House Foods Group (2810) Q2 2026 earnings summary

Executive summary

• First-half FY2025 net sales were ¥153.6 billion, down 0.9% year-over-year, with operating profit at ¥5.87 billion, down 36.6% year-over-year, mainly due to lower sales and rising raw material costs in Japan.

• Profit attributable to owners of parent rose 1.6% to ¥5.60 billion, aided by reductions in cross-shareholdings and gains from asset sales.

• Comprehensive income dropped 76.7% year-over-year, reflecting significant declines in other comprehensive income components.

• The group is executing its Eighth Medium-term Business Plan, focusing on global value chain expansion, aggressive investment in growth areas, and profit structure reforms.

Financial highlights

• EBITDA for 1H FY2025 was ¥12.6 billion, down ¥3.5 billion year-over-year.

• Ordinary profit for the period was ¥6.45 billion, down 33.1% year-over-year.

• Gross profit margin slightly decreased as cost of sales ratio rose to 63.7% from 63.3% year-over-year.

• Restaurant business saw net sales rise 8.2% and operating profit increase 7.5% year-over-year.

• Dividend for FY2025 is planned at ¥48 per share, maintaining a stable payout policy.

Outlook and guidance

• Full-year FY2025 net sales are forecast at ¥321.5 billion (+1.9% YoY), with operating profit at ¥19.0 billion (-5.0% YoY) and ordinary profit at ¥20.3 billion (-5.1% YoY).

• Profit attributable to owners of parent is projected at ¥13.0 billion, up 4.1% year-over-year.

• Second-half sales and profit growth are expected, driven by product and promotional measures, price revision effects, and profit improvement initiatives.

• Segment forecasts were revised, with notable reductions in Health Food and International Food businesses.

• The company aims to overcome cost pressures and changing consumption trends, with a focus on profit structure reform in the US and growth in international markets.