First Quarter Financial Results for the Fiscal Year Ending March 2027 (Japan GAAP) Consolidated

Overview of Results

Nippon’s consolidated net sales for the first quarter of the fiscal year ending March 2027 reached 107,213 million yen, up 2.9% year on year. However, with rising costs and higher depreciation from new factory operations, operating income declined sharply. Ordinary income also fell sharply, and net income attributable to owners of the parent decreased slightly year over year. Dividend guidance remains at 68 yen for the full year. Brand strategy strengthening, new brand launches, and partnerships with sports teams continue to be growth drivers.

Trends in Business Segments and Outlook

In the flour, food, and other segments, sales were solid, but rising costs of raw materials, labor, and logistics, along with increased depreciation from new factory operations, weighed on profitability. The Food segment achieved higher sales on solid demand, while some categories such as ready-to-eat foods trended below the previous year. Overall, cost pressures have not yet been fully absorbed. Going forward, the company aims to monitor raw material prices and logistics costs, implement pricing adjustments, and push brand expansion and growth of the master brand.