House Foods Group (2810) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 1.8% to ¥156.393bn and operating profit increased 20.9% to ¥7.094bn, led by Spice/Seasoning/Processed Food and International Food.

• Profit attributable to owners increased 75.7% to ¥9.839bn, supported by an ¥8.764bn gain on investment securities sales.

• Structural reforms launched in April 2026 target stronger profitability, organizational reform and global growth centered on the Spice Value Chain.

Financial highlights

• H1 net sales were ¥156.393bn (+1.8% YoY); gross profit was ¥58.149bn versus ¥55.829bn, and SG&A rose 2.2% to ¥51.055bn.

• Operating profit was ¥7.094bn (+20.9%), ordinary profit ¥7.713bn (+19.6%) and profit attributable to owners ¥9.839bn (+75.7%).

• Profit before income taxes rose 59.6% to ¥16.174bn; extraordinary income included an ¥8.764bn gain on investment securities sales.

• Operating cash flow was ¥6.027bn versus ¥4.344bn; investing cash flow was ¥2.903bn, and financing cash outflow was ¥17.150bn.

Outlook and guidance

• FY2027 net sales forecast was raised to ¥324.0bn, ¥1.5bn above the prior forecast; operating profit remains ¥17.5bn, ordinary profit ¥18.7bn and profit attributable to owners ¥17.0bn.

• Full-year ROE is forecast at 6.0%; H2 plans emphasize sales-volume growth, selected price revisions and profitability measures.

• International Food’s full-year forecast rose to ¥67.7bn sales and ¥4.2bn operating profit; Other Food Related operating profit was reduced to ¥1.0bn.

• FY2027 annual dividend is forecast at ¥100 per share, split ¥50 interim and ¥50 year-end.