Nisshin Seifun Group's interim results for the fiscal year ending March 2027 showed interim net income up 75.8% year on year. Revenue increased 2.4% and operating profit 0.8%, with an impact on the full-year outlook.
The results cover the interim consolidated period for the fiscal year ending March 2027. Revenue was ¥441.756 billion, up 2.4% year on year, operating profit was ¥22.823 billion, up 0.8%, and interim net income attributable to owners of the parent was ¥18.154 billion, up 75.8%. Although the sharp increase in net income stands out numerically, checking operating profit as an indicator of core business growth shows that its rate of increase was considerably lower than that of net income.
“The interim net income increased from the previous year” and “the full-year earnings forecast was raised” are separate points to verify, and need to be checked alongside any revision to the full-year forecast. The full-year revenue forecast was revised to ¥900 billion, while the forecasts for full-year operating profit, ordinary profit and net income were maintained at the levels announced in May. Higher shipments from the overseas milling business are supporting operating profit, while higher costs were also cited.
The next point to examine is the impact of individual factors identified in the earnings materials. It is necessary to separate the factors behind revenue growth from those behind the composition of profit and determine whether the factors affecting the current fiscal year will continue. The materials should be reviewed to assess how shipment growth and cost absorption develop going forward.