House Foods Group (2810) Q1 2027 earnings summary

Executive summary

• Net sales for the first quarter were ¥75.1 billion, down 0.7% year-over-year due to the exclusion of the prepared food business from consolidation, while existing businesses saw a 5.6% sales increase.

• Operating profit rose 17.1% year-over-year to ¥4.0 billion, driven by increased sales volume, price revisions, and strong performance in core food segments.

• Profit attributable to owners surged 185.3% to ¥5.1 billion, aided by a ¥3.5 billion gain from reduced cross-shareholdings and sale of investment securities.

• Comprehensive income increased 250.9% year-over-year to ¥3.8 billion.

Financial highlights

• EBITDA increased 7.9% to ¥7.2 billion; EBITDA margin improved to 9.6%.

• Operating profit margin rose to 5.3%, up 0.8pt year-over-year.

• Ordinary profit climbed 22.6% to ¥4.5 billion.

• Gross profit increased to ¥28.5 billion from ¥27.5 billion year-over-year.

• EPS (basic) rose to 56.98 yen from 19.20 yen year-over-year.

Outlook and guidance

• Full-year operating profit and ordinary profit forecasts revised down by ¥1.0 billion due to anticipated cost increases from the Middle East situation.

• Net sales for FY2026 are forecast at ¥322.5 billion, up ¥5.5 billion year-over-year.

• Profit attributable to owners of parent projected at ¥17.0 billion, up 131% year-over-year.

• Dividend forecast unchanged at 100 yen per share.

• ROE target for the year is 6.0%.