Financial Summary for the Third Quarter of the Fiscal Year Ending May 2026 [Japanese GAAP] (Consolidated)

Overview of Financial Results

In the third quarter cumulative period of the fiscal year ending May 2026 (June 1, 2025 to February 28, 2026), net sales amounted to 72,669 million yen (9.4% increase YoY), operating income was 9,323 million yen (3.9% increase YoY), ordinary income reached 10,441 million yen (11.6% increase YoY), and quarterly net income attributable to owners of parent was 8,696 million yen (11.2% increase YoY). Strong sales of vegetable and flower seeds along with the depreciation of the yen contributed to the net sales increase. Selling, general and administrative expenses increased, but ordinary income improved due to better foreign exchange gains and losses.

Segment Performance

The domestic wholesale business recorded net sales of 10,186 million yen (3.0% increase YoY) and operating income of 4,199 million yen (0.8% decrease YoY), driven by increased sales of vegetable seeds and materials. The overseas wholesale business posted net sales of 56,762 million yen (11.8% increase YoY) and operating income of 13,782 million yen (7.2% increase YoY), fueled by growth in vegetable and flower seeds and foreign exchange factors. The retail business saw net sales of 2,566 million yen (14.4% decrease YoY) and an operating loss of 427 million yen due to adverse weather conditions. The others segment achieved net sales of 3,153 million yen (14.6% increase YoY) and operating income of 144 million yen (80.8% increase YoY), supported by steady planting maintenance operations.

Overview of Financial Position

Total assets were 210,231 million yen (an increase of 19,244 million yen compared to the end of the previous consolidated fiscal year), and net assets were 173,563 million yen (an increase of 11,794 million yen). The equity ratio was 82.3%, a 2.1 percentage point decrease YoY, but it remains at a high level. Interest-bearing debt stood at 5,279 million yen, an increase of 2,410 million yen.

Dividend Status and Earnings Forecast

The annual dividend forecast for the fiscal year ending May 2026 is 75 yen (35 yen interim, 40 yen year-end), unchanged from the previous fiscal year. The full-year earnings guidance anticipates net sales of 101,000 million yen (8.7% increase YoY), operating income of 12,500 million yen (2.0% increase YoY), and net income attributable to owners of parent of 10,000 million yen (3.0% increase YoY).

Regarding Business Combination (M&A)

On July 1, 2025, Sakata Seed Corporation acquired all shares of Agritu Sementes Ltda. in Brazil, making it a consolidated subsidiary. This acquisition aims to expand presence in the Brazilian market and strengthen the development, production, and sales business of onion seeds.