In FY2025, Shinei's domestic frozen-food business reached a record high in revenue, while the company decided to withdraw from the capacitor business, resulting in an expected decline in net income to approximately ¥1.25 billion.
Shinei released its FY2025 earnings outlook, forecasting revenue of ¥43.267 billion, ordinary income of ¥1.725 billion and net income of ¥1.346 billion. The domestic frozen-food business drove overall performance, with revenue reaching a record ¥26.6 billion.
For FY2026, the company forecasts higher revenue and profit, with revenue of ¥45 billion and ordinary income of ¥1.8 billion. However, because it will record an extraordinary loss of approximately ¥300 million associated with its withdrawal from the capacitor business, net income is expected to decline to ¥1.25 billion, down 7.2% from the previous fiscal year.
Progress on the medium-term management plan, "Shinei Challenge Project 2026," is somewhat behind schedule. The company is currently considered to be approaching, at most, its three-year cumulative ordinary-income target of ¥5.5 billion. The equity ratio of 36.9% exceeds the target, while interest-bearing debt has been reduced to approximately ¥12.023 billion.
The growth strategy is to strengthen the company's "manufacturing trading company" model centered on frozen foods, while pursuing thorough quality control, developing new sales channels and adding value to electronic products. The company maintains its policy of increasing dividends for 4 consecutive years, while leaving shareholder benefits undecided.