Kewpie (2809) Q4 2025 earnings summary

Executive summary

• Achieved record-high operating income of ¥34.6bn in FY2025, driven by swift price revisions in Japan and double-digit overseas growth, despite higher-than-expected costs and consumer budget-mindedness.

• Net sales rose 6.1% year-over-year to ¥513.4bn, with strong contributions from the Americas, Asia-Pacific, and domestic recovery in egg products and cut vegetables.

• ROE improved to 9.7%, up 2.4 percentage points year-over-year.

• Management focused on capital efficiency, including treasury share acquisitions, dividend increases, and a major acquisition.

• Challenging environment persisted due to high raw material costs, especially eggs and vegetables.

Financial highlights

• Operating income: ¥34.6bn (+0.9% YoY); Ordinary income: ¥37.4bn (+1.4% YoY); Net profit: ¥30.5bn (+42.4% YoY, including gain on sale of factory site).

• Gross profit improved to ¥150.9bn; EPS: ¥220.63 (+43% YoY); comprehensive income grew 41.7% to ¥43.8bn.

• Cash and cash equivalents at year-end decreased to ¥65.8bn, down ¥14.7bn.

• Domestic business profit margin: 6.6% (down 0.7pp YoY); Overseas growth rate: +8% in local currency.

• ROIC: 6.6% (down 0.2pp YoY).

Outlook and guidance

• FY2026 targets: Net sales ¥530.0bn (+3.2% YoY), operating income ¥38.0bn (+9.7% YoY), ordinary income ¥40.0bn (+7% YoY), profit ¥25.5bn (-16.4% YoY due to absence of one-time gains).

• ROE expected at 8.0% (down 1.7pp YoY); overseas sales growth rate +11% in local currency.

• Dividend to increase by ¥11 to ¥65 per share, including a commemorative portion; treasury share acquisition of ¥10.0bn planned.

• Focus on accelerating overseas growth, domestic structural reforms, and digital transformation.