Kitoku Shinryo Co., Ltd. Financial Summary for the Third Quarter of the Fiscal Year Ending December 2026

Business Performance Overview

For the nine months ended Q3, consolidated net sales amounted to 132,349 million yen (up 1.1% year-over-year). However, a decline in gross profit margin and selling, general and administrative expenses led to an operating loss. Ordinary loss also widened, and the quarterly net loss attributable to owners of the parent amounted to 1,796 million yen. By segment, the rice business experienced a decline in gross profit due to inventory reduction, while the feed and egg segments recorded increased profits. The full-year forecast remains unchanged at this time, with net sales expected to be 177,000 million yen and earnings per share forecasted at approximately 611 yen per share.

Financial Position and Outlook

Total assets were 49,856 million yen and net assets were 18,324 million yen. As of the end of Q3, both total assets and net assets decreased compared with the previous fiscal year. For the full fiscal year ending December 2026, net sales are expected to be 177,000 million yen, and operating, ordinary, and net income are uncertain but some recovery is assumed. Among segments, inventory reduction in the rice business is the primary cause of the decline in gross profit margin; improvements in inventory management and pricing strategy are necessary for recovery.