Marudai Food's results for the first quarter of the fiscal year ending March 2027 showed a sharp decline in profit despite higher sales. The processed foods business is the company's main earnings driver, but higher raw material costs weighed on results, while the meat business posted higher sales but a substantial decline in profit. The company also announced an expansion of its shareholder benefits and the introduction of an interim dividend.
Marudai Food's results for the first quarter of the fiscal year ending March 2027, announced by the company, showed net sales of ¥60,529 million, up 1.9% year on year, while operating profit was ¥1,340 million, down 33.4%. Ordinary profit was ¥1,389 million, down 31.4%, and net profit for the quarter was ¥1,016 million, down 28.5%.
The company's main business is processed foods, which generated segment profit of ¥1,270 million, accounting for approximately 90% of company-wide operating profit of ¥1,340 million. The processed foods business consists of the ham and sausage division and the prepared and processed foods division. The former was affected by lower volumes and higher raw material costs, while the latter benefited from promotions for products including salad chicken, curry and desserts. Total sales edged up, but profit fell sharply.
Meanwhile, the meat business posted sales of ¥20,259 million, up 4.5% year on year, but segment profit fell sharply to ¥79 million. The company attributed the decline to its inability to pass on the full increase in procurement costs resulting from higher market prices to selling prices.
The shareholder benefit program will be expanded, based on the end-September record date, to favor long-term holders. Holders of 200 shares or more but fewer than 400 shares will be eligible for benefits worth ¥4,500 after holding the shares for 3 years or longer, while holders of 400 shares or more will be eligible for benefits worth up to ¥6,000 after holding them for 3 years or longer. The company will also introduce an interim dividend, changing the dividend for the current fiscal year to two annual payments of ¥40 as an interim dividend and ¥40 as a year-end dividend, and is targeting an annual dividend of ¥80.