In its first-quarter results for the fiscal year ending May 2027, SAKATA SEED CORPORATION reported a 7.2% year-on-year increase in net sales to ¥24.7 billion, driven by the weaker yen, while operating income and net income declined significantly.
Net sales for the first quarter of the fiscal year ending May 2027 increased 7.2% year on year to ¥24.7 billion, supported by translation gains resulting from the weaker yen. A decline in the gross profit margin, higher personnel expenses and the absence of settlement proceeds recognized in the previous fiscal year combined to reduce operating income by 24.1% year on year to ¥3.4 billion. Ordinary income also fell 24.6% to ¥3.7 billion, due in part to an increase in foreign exchange losses. Net income attributable to owners of the parent declined 38.4% to ¥2.2 billion, as the effect of the ¥550 million settlement proceeds recognized in the same period of the previous fiscal year fell away.
Total assets increased 2.2% from the end of the previous consolidated fiscal year to ¥221.6 billion, while net assets rose 1.9% to ¥182.4 billion. Short-term borrowings increased significantly to ¥8.2 billion, while notes and accounts payable fell substantially to ¥4.0 billion. Investment securities increased 11.5% to ¥22.7 billion.
A cash flow statement for the cumulative first quarter has not been prepared, and no detailed comparison has been disclosed. Depreciation and amortization increased 7.1% year on year to ¥1.3 billion, while amortization of goodwill was ¥34 million.
For the full fiscal year ending May 2027, the company forecasts net sales of ¥110.0 billion, up 5.5% from the previous fiscal year, operating income of ¥13.5 billion, up 2.9%, ordinary income of ¥13.5 billion, down 5.5%, and net income attributable to owners of the parent of ¥10.0 billion, down 17.8%. For the cumulative second quarter, net sales are expected to increase 10.0% to ¥52.5 billion, while net income is expected to decline 42.7% to ¥4.0 billion. There is no change to the earnings forecast.
The annual dividend for the fiscal year ending May 2027 is expected to total ¥90, comprising ¥40 at the end of the second quarter and ¥50 at year-end. An increase from the previous fiscal year is expected, but there is no change to the dividend forecast.