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Presentation materials for financial results2918WARABEYA NICHIYO HOLDINGS CO.,LTD.Food

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending February 2027

First-half net sales rose 1.0% year on year, while operating profit declined 25.0% due to higher costs, including raw material and labor costs, and the impact of the suspension of operations at the Sapporo plant. The company revised down its full-year net sales and profit forecasts, cutting its operating profit forecast from ¥7.7 billion to ¥6.0 billion.

Worth reading
67In focus
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
-1700
¥ million (change in full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending February 2027, second quarter13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥120,853 million+1.0%
Operating profit¥3,969 million-25.0%
Ordinary income¥4,203 million-19.7%
Net income¥2,638 million -34.1%interim net income attributable to owners of the parent
Operating profit margin3.3 %
Full-year earnings forecast
Net Sales
¥238,000 million
Operating profit
¥6,000 million
Ordinary income
¥6,050 million
Net income
¥3,500 million net income attributable to owners of the parent
EPS
¥201.34
ROE
5.8 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
All profit figures came in below forecasts. Full-year forecasts were revised downward from the initial forecasts.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Raw material prices-48 Hundreds of millions of yen
  • Personnel expenses-6.7 Hundreds of millions of yen
  • Utilities and logistics costs-3.3 Hundreds of millions of yen
  • Product specification revisions and revenue growth47.6 Hundreds of millions of yen
  • Isesaki plant and earnings improvement6.8 Hundreds of millions of yen
  • Factory Reorganization-1 Hundreds of millions of yen
  • Suspension of operations at the Sapporo plant-2.1 Hundreds of millions of yen
  • Maintenance Costs-0.5 Hundreds of millions of yen
  • System replacement and enhanced security-0.1 Hundreds of millions of yen
  • Overseas expansion-3.2 Hundreds of millions of yen
  • Group-related businesses and other factors-1 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • U.S. dollar exchange rate¥155
  • Foreign exchange sensitivityA ¥1 depreciation of the yen would affect annual operating profit by +¥15 million
New initiatives
  • Consolidation of production at the Murayama No. 2 plant into nearby plants
  • Expansion of areas with two daily delivery and production runs
  • Consolidation at the Virginia plant of production planned for the new plant
  • Expansion of the product lineup in the prepared foods and salad categories
  • Development of the company's first products for checkout-side counters
  • Planned full-scale rollout of Ookii-Bun in North America
  • Rollout of frozen products, including apple pies
  • Development of new categories for North America, including rice products
  • Sodegaura Bay Frozen Center scheduled to begin operations in spring 2027
Key KPIsA metric the company considers important as a management benchmark.
  • Number of domestic stores supplied18,457 stores
    Year on year against the same period last year+161 stores
  • Number of U.S. stores supplied2,107 stores
    Year on year against the same period last year-86 stores
  • ROE (full-year forecast)5.8 %
    Year on year against the same period last year-3.4pt
  • Equity ratio47 %
    Year on year against the same period last year+1.9pt
  • EPS¥151.96
    Year on year against the same period last year-¥77.57
Segment results
  • Food-Related Business
    Net Sales1,086 Hundreds of millions of yen
    Year-on-year change in revenue+¥1 billion
    Operating profit37.2 Hundreds of millions of yen
    Year-on-year operating profit growth-¥1.22 billion
  • Food-materials-related business
    Net Sales58 Hundreds of millions of yen
    Year-on-year change in revenue+¥100 million
    Operating profit1.4 Hundreds of millions of yen
    Year-on-year operating profit growth-¥140 million
  • Logistics-related business
    Net Sales63 Hundreds of millions of yen
    Year-on-year change in revenue±¥0 billion
    Operating profit5.3 Hundreds of millions of yen
    Year-on-year operating profit growthRoughly in line with the prior-year period
Financial targets
ROE
Forecast value5.8 %
Equity ratio
47 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
7 Hundreds of millions of yen
DetailsSpecial loss related to the Ohio plant
Number of stores and locations
Number of domestic customer stores supplied
Closing level18,457 stores
Year on year against the same period last year+161 stores
Number of U.S. customer stores supplied
Closing level2,107 stores
Year on year against the same period last year-86 stores
Number of employees
Number of Employees1,960 people
As ofFull-year results for the fiscal year ended February 2026
Capital expenditures
15,718 Million yen full-year actual for the fiscal year ended February 2026
Annual Dividend
Annual dividend
¥120
Payout ratio
59.6 %
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending February 2027, second quarter
Net Sales¥120,853 million (YoY +1.0%)
Operating profit¥3,969 million (YoY -25.0%)
Ordinary income¥4,203 million (YoY -19.7%)
Net income¥2,638 million (interim net income attributable to owners of the parent) (YoY -34.1%)
Operating profit margin3.3 %
Full-year earnings forecastNet Sales ¥238,000 million / Operating profit ¥6,000 million / Ordinary income ¥6,050 million / Net income ¥3,500 million (net income attributable to owners of the parent) / EPS ¥201.34 / ROE 5.8 %
Self-assessment against the planAll profit figures came in below forecasts. Full-year forecasts were revised downward from the initial forecasts.
Segment resultsSegment Food-Related Business / Net Sales 1,086 Hundreds of millions of yen / Year-on-year change in revenue +¥1 billion / Operating profit 37.2 Hundreds of millions of yen / Year-on-year operating profit growth -¥1.22 billion, Segment Food-materials-related business / Net Sales 58 Hundreds of millions of yen / Year-on-year change in revenue +¥100 million / Operating profit 1.4 Hundreds of millions of yen / Year-on-year operating profit growth -¥140 million, Segment Logistics-related business / Net Sales 63 Hundreds of millions of yen / Year-on-year change in revenue ±¥0 billion / Operating profit 5.3 Hundreds of millions of yen / Year-on-year operating profit growth Roughly in line with the prior-year period
Breakdown of Factors Affecting the ChangeFactors Raw material prices / Amount -48 Hundreds of millions of yen, Factors Personnel expenses / Amount -6.7 Hundreds of millions of yen, Factors Utilities and logistics costs / Amount -3.3 Hundreds of millions of yen, Factors Product specification revisions and revenue growth / Amount 47.6 Hundreds of millions of yen, Factors Isesaki plant and earnings improvement / Amount 6.8 Hundreds of millions of yen, Factors Factory Reorganization / Amount -1 Hundreds of millions of yen, Factors Suspension of operations at the Sapporo plant / Amount -2.1 Hundreds of millions of yen, Factors Maintenance Costs / Amount -0.5 Hundreds of millions of yen, Factors System replacement and enhanced security / Amount -0.1 Hundreds of millions of yen, Factors Overseas expansion / Amount -3.2 Hundreds of millions of yen, Factors Group-related businesses and other factors / Amount -1 Hundreds of millions of yen
Key KPIsIndicator name Number of domestic stores supplied / Value 18,457 stores / Year on year against the same period last year +161 stores, Indicator name Number of U.S. stores supplied / Value 2,107 stores / Year on year against the same period last year -86 stores, Indicator name ROE (full-year forecast) / Value 5.8 % / Year on year against the same period last year -3.4pt, Indicator name Equity ratio / Value 47 % / Year on year against the same period last year +1.9pt, Indicator name EPS / Value ¥151.96 / Year on year against the same period last year -¥77.57
Number of stores and locationsNumber of domestic customer stores supplied Closing level 18,457 stores / Year on year against the same period last year +161 stores / Number of U.S. customer stores supplied Closing level 2,107 stores / Year on year against the same period last year -86 stores / Store and location openings/closures Not disclosed
Number of employeesNumber of Employees 1,960 people / As of Full-year results for the fiscal year ended February 2026
Assumptions Underlying the Business OutlookItem U.S. dollar exchange rate / Value ¥155, Item Foreign exchange sensitivity / Value A ¥1 depreciation of the yen would affect annual operating profit by +¥15 million
Risk amount incorporated into the outlookAmount 7 Hundreds of millions of yen / Details Special loss related to the Ohio plant
Financial targetsROE Forecast value 5.8 % / Equity ratio Value 47 %
Annual DividendAnnual dividend ¥120 / Interim Dividend Not disclosed / Year-end dividend Not disclosed
Payout ratio59.6 %
Capital expenditures15,718 Million yen (full-year actual for the fiscal year ended February 2026)
New initiativesConsolidation of production at the Murayama No. 2 plant into nearby plants, Expansion of areas with two daily delivery and production runs, Consolidation at the Virginia plant of production planned for the new plant, Expansion of the product lineup in the prepared foods and salad categories, Development of the company's first products for checkout-side counters, Planned full-scale rollout of Ookii-Bun in North America, Rollout of frozen products, including apple pies, Development of new categories for North America, including rice products, Sodegaura Bay Frozen Center scheduled to begin operations in spring 2027
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesThree months of the current quarterProgress against full-year forecastUnit price and quantity metricsMedium-term management plan targetsAcquisition 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.

First-half profit was weighed down by higher manufacturing costs, including raw material prices, labor costs, utilities and logistics costs, the suspension of operations at the Sapporo plant, system replacement and enhanced security measures, and lower profit from overseas operations. In revising its full-year forecasts, the company also factored in higher manufacturing costs, including packaging material prices and utilities costs, due to the situation in the Middle East, the impact of lower revenue, maintenance costs, and the impact of overseas operations, in addition to the previously identified factors.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending February 2027 | WARABEYA NICHIYO HOLDINGS CO.,LTD. (2918) timely disclosure | Komori