Nippn (2001) investor relations material

Executive summary

• FY2026 saw record highs in net sales, operating income, and ordinary income, each increasing for five consecutive years, with net sales rising 1.8% year-over-year to ¥418,425 million, driven by inbound tourism, sales promotions, and price revisions amid rising costs.

• Operating income increased 2.8% to ¥22,082 million, while profit attributable to owners of parent fell 11.9% to ¥21,803 million due to prior-year extraordinary gains.

• Comprehensive income surged 53.5% to ¥36,507 million, reflecting improved unrealized gains on securities and retirement benefit adjustments.

• Dividend per share increased to ¥68, and ¥4.0 billion in own shares were acquired to enhance shareholder returns.

• Strategic initiatives included new plant construction for frozen foods, expansion in ASEAN and North America, and the launch of a smart, resilient flour mill.

Financial highlights

• FY2026 net sales: ¥418.4 billion, up 1.8% year-over-year; operating income: ¥22.1 billion, up 2.8%; ordinary income: ¥24.9 billion, up 2.0%.

• Profit attributable to owners of parent: ¥21.8 billion, down 11.9% due to lower extraordinary gains.

• Gross profit increased to ¥104,766 million from ¥99,590 million year-over-year.

• FY2027 net sales forecast: ¥430.0 billion (+2.8% YoY); operating income forecast: ¥19.5 billion (−11.7% YoY).

• Operating income before depreciation expected to reach a record ¥33.7 billion in FY2027.

Outlook and guidance

• FY2027 expects continued sales growth, especially in Food and Other segments, but operating income to decline due to increased costs and depreciation from new mill operations.

• Medium-term targets revised upward: net sales of ¥450,000 million, operating income of ¥21,000 million, ROE ≥8%, and ROIC ≥5% by FY2027.

• Dividend payout ratio target remains at 30% or more, with flexible share buybacks planned; annual dividend for FY2027 is planned at ¥68 per share.