| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥3169.8B | ¥3154.2B | +0.5% |
| 営業利益 | ¥182.5B | ¥200.0B | -8.8% |
| 経常利益 | ¥195.3B | ¥213.9B | -8.7% |
| 純利益 | ¥128.0B | ¥90.4B | +41.6% |
| ROE | 4.0% | 2.8% | - |
For the fiscal year ended March 2026, Revenue was ¥3169.8B (YoY +¥15.6B +0.5%), Operating Income was ¥182.5B (YoY -¥17.5B -8.8%), Ordinary Income was ¥195.3B (YoY -¥18.6B -8.7%), and Net Income attributable to owners of the parent was ¥128.0B (YoY +¥37.6B +41.6%). The company recorded slight revenue growth and declines at the operating and ordinary levels, but due to changes in extraordinary gains/losses and tax burden, final net income increased substantially — a structure of revenue up / operating down but final profit up. Gross margin improved to 37.3% (from 36.7% a year earlier), but SG&A ratio rose to 31.5% (from 30.4%), compressing operating margin to 5.8% (from 6.3%). Extraordinary items included impairment losses of ¥83.2B, partly offset by gains on sales of investment securities of ¥47.3B and gains on disposal of property, plant and equipment of ¥19.9B, resulting in Profit Before Tax of ¥176.6B (prior year ¥201.9B). Income taxes were ¥89.0B (effective tax rate 50.4%), up from ¥58.9B (29.2%), and non-controlling interests attributable profit declined to ¥14.0B from ¥18.1B, producing Net Income attributable to owners of the parent of ¥128.0B (YoY +41.6%). Operating Cash Flow (OCF) was ¥244.7B (YoY -7.9%) and remained robust; Investing CF was +¥3.2B, securing Free Cash Flow of ¥248.0B. Total shareholder returns including ¥100.0B share buybacks totaled about ¥145B, and payout ratio was 36.4%, indicating active shareholder returns.
【Revenue】
Revenue of ¥3169.8B (YoY +0.5%) showed only marginal growth. Core Seasonings & Processed Foods was ¥1321.5B (+0.6%) and remained resilient. Foodservice was ¥655.1B (+7.4%) supported by recovery in customer traffic. Overseas Foods was ¥634.0B (+1.6%) and maintained expansion in the U.S., China and Southeast Asia. Health Foods was ¥168.5B (-1.1%) with a slight decline due to advertising efficiency issues. Other Food-related Businesses was ¥500.6B (-8.0%), primarily driven by the deconsolidation of subsidiary Delica Chef in January. By region, Domestic was ¥2354.8B (prior ¥2367.7B) broadly flat; Overseas East Asia ¥251.0B (prior ¥225.3B) and Southeast Asia ¥158.4B (prior ¥149.5B) increased, while U.S. was ¥362.0B (prior ¥372.2B) modestly down due to FX and other effects. Segment revenue composition: Seasonings & Processed Foods 41.7%, Foodservice 20.7%, Overseas Foods 20.0%, Other Food-related Businesses 15.8%, Health Foods 5.3%.
【Profitability】
Operating Income was ¥182.5B (YoY -8.8%). Gross profit of ¥1180.9B (gross margin 37.3%, prior 36.7%) improved from higher sales and price revisions, but SG&A of ¥998.5B (SG&A ratio 31.5%, prior 30.4%) rose, compressing operating margin to 5.8%. Goodwill amortization of ¥5.0B (prior ¥11.3B) decreased, but increases in personnel expenses, advertising and logistics costs weighed on profits. By segment, Seasonings & Processed Foods Operating Income ¥128.4B (+0.2%, margin 9.7%) was stable; Overseas Foods ¥33.6B (+10.4%, margin 5.3%) showed improved profitability; Foodservice ¥33.9B (-6.0%, margin 5.2%) declined due to cost increases; Health Foods ¥15.3B (-37.3%, margin 9.1%) posted a sharp profit decline driven by worsened promotional efficiency; Other Food-related Businesses ¥9.1B (-26.7%, margin 1.8%) was affected by scope changes and low-margin structure. Ordinary Income of ¥195.3B (YoY -8.7%) comprised non-operating income ¥29.7B (dividend income ¥9.0B, interest income ¥4.2B, equity-method gains ¥2.5B) less non-operating expenses ¥16.9B (interest expense ¥3.9B, FX losses ¥1.2B), resulting in a ¥12.8B uplift from operating income. Extraordinary items were net -¥18.6B (extraordinary gains ¥75.2B — gains on sales of investment securities ¥47.3B, gains on disposal of fixed assets ¥19.9B; extraordinary losses ¥93.9B — impairment losses ¥83.2B, loss on retirement of fixed assets ¥7.9B), leading to Profit Before Tax of ¥176.6B. Income taxes ¥89.0B (effective tax rate 50.4%) were high; non-controlling interests decreased to ¥14.0B from ¥18.1B, resulting in Net Income attributable to owners of the parent of ¥128.0B (YoY +41.6%). In conclusion: revenue up but operating/ordinary down, yet final net income increased due to temporary extraordinary items and tax burden fluctuations.
Seasonings & Processed Foods (Revenue ¥1321.5B, Operating Income ¥128.4B, margin 9.7%) posted Revenue +0.6% and Operating Income +0.2%, maintaining solid earnings as the core business. Health Foods (Revenue ¥168.5B, Operating Income ¥15.3B, margin 9.1%) recorded Revenue -1.1% and Operating Income -37.3%, indicating significant profit decline due to deteriorated advertising efficiency and channel issues. Overseas Foods (Revenue ¥634.0B, Operating Income ¥33.6B, margin 5.3%) achieved Revenue +1.6% and Operating Income +10.4%, showing notable profitability improvement driven by expansion in the U.S., China and Southeast Asia. Foodservice (Revenue ¥655.1B, Operating Income ¥33.9B, margin 5.2%) saw Revenue +7.4% as customer traffic recovered, but Operating Income -6.0% due to rising costs and higher labor expenses. Other Food-related Businesses (Revenue ¥500.6B, Operating Income ¥9.1B, margin 1.8%) recorded Revenue -8.0% and Operating Income -26.7%, primarily due to the deconsolidation of Delica Chef (January) and structurally low margins. The core Seasonings & Processed Foods accounts for about 70% of operating income, and Overseas Foods' profit growth rate +10.4% was a key driver; improving margins in Health Foods and Foodservice is essential for company-wide margin recovery.
【Profitability】Operating margin 5.8% (down -0.5pt from 6.3% prior), Net margin 2.3% (prior 2.9%) — operating-level profitability declined, but gross margin 37.3% (up +0.6pt from 36.7%) improved via price revisions. ROE 4.0% (prior 4.3%), ROIC 3.9% (prior 4.2%) indicate low capital efficiency, attributable to large equity base and low leverage. 【Cash Quality】Operating CF ¥244.7B (YoY -7.9%), EBITDA ¥314.4B (Operating Income ¥182.5B + Depreciation & Amortization ¥131.9B) yields OCF/EBITDA 0.78x, somewhat low, impacted by working capital increases (accounts receivable -¥21.2B, inventories -¥6.9B, accounts payable -¥10.8B). Operating CF / Net Income 3.33x is high, indicating strong cash generation relative to net income compressed by impairments and high tax burden. 【Investment Efficiency】Capital expenditure ¥129.4B, Depreciation ¥131.9B giving Capex/Depreciation 0.98x — maintenance-level investment; Free Cash Flow ¥248.0B from OCF + Investing CF (+¥3.2B, including asset disposals) remained high. 【Financial Soundness】Equity Ratio 73.8% (prior 74.2%), Current Ratio 302.7%, Quick Ratio 271.6% — extremely solid. Interest-bearing debt ¥126.7B (Debt/EBITDA 0.40x), Interest Coverage 46.3x — conservative. Cash & Deposits ¥1008.4B far exceed short-term debt ¥68.4B (Cash/Short-term debt 14.75x), Debt-to-Equity 0.35x, Debt/Capital 3.8% — robust capital structure.
OCF was ¥244.7B (YoY -7.9%). Starting from Profit Before Tax ¥176.6B, add back Depreciation & Amortization ¥131.9B, impairment losses ¥83.2B and other non-cash charges, and working capital movements resulted in a total outflow of -¥38.9B (accounts receivable -¥21.2B, inventories -¥6.9B, accounts payable -¥10.8B). After paying income taxes of ¥73.3B, OCF declined from ¥265.7B a year earlier, but OCF before working capital changes was still high at ¥301.3B. Investing CF was +¥3.2B, where capital expenditure -¥129.4B and intangible investments -¥15.9B were more than offset by proceeds from disposal of fixed assets ¥59.3B, sale of securities ¥54.2B, and sale of subsidiaries ¥20.4B. Free Cash Flow was ¥248.0B (prior ¥143.0B), largely supported by asset sales. Financing CF was -¥193.7B, including dividend payments -¥45.4B, share buybacks -¥100.0B, dividends to non-controlling interests -¥18.9B, and repayment of long-term borrowings -¥7.5B, partially offset by long-term borrowings of ¥66.6B. Ending cash balance rose to ¥948.0B (prior ¥883.6B), up ¥64.5B, indicating strong cash generation and liquidity. OCF / Net Income 3.33x indicates good accrual quality, while OCF/EBITDA 0.78x suggests room for improvement in working capital management.
Against Operating Income of ¥182.5B, Non-operating income was ¥29.7B (dividend income ¥9.0B, interest income ¥4.2B, equity-method gains ¥2.5B, etc.), representing 0.9% of sales — structural reliance on non-operating income is small and recurring revenue base is concentrated in operations. The divergence from Ordinary Income ¥195.3B to Net Income ¥128.0B resulted from extraordinary items and tax burden changes. Extraordinary gains ¥75.2B (gains on sales of investment securities ¥47.3B, gains on disposal of fixed assets ¥19.9B) and extraordinary losses ¥93.9B (impairment losses ¥83.2B, loss on retirement of fixed assets ¥7.9B, valuation losses on investment securities ¥2.1B) netted -¥18.6B, yielding Profit Before Tax ¥176.6B (9.5% below Ordinary Income). Income taxes ¥89.0B (effective tax rate 50.4%) rose from ¥58.9B (29.2%) last year; accumulation of deferred tax liabilities ¥25.5B (prior ¥23.4B) and tax-effect variability contributed to the high tax burden. OCF ¥244.7B / Net Income ¥128.0B is 3.33x; due to non-cash charges such as impairments and disposals and high tax, net income was compressed while cash conversion remained strong. Accrual ratio (OCF - Net Income) / Total Assets is -3.9% (negative), indicating high cash quality. Other Comprehensive Income ¥67.0B (¥137.4B attributable to owners of the parent in Comprehensive Income ¥154.5B) — the ¥9.4B gap with Net Income ¥128.0B is driven by valuation differences on securities ¥27.9B, translation adjustments ¥14.8B, and retirement benefit adjustments ¥25.0B; most are valuation in nature with limited impact on recurring earnings power.
Full-year guidance: Revenue ¥3225.0B (vs. current year +1.7%), Operating Income ¥185.0B (+1.4%), Ordinary Income ¥197.0B (+0.9%), Net Income attributable to owners of the parent ¥170.0B (+32.8%). Compared with this year’s results, revenue/operating/ordinary stages assume modest upside and are conservative, while net income is expected to increase significantly. The forecast assumes normalization of tax burden and reduction of extraordinary losses (e.g., absence of impairment losses ¥83.2B), reflecting recovery in net income as one-offs subside. Progress rates (current year results / full-year guidance) are: Revenue 98.3%, Operating Income 98.6%, Ordinary Income 99.1%, Net Income 75.3% — operating-stage results are as expected, but current-year net income is relatively high, and the next fiscal year assumes tax burden normalization. Key drivers to achieve guidance are cost optimization in Foodservice, efficiency improvements in Health Foods, penetration of price revisions, and expansion of overseas operations. EPS forecast ¥195.97, DPS ¥50, payout ratio 25.5% (down from 36.4% this year), signaling a return to a normalized payout ratio during profit recovery.
Annual dividend ¥70 (Q2-end ¥24, Year-end ¥46), payout ratio 36.4%, unchanged from prior year annual dividend ¥70 (Q2-end ¥24). Share buybacks of ¥100.0B were executed, making total shareholder returns approximately ¥145B (dividends ¥45.4B + share buybacks ¥100.0B). Versus Net Income attributable to owners of the parent ¥128.0B, total return ratio is about 113%, but versus Free Cash Flow ¥248.0B it is 58.5%, supported by cash generation. Treasury stock increased to -¥222.4B (prior -¥130.1B), outstanding shares 98,498 thousand shares, treasury shares 7,662 thousand shares, resulting in a weighted average shares outstanding of 92,326 thousand shares for the period. Next fiscal year DPS forecast ¥50 (payout ratio 25.5%) assumes recovery to Net Income attributable to owners of the parent ¥170.0B (EPS ¥195.97), reflecting adjustment toward a sustainable dividend level in line with profit recovery. Total return ratio combining dividends and buybacks is temporarily high this fiscal year but expected to normalize with profit recovery next fiscal year; FCF coverage is 3.60x, and cash generation capacity is strong.
Profitability deterioration risk in Health Foods and Foodservice segments: Health Foods reported Operating Income ¥15.3B (YoY -37.3%, margin 9.1%), a significant decline indicating worsening advertising efficiency and channel challenges. Foodservice Operating Income ¥33.9B (YoY -6.0%, margin 5.2%) faced cost increases and higher labor expenses despite Revenue +7.4%. If margin improvements in both segments do not progress, recovery of the company-wide operating margin to 5.8% will be limited. The business structure where core Seasonings & Processed Foods accounts for about 70% of operating income highlights the need to improve portfolio revenue balance.
Continued high tax burden risk: Effective tax rate 50.4% (Income taxes ¥89.0B / Profit Before Tax ¥176.6B), a material increase from 29.2% last year, compressed post-tax earnings. Accumulation of deferred tax liabilities ¥25.5B and variability in tax effects are factors; next year’s forecast assumes normalization of the tax rate (return to below 40%), but if tax environment changes or one-off factors persist, net income recovery could undershoot. Non-controlling interests attributable profit was ¥14.0B (prior ¥18.1B); low predictability in tax burden affects reliability of profit plans.
Working capital management efficiency risk: Accounts receivable ¥545.5B (DSO equivalent 63 days) increased from ¥536.6B, inventories ¥201.7B (prior ¥196.0B), accounts payable ¥203.4B (prior ¥222.6B) — working capital resulted in an outflow of -¥38.9B. OCF ¥244.7B (YoY -7.9%), OCF/EBITDA 0.78x indicate declining cash conversion; prolongation of receivable collection or shortening of payable terms would pressure cash generation. Free Cash Flow ¥248.0B was materially supported by asset sales (Investing CF +¥3.2B); in normal operating conditions, improvement to OCF/EBITDA above 0.9x is desirable.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 5.8% | 5.0% (3.3%–8.4%) | +0.8pt |
| 純利益率 | 4.0% | 3.2% (1.9%–6.6%) | +0.9pt |
Operating margin and Net margin both exceed the industry median, placing the company in the upper tier within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 0.5% | 5.4% (1.0%–8.6%) | -4.9pt |
Revenue growth rate is well below the industry median, indicating weaker growth momentum relative to peers.
※Source: Company compilation
Core business resilience and overseas profit growth: The core Seasonings & Processed Foods sustained Operating Income ¥128.4B (margin 9.7%), and Overseas Foods delivered Operating Income ¥33.6B (+10.4%, margin 5.3%) with notable profit growth. Foodservice continued revenue recovery (Revenue +7.4%) and expansion in East Asia and Southeast Asia contributed to results. Core stability and overseas expansion underpin overall earnings, serving as portfolio drivers. Meanwhile, margin improvement in Health Foods and Foodservice and scope optimization of Other Food-related Businesses are key to margin recovery in subsequent years.
Profit recovery potential from disappearance of one-off losses and high tax burden: This fiscal year included extraordinary losses (impairment losses ¥83.2B, loss on retirement of fixed assets ¥7.9B, total extraordinary losses ¥93.9B) and an effective tax rate of 50.4%, which compressed Net Income attributable to owners of the parent to ¥128.0B beyond the operating/ordinary declines. Next fiscal year guidance assumes operating income ¥185.0B (+1.4%) and Net Income attributable to owners of the parent ¥170.0B (+32.8%), expecting reduction of one-off items and tax rate normalization (to below 40%), implying a return toward normalized earnings. Extraordinary gains included gains on sales of investment securities ¥47.3B and gains on disposal of fixed assets ¥19.9B, partially offsetting losses; monitoring asset sales for portfolio optimization and preventing recurrence of impairments are key.
Strong FCF and active returns, room to improve ROIC: Free Cash Flow ¥248.0B (OCF ¥244.7B + Investing CF ¥3.2B) comfortably covers dividends ¥45.4B and share buybacks ¥100.0B (total returns ~¥145B), with FCF coverage 3.60x and strong cash generation. Equity Ratio 73.8%, Cash & Deposits ¥1008.4B, interest-bearing debt ¥126.7B (Debt/EBITDA 0.40x) — financials are robust, but ROIC 3.9% and ROE 4.0% indicate low capital efficiency. Large cash and investment securities holdings and low leverage are factors; selective investment and portfolio optimization present significant upside to ROIC. Next fiscal year DPS forecast ¥50 (payout ratio 25.5%) signals a return to an appropriate dividend level in the profit recovery phase, balancing sustainable shareholder returns and capital efficiency improvement.
This report was generated by AI analyzing XBRL financial statement data to produce an automated earnings analysis. It is not a recommendation to invest in any particular security. Industry benchmarks are compiled by the company based on public financial statements and provided for reference. Investment decisions are your responsibility; please consult a professional advisor as needed.