreds of millions of yen / 2Q 396 Hundreds of millions of yen / Business profit 1Q 17 Hundreds of millions of yen / 2Q 32 Hundreds of millions of yen / International Business Revenue 1Q 342 Hundreds of millions of yen / 2Q 343 Hundreds of millions of yen / Business profit 1Q 28 Hundreds of millions of yen / 2Q 22 Hundreds of millions of yen
Full-year earnings forecastRevenue 3,100 Hundreds of millions of yen / Business profit 190 Hundreds of millions of yen / Operating profit 195 Hundreds of millions of yen / Profit for the period 105 Hundreds of millions of yen / EPS ¥116.04
Self-assessment against the planThe international business is progressing largely in line with the initial plan
Segment resultsDomestic processed foods business Revenue 730 Hundreds of millions of yen (YoY -0.2%) / Business profit 50 Hundreds of millions of yen (YoY -8.8%) / International Business Revenue 685 Hundreds of millions of yen (YoY +11.9%) / Business profit 51 Hundreds of millions of yen (YoY -10.2%) / Other and adjustments Revenue 21 Hundreds of millions of yen (YoY -48.8%) / Business profit -17 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeDomestic processed foods business profit Profit increase from price revisions 19 Hundreds of millions of yen / Decrease in sales volume -10 Hundreds of millions of yen / Cost fluctuations -9 Hundreds of millions of yen / Cost reductions, etc. 5 Hundreds of millions of yen / Increase in sales promotion expenses -2 Hundreds of millions of yen / Increase in logistics unit costs -2 Hundreds of millions of yen / Increase in Advertising Expenses -4 Hundreds of millions of yen / Other -1 Hundreds of millions of yen / International business profit Profit decline in primary processing -7 Hundreds of millions of yen / Profit increase in secondary processing 3 Hundreds of millions of yen / Adjustments (within the international business) -1 Hundreds of millions of yen / Revision to the full-year business profit forecast Impact of the situation in the Middle East -28 Hundreds of millions of yen / Smaller revenue benefit -18 Hundreds of millions of yen / Cost reduction and efficiency improvements 20 Hundreds of millions of yen / Impact of Silbury -6 Hundreds of millions of yen / Other -8 Hundreds of millions of yen
Key KPIsIndicator name Annual tomato juice purchase rate / Value 21.6 %, Indicator name Annual Kagome tomato juice purchase rate / Value 13.5 %, Indicator name U.S. foodservice sales volume / Value 6.7 % year on year, Indicator name Number of CVC investee companies / Value 6 companies
Unit price and quantity metricsIndicator name First-half tomato juice sales value / Value 121 % year on year, Indicator name First-half tomato juice sales volume / Value 114 % year on year, Indicator name First-half Yasai Ichinichi Kore-Ippon sales value / Value 88 % year on year, Indicator name First-half Yasai Ichinichi Kore-Ippon sales volume / Value 86 % year on year, Indicator name First-half Yasai Seikatsu 100 sales value / Value 88 % year on year, Indicator name First-half Yasai Seikatsu 100 sales volume / Value 84 % year on year
Assumptions Underlying the Business OutlookCrude Oil Prices US$80/BBL / Exchange rate US dollars 2025 148.6 / 2026 158.18 / Euro 2025 162.15 / 2026 184.52
Risk amount incorporated into the outlookImpact of the situation in the Middle East on results First half 5 Hundreds of millions of yen / Second half 23 Hundreds of millions of yen / Full year 28 Hundreds of millions of yen
Medium-term management plan targetsInternational secondary processing revenue CAGR 8 % / International secondary processing business margin 9 %
Financial targetsROE 9 %
Acquisition of treasury sharesActual results 12 Hundreds of millions of yen
Market Size / ShareMarket European foodservice market / Market Size ¥19.8 trillion / Base year ¥2,025 trillion / CAGR ¥4.1 trillion, Market Indian foodservice market / Market Size ¥0.8 trillion / Base year ¥2,025 trillion / CAGR ¥8.4 trillion, Market U.S. foodservice market / Market Size ¥48.5 trillion / Base year ¥2,025 trillion / CAGR ¥6.1 trillion, Market U.S. chicken restaurant chain market / Market Size 55.7 US$ billion / Base year 2,025 US$ billion
New initiativesRenewed communication of the health and functional benefits of the vegetable beverage category, Additional ¥500 million investment in advertising and sales promotion expenses in the second half, ¥1.2 billion cost reduction target at domestic production sites, ¥500 million cost reduction target across 7 global sites, Establishment of a new solutions center in New Delhi, India, Expansion of sales and marketing personnel in the United States, Establishment of a new Chief Commercial Officer position in the United States, Introduction of a new production line for oil-based sauces at the California site, Launch of the Well-Farming Field, Expansion of CVC investee companies
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesAnnual DividendPayout ratioCapital 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 half, profit declined due to higher advertising and sales promotion expenses in the domestic processed foods business, as well as lower selling prices for tomato paste in the international business. The full-year forecast was revised downward to reflect higher costs arising from the situation in the Middle East, a smaller revenue benefit from price revisions, and the impact of Silbury, among other factors.

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Materials for the First-Half (Interim) Financial Results Briefing for the Fiscal Year Ending December 2026 | KAGOME CO.,LTD. (2811) timely disclosure | Komori