| Metrics | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥110.0B | ¥108.4B | +1.5% |
| Operating Income | ¥4.0B | ¥5.5B | -28.4% |
| Ordinary Income | ¥5.4B | ¥6.5B | -17.9% |
| Net Income | ¥3.9B | ¥4.5B | -14.2% |
| ROE | 1.7% | 2.0% | - |
In FY2026 Q3, Yutaka Foods posted Revenue of ¥110.0B (YoY +¥1.6B +1.5%), a modest increase, but Operating Income declined significantly to ¥4.0B (YoY -¥1.5B -28.4%). Ordinary Income was ¥5.4B (YoY -¥1.1B -17.9%), and Net Income was ¥3.9B (YoY -¥0.6B -14.2%), both below the prior year. While Non-operating Income of ¥1.5B (dividends ¥0.8B, interest income ¥0.4B, etc.) supported profits at the ordinary level, the deterioration in core business profitability was pronounced.
[Profitability] ROE 1.7% (down YoY), Operating Margin 3.6% (down -1.5pt from 5.1% in the prior year), Net Margin 3.5% (down -0.7pt from 4.2% in the prior year), Return on Assets 1.3%, and ROIC 1.2%, indicating low capital efficiency. Gross Profit Margin is 9.1%. [Cash Quality] Cash and Deposits ¥1.9B (down -92.7% from ¥25.5B in the prior year), with Short-term Liability Coverage of 0.04x, resulting in a marked decline in immediate liquidity. [Investment Efficiency] Total Asset Turnover 0.38x. Fixed Assets Ratio 75.1%, with Investment Securities accounting for 9.7% of total assets. [Financial Soundness] Equity Ratio 80.3%, Current Ratio 160.8%, Quick Ratio 147.4%, and Debt-to-Equity Ratio 0.25x, reflecting a conservative capital structure; however, the sharp decline in cash balances has brought short-term funding risks to the fore.
Cash and Deposits decreased by ¥23.6B from ¥25.5B in the prior year to ¥1.9B (-92.7%), severely weakening short-term liquidity. Meanwhile, Fixed Assets increased by ¥66.4B from ¥149.3B to ¥215.7B (+44.5%), suggesting significant progress in capital expenditures and transfers to Construction in Progress. Investment Securities also increased by ¥6.4B from ¥21.4B to ¥27.8B (+30.0%), indicating a shift of funds into securities. Intangible Fixed Assets rose by ¥1.2B from ¥0.4B to ¥1.6B (+302.5%), reflecting capitalization of system investments, etc. Against Current Liabilities of ¥44.5B, the cash coverage is extremely low at 0.04x; while total Current Assets, including inventories of ¥19.8B and inventory assets of ¥6.0B, amount to ¥71.6B, securing a Current Ratio of 160.8%, the asset mix lacks immediate liquidity. Additional liquidity measures such as short-term borrowings and acceleration of accounts receivable collection require monitoring.
With Ordinary Income of ¥5.4B versus Operating Income of ¥4.0B, the net non-operating gain is approximately ¥1.4B. This mainly comprises Non-operating Income of ¥1.5B (dividends ¥0.8B, interest income ¥0.4B, etc.), while Non-operating Expenses were small at ¥0.1B. Non-operating income accounts for 1.4% of Revenue, primarily derived from financial assets. Dependence on non-operating income is increasing relative to the 3.6% Operating Margin, indicating a structure where weaker core business profitability is being supplemented by financial income. As details of Operating Cash Flow are not disclosed, the cash backing of profits cannot be directly verified; however, the sharp decline in Cash and Deposits suggests that outflows for capital expenditures and acquisition of securities exceeded Net Income of ¥3.9B, implying limited cash generation at the operating level.
[Position within the industry] (Reference information, our survey) Profitability: The Operating Margin of 3.6% is 1.3pt below the industry median of 4.9%, while the Net Margin of 3.5% is in line with the industry median of 3.5%. ROE of 1.7% is well below the industry median of 4.2%, positioning the company at a lower level within the industry. Growth: Revenue growth of 1.5% is 3.3pt below the industry median of 4.8%, indicating slower growth within the industry. Soundness: The Equity Ratio of 80.3% is significantly above the industry median of 48.7%, reflecting a conservative financial leverage. The Current Ratio of 160.8% is roughly in line with the industry median of 151%, but the sharp decline in Cash and Deposits may render effective short-term liquidity weak even within the industry. Efficiency: Return on Assets of 1.3% is 1.0pt below the industry median of 2.3%, indicating lower asset utilization efficiency within the industry. (Industry: Food & Beverage (8 companies), comparison period: 2025 Q3, Source: our compilation)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information compiled by us based on publicly available financial statements. Investment decisions are your own responsibility; please consult a professional as necessary before making any decisions.