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Presentation materials for financial results2929Pharma Foods International Co.,Ltd.Food

Supplementary Explanatory Materials for the Third Quarter of the Fiscal Year Ending July 2026

Cumulative third-quarter revenue increased, while operating and ordinary losses widened from the previous year due to growth investments and higher advertising expenses. The full-year revenue forecast was revised downward, but forecasts for operating profit, ordinary profit and net profit were revised upward, with a return to full-year profitability expected.

Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-1213
¥ million (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportThird quarter of the fiscal year ending July 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥48,555 million+3.7%
Operating profit¥-1,430 million
Ordinary income¥-1,545 million
Net income¥-1,061 million
Full-year earnings forecast
Net Sales
¥67,000 million
Operating profit
¥2,000 million
Ordinary income
¥2,000 million
Profit attributable to owners of the parent
¥1,500 million
Earnings per share
¥51.65
Dividend per share
¥25
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
In line with the original plan / expected to exceed the original forecast in terms of profit
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Gross profit1,470
Advertising expenses-1,743
Research and development costs-156
Other SG&A expenses-783
BtoB revenue
Functional ingredients-53
Functional Products162
CMO-637
CHC254
BtoC revenue
Supplements-1,210
Cosmetics-151
Pharmaceuticals and quasi-drugs3,481
Other-113
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company has indicated a policy of treating the first half as a period of active investment and the second half as a period of profit conversion, but numerical assumptions for foreign exchange rates, raw material prices and other factors are Not disclosed.
New initiatives
  • Joint research with the National Cerebral and Cardiovascular Center on drug discovery for CADASIL
  • Strengthening overseas branding and supplying raw material fiber for the eggshell membrane-derived material ovoveil
  • Research into new electrode materials derived from eggshell membranes
  • Advancing research and commercialization of the biostimulant business
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio28.9 %
  • D/E ratio1.71 times
  • Interest-bearing debt¥17,235 million
  • Cumulative units sold (セノビック)2,000 10,000 units
  • Rice yield improvement (Kyoto)12 %
  • Rice yield improvement (Kumamoto)4 %
  • Rice yield improvement (Toyama)10 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Charts show customer spending per transaction, the advertising expense-to-sales ratio, and improvements in subscription upgrades and retention rates. However, specific figures are Not disclosed except for some items.
Segment results
B2B Business
Net Sales
¥5,560 million-4.0%
Operating profit
¥858 million
B2C Business
Net Sales
¥42,734 million+4.9%
Operating profit
¥-342 million
Biomedical business
Net Sales
¥230 million
Operating profit
¥-473 million
Other
Net Sales
¥30 million
Operating profit
¥-14 million
Adjustments
Operating profit
¥-1,458 million
Medium-term management plan targets
Net SalesApproximately ¥100 billion
ROEImprove to a level above the cost of capital and the industry average
Financial targets
ROE
6.9 %
NotesIllustrative trend for 2026-2029
PBR
2.22 times
NotesIllustrative trend for 2026-2029
Equity ratio
28.9 %
NotesActual as of the end of April 2026
Debt-to-equity ratio
1.71 times
NotesActual as of the end of April 2026
Market Size / Share
The product is described as having the No. 1 share of the North American supplements market, but market size and share percentage are Not disclosed.
Capital expenditures
¥680 million investing cash flow for the acquisition of fixed assets
Annual Dividend
Annual Dividend
¥25 per share
Payout ratio
48.4 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredThird quarter of the fiscal year ending July 2026
Net Sales¥48,555 million (YoY +3.7%)
Operating profit¥-1,430 million
Ordinary income¥-1,545 million
Net income¥-1,061 million
Full-year earnings forecastNet Sales ¥67,000 million / Operating profit ¥2,000 million / Ordinary income ¥2,000 million / Profit attributable to owners of the parent ¥1,500 million / Earnings per share ¥51.65 / Dividend per share ¥25
Self-assessment against the planIn line with the original plan / expected to exceed the original forecast in terms of profit
Segment resultsB2B Business Net Sales ¥5,560 million (YoY -4.0%) / Operating profit ¥858 million / B2C Business Net Sales ¥42,734 million (YoY +4.9%) / Operating profit ¥-342 million / Biomedical business Net Sales ¥230 million / Operating profit ¥-473 million / Other Net Sales ¥30 million / Operating profit ¥-14 million / Adjustments Operating profit ¥-1,458 million
Breakdown of Factors Affecting the ChangeOperating profit Gross profit 1,470 / Advertising expenses -1,743 / Research and development costs -156 / Other SG&A expenses -783 / BtoB revenue Functional ingredients -53 / Functional Products 162 / CMO -637 / CHC 254 / BtoC revenue Supplements -1,210 / Cosmetics -151 / Pharmaceuticals and quasi-drugs 3,481 / Other -113
Key KPIsIndicator name Equity ratio / Value 28.9 % / Year on year against the same period last year Not disclosed, Indicator name D/E ratio / Value 1.71 times / Year on year against the same period last year Not disclosed, Indicator name Interest-bearing debt / Value ¥17,235 million / Year on year against the same period last year Not disclosed, Indicator name Cumulative units sold (セノビック) / Value 2,000 10,000 units / Year on year against the same period last year Not disclosed, Indicator name Rice yield improvement (Kyoto) / Value 12 % / Year on year against the same period last year Not disclosed, Indicator name Rice yield improvement (Kumamoto) / Value 4 % / Year on year against the same period last year Not disclosed, Indicator name Rice yield improvement (Toyama) / Value 10 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsCharts show customer spending per transaction, the advertising expense-to-sales ratio, and improvements in subscription upgrades and retention rates. However, specific figures are Not disclosed except for some items.
Assumptions Underlying the Business OutlookThe company has indicated a policy of treating the first half as a period of active investment and the second half as a period of profit conversion, but numerical assumptions for foreign exchange rates, raw material prices and other factors are Not disclosed.
Medium-term management plan targetsNet Sales Approximately ¥100 billion / Target fiscal year Not disclosed / ROE Improve to a level above the cost of capital and the industry average
Financial targetsROE Value 6.9 % / Notes Illustrative trend for 2026-2029 / PBR Value 2.22 times / Notes Illustrative trend for 2026-2029 / Equity ratio Value 28.9 % / Notes Actual as of the end of April 2026 / Debt-to-equity ratio Value 1.71 times / Notes Actual as of the end of April 2026
Annual DividendAnnual Dividend ¥25 per share / Interim Not disclosed / End of period Not disclosed
Payout ratio48.4 %
Capital expenditures¥680 million (investing cash flow for the acquisition of fixed assets)
Market Size / ShareThe product is described as having the No. 1 share of the North American supplements market, but market size and share percentage are Not disclosed.
New initiativesJoint research with the National Cerebral and Cardiovascular Center on drug discovery for CADASIL, Strengthening overseas branding and supplying raw material fiber for the eggshell membrane-derived material ovoveil, Research into new electrode materials derived from eggshell membranes, Advancing research and commercialization of the biostimulant business
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders 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.

As a result of continuing growth investments in the BtoC business and other areas, advertising expenses increased by ¥1.7 billion year on year. Although gross profit increased by ¥1.4 billion, higher advertising expenses, research and development expenses, and other SG&A expenses put downward pressure on operating profit.

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Supplementary Explanatory Materials for the Third Quarter of the Fiscal Year Ending July 2026 | Pharma Foods International Co.,Ltd. (2929) timely disclosure | Komori