Full-Year Financial Results Explanation for March 2026

Performance Overview

For full-year March 2026, net sales are expected to be 317.0 billion yen (+0.5% YoY), operating profit is projected at 18.2 billion yen (△8.8% YoY), and net income attributable to owners of parent is forecasted at 7.4 billion yen (△41.1% YoY). The decline reflects increased business costs, particularly impacted by consecutive impairment losses recognized by US Keystone. Segment-wise, the spice and seasonings processed foods segment turned profitable in the second half due to demand stimulation measures after price revisions. The health foods segment faced difficulties with jelly products, resulting in a decline. Overseas food business maintained growth through a rebound in the Chinese curry market. The restaurant business experienced a decrease in profit due to the effects of price revisions and increased business costs from overseas and domestic subsidiaries.

Structural Reforms and Future Outlook

Building on the progress of the Eighth Mid-term Management Plan, the company is executing structural reforms aimed at accelerating growth and enhancing capital efficiency. This includes focusing management resources on the spice VC, implementing organizational reforms led by head office, and formulating a new organizational structure. The financial strategy is also being strengthened to achieve both profit growth and improved equity management, with a goal of raising ROE. The fiscal year ending March 2027 is positioned as a year to rebuild the group's revenue base, with a target ROE of 6%. While external factors such as the Middle East situation are not currently factored in, the company is monitoring trends carefully. It also plans to review investment decision criteria and strengthen PMI (Post-Merger Integration) and monitoring to improve M&A decision accuracy.