Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Performance Summary

For the fiscal year ending March 2026, the consolidated performance was net sales of ¥554,251 million (up 4.4% YoY), operating income of ¥17,027 million (down 11.7% YoY), ordinary income of ¥16,030 million (down 11.4% YoY), and net income attributable to owners of the parent of ¥23,988 million (up 86.7% YoY). The increase in net sales was driven by higher food product prices, but operating income declined due to increased costs of fats and oils as well as logistics costs. The significant increase in net income attributable to owners of the parent was mainly due to recording a capital gain of ¥23,167 million from the sale of fixed assets as extraordinary income. Return on equity (ROE) improved to 12.1%, an increase of 5.1 points from the previous period.

Segment Performance

The global fats and processed fats segment posted net sales of ¥138,848 million (up 20.3% YoY) and operating income of ¥4,766 million (down 8.9% YoY). The fats/oil and grain processing and ingredients segments recorded net sales of ¥389,586 million (down 0.2% YoY) and operating income of ¥11,124 million (down 12.7% YoY), affected by rising raw material costs and decreased sales volumes. The fine chemicals segment reported net sales of ¥15,509 million (up 6.6% YoY) and operating income of ¥1,559 million (down 1.9% YoY).

Financial Position and Cash Flows

Total assets increased to ¥451,185 million (up 16.2% YoY), while net assets rose to ¥222,004 million (up 12.1% YoY). Cash flows from operating activities provided ¥10,460 million; cash flows from investing activities resulted in ¥9,832 million in expenditures; and cash flows from financing activities brought in ¥8,231 million. The ending balance of cash and cash equivalents was ¥24,953 million.

Dividend Status

The annual dividend for the fiscal year ending March 2026 was ¥180 (interim ¥90, year-end ¥90), maintaining the same level as the previous year. The payout ratio was 23.6%, and the dividend on net assets was 2.8%. For the fiscal year ending March 2027, the projected annual dividend is ¥60 (interim ¥30, year-end ¥30).

Financial Outlook for the Fiscal Year Ending March 2027

The consolidated forecasts for the fiscal year ending March 2027 include net sales of ¥590,000 million (up 6.4% YoY), operating income of ¥19,000 million (up 11.6% YoY), ordinary income of ¥18,000 million (up 12.3% YoY), and net income attributable to owners of the parent of ¥12,000 million (down 50.0% YoY). Sales and profits are expected to increase, but net income is projected to decrease.

Future Outlook and Management Policy

Amid ongoing challenges such as global economic uncertainty and rising raw material costs, the company aims to position its CSV (Creating Shared Value) goals based on Vision 2030 as growth drivers, targeting an ROE of over 8.0% and an ROIC of over 6.0% by 2028. In line with the medium-term management plan "Value UpX" (2025–2028), the company plans to promote growth investments and efficiency improvements to enhance profitability and asset utilization.