Fiscal Year Ending March 2026: Financial Results Briefing and Progress on the Medium-Term Management Plan | Nitta Gelatin Inc. (4977) timely disclosure

Worth reading

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

733

¥ million (year-on-year increase in operating income)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial Results PresentationFiscal year ending March 202612 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales38,048 Millions of yen-1.8%

Operating profit4,664 Millions of yen+18.7%

Ordinary income4,783 Millions of yen+15.4%

Net income¥3,282 million +3.9%net income attributable to owners of the parent

Gross Profit Margin28.9%; year-on-year change: Not disclosed

Operating profit margin12.3%; up 2.1 percentage points year on year

Results for the three months of the current quarter

Standalone fourth quarter of the fiscal year ending March 2026

Net Sales¥9,878 million

Operating profit¥1,049 million

Full-year earnings forecast

Net Sales

43,000 Millions of yen

Gross profit

12,000 Millions of yen

Operating profit

4,700 Millions of yen

Ordinary income

4,800 Millions of yen

Net income

¥2,400 million net income attributable to owners of the parent

What the company explained in this material

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

Net Sales

Gelatin-1,410

Collagen peptides775

Food Materials-82

Biomedical20

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

US dollars

Forecast for the fiscal year ending March 2027¥150.00

Canadian dollar

Forecast for the fiscal year ending March 2027¥109.66

Indian rupee

Forecast for the fiscal year ending March 2027¥1.71

Raw Material PricesAssumes an increase; amount: Not disclosed

New initiatives

Increase Nitta Gelatin India Ltd.'s collagen peptide production capacity from 1,150 tonnes per year to 1,800 tonnes per year
Increase the company's gelatin production capacity from the initial plan of 6,000 tonnes per year to 7,500 tonnes per year
Begin considering the construction of a new plant and the reorganization of the Osaka Plant as part of the long-term management vision
Expand sales in Japan and use alliances in North America
Strengthen oversight of overseas subsidiaries

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

ROE14.6%
Year on year against the same period last yearDown from 16.3% in the fiscal year ending March 2025
ROIC10.0%
Year on year against the same period last yearUp from 9.0% in the fiscal year ending March 2025
CCC5.3 months
Year on year against the same period last yearUnchanged from 5.3 months in the fiscal year ending March 2025
PBR0.91x
Year on year against the same period last yearUp from 0.72x in the fiscal year ending March 2025
Year-to-date high¥1,487
Fiscal year-end closing price¥1,209
PER6.7x
Year on year against the same period last yearUp from 4.7x in the fiscal year ending March 2025

Segment results

Gelatin

Net Sales

27,410 Millions of yen

Year-on-year (%)-4.9

Collagen peptides

Net Sales

7,265 Millions of yen

Year-on-year (%)12

Food Materials

Net Sales

3,002 Millions of yen

Year-on-year (%)-2.7

Biomedical

Net Sales

369 Millions of yen

Year-on-year (%)5.8

Medium-term management plan targets

Fiscal year ending March 2027Revenue of ¥43.0 billion, operating profit of ¥4.7 billion, operating margin of 10.9%, ROE of 10.0%, ROIC of 9.0%, CCC of 5.0 months, and DOE of at least 3.0%

Fiscal year ending March 2033Revenue of ¥80.0 billion, operating profit of ¥10.0 billion, operating margin of 12.5%, ROE of 13.0%, and ROIC of 12.0%

Financial targets

ROE

Actual results for the fiscal year ending March 202614.6%

Target for the fiscal year ending March 202710.0%

ROIC

Actual results for the fiscal year ending March 202610.0%

Target for the fiscal year ending March 20279.0%

PBR

TargetAt least 1.0x

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

The impact of the situation in the Middle East is currently under review and has not been factored into the earnings forecast

Market Size / Share

Market size and market share: Not disclosed. Industry averages shown are PBR of 1.0–1.3x, ROE of 5.7–8.1% and PER of 15–25x

Capital expenditures

Strategic investments of ¥4.3 billion and replacement investments of ¥5.5 billion

Annual Dividend

Forecast for the fiscal year ending March 2027¥40 per share

Payout ratio

Expected to be approximately 30% in FY2027/3

Contents of this document
Item	Details
Document type	Financial Results Presentation
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	38,048 Millions of yen (YoY -1.8%)
Operating profit	4,664 Millions of yen (YoY +18.7%)
Ordinary income	4,783 Millions of yen (YoY +15.4%)
Net income	¥3,282 million (net income attributable to owners of the parent) (YoY +3.9%)
Gross Profit Margin	28.9%; year-on-year change: Not disclosed
Operating profit margin	12.3%; up 2.1 percentage points year on year
Results for the three months of the current quarter	Net Sales ¥9,878 million / Operating profit ¥1,049 million / Subject Standalone fourth quarter of the fiscal year ending March 2026
Full-year earnings forecast	Net Sales 43,000 Millions of yen / Gross profit 12,000 Millions of yen / Operating profit 4,700 Millions of yen / Ordinary income 4,800 Millions of yen / Net income ¥2,400 million (net income attributable to owners of the parent)
Segment results	Gelatin Net Sales 27,410 Millions of yen / Year-on-year (%) -4.9 / Collagen peptides Net Sales 7,265 Millions of yen / Year-on-year (%) 12 / Food Materials Net Sales 3,002 Millions of yen / Year-on-year (%) -2.7 / Biomedical Net Sales 369 Millions of yen / Year-on-year (%) 5.8
Breakdown of Factors Affecting the Change	Net Sales Gelatin -1,410 / Collagen peptides 775 / Food Materials -82 / Biomedical 20
Key KPIs	Indicator name ROE / Value 14.6% / Year on year against the same period last year Down from 16.3% in the fiscal year ending March 2025, Indicator name ROIC / Value 10.0% / Year on year against the same period last year Up from 9.0% in the fiscal year ending March 2025, Indicator name CCC / Value 5.3 months / Year on year against the same period last year Unchanged from 5.3 months in the fiscal year ending March 2025, Indicator name PBR / Value 0.91x / Year on year against the same period last year Up from 0.72x in the fiscal year ending March 2025, Indicator name Year-to-date high / Value ¥1,487 / Year on year against the same period last year Not disclosed, Indicator name Fiscal year-end closing price / Value ¥1,209 / Year on year against the same period last year Not disclosed, Indicator name PER / Value 6.7x / Year on year against the same period last year Up from 4.7x in the fiscal year ending March 2025
Assumptions Underlying the Business Outlook	US dollars Forecast for the fiscal year ending March 2027 ¥150.00 / Canadian dollar Forecast for the fiscal year ending March 2027 ¥109.66 / Indian rupee Forecast for the fiscal year ending March 2027 ¥1.71 / Raw Material Prices Assumes an increase; amount: Not disclosed
Risk amount incorporated into the outlook	The impact of the situation in the Middle East is currently under review and has not been factored into the earnings forecast
Medium-term management plan targets	Fiscal year ending March 2027 Revenue of ¥43.0 billion, operating profit of ¥4.7 billion, operating margin of 10.9%, ROE of 10.0%, ROIC of 9.0%, CCC of 5.0 months, and DOE of at least 3.0% / Fiscal year ending March 2033 Revenue of ¥80.0 billion, operating profit of ¥10.0 billion, operating margin of 12.5%, ROE of 13.0%, and ROIC of 12.0%
Financial targets	ROE Actual results for the fiscal year ending March 2026 14.6% / Target for the fiscal year ending March 2027 10.0% / ROIC Actual results for the fiscal year ending March 2026 10.0% / Target for the fiscal year ending March 2027 9.0% / PBR Target At least 1.0x
Annual Dividend	Forecast for the fiscal year ending March 2027 ¥40 per share / Interim and Year-End Breakdown Not disclosed
Payout ratio	Expected to be approximately 30% in FY2027/3
Capital expenditures	Strategic investments of ¥4.3 billion and replacement investments of ¥5.5 billion
Market Size / Share	Market size and market share: Not disclosed. Industry averages shown are PBR of 1.0–1.3x, ROE of 5.7–8.1% and PER of 15–25x
New initiatives	Increase Nitta Gelatin India Ltd.'s collagen peptide production capacity from 1,150 tonnes per year to 1,800 tonnes per year, Increase the company's gelatin production capacity from the initial plan of 6,000 tonnes per year to 7,500 tonnes per year, Begin considering the construction of a new plant and the reorganization of the Osaka Plant as part of the long-term management vision, Expand sales in Japan and use alliances in North America, Strengthen oversight of overseas subsidiaries

Items this document does not state (9)

Selling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAcquisition 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.

In FY2026/3, revenue declined due to lower gelatin sales in Japan and North America, while progress in improving profitability resulted in higher operating profit. Net income was boosted in both the previous fiscal year and the current fiscal year by adjustments to income taxes associated with the liquidation of subsidiaries. In FY2027/3, the Company aims to expand revenue through increased sales in Japan and the use of alliances in North America, while factoring in higher raw material prices, personnel expenses and depreciation.

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