House Foods Group (2810) Q2 2025 earnings summary

Executive summary

• Net sales for FY2024 1H rose 8.5% year-over-year to ¥155.0 billion, driven by proactive sales measures and price revisions across segments.

• Operating profit increased 14.9% year-over-year to ¥9.3 billion, mainly led by the Spice/Seasoning/Processed Food Business.

• EBITDA grew 10.9% to ¥16.1 billion, while ordinary profit rose 10.0% to ¥9.65 billion.

• Profit attributable to owners of parent dropped 49.1% year-over-year to ¥5.51 billion due to the absence of prior year extraordinary gains.

• Growth was driven by strong performance in International Food, Spice/Seasoning/Processed Food, and Restaurant segments, despite rising costs and economic uncertainties.

Financial highlights

• Net sales: ¥155.0 billion (+8.5% YoY); Operating profit: ¥9.3 billion (+14.9% YoY); EBITDA: ¥16.1 billion (+10.9% YoY).

• Ordinary profit: ¥9.65 billion (+10.0% YoY); Profit attributable to owners: ¥5.51 billion (-49.1% YoY).

• Gross profit increased to ¥56.8 billion from ¥52.0 billion year-over-year.

• Comprehensive income fell 25.1% year-over-year to ¥13.0 billion.

• 2Q segment results: All major segments posted sales growth; profit growth was strongest in Spice/Seasoning/Processed Food (+46.9% YoY).

Outlook and guidance

• Full-year forecast unchanged: Net sales projected at ¥320.0 billion (+6.8% YoY), operating profit at ¥21.0 billion (+7.9% YoY), ordinary profit at ¥22.0 billion (+4.3% YoY), and profit attributable to owners at ¥13.3 billion (-24.3% YoY).

• Segment guidance: Continued growth in Spice/Seasoning/Processed Food and Restaurant; International Food Business to see slower 2H profit.

• Cost increases expected to impact profit by ¥5.1 billion for the full year.

• Annual dividend planned at ¥48 per share.