Q1: higher revenue but lower profit; test profit recovery in FY2027-H1

FY2027-Q1 consolidated revenue was ¥122,416 million, up 5.7% from ¥115,809 million a year earlier. However, operating profit was ¥2,478 million, below the year-earlier ¥2,529 million, and the operating margin declined from approximately 2.18% to approximately 2.02%. Ordinary profit also fell 2.2% year on year to ¥2,691 million, while net profit attributable to owners of the parent fell 3.3% to ¥1,731 million. Revenue growth and profit therefore moved in opposite directions.

By segment, the Processed Foods division recorded revenue of ¥79,576 million and segment profit of ¥2,260 million, up from ¥76,729 million and ¥2,191 million, respectively, a year earlier. The Meat division's revenue increased to ¥42,486 million from ¥38,775 million, while segment profit declined to ¥358 million from ¥413 million. Other businesses also exceeded the year-earlier figures, with revenue of ¥352 million and segment profit of ¥56 million versus ¥304 million and ¥52 million, respectively, but their scale is small and their contribution to company-wide profit recovery is limited.

For FY2027, the company forecasts revenue of ¥500,000 million, operating profit of ¥11,000 million, ordinary profit of ¥12,000 million, and net profit attributable to owners of the parent of ¥7,500 million, with the forecasts unchanged as of Q1. Q1 progress was approximately 24.5% for revenue and 22.5% for operating profit. On a simple quarterly allocation that does not reflect seasonality, revenue of ¥250,000 million and operating profit of ¥5,500 million represent interim checkpoints. In particular, the full-year operating profit forecast of ¥11,000 million is 20.5% above the previous year's actual result of ¥9,131 million, making it important to determine whether the Q1 decline can be explained as temporary.

The Q1 results summary cited higher sales volumes of ham and sausage products, processed foods, and meat as reasons for revenue growth, but did not provide a quantified breakdown of the factors behind the decline in operating profit, such as raw material, personnel, and logistics costs or the effect of price revisions. At the next results announcement, we will assess whether the operating margin has returned to at least the year-earlier 2.18%, whether Meat division profit has recovered to the year-earlier ¥413 million, and whether the increase in Processed Foods division profit has continued, alongside the likelihood of achieving the full-year forecast.