福留ハム's operating loss for the first quarter of the fiscal year ending March 2027 narrowed to ¥158 million, but remained a loss. Net sales were ¥5.824 billion, the equity ratio was 19.3%, and the full-year forecast called for operating profit of ¥160 million.
In 福留ハム's financial results for the first quarter of the fiscal year ending March 2027, the operating loss narrowed to ¥158 million from ¥207 million in the same period of the previous year. Although the company remained in the red, the loss decreased by approximately ¥49 million. However, the company continued to report operating losses for eight consecutive fiscal years through the previous fiscal year, as well as negative cash flow from operating activities.
There are three points of focus in the results. Net sales were ¥5.824 billion, down 1.1% year on year, the equity ratio was 19.3%, and the full-year forecast was for operating profit of ¥160 million. The reduction in the quarterly loss, financial headroom, and outlook for reaching profitability at the fiscal year-end need to be viewed as separate issues.
The company announced on the same day that it expects to recognize approximately ¥430 million in gains on the sale of investment securities in the second quarter. This is an extraordinary gain and will not affect operating profit. To assess the turnaround in the core business, the factors therefore need to be examined separately, in the order of profitability in processed foods and meat, inventory and cash, fixed-cost reductions, partnerships, and the core system.
An analysis that considers three conditions separately is considered useful in assessing the plan to return to profitability. Earnings comprise the first-quarter loss of ¥158 million, capital is represented by the 19.3% equity ratio, and the plan is the full-year operating profit forecast of ¥160 million. None of these can substitute for the others.