Supplementary Materials for the Q3 Financial Results for the Fiscal Year Ending March 2026 (FY2025)

Overview of Consolidated Results

Consolidated net sales for Q3 FY2025 amounted to JPY 72,503 million, a 0.5% decrease YoY. The domestic business recorded sales growth; however, a significant decline in overseas operations impacted results. Operating income was JPY 5,716 million, down 24.2% YoY, with the overseas segment posting an operating loss due to decreased sales and increased personnel expenses. Although operating income declined by JPY 678 million due to revised estimates of asset retirement obligations related to asbestos removal costs, the recognition of JPY 2,065 million in gain on sales from a reduction in policy-held stocks contributed to net income exceeding the prior year.

Segment Performance and Revision of Earnings Guidance

The domestic food business achieved net sales of JPY 50,352 million (+1.7% YoY), recording higher sales, though operating income declined to JPY 5,082 million (-10.2% YoY). Household food sales decreased, while sales of commercial-use food and processed food raw materials increased. The domestic chemical and other businesses posted net sales of JPY 6,477 million (+7.9% YoY) with slightly decreased operating income of JPY 675 million (-2.5% YoY). Overseas operations recorded net sales of JPY 16,961 million (-7.7% YoY) and an operating loss of JPY 97 million. The full-year FY2025 earnings forecast has been revised downward to net sales of JPY 96,000 million (-4.0% from previous forecast), operating income of JPY 6,200 million (-27.1%), and net income of JPY 6,500 million (-20.7%).