First Quarter Financial Summary for the Fiscal Year Ending March 2027

Summary of Business Performance

DaRei's first quarter financial results for the fiscal year ending March 2027 show net sales of ¥601.1 billion (YoY +0.2%), remaining flat compared to the previous year. However, operating income decreased significantly to ¥6.0 billion (YoY -54.3%), and net income fell to ¥3.9 billion (YoY -61.9%). Rising raw material costs and increased logistics expenses pressured profitability. Domestic food segment sales remained solid, but profit margins declined due to cost increases.

Outlook and Impact on Investors

Continued increases in raw material prices and logistics costs are expected, necessitating enhanced cost management and pricing strategies to improve profitability. Investors should monitor the prolonged cost pressures that may impact earnings, and the company aims to recover profitability through cost reductions and product price adjustments in the mid-term.