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Financial results presentation2871NICHIREI CORPORATIONFood

Financial Results Presentation Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the second quarter, revenue and operating profit exceeded the previous corresponding period, driven by growth in the overseas business and the effects of price revisions in the food business. For the full year, the revenue and operating profit forecasts were left unchanged, while net income alone was raised by ¥1 billion following the sale of cross-shareholdings.

Worth reading
75Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
10
¥100 million
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,174 100 million+7.0%
Operating profit¥182 100 million-11.0%
Ordinary income¥183 100 million-11.0%
Net income¥135 100 million-11.0%
Operating profit margin4.4% (year-on-year change: Not disclosed)
Results for the three months of the current quarter
Net Sales
¥1,883 100 million+5.0%
Operating profit
¥100 100 million+8.0%
Ordinary income
¥98 100 million+7.0%
Net income
¥66 100 million-20.0%
Full-year earnings forecast
Net Sales
¥6,185 100 million
Operating profit
¥300 100 million
Ordinary income
¥309 100 million
Net income
¥214 100 million
EPS
¥85.4
EBITDA
¥509 100 million
ROIC
5.3 %
ROE
7.4 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Food operating profit
Revenue-growth effect3
Impact of price revisions103
Change in raw material and procurement costs due to FX impact-7
Change in raw material and procurement costs (excluding FX impact)-41
Impact of overseas affiliates' results-6
Impact of the situation in the Middle East-35
Change in miscellaneous expenses-26
Impact of system outages-3
Temperature-controlled logistics operating profit
Impact of revenue growth in the domestic business10
Collection of appropriate charges12
Overseas7
Impact of the situation in the Middle East-3
Impact of system outages-4
Cost increase (outsourcing expenses)-9
Cost increase (energy)-3
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD/JPY159
Euro/Japanese yen184
Baht/Japanese yen4.7
New initiatives
  • Partial sale of non-core assets (targeting at least ¥30 billion, from fiscal 2027 onward)
  • Strengthening promotions through in-store proposals linked to TV commercials
  • Launch of 91 new and renewed products for the autumn season
  • Conversion of by-products into pet-food ingredients and commercialization of previously uncommercialized parts
  • Expanding collection at overseas logistics hubs and improving operations following M&A
Key KPIsA metric the company considers important as a management benchmark.
  • Overseas net sales (consolidated)¥1,520 100 million
    Year on year against the same period last year+20.0%
  • Overseas food sales¥962 100 million
    Year on year against the same period last year+15.0%
  • Overseas low-temperature logistics sales¥879 100 million
    Year on year against the same period last year+30.0%
  • イノバジアン operating profit¥16 100 million
    Year on year against the same period last year+59.0%
  • Average inventory ratio (Poland)83 %
  • Average inventory ratio (Malaysia)49 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Unit price of household frozen foods9 %
  • Volume of household frozen foods-9 %
  • Unit price of food-service frozen prepared foods7 %
  • Volume of food-service frozen prepared foods1 %
  • Retail unit price of Imagawayaki-5 %
  • Volume of Imagawayaki (turnover)15 %
Segment results
Food
Net Sales
¥2,320 100 million+3.0%
Operating profit
¥89 100 million-12.0%
Temperature-Controlled Logistics
Net Sales
¥1,935 100 million+13.0%
Operating profit
¥104 100 million0.0%
Real estate
Net Sales
¥26 100 million+4.0%
Operating profit
¥10 100 million+9.0%
Other
Net Sales
¥20 100 million-17.0%
Operating profit
¥-2 100 million
Medium-term management plan targets
N-FIT2035 targets; specific figures: Not disclosed
Financial targets
ROIC
Full-year forecast5.3 %
ROE
Full-year forecast7.4 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
System Failures
Net Sales¥0 100 million
Operating profit¥-9 100 million
Extraordinary Gains and Losses¥-16 100 million
Impact of the situation in the Middle East (food operating profit)¥-35 100 million
Capital expenditures
¥212 100 million
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥4,174 100 million (YoY +7.0%)
Operating profit¥182 100 million (YoY -11.0%)
Ordinary income¥183 100 million (YoY -11.0%)
Net income¥135 100 million (YoY -11.0%)
Operating profit margin4.4% (year-on-year change: Not disclosed)
Results for the three months of the current quarterNet Sales ¥1,883 100 million (YoY +5.0%) / Operating profit ¥100 100 million (YoY +8.0%) / Ordinary income ¥98 100 million (YoY +7.0%) / Net income ¥66 100 million (YoY -20.0%)
Full-year earnings forecastNet Sales ¥6,185 100 million / Operating profit ¥300 100 million / Ordinary income ¥309 100 million / Net income ¥214 100 million / EPS ¥85.4 / EBITDA ¥509 100 million / ROIC 5.3 % / ROE 7.4 %
Segment resultsFood Net Sales ¥2,320 100 million (YoY +3.0%) / Operating profit ¥89 100 million (YoY -12.0%) / Temperature-Controlled Logistics Net Sales ¥1,935 100 million (YoY +13.0%) / Operating profit ¥104 100 million (YoY 0.0%) / Real estate Net Sales ¥26 100 million (YoY +4.0%) / Operating profit ¥10 100 million (YoY +9.0%) / Other Net Sales ¥20 100 million (YoY -17.0%) / Operating profit ¥-2 100 million
Breakdown of Factors Affecting the ChangeFood operating profit Revenue-growth effect 3 / Impact of price revisions 103 / Change in raw material and procurement costs due to FX impact -7 / Change in raw material and procurement costs (excluding FX impact) -41 / Impact of overseas affiliates' results -6 / Impact of the situation in the Middle East -35 / Change in miscellaneous expenses -26 / Impact of system outages -3 / Temperature-controlled logistics operating profit Impact of revenue growth in the domestic business 10 / Collection of appropriate charges 12 / Overseas 7 / Impact of the situation in the Middle East -3 / Impact of system outages -4 / Cost increase (outsourcing expenses) -9 / Cost increase (energy) -3
Key KPIsIndicator name Overseas net sales (consolidated) / Value ¥1,520 100 million / Year on year against the same period last year ¥20 100 million, Indicator name Overseas food sales / Value ¥962 100 million / Year on year against the same period last year ¥15 100 million, Indicator name Overseas low-temperature logistics sales / Value ¥879 100 million / Year on year against the same period last year ¥30 100 million, Indicator name イノバジアン operating profit / Value ¥16 100 million / Year on year against the same period last year ¥59 100 million, Indicator name Average inventory ratio (Poland) / Value 83 % / Year on year against the same period last year Not disclosed, Indicator name Average inventory ratio (Malaysia) / Value 49 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Unit price of household frozen foods / Value 9 % / Year on year against the same period last year Not disclosed, Indicator name Volume of household frozen foods / Value -9 % / Year on year against the same period last year Not disclosed, Indicator name Unit price of food-service frozen prepared foods / Value 7 % / Year on year against the same period last year Not disclosed, Indicator name Volume of food-service frozen prepared foods / Value 1 % / Year on year against the same period last year Not disclosed, Indicator name Retail unit price of Imagawayaki / Value -5 % / Year on year against the same period last year Not disclosed, Indicator name Volume of Imagawayaki (turnover) / Value 15 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookUSD/JPY 159 / Euro/Japanese yen 184 / Baht/Japanese yen 4.7
Risk amount incorporated into the outlookSystem Failures Net Sales ¥0 100 million / Operating profit ¥-9 100 million / Extraordinary Gains and Losses ¥-16 100 million / Impact of the situation in the Middle East (food operating profit) ¥-35 100 million
Medium-term management plan targetsN-FIT2035 targets; specific figures: Not disclosed
Financial targetsROIC Full-year forecast 5.3 % / ROE Full-year forecast 7.4 %
Capital expenditures¥212 100 million
New initiativesPartial sale of non-core assets (targeting at least ¥30 billion, from fiscal 2027 onward), Strengthening promotions through in-store proposals linked to TV commercials, Launch of 91 new and renewed products for the autumn season, Conversion of by-products into pet-food ingredients and commercialization of previously uncommercialized parts, Expanding collection at overseas logistics hubs and improving operations following M&A
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAnnual DividendPayout ratioAcquisition of treasury sharesOrders 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 second-quarter revenue increase was due to growth in the overseas business. The increase in operating profit resulted from the effects of price revisions in the food business and improved profitability in the overseas business. The full-year upward revision to net income reflects the company’s decision to promote the sale of cross-shareholdings. The decline in cumulative second-quarter net income was due to the impact of system failures and other factors.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation Materials for the Second Quarter of the Fiscal Year Ending December 2026 | NICHIREI CORPORATION (2871) timely disclosure | Komori