House Foods Group (2810) investor relations material

Executive summary

• Net sales rose 0.5% year-over-year to ¥316,977 million, but operating profit fell 8.8% to ¥18,246 million and ordinary profit declined 8.7% to ¥19,526 million due to higher business costs and impairment losses in the U.S. business.

• Profit attributable to owners of parent dropped 41.1% year-over-year to ¥7,360 million, mainly due to impairment losses on goodwill and customer-related intangibles in the U.S. and despite gains from the sale of Delica Chef and strategic equity holdings.

• The company continued to implement its Eighth Medium-term Business Plan, focusing on global value chain expansion in spices, soybeans, and functional materials, and introduced ROIC-based management.

Financial highlights

• Gross profit increased to ¥118,091 million (up from ¥115,910 million), but selling, general, and administrative expenses rose to ¥99,845 million.

• Comprehensive income was ¥15,452 million, up 1.0% year-over-year.

• Cash and cash equivalents at year-end were ¥94,803 million, up ¥6,446 million from the previous year.

• Equity ratio stood at 67.0%, with net assets per share at ¥3,223.48.

Outlook and guidance

• For FY2027, net sales are forecast at ¥322,500 million (+1.7%), operating profit at ¥18,500 million (+1.4%), ordinary profit at ¥19,700 million (+0.9%), and profit attributable to owners of parent at ¥17,000 million (+131.0%), reflecting an expected gain on sale of investment securities.

• Annual dividend is projected to rise to ¥100 per share, with a progressive dividend policy linked to DOE (dividend on equity) of 3% or more.