Q1 revenue and profit growth broadly on track as a waypoint toward FY2027-H1

FY2027-Q1 revenue was ¥78,443 million, operating profit was ¥2,140 million, ordinary profit was ¥2,360 million and profit attributable to owners of the parent was ¥1,761 million. Year on year, revenue increased 9.0%, operating profit 45.0%, ordinary profit 26.7% and net profit 7.6%, with operating profit growing faster than revenue.

The full-year forecasts remain unchanged at revenue of ¥317,000 million, operating profit of ¥8,500 million, ordinary profit of ¥8,800 million and net profit of ¥6,500 million. Q1 progress was 24.7% for revenue, 25.2% for operating profit, 26.8% for ordinary profit and 27.1% for net profit, with operating profit and below generally exceeding the 25% quarterly run rate. Assuming simple seasonality, H1 revenue of ¥158,500 million and operating profit of ¥4,250 million would provide one reference point.

The sources of profit growth were mixed. Higher sales volumes and price revisions in the livestock feed business, higher sales volumes in the aquaculture feed business and higher egg sales volumes in the food business contributed to earnings, while higher fishmeal prices weighed on profit in the aquaculture feed business. Accordingly, H1 analysis should cover not only consolidated profit levels but also segment profit in livestock feed, aquaculture feed and food, together with the contributions from prices, volumes and raw material costs.

The Q1 earnings summary did not include a quarterly consolidated cash flow statement, and cash flow from operating activities and investing outlays were not disclosed. Nor were quantitative assumptions for foreign exchange rates, raw material prices and other factors incorporated into the earnings forecasts provided. At the next results announcement, we will need to review H1 cash generation, capital expenditure, cash balances and whether the full-year forecasts are maintained or revised.