Announcement of Impact from Nissui Logistics System Failure | Interim Financial Summary and Future Response

Earnings Summary

Interim revenue increased from 452.9 hundred million yen to 506.7 hundred million yen, and operating income expanded from 19.7 hundred million yen to 21.1 hundred million yen. Strong performance in the Marine Products business (fishing and trading) and steady sales in Fine Chemicals were the main drivers. The Food Business recorded a decline in profit due to higher raw material costs and reduced domestic sales volumes. By segment, Marine Products, Food, Fine Chemicals, and Logistics contributed, while company-wide expenses were restrained. Foreign exchange effects are detailed in a separate table. Going forward, the Company will reflect the impact of newly consolidated South American aquaculture operations while pursuing synergies with SA Co. and expanding higher value-added products.

Outlook and Impact for Investors

There is no change to the full-year earnings forecast for the current fiscal year. While considering the acquisition-related impact of the South American aquaculture business, the Company aims to strengthen mid- to long-term profitability and improve capital efficiency. Risks include raw material price increases due to El Niño and fluctuations in fish oil and fishmeal prices; the Company will continue measures such as price revisions, diversification of procurement regions, and productivity improvements across businesses. The system failure at the outsourced Nissui Logistics provider is estimated to reduce second-half revenue and operating income by just under -200 million yen each, and corrective measures include implementing a new system and strengthening the organizational structure.