| Metric | This Period | Prior Year | YoY |
|---|---|---|---|
| Revenue | ¥2338.3B | ¥2224.7B | +5.1% |
| Operating Income | ¥74.4B | ¥45.1B | +64.8% |
| Ordinary Income | ¥74.1B | ¥49.0B | +51.3% |
| Net Income | ¥32.0B | ¥45.3B | -29.5% |
| ROE | 5.1% | 7.7% | - |
For the fiscal year ended February 2026, Revenue was ¥2,338.3B (YoY +¥113.7B +5.1%), Operating Income was ¥74.4B (YoY +¥29.3B +64.8%), Ordinary Income was ¥74.1B (YoY +¥25.2B +51.3%), and Net Income attributable to owners of the parent was ¥53.4B (YoY +¥26.6B +99.3%). Revenue increased for the third consecutive year. Operating Income rose significantly driven by both the reversal of last year’s impairment loss of ¥10.8B (reduced to ¥0.8B this period) and improvement in gross margin. Gross margin improved to 18.8% (prior year 17.3%), a 1.5pt improvement; SG&A ratio rose to 15.6% (prior year 15.3%), up 0.3pt, but Operating Margin expanded to 3.2% (prior year 2.0%), up 1.2pt. The core FoodProducts business drove revenue +5.8% and Operating Income +64.9%, while the Logistics business also contributed with Operating Income +37.3%. Operating Cash Flow was ¥169.6B (YoY +35.9%), equal to 5.3x Net Income, indicating strong cash generation; after CapEx of ¥138.2B, Free Cash Flow remained positive at ¥34.8B.
Revenue: The FoodProducts business led growth with external sales of ¥2,099.8B (YoY +5.8%), accounting for 89.8% of consolidated Revenue. Logistics posted external sales of ¥195.3B (+5.0%), and FoodIngredients recorded ¥114.9B (-1.8%), with only FoodIngredients declining. Gross profit was ¥439.5B (prior year ¥385.3B), and gross margin improved to 18.8% from 17.3% (up 1.5pt), suggesting successful pass-through of higher raw material costs and optimization of product mix.
Profitability: SG&A was ¥365.1B (prior year ¥340.2B), SG&A ratio 15.6% (prior year 15.3%) up 0.3pt, but gross margin improvement absorbed this and Operating Income rose to ¥74.4B (prior year ¥45.1B), a +64.8% increase. Operating margin expanded to 3.2% (prior year 2.0%), aided by the reduction of last year’s impairment loss from ¥10.8B to ¥0.8B this period as a one-off effect. SG&A increases were driven by logistics-related costs including transportation expenses of ¥156.9B (43.0% of SG&A) and higher personnel expenses. Non-operating income and expenses nearly offset (Non-operating income ¥10.8B — dividend income ¥3.3B, interest income ¥0.8B, etc.; Non-operating expenses ¥11.0B — interest expense ¥4.1B, etc.), resulting in Ordinary Income of ¥74.1B (YoY +51.3%). Extraordinary gains were ¥4.7B (gain on sale of fixed assets ¥3.5B, etc.) and extraordinary losses were ¥6.4B (loss on disposal of fixed assets ¥1.7B, impairment loss ¥0.8B, etc.), netting to a loss of ¥▲1.8B, but the amount was limited. Profit before tax was ¥72.4B (prior year ¥38.1B, +89.8%); income taxes ¥16.2B (effective tax rate 22.4%); after deducting ¥2.7B attributable to non-controlling interests, Net Income attributable to owners of the parent was ¥53.4B (prior year ¥26.8B, +99.3%). In conclusion, growth in revenue and profit was achieved, driven primarily by gross margin improvement and the reversal of last year’s impairment.
FoodProducts recorded Revenue ¥2,099.8B (YoY +5.8%) and segment profit ¥70.0B (YoY +64.9%), with a segment margin of 3.3% (prior year 2.1%), improving 1.2pt. As the core business accounting for 94.1% of consolidated Operating Income, prepared-food categories such as rice bowls and prepared breads performed steadily; price revisions and cost efficiencies improved margins. Logistics posted Revenue ¥195.3B (+5.0%) and segment profit ¥9.4B (+37.3%), with segment margin 4.8% (prior year 3.5%), up 1.3pt, supported by improved delivery efficiency and volume growth in food logistics. FoodIngredients recorded Revenue ¥114.9B (-1.8%) and segment profit ¥4.8B (-5.3%), with segment margin 4.2% (prior year 4.4%), down 0.2pt; procurement, processing, and sales of food ingredients saw declines, possibly due to raw material price volatility and delayed pass-through to customers. Segment composition: FoodProducts Revenue 87.1% / profit 83.1%; Logistics Revenue 8.1% / profit 11.1%; FoodIngredients Revenue 4.8% / profit 5.7%, indicating high concentration in FoodProducts.
Profitability: Operating margin was 3.2% (prior year 2.0%), a 1.2pt improvement, supported by gross margin of 18.8% (prior year 17.3%), up 1.5pt. ROE was 8.6% (prior year 4.9%), explained by Net Profit Margin 2.3% (prior year 1.2%) × Asset Turnover 1.78x (prior year 1.84x) × Financial Leverage 2.12x (prior year 2.05x). ROE improvement was mainly due to higher net profit margin; asset turnover slightly declined but was offset by Revenue growth of +5.1%. ROA was 4.1% (prior year 2.4%), reflecting improved operating efficiency.
Cash quality: Operating Cash Flow was ¥169.6B, 3.18x Net Income ¥53.4B, and Operating CF/EBITDA was 1.15x (EBITDA ¥147.6B = Operating Income ¥74.4B + Depreciation ¥73.2B), indicating high cash generation. Accrual ratio was ▲8.8%, showing strong cash backing for profits. Working capital changes were Accounts receivable increase ▲¥20.2B, Inventory increase ▲¥1.9B, Accounts payable increase +¥8.6B; net impact including other current asset/liability movements did not pressure Operating CF, and cash conversion was favorable.
Investment efficiency: CapEx was ¥138.2B, 1.89x Depreciation ¥73.2B, indicating continued strengthening of production and logistics capacity. Tangible fixed assets increased to ¥839.1B (prior year ¥765.9B, +9.6%), while Construction in progress decreased to ¥25.3B (prior year ¥71.5B, -64.6%), suggesting prior large investments were transferred to main accounts. ROIC (NOPAT / Invested Capital) estimated: NOPAT approx ¥55B (Operating Income ¥74.4B × (1 - effective tax rate 22.4%) = ¥57.7B) and Invested Capital approx ¥880B (Net Assets ¥621.3B + Interest-bearing debt ¥256.7B), yielding about 6.6%.
Financial soundness: Equity Ratio was 47.2% (prior year 48.9%), funding about half of total assets ¥1,317.3B with equity. Current ratio 115.5% (Current assets ¥366.0B / Current liabilities ¥316.8B), Quick ratio 107.6% (Quick assets ¥340.9B / Current liabilities ¥316.8B), indicating short-term liquidity is secured. Debt/EBITDA multiple was 1.50x (Interest-bearing debt ¥256.7B / EBITDA ¥147.6B), Interest Coverage was 18.0x (Operating Income ¥74.4B / Interest expense ¥4.1B), showing modest leverage and high debt-servicing capacity. Debt/Capital ratio was 26.2% (Interest-bearing debt ¥256.7B / (Interest-bearing debt ¥256.7B + Net assets ¥621.3B)), indicating ample financial flexibility.
Operating CF was ¥169.6B (prior year ¥124.8B, +35.9%). Starting from profit before tax ¥72.4B, add non-cash items including Depreciation ¥73.2B, equity-method adjustment ▲¥0.7B, impairment loss ¥0.8B, etc., then adjust for working capital changes (Accounts receivable increase ▲¥20.2B, Inventory increase ▲¥1.9B, Accounts payable increase +¥8.6B, including other current asset/liability movements) and corporate tax payments ▲¥8.5B to arrive at Operating CF. Subtotal (before working capital changes) was ¥178.0B, with working capital contributing net positive, and Operating CF was high at 3.18x Net Income ¥53.4B. Investing CF was ▲¥134.8B (prior year ▲¥206.7B), driven mainly by CapEx ▲¥138.2B (prior year ▲¥177.6B), indicating a somewhat slower investment pace vs. prior year. Cash outflow of ▲¥27.4B for business transfer was recorded, details not disclosed, possibly reflecting reorganization in logistics and ingredients businesses. Proceeds from sale of fixed assets ¥3.9B and collection of long-term loans ¥1.1B partially offset investing outflows, improving Investing CF vs. prior year. Financing CF was ▲¥18.6B (prior year +¥82.6B), comprised of long-term borrowings drawn ¥50.2B and repayments ▲¥25.3B (net +¥24.9B), dividend payments ▲¥18.5B, share buybacks ▲¥4.0B, lease liability repayments ▲¥20.7B, etc. Prior year had large borrowings resulting in positive Financing CF, but the current period entered a repayment phase, suggesting use of internal funds for part of growth investment. Free Cash Flow (Operating CF + Investing CF) was ¥34.8B, sufficient to cover dividend payments and share buybacks. Cash and deposits increased from ¥84.5B at the beginning of the period to ¥103.8B at period-end, +¥19.3B; with foreign exchange translation adjustments +¥3.1B, this aligns with a substantive increase in funds.
With Operating Income ¥74.4B and net non-operating income/expense approximately ▲¥0.2B, most of Ordinary Income ¥74.1B originates from core operations. Of Non-operating income ¥10.8B, dividend income ¥3.3B, interest income ¥0.8B, subsidy income ¥1.2B, and other ¥2.5B are included; dependence on these is low at under 0.5% of Revenue. Non-operating expenses ¥11.0B comprise interest expense ¥4.1B and other non-operating expenses ¥1.1B, and financial costs represent only 5.5% of Operating Income. Extraordinary items: gain on sale of fixed assets ¥3.5B offset by loss on disposal of fixed assets ¥1.7B and impairment loss ¥0.8B, netting to a loss of ¥▲1.8B; this is a substantial reduction from last year’s impairment loss of ¥10.8B, so one-off losses are limited. From profit before tax ¥72.4B, deduct income taxes ¥16.2B (effective tax rate 22.4%) and subtract non-controlling interests ¥2.7B to arrive at Net Income attributable to owners of the parent ¥53.4B; the divergence from Ordinary Income ¥74.1B is ▲28.0%, explained by taxes, non-controlling interests, and extraordinary items. Operating CF ¥169.6B is 3.18x Net Income ¥53.4B and 1.15x EBITDA ¥147.6B, with accrual ratio ▲8.8%, indicating strong cash backing for earnings. Comprehensive income was ¥52.6B (¥50.0B attributable to owners of the parent); the difference from Net Income ¥53.4B of ▲¥3.4B is due to FX translation adjustment ▲¥4.2B, retirement benefit adjustments ▲¥0.1B, and other OCI movements, and does not materially distort operating performance. Overall, the quality of earnings is deemed recurring and cash-backed, with limited impact from one-off items.
Achievement ratio vs. full-year forecast: Revenue ¥2,338.3B (achieved 97.0% of forecast ¥2,410.0B), Operating Income ¥74.4B (96.6% of forecast ¥77.0B), Ordinary Income ¥74.1B (96.9% of forecast ¥76.5B), Net Income attributable to owners of the parent ¥53.4B (111.2% of forecast ¥48.0B). Revenue, Operating Income, and Ordinary Income were slightly below plan, but Net Income exceeded plan. Upside drivers include tax burden remaining within expected range (effective tax rate 22.4%) and smaller-than-planned extraordinary losses due to the reversal of last year’s large impairment. Forecast EPS ¥277.20 vs. actual EPS ¥307.34 (+10.9%). Dividend forecast annual ¥60 vs. actual annual ¥120 (interim ¥60 + year-end ¥60) maintained. Segment contributions: FoodProducts Operating Income +64.9% and Logistics +37.3% supported plan achievement, while FoodIngredients’ decline slightly weighed on consolidated plan. Key factors for next fiscal year planning include continuity of price pass-through, further logistics efficiency gains, and recovery of FoodIngredients profitability.
Annual dividend was ¥120 (interim ¥60, year-end ¥60), with total dividends ¥18.5B (including ¥0.4B for BIP trust). Payout Ratio was 39.6% (Total dividends ¥18.5B / Net Income attributable to owners of the parent ¥53.4B × adjusted average number of shares during period), similar to prior year, reflecting a stable dividend policy. Share buybacks amounted to ¥4.0B, making total shareholder return ¥22.5B (dividends ¥18.5B + buybacks ¥4.0B), and Total Return Ratio 42.1%. Dividend coverage by FCF (¥34.8B) is 1.88x, and total return coverage is 1.55x, indicating the ability to balance retained earnings for growth investment and shareholder returns. Payout Ratio 39.6% slightly exceeds the industry median 34%, suggesting a shareholder-friendly stance. Going forward, balancing profit growth and CapEx levels will determine dividend sustainability and potential for gradual increases.
Industry position (reference, company analysis): Compared with medians in the Food & Beverage sector (FY2025, n=27 companies), the Company’s Operating Margin 3.2% is below the industry median 5.0%, and Net Profit Margin 2.3% is below the industry median 3.2%. ROE 8.6% exceeds the industry median 6.0%, reflecting improvement in profitability, but low margins remain an issue. Asset Turnover 1.78x significantly outperforms the industry median 0.92x, indicating strong asset efficiency. Equity Ratio 47.2% is slightly below the industry median 54.4%, while Debt/EBITDA 1.50x indicates a growth-investment posture using leverage compared with the industry median of ▲0.44x (many companies in net cash positions). Payout Ratio 39.6% slightly exceeds the industry median 34%, reflecting an active shareholder return stance. Operating CF/EBITDA 1.15x is below the industry median 1.66x but acceptable considering working capital effects. CapEx/Depreciation ratio 1.89x exceeds the industry median 1.29x, indicating a strong appetite for growth investment. Overall, the Company is competitive in asset efficiency and shareholder returns, but improving Operating and Net Profit margins is a key priority for coming periods. Industry benchmark figures are company-compiled reference information based on public financial statements; differences in accounting policies and business structure limit direct comparability.
Key points are: First, improvement in gross margin to 18.8% and recovery of Operating Margin to 3.2% indicate progress in price pass-through and product mix optimization; sustainability of pricing policy in an environment of raw material and labor inflation will be critical. Whether gross margin improvement can absorb the rise in SG&A ratio will be the watershed for delivering operating leverage. Second, strong cash generation — Operating CF ¥169.6B, 3.18x Net Income ¥53.4B, and positive FCF ¥34.8B — supports both financial soundness and the balance of growth investment and shareholder returns; monitoring how CapEx/Depreciation ratio 1.89x contributes to future Revenue and profit expansion is necessary. Third, concentration in FoodProducts (Revenue 87.1%) provides revenue stability but embeds dependency risk on specific channels and customers; leveraging Logistics’ high margin (4.8%) for diversification and restoring FoodIngredients profitability are challenges for mid- to long-term stable growth. Payout Ratio 39.6% and Total Return Ratio 42.1% are sustainable, and with continued profit growth, phased dividend increases are possible.
This report is an AI-generated financial analysis document produced by analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmark figures are company-compiled reference information based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.