Kikkoman (2801) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue and business profit grew 13.1% and 23.0% reported, respectively; excluding FX, they rose 5.1% and 12.6%.

• Growth was led by Overseas Foods Wholesale; domestic Foods Manufacturing and Sales profit declined. FY2027 revenue and business profit forecasts were raised from initial estimates.

Financial highlights

• H1 revenue was ¥405,491m, business profit ¥50,719m, operating profit ¥49,178m and profit before income taxes ¥52,159m.

• Profit attributable to owners was ¥38,251m, up 22.1%; basic EPS was ¥41.28 versus ¥33.34 a year earlier.

• Gross profit was ¥144,531m versus ¥122,949m; gross margin was 35.6% versus 34.3%.

• H1 business profit margin was 12.5%, up 1.0 pt; growth included timing shifts in advertising and other expenses and a temporary North American wholesale benefit.

Outlook and guidance

• FY2027 forecast: revenue ¥816,400m, business profit ¥85,100m, operating profit ¥79,600m, pretax profit ¥85,200m and attributable profit ¥61,300m.

• Revenue and business profit forecasts rose ¥17,300m and ¥2,800m from prior estimates; operating and pretax profit each rose ¥800m, while attributable profit was unchanged.

• H2 forecast: revenue ¥410,908m (+6.2% YoY), business profit ¥34,380m (-10.2%), operating profit ¥30,421m (-16.2%) and attributable profit ¥23,048m (-23.9%).

• FY2027 forecast assumes ¥159.14/USD and ¥182.49/EUR; H2 assumes ¥158.00/USD. Strategic wholesale spending and the new U.S. plant’s fixed costs weigh on H2 profit.