Food revenue and profit continue to grow, but consolidated margins remain flat

For the first half of FY2026, consolidated revenue was ¥676,636 million, operating profit was ¥35,850 million, ordinary profit was ¥37,875 million, and interim net profit attributable to owners of the parent was ¥24,197 million. Year on year, revenue rose 4.0%, operating profit 3.3%, ordinary profit 6.8%, and net profit 5.3%, maintaining overall growth in both revenue and profit. The Food Business posted revenue of ¥629,211 million and operating profit of ¥34,806 million, accounting for approximately 93.0% of consolidated revenue and most of operating profit. As a result, consolidated performance through the third quarter will be heavily influenced by sales and profitability in the Food Business.

However, profit growth has not significantly outpaced revenue growth. Gross margin was 33.3% and operating margin was 5.3% in the first half, with the operating margin changing by only 0.0 percentage points from the same period a year earlier. Selling, general and administrative expenses were ¥189,281 million, representing 28.0% of revenue. Revenue growth from quality improvements and price revisions may have done little more than absorb higher costs.

In FY2025, Food Business revenue was ¥1,215,940 million and operating profit was ¥58,448 million, with operating profit up 17.4%. By contrast, in the first half of FY2026, Food Business revenue rose 4.1% and operating profit 5.3%, indicating a moderation from the sharp profit growth seen the previous year. In the first quarter alone, consolidated revenue was ¥333,672 million and operating profit was ¥18,328 million, while second-quarter revenue was ¥342,964 million and operating profit was ¥17,521 million. Revenue increased in the second quarter, but operating profit fell below the first-quarter level.

The first-half disclosure provides Food Business revenue and operating profit, but does not disclose sales volumes or average selling prices by product category, such as sliced bread, sweet breads, Japanese confectionery, and Western confectionery, or the profit contribution by quality-improvement technology. In the next results, it will be necessary to assess whether cumulative Food Business revenue through the third quarter can remain around 4.1% above the previous year, whether the operating margin can exceed 5.3%, and whether profit in the quarter alone is improving after excluding seasonal factors.