Supplementary Materials for Q1 FY2026 Earnings

Overview of Performance

In Q1 FY2026, net sales increased 5.7% YoY to 35.348 billion yen. Although the China segment experienced a decline in sales, overall revenue increased due to price hikes in Japan and the U.S. Operating income rose 41.2% YoY to 1.623 billion yen, driven by higher selling prices and reduced selling, general and administrative expenses. Ordinary income grew 37.8% to 1.712 billion yen. With a decrease in special losses, net income attributable to owners of parent surged 129.4% YoY to 1.095 billion yen.

Segment Performance and Business Overview

The Japan segment saw increased sales in dairy products, fats and oils, confectionery raw materials, dried fruits, and confectionery/retail products, with net sales reaching 29.669 billion yen (up 5.8% YoY) and segment profit increasing 16.5% YoY to 1.485 billion yen. The U.S. segment increased sales volume due to a good walnut harvest, with net sales up 13.0% YoY to 3.955 billion yen, and profitability improved, turning positive with a 156 million yen profit. The China segment's exports were strong, but domestic sales were impacted by intensified competition, resulting in net sales of 3.244 billion yen (down 1.5% YoY). However, segment profit rose significantly by 139.1% YoY to 158 million yen due to logistics revisions and other factors.