NH Foods (2282) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 6.5% to ¥769,358 million, while business profit fell 20.7% to ¥28,806 million and profit attributable to owners of the parent fell 25.0% to ¥17,394 million.

• Sales growth reflected domestic fresh-meat volume and pricing and recovery in overseas processed foods; profit was pressured by Australian beef conditions and higher processed-food input costs.

Financial highlights

• H1 business profit ratio was 3.7%, down 1.3 percentage points; profit before tax fell 19.4% to ¥30,832 million.

• Operating profit fell 32.3% to ¥23.9bn; other income included ¥7.2bn of fire insurance proceeds.

• Gross profit was ¥121.9bn, down 6.3%, and gross margin was 15.8%, versus 16.8% a year earlier.

Outlook and guidance

• Revised FY2027 forecast: net sales ¥1,500,000 million (+2.9%), business profit ¥50,000 million (-26.8%), profit before tax ¥52,000 million (-4.7%), and profit attributable to owners of the parent ¥35,000 million (-0.2%).

• Full-year operating profit is planned at ¥42.0bn, down 27.1%; forecast includes ¥5.4bn of foreign-exchange losses and ¥1.5bn of interest expense.

• H2 business profit forecast was reduced to ¥21.2bn from ¥27.0bn at the Q1 forecast; full-year forecast fell to ¥50.0bn from ¥61.0bn.