Kameda Seika released its results for the second quarter of the fiscal year ending March 2027. Despite strong sales of domestic rice crackers, it lowered its full-year earnings forecast due to weaker profitability in its overseas operations.
Kameda Seika released its consolidated summary of second-quarter results at its headquarters in Niigata. Revenue was ¥69.003 billion, up 4.9% year on year. Operating profit rose 24.1% to ¥2.474 billion. Ordinary profit was ¥2.401 billion, up 20.9%, while interim net profit attributable to owners of the parent was ¥1.480 billion, down 93.4% year on year.
Both the domestic rice cracker and food businesses reported higher revenue and profit, supported by price revisions, brand concentration and improved productivity. Overseas operations, however, saw production efficiency decline at TH FOODS, INC. in North America due to workforce turnover and supply-capacity constraints, causing operating profit to fall 95.0% year on year.
The sharp decline in interim net profit was attributed to the absence of a gain recorded in the previous year following the consolidation of TH FOODS, INC. as a subsidiary. Against this backdrop, Kameda Seika lowered its full-year consolidated earnings forecast, citing higher raw-material and energy costs in the domestic rice cracker business, lower sales volumes after price revisions, and lower production efficiency and additional costs in the North American business.
Under the new full-year forecast, revenue is projected at ¥142.0 billion, operating profit at ¥5.5 billion, ordinary profit at ¥5.1 billion and net profit attributable to owners of the parent at ¥2.5 billion. The effects of price revisions in the domestic rice cracker business are expected to emerge from the fourth quarter onward. In North America, the company is pursuing wage reviews, stepped-up hiring and production-line efficiency improvements to restore supply capacity.