NH Foods (2282) Q1 2027 earnings summary

Executive summary

• Net sales for 1Q FY2027/3 rose 8.7% year-on-year to ¥384,946 million, driven by higher prices for imported fresh meats, Australian beef, and growth in processed foods consumer products.

• Business profit reached a record ¥19,415 million, up 19.5% year-on-year, with Fresh Meats and Sports & Entertainment divisions as key contributors, supported by pricing and inventory control despite raw material cost pressures and a weak yen.

• Profit attributable to owners of the parent declined 5.6% year-on-year to ¥10,772 million due to higher income tax expense and increased costs.

Financial highlights

• Business profit margin improved to 5.0% from 4.6% in the prior year.

• Profit before tax was stable at ¥18,523 million, up 0.6% year-on-year.

• Gross profit ratio for 1Q was 17.1%.

• Operating profit for 1Q was ¥17,200 million, down 5.6% year-on-year.

• Earnings per share (basic) for 1Q was ¥114.46 (vs. ¥115.40 last year).

Outlook and guidance

• Full-year net sales are projected at ¥1,500,000 million (+2.9% year-on-year), with business profit expected at ¥61,000 million (−10.7%).

• Profit attributable to owners of the parent is forecast at ¥38,000 million (+8.4% year-on-year), with EPS at ¥403.68.

• ROE is targeted at 7.2% and ROIC at 5.3% for the full year.

• Processed Foods and Sports & Entertainment divisions are expected to maintain or improve profit, while Fresh Meats faces margin pressure from high cattle prices.

• No changes to previously announced forecasts for the second quarter and full year ending March 31, 2027.