| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥2906.8B | ¥2960.4B | -1.8% |
| 営業利益 | ¥80.9B | ¥63.4B | +27.6% |
| 経常利益 | ¥86.1B | ¥67.9B | +26.9% |
| 純利益 | ¥64.1B | ¥54.9B | +16.8% |
| ROE | 10.3% | 9.9% | - |
For the fiscal year ended March 2026, revenue was ¥2906.8B (YoY -¥53.7B, -1.8%), a slight decline, while Operating Income was ¥80.9B (YoY +¥17.5B, +27.6%), Ordinary Income was ¥86.1B (YoY +¥18.2B, +26.9%), and Net Income attributable to owners of the parent was ¥64.1B (YoY +¥9.2B, +16.8%)—a substantial profit increase. Gross margin improved to 11.6% (up +0.8pt from 10.8% a year ago), and operating margin improved to 2.8% (up +0.7pt from 2.1%), indicating better profit structure. Stabilization of raw material prices and the establishment of pricing policies expanded gross profit, and SG&A controlled at ¥257.6B (SG&A ratio 8.9%) enabled operating leverage.
[Revenue] Revenue was ¥2906.8B (-1.8%). By segment, Livestock Feed was ¥2285.0B (-3.5%), Aquafeed was ¥251.4B (-3.1%), both contracting, while Food was ¥420.7B (+10.3%) achieving double-digit growth. Sales mix: Livestock Feed 78.6%, Aquafeed 8.6%, Food 14.5%; the flagship Livestock Feed led the revenue decline. The fall in feed raw material market prices and changes in sales composition were the main causes of revenue decrease, while Food expanded by capturing demand for processed livestock products.
[Profitability] Cost of sales was ¥2568.3B (cost of sales ratio 88.4%, improved -0.8pt from 89.2%), securing gross profit of ¥338.5B (gross margin 11.6%). SG&A amounted to ¥257.6B, a slight increase of ¥0.2B YoY, resulting in Operating Income of ¥80.9B (operating margin 2.8%), a substantial YoY increase of +27.6%. Equity-method investment income contributed ¥3.4B and non-operating income totaled ¥9.2B (including ¥2.0B dividend income), yielding Ordinary Income of ¥86.1B (+26.9%). Extraordinary items were net -¥0.1B (extraordinary gains ¥1.0B, extraordinary losses ¥1.1B), negligible. Pre-tax profit of ¥86.0B less corporate taxes etc. ¥21.9B and non-controlling interests ¥0.3B resulted in Net Income attributable to owners of the parent ¥64.1B (+16.8%). Improvement in gross margin driven by lower raw material costs and price pass-through led profit growth, effecting a shift from revenue up/profit down to revenue down/profit up.
Livestock Feed: Revenue ¥2285.0B (-3.5%), segment profit ¥102.4B (+20.0%), margin approx. 4.5%. Profitability significantly improved due to lower raw material costs and pricing policy. Aquafeed: Revenue ¥251.4B (-3.1%), segment profit ¥14.3B (+22.5%), margin approx. 5.7%, maintaining the highest profitability within segments. Food: Revenue ¥420.7B (+10.3%) grew, but segment profit ¥1.6B (-42.6%), margin approx. 0.4%, remaining low-profit; SG&A increase appears to have pressured profit. While Livestock Feed and Aquafeed saw efficiency gains with revenue declines and profit increases, Food faces the challenge of restoring profitability amid revenue growth and profit decline.
[Profitability] Operating margin 2.8% (up +0.7pt from 2.1%), Net margin 2.2% (up +0.4pt from 1.8%), ROE 10.3% (up +0.5pt from 9.8%)—profitability metrics improved across the board. Improvement in gross margin to 11.6% (prior 10.8%) is the primary driver of higher profitability. [Cash Quality] Operating Cash Flow (OCF) ¥170.9B is 2.7x Net Income, accrual ratio -8.1%, OCF/EBITDA 1.42x, indicating good cash backing for earnings. Working capital movements—inventory decrease +¥17.2B, accounts payable increase +¥19.7B, accounts receivable decrease +¥5.8B—supported OCF. [Investment Efficiency] Total asset turnover 2.19x; tangible fixed asset additions ¥123.2B are 3.1x depreciation ¥39.3B, indicating active investment. Construction in progress ¥80.0B represents 20.6% of PPE, reflecting large-scale ongoing investments. [Financial Soundness] Equity Ratio 46.9% (up +2.9pt from 44.0%), Current Ratio 184.7%, interest-bearing debt ¥246.2B with Debt/EBITDA 2.05x and interest coverage 32.4x, indicating strong financial resilience. Short-term borrowings ¥12.9B (down -90.0% from ¥128.8B), long-term borrowings ¥233.3B (up +62.0% from ¥144.0B) show lengthening of debt maturities.
OCF was ¥170.9B (YoY +99.4%), a large increase. Working capital contributed via inventory decrease ¥17.2B, accounts payable increase ¥19.7B, accounts receivable decrease ¥5.8B. From pre-tax profit ¥86.0B, depreciation ¥39.3B, equity-method profit adjustment -¥3.4B, OCF subtotal was ¥177.8B, less corporate tax payments ¥7.0B produced cash generation. Investing Cash Flow was -¥115.5B, centered on tangible and intangible fixed asset acquisitions -¥123.2B, partially offset by proceeds from disposals ¥6.1B. Free Cash Flow (FCF) amounted to ¥55.4B (OCF + Investing CF). Financing Cash Flow was -¥47.3B: long-term borrowings raised ¥100.0B vs repayments -¥60.9B, net decrease in short-term borrowings -¥65.7B, dividends paid -¥16.1B were major items. Cash and deposits increased to ¥111.4B (prior ¥103.4B, +¥8.0B). OCF being 2.7x Net Income indicates high earnings quality, but attention is needed for potential reversals in working capital drivers.
The gap between Ordinary Income ¥86.1B and Net Income ¥64.1B (-25.6%) is mainly due to corporate taxes etc. ¥21.9B (effective tax rate 25.5%) and non-controlling interests ¥0.3B; tax burden is within a reasonable range. Non-operating income ¥9.2B (0.3% of sales) comprised dividend income ¥2.0B, equity-method investment income ¥3.4B, and other ¥2.2B; the increase in Ordinary Income is driven primarily by operational improvement and contribution from equity-method investment income. Extraordinary items were net -¥0.1B (extraordinary gains ¥1.0B, extraordinary losses ¥1.1B), minor; although there was a negative goodwill gain of ¥3.4B, its impact on Ordinary and Net Income is limited. OCF is 2.7x Net Income, accrual ratio -8.1%, OCF/EBITDA 1.42x, indicating good accrual quality and low dependence on one-off items. Comprehensive income was ¥86.4B (Net Income ¥64.1B + Other Comprehensive Income ¥22.3B), with unrealized gains on securities +¥17.7B, deferred hedge gains +¥1.5B, and retirement benefit adjustments +¥2.0B boosting equity.
Full Year guidance: Revenue ¥3170.0B (YoY +9.1%), Operating Income ¥85.0B (YoY +5.1%), Ordinary Income ¥88.0B (YoY +2.2%), Net Income planned ¥65.0B. This implies an uplift of Operating Income +¥4.1B versus current fiscal results. The plan assumes activation/efficiency gains from construction in progress ¥80.0B and stability in raw materials and FX; if the benefits of capital expenditures materialize, achievability is high. Dividend guidance is annual ¥26.0 (adjusted from this fiscal year’s ¥45.5 which included a ¥5 interim commemorative dividend); excluding the one-off commemorative dividend, the dividend level is effectively maintained. The plan reflects a transition to the investment recovery phase and optimization of capital allocation.
Annual dividend is ¥45.5 (interim ¥21.0, year-end ¥24.5), including a ¥5 interim commemorative dividend. Payout Ratio is 27.3% (¥45.5 / EPS ¥166.72), conservative. Total dividends amount to ¥16.1B, coverage relative to FCF ¥55.4B is 3.4x, leaving ample dividend capacity. Next period dividend guidance is ¥26.0; excluding the commemorative dividend, the basic policy is viewed as effectively maintained. Share buybacks have been limited; returns are dividend-centered. Financial capacity (Debt/Capital 28.3%) exists, but given Construction in progress ¥80.0B and continued active investment, a cautious approach to returns is appropriate until investment recovery becomes visible.
Raw material price volatility risk: Of cost of sales ¥2568.3B (88.4% of sales), price changes in feed raw materials (corn, soybean meal, etc.) significantly affect gross margin. Although gross margin improved +0.8pt this fiscal year due to calming raw material markets, earnings remain sensitive to global grain markets and FX. With Livestock Feed accounting for 78.6% of sales and high raw material concentration, delayed cost pass-through or market spikes could have material impact.
Large-scale investment commissioning risk: Construction in progress ¥80.0B (20.6% of PPE) indicates major ongoing investments. Delays in commissioning or cost overruns could increase depreciation burden and delay EBITDA contribution, risking plan shortfalls. The next fiscal year’s growth plan (Revenue +9.1%, Operating Income +5.1%) incorporates expected CAPEX benefits, so schedule management is critical.
Low-margin structure in Food business: Food achieved Revenue ¥420.7B (+10.3%) but segment profit ¥1.6B (-42.6%), margin approx. 0.4%, indicating low profitability. Rising SG&A pressured profit, delaying the shift to revenue-up/profit-up. Unless price/SKU optimization and processing efficiency improvements advance, this segment could dilute portfolio margins.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 2.8% | 5.0% (3.3%–8.4%) | -2.2pt |
| 純利益率 | 2.2% | 3.2% (1.9%–6.6%) | -1.0pt |
Operating margin 2.8% is 2.2pt below the industry median 5.0%, and Net margin 2.2% is 1.0pt below the median 3.2%. This reflects structurally low margins in the commodity-like feed business, positioning the company in the lower tier for profitability within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | -1.8% | 5.4% (1.0%–8.6%) | -7.2pt |
Revenue growth -1.8% is 7.2pt below the industry median +5.4%. Decline was driven by feed raw material markets and changes in sales composition, placing the company low in growth metrics. The next fiscal year targets +9.1% growth to pursue recovery.
※Source: Company aggregation
Achieving both profitability improvement and financial soundness: Gross margin +0.8pt, operating margin +0.7pt improved profit structure and lifted ROE to 10.3%. OCF ¥170.9B is 2.7x Net Income, indicating high earnings quality; the shift from short-term to long-term debt (short-term -90.0%, long-term +62.0%) improved financial resilience. Equity Ratio 46.9%, Debt/EBITDA 2.05x, interest coverage 32.4x—financial metrics are solid, allowing room for balancing growth investment and returns.
Transition to investment recovery phase: With Construction in progress ¥80.0B (20.6% of PPE) and large-scale investments underway, next year’s plan targets Revenue +9.1% and Operating Income +5.1%. If commissioning and efficiency gains proceed smoothly, increased depreciation can be absorbed while achieving higher revenue and profits. Improving Food segment profitability (price optimization, processing efficiency) offers additional upside. Stable raw material markets and FX are assumptions, but visible progress in investment recovery could mark an inflection point for re-rating.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information aggregated by the company based on public financial statements. Investment decisions are your own responsibility; consult a professional as needed before making investment decisions.