| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥687.0B | ¥648.0B | +6.0% |
| Operating Income / Operating Profit | ¥0.5B | ¥5.3B | -90.2% |
| Ordinary Income | ¥7.6B | ¥11.2B | -32.5% |
| Net Income / Net Profit | ¥49.4B | ¥29.7B | +66.0% |
| ROE | 6.4% | 4.0% | - |
For the fiscal year ended March 2026, Revenue was ¥687.0B (YoY +¥39.0B +6.0%), Operating Income was ¥0.5B (YoY -¥4.8B -90.2%), Ordinary Income was ¥7.6B (YoY -¥3.6B -32.5%), and Net Income attributable to owners of the parent was ¥49.4B (YoY +¥19.7B +66.0%). Revenue growth was driven by price pass-through and higher sales volumes (+8.7%) in the Sugar Business, but operating results deteriorated sharply due to an expanded loss in the Sugar Business (-¥25.6B), causing the Operating Income margin to worsen by -0.7pt to 0.1% (previous year 0.8%). At the ordinary income level, received dividends of ¥8.6B provided support but Ordinary Income still declined. Net Income rose significantly YoY (+66.0%) due to non-recurring Special Gains of ¥72.2B including gains on sales of investment securities of ¥69.8B, which is not indicative of sustainable earnings power. EPS rose to ¥410.85 (prior year ¥215.15, +91.0%), and BPS increased to ¥6,412.65. Operating Cash Flow (OCF) improved substantially to ¥42.7B (prior year -¥30.9B), and short-term borrowings were reduced from ¥90.4B to ¥15.1B, enhancing financial soundness.
【Revenue】Revenue was ¥687.0B (+6.0%). By segment, the Sugar Business was ¥469.2B (+8.7%) accounting for 68.3% of company-wide sales, with price revisions and higher sales contributing. Feed Business was ¥127.7B (-0.9%) slightly down, Agricultural Materials Business ¥41.0B (+3.1%), Food Business ¥28.3B (+3.6%), Real Estate Business ¥12.7B (-5.0%), and Others ¥74.0B (+5.9%). Gross margin was 20.3% (prior year 20.4%), roughly flat, but Cost of Sales rose to ¥547.6B (+8.4%), outpacing revenue growth of +6.0%, reflecting the impact of higher raw material and energy costs.
【Profitability】Gross profit was ¥139.4B (+5.4%) while Selling, General and Administrative Expenses (SG&A) were ¥138.8B (+9.5%), increasing significantly and resulting in Operating Income of ¥0.5B (-90.2%). SG&A ratio rose to 20.2% from 19.6% (+0.6pt), with higher logistics and personnel costs compressing profits. Segment profits were: Sugar -¥25.6B (prior year -¥16.0B), Feed +¥13.6B (+11.6%), Real Estate +¥5.9B (-1.3%), Agricultural Materials +¥2.7B (+640.0%), Food +¥1.7B (-22.6%); the expanded deficit in Sugar squeezed company-wide operating profits. Non-operating income totaled ¥10.0B (including received dividends ¥8.6B), leading to Ordinary Income of ¥7.6B (-32.5%). After Special Gains ¥72.2B (mainly gains on sales of investment securities ¥69.8B) and Special Losses ¥9.2B (including impairment losses ¥5.3B), Profit before Income Taxes was ¥70.6B. After income taxes of ¥20.3B, Net Income was ¥49.4B (+66.0%). In conclusion, the company posted higher sales but lower operating profit; the results rely on weaker core earnings and one-off gains.
The Sugar Business recorded Revenue of ¥469.2B (+8.7%) but operating loss widened to -¥25.6B (prior year -¥16.0B), with a margin of -5.4%. The main drivers were higher raw sugar and beet raw material costs, delayed pass-through of higher selling prices, and inventory valuation burdens. The Feed Business had Revenue of ¥127.7B (-0.9%) and Operating Income of ¥13.6B (+11.6%), maintaining a high margin of 10.7%. The Real Estate Business posted Revenue of ¥12.7B (-5.0%) and Operating Income of ¥5.9B (-1.3%), with a margin of 46.8%, the highest profitability. Agricultural Materials Business Revenue was ¥41.0B (+3.1%) with Operating Income ¥2.7B (+640.0%), showing large improvement and a margin of 6.6%. Food Business Revenue was ¥28.3B (+3.6%) but Operating Income declined to ¥1.7B (-22.6%), lowering the margin to 6.0%. Others segment Revenue was ¥74.0B (+5.9%) with Operating Income ¥2.9B (+58.4%), margin 4.0%. Recovery of profitability in the Sugar Business is the most important issue for improving company-wide earnings power.
【Profitability】Operating Income margin of 0.1% worsened by -0.7pt from 0.8% last year, at an extremely low level for the food industry. Gross margin of 20.3% was nearly unchanged from 20.4% last year, but the increase in SG&A ratio to 20.2% (prior year 19.6%, +0.6pt) weakened operating-level profitability. ROE improved to 6.4% (prior year 4.0%), but the rise in Net Income margin to 7.2% (prior year 4.6%, +2.6pt) is largely due to one-off Special Gains such as gains on sales of investment securities of ¥69.8B, and does not reflect sustainable profitability improvement. Return on Assets (ROA) fell to 0.8% (prior year 1.1%), indicating deteriorated asset efficiency on a core-business basis. 【Cash Quality】OCF / Net Income ratio was 0.87x; Operating Cash Flow was ¥42.7B versus Net Income ¥50.3B, slightly lower, but OCF subtotal (before working capital changes) was ¥47.8B and cash generation including depreciation of ¥23.1B shows a certain level of cash-generative capacity. Inventory changes of +¥28.0B pressured OCF, and inventory days are about 128 days (Inventory ¥241.1B ÷ Cost of Sales ¥547.6B × 365 days), indicating long-term working capital efficiency issues. 【Investment Efficiency】Total asset turnover was 0.70x (prior year 0.64x), a slight improvement but still low. Capital expenditures were ¥30.1B, 1.30x depreciation of ¥23.1B, focused on renewal and maintenance. 【Financial Soundness】Equity Ratio was 79.3% (prior year 72.9%, +6.4pt), very strong; Interest-bearing debt was ¥15.2B (short-term borrowings ¥15.1B + long-term borrowings ¥0.1B), a large reduction from ¥91.5B last year, and D/E ratio was 0.02x, effectively debt-free. Current Ratio was 420% and Quick Ratio 208%, indicating ample short-term payment capacity. Cash and deposits were ¥25.6B and short-term investment securities ¥55.0B, providing substantial liquidity.
OCF was ¥42.7B, a large improvement from -¥30.9B last year (+238.2%). OCF subtotal (before working capital changes) was ¥47.8B; inventory change +¥28.0B and trade receivables change +¥4.2B detracted from working capital efficiency, but after corporate tax payments of -¥12.9B, OCF amounted to ¥42.7B. Investing Cash Flow was a net inflow of ¥14.5B, driven by proceeds from sale of investment securities ¥80.7B and redemption proceeds ¥90.0B, outweighing capital expenditures -¥30.1B, purchases of investment securities -¥2.1B, and intangible asset acquisitions -¥2.1B. Free Cash Flow was ¥57.2B, ample. Financing Cash Flow was -¥95.3B, primarily from net decrease in short-term borrowings -¥75.0B (borrowings +¥125.0B - repayments -¥200.0B), dividend payments -¥9.9B, and treasury stock purchases -¥10.0B. Cash and cash equivalents decreased by -¥38.1B from ¥83.6B at the beginning of the period to ¥45.6B at period-end, reflecting the level after both reduction of short-term borrowings and shareholder returns, and indicating liquidity management that balanced financial soundness with returns. Interest and dividend income received was ¥8.9B and interest paid -¥1.1B, showing favorable financial income/expense.
Of Net Income ¥49.4B, Ordinary Income was ¥7.6B and the difference ¥41.8B mainly reflects one-off factors: Special Gains ¥72.2B (gains on sales of investment securities ¥69.8B, gains on sales of fixed assets ¥0.6B) less Special Losses ¥9.2B (impairment losses ¥5.3B, loss on retirement of fixed assets ¥3.2B). Gains on sales of investment securities are non-recurring and expected to fall away next fiscal year. Non-operating income of ¥10.0B was driven mainly by received dividends of ¥8.6B, which helped lift Ordinary Income, indicating a structure where financial asset returns supplement the weak Operating Income of ¥0.5B. Equity-method investment gains of ¥0.3B are stable but small in scale. Comprehensive Income was ¥56.8B, ¥7.4B higher than Net Income ¥49.4B; other comprehensive income included actuarial adjustments related to retirement benefits +¥8.7B (improvement in plan and actuarial assumptions) and valuation difference on available-for-sale securities -¥2.4B. On a comprehensive-income basis, one-off factors are also significant; OCF ¥42.7B and OCF subtotal ¥47.8B are more appropriate indicators of recurring cash generation. Accrual (OCF - Operating Income) was +¥42.2B, a large positive, reflecting non-cash charges such as depreciation ¥23.1B and inventory increase +¥28.0B; however, inventory buildup depends on timing of future cash inflows and is qualitatively neutral. Overall, earnings quality shows high dependence on one-off gains, and recurring earning power awaits improvement at the operating level.
Full Year forecast: Revenue ¥690.0B (YoY +0.4%), Operating Income ¥13.0B (current ¥0.5B → 26x), Ordinary Income ¥18.0B (current ¥7.6B → +137.2%), Net Income attributable to owners of the parent ¥12.0B (current ¥49.4B → -75.7%). Forecast EPS is ¥99.27, and forecast dividend is ¥260 per year. The plan assumes a large recovery in Operating Income from ¥0.5B to ¥13.0B, premised on profitability improvements in the Sugar Business (penetration of price revisions, stabilization of raw material costs, inventory reduction) and SG&A restraint. Ordinary Income is forecast at ¥18.0B (+137.2% YoY) but remains only 2.4x the current ¥7.6B, incorporating expected continued contribution from non-operating income. Net Income of ¥12.0B assumes the loss of current-period Special Gains of ¥72.2B. Revenue is expected to be roughly flat, reflecting a cautious view of external uncertainties. Based on current-period results, progress rates toward the full-year forecast are Operating Income 3.8%, Ordinary Income 42.2%, and Net Income 411.7%, but these are only reference figures affected by current-period special factors. To achieve the full-year forecast, Operating Income must be built up by more than ¥12.5B in H2, with the pace of profitability recovery in the Sugar Business and SG&A control being key. The forecast dividend of ¥260 per year appears to assume continuity from the current-period dividend of ¥160 (only year-end dividend disclosed), but relative to forecast EPS the payout ratio would be 261.9%, which is very high and warrants confirmation of dividend policy details.
A year-end dividend of ¥160 per share was paid, with a Payout Ratio of 37.2% (based on Net Income ¥49.4B and EPS ¥410.85), which is an appropriate level. Total dividends are estimated at approximately ¥19.6B (outstanding shares 12,810 thousand - treasury shares 722 thousand). The company also repurchased treasury stock worth ¥10.0B, making total returns approximately ¥29.6B and a Total Return Ratio of about 59.9% (net income basis). Against Free Cash Flow of ¥57.2B, the FCF coverage of total returns is 1.93x, indicating a sustainably funded return level. Treasury stock balance is ¥15.0B, a large decline from ¥57.2B last year, suggesting treasury stock disposal or cancellation was executed. The forecast dividend for the full year is ¥260 (annual); if assumed as interim and year-end ¥130 each, the forecast Payout Ratio versus forecast EPS ¥99.27 would be 261.9%, very high. However, the current-period actual dividend ¥160 (year-end only) had a Payout Ratio of 37.2% against Net Income ¥49.4B, which is healthy; the forecast ¥260 may assume continuation of current-period dividend levels. In the absence of detailed disclosure on dividend policy, evaluating sustainability on an FCF basis suggests feasibility, but the implied dividend total against forecast Net Income ¥12.0B (¥260 × ~12.1 million shares ≒ ¥31.5B) corresponds to roughly 262% payout and requires monitoring. Overall, current-period total shareholder returns are healthy and indicate a high willingness to return capital to shareholders.
Continued deficit risk in the Sugar Business: The Sugar Business, which accounts for 68.3% of revenue, posted an operating loss of ¥25.6B (margin -5.4%) and is in a severe deficit. Rising raw sugar and beet raw material prices and energy costs have pressured gross profit, and pass-through to selling prices has been delayed. If inventory of ¥241.1B (24.7% of total assets) is not reduced or price revisions do not progress, operating deficits may persist and sustainably depress company performance. Achievement of the guidance Operating Income ¥13.0B is contingent on substantial profitability improvement in the Sugar Business.
Low inventory turnover and working capital efficiency: Inventory of ¥241.1B and inventory days of about 128 days are long, representing a cash outflow factor of ¥28.0B from OCF. While inventory buildup may reflect seasonality and supply chain responses, sales slowdown or demand-supply mismatch could materialize valuation losses or disposal losses. Delay in inventory reduction will reduce cash-generation capacity and impede conversion to FCF.
Rising SG&A ratio and fixed cost burden: SG&A of ¥138.8B (+9.5%) outpaced revenue growth of +6.0%, raising the SG&A ratio to 20.2% (+0.6pt). Higher logistics and personnel costs are the main drivers and are difficult to reduce in the short term. If revenue growth cannot absorb cost increases, operating leverage will not work and depressed Operating Income margins may become entrenched. Structural reform of SG&A and productivity improvements are urgent.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Income margin | 0.1% | 5.0% (3.3%–8.4%) | -4.9pt |
| Net Income margin | 7.2% | 3.2% (1.9%–6.6%) | +4.0pt |
Operating Income margin is well below the industry median of 5.0% and ranks low, but Net Income margin exceeds the median due to one-off gains.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth rate (YoY) | 6.0% | 5.4% (1.0%–8.6%) | +0.6pt |
Revenue growth rate slightly exceeds the industry median and is mid-tier; top-line expansion is industry average but profitability lag is notable.
※Source: Company compilation
Restoration of core earnings power is the top priority: Operating Income margin of 0.1% is substantially below the industry median of 5.0%, primarily due to the Sugar Business loss of ¥25.6B. Achieving next-year guidance of Operating Income ¥13.0B requires penetration of sugar price revisions, stabilization of raw material costs, and inventory reduction; progress on these items will be the central monitoring metrics. Simultaneous pursuit of SG&A ratio restraint from 20.2% and improvement of gross margin from 20.3% is key to sustainable profit recovery.
Financial soundness and shareholder return capacity are ample: Equity Ratio 79.3%, D/E ratio 0.02x, and Free Cash Flow ¥57.2B indicate a very solid financial base, sufficiently covering total returns of ¥29.6B (dividends + buybacks). Large reduction in short-term borrowings (¥90.4→¥15.1B) also reduces interest burden. While the forecast dividend ¥260 appears high relative to forecast Net Income ¥12.0B, FCF-based assessment suggests sustainability; clarity in dividend policy and continuation of stable dividend policy would enhance predictability of shareholder returns.
Assessing normalized Net Income after one-off gains: Current Net Income ¥49.4B is heavily dependent on gains on sales of investment securities ¥69.8B, and next-year forecasts assume regression to a repeatable level of ¥12.0B. Received dividends of ¥8.6B at the Ordinary Income level are a stable income source but cannot fully offset weakness at the operating level. Normalization trend of Operating Income margin (current 0.1% → target 1.9% next year) and expansion of high-margin segments such as Feed (margin 10.7%) and Real Estate (margin 46.8%) will be progress indicators for structural reform toward medium-to-long-term earnings stabilization.
This report is an earnings analysis document automatically generated by AI analyzing XBRL earnings release data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the firm based on public financial statements. Investment decisions are your own responsibility; please consult professionals as necessary before making investment decisions.