Yamami Company FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥5.24B
• Operating Income: ¥408M
• Net Income: ¥279M
• EPS: ¥40.17

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Yamami (28200, standalone JGAAP) delivered a strong FY2026 Q1, with revenue of ¥5,244m up 9.3% YoY and operating income of ¥408m up 96.2% YoY, indicating substantial operating leverage. Gross profit was ¥814.7m, implying a gross margin of 15.5%, while the operating margin expanded to approximately 7.8%, a notable improvement versus the pace of topline growth. Ordinary income was ¥405m, close to operating income, suggesting minimal non-operating gains/losses and low financing burden (interest expense ¥4.1m). Net income reached ¥279m (+97.1% YoY), with a net margin of 5.32% and EPS of ¥40.17. DuPont metrics show a calculated ROE of 2.67% for the quarter, based on net margin 5.32%, asset turnover 0.329x, and financial leverage 1.52x; annualizing this simple quarterly ROE would imply a higher full-year level, subject to seasonality. Total assets stood at ¥15,923m and equity at ¥10,461m, yielding liabilities/equity of 0.53x and suggesting a conservative capital structure. Liquidity is tight with a current ratio of 93.2% and quick ratio of 91.1%, and working capital of -¥268m; this may reflect the short cash conversion cycle typical for fresh tofu and related products but merits monitoring. Interest coverage is very strong at roughly 99x, indicating limited interest-rate sensitivity and ample debt-servicing capacity. Inventory reported at ¥83.4m is small relative to current assets (¥3,679m), consistent with fast inventory turns in perishable foods. The equity ratio is shown as 0.0%, but this is clearly an unreported metric rather than a true value given the balance sheet totals. Cash flow statement line items are all zero (unreported), preventing an assessment of OCF and FCF conversion this quarter. Depreciation is also unreported, so EBITDA and capex analysis cannot be performed; as such, the EBITDA margin of 0.0% in the provided metrics is not meaningful. Dividend data (DPS and payout) also appear unreported for Q1; Yamami’s dividend policy and cash returns cannot be inferred from this dataset alone. Overall, profitability momentum is strong and leverage is modest, but liquidity is below 1.0x and several key datapoints are unreported, which constrains confidence in cash flow quality and dividend sustainability assessments. The near parity of operating and ordinary income points to clean earnings with few non-core items this quarter. Key areas to watch include gross margin sustainability, SG&A discipline, and any signs of working capital strain as sales grow.

Profitability Analysis

ROE (DuPont) = Net margin 5.32% × Asset turnover 0.329 × Financial leverage 1.52 = 2.67% for the quarter (reported and calculated aligned). Net margin of 5.32% reflects strong operational execution, supported by a 7.8% operating margin (¥408m/¥5,244m). The large YoY increase in operating income (+96.2%) against 9.3% revenue growth indicates substantial operating leverage, likely from improved gross spread and/or SG&A efficiency. Gross margin at 15.5% suggests some relief in input costs or successful pricing, though sustainability remains to be proven. Ordinary income (¥405m) closely tracks operating income, implying limited reliance on non-operating gains; interest expense is modest at ¥4.1m. Absent reported depreciation, EBITDA-based comparisons are not meaningful this quarter; actual D&A is likely non-zero for a manufacturing business, so underlying cash operating margin could be higher than shown. Effective tax rate in the provided calculated metrics appears at 0.0%, but with income tax expense of ¥65.6m and net income of ¥279m, the displayed tax metric is not reliable due to missing pretax line disclosure. Overall profitability quality appears solid, with margin expansion and minimal non-core noise, but confirmation via cash flow data is pending.

Growth Assessment

Topline grew 9.3% YoY to ¥5,244m, a healthy pace for a tofu and fresh foods producer. The near doubling of operating profit indicates that revenue growth translated into outsized earnings growth, suggesting pricing power, cost normalization (e.g., soybeans, utilities), and/or scale benefits. Net income rose 97.1% YoY to ¥279m, reflecting both margin expansion and low non-operating drag. Sustained growth will depend on maintaining gross margin around mid-teens and controlling SG&A as volumes scale. Given ordinary income is close to operating income, the quality of profit growth appears largely operational rather than financial. Without segment breakdowns or volume/price data, we cannot separate mix and pricing effects from cost relief. The quarterly ROE of 2.67% suggests, absent seasonality, that full-year returns could be solid if the run-rate persists; however, tofu demand can be seasonal, and costs (soy, energy) are volatile. Outlook hinges on the company’s ability to pass through costs, manage energy usage, and maintain utilization; without updated guidance, we treat the strong Q1 as a positive but not definitive trend.

Financial Health

Total assets ¥15,923m, equity ¥10,461m, liabilities ¥5,548m; debt-to-equity (using total liabilities) is 0.53x, indicating a conservative balance sheet. Current assets ¥3,679m vs current liabilities ¥3,947m yields a current ratio of 0.93x and quick ratio of 0.91x, indicating tight liquidity. Working capital is -¥268m, which could be acceptable in a fast-turn, perishable goods model but leaves less buffer against shocks. Interest expense is low (¥4.1m) and interest coverage is very strong (~99x), so solvency and debt service risk appear low. The reported equity ratio of 0.0% is an unreported metric and not reflective of the actual balance sheet, which shows equity dominance. Inventory is small at ¥83.4m, suggesting rapid turns and limited inventory risk. Overall, solvency is sound, while near-term liquidity warrants monitoring given sub-1.0x coverage of current obligations.

Cash Flow Quality

All cash flow statement items are shown as zero (unreported), so OCF, investing CF, and financing CF cannot be assessed this quarter. The displayed OCF/Net Income ratio of 0.00 and FCF of 0 are not meaningful and reflect disclosure gaps, not actual performance. Earnings quality appears clean from the P/L structure (ordinary ≈ operating; minimal interest burden), but confirmation requires OCF, working capital movements, and capex data. Depreciation is unreported, preventing reconciliation from EBIT to cash earnings and an estimate of maintenance capex needs. Working capital appears negative overall (current ratio 0.93x), but without AR/AP/inventory details, cash conversion cycle cannot be analyzed. Until OCF and capex are disclosed, we cannot judge FCF conversion or the sustainability of the margin improvements in cash terms.

Dividend Sustainability

Dividend data (annual DPS 0.00, payout 0.0%, FCF coverage 0.00x) are clearly unreported for Q1 and should not be interpreted as actual zero dividends. With EPS of ¥40.17 in Q1, capacity for dividends would depend on full-year earnings, cash generation, and capex needs, none of which can be assessed from the unreported CF data. Balance sheet leverage is modest (liabilities/equity 0.53x), which is supportive structurally, but liquidity is tight (current ratio 0.93x), which could constrain near-term distributions if persistent. Policy outlook cannot be inferred from this dataset; reference to prior-year full-year DPS and payout policy would be required to evaluate sustainability and trajectory.

Risk Assessment

Business Risks:

• Input cost volatility (soybeans priced in USD, energy/electricity) impacting gross margin
• FX exposure via imported raw materials (yen weakness pressuring costs)
• Price competition and private label pressure in tofu/fresh foods
• Demand seasonality and weather sensitivity for chilled tofu products
• Operational risks in manufacturing (quality control, recalls, downtime)
• Distribution/logistics disruptions affecting fresh product delivery
• Customer concentration risk if major retailers account for large share

Financial Risks:

• Sub-1.0x current ratio (0.93x) and negative working capital (−¥268m) indicating tight liquidity
• Dependence on short-term liabilities to fund operations if working capital gap widens
• Unreported cash flow and depreciation data obscuring true cash generation and capex burden
• Potential interest rate increases, albeit mitigated by high interest coverage (~99x)
• Limited visibility on lease liabilities or off-BS commitments (not disclosed here)

Key Concerns:

• Sustainability of gross and operating margin gains amid raw material and energy volatility
• Lack of reported OCF/FCF data to validate earnings quality
• Tight liquidity metrics despite solid profitability
• Data gaps (equity ratio, D&A, CF, DPS) limiting full assessment in Q1

Investment Implications

Key Takeaways:

• Strong Q1 execution: revenue +9.3% YoY with operating income +96.2% indicates robust operating leverage
• Margins improved: gross margin 15.5%, operating margin ~7.8%, net margin 5.3%
• Clean earnings mix: ordinary income ~ operating income; low interest burden (¥4.1m)
• Solid solvency: liabilities/equity 0.53x and interest coverage ~99x
• Liquidity tight: current ratio 0.93x; working capital −¥268m
• Multiple key items unreported (OCF, capex, D&A, DPS), constraining cash flow and dividend analysis

Metrics to Watch:

• Gross margin trajectory and SG&A ratio
• Operating cash flow and free cash flow once reported
• Capex and depreciation to gauge maintenance needs and true cash margins
• Inventory, receivables, and payables days (cash conversion cycle)
• Raw material (soybean) and electricity cost indices; USD/JPY
• Pricing/mix and volume growth versus retail/private label competition
• Current ratio and short-term borrowings composition

Relative Positioning: Within Japan’s packaged/fresh foods universe, Yamami’s Q1 shows above-peer earnings momentum from operating leverage and maintains conservative leverage; however, absolute operating margins remain mid-single to high-single digits typical for tofu/fresh foods, and liquidity is tighter than many larger peers. Full validation versus peers awaits cash flow and capex disclosure.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis