Sakata Seed Corporation's consolidated Summary of Financial Results for the first quarter of the fiscal year ending May 2027 showed higher revenue but lower operating profit. The decline in profitability of overseas wholesale operations on a local-currency basis was notable.
Revenue for the first quarter of the fiscal year ending May 2027 increased 7.2% year on year to ¥24.67 billion, securing higher revenue. Operating profit, however, fell 24.1% year on year to ¥3.387 billion, resulting in a substantial decline in profit.
Profit from the overseas wholesale business fell sharply. Factors included higher selling, general and administrative expenses due to global inflation and a reaction in demand in some regions where conditions had been strong in the same period of the previous year. By region, EMEA saw growth in its core product varieties, while revenue declines on a local-currency basis became apparent in North America, Central and South America, and Asia-Pacific.
The company continues to strengthen investment in research and development and pursue a growth strategy using its investment capacity. Initiatives aimed at improving long-term profitability through variety development and the expansion of distribution channels, including the opening of the Ishigaki Research Farm, are expected to progress. In July, the company announced PASSION2035 and plans approximately ¥50 billion in growth investment by 2031.
The focus going forward will be whether these investments lead to increased overseas market share and improved profit margins. The company has entered a phase of expanding investment by drawing on its financial capacity, but evaluating the actual results of the investments will be more important than the amount invested.