Nichirei (2871) Q1 2025 earnings summary

Executive summary

• Net sales rose to ¥171.2 billion for the quarter, up 4% year-over-year, driven by strong Processed Foods and Logistics, especially overseas.

• Operating profit increased 20% year-over-year to ¥9.5 billion, led by substantial growth in Processed Foods.

• Profit attributable to owners of parent grew 30% year-over-year to ¥6.4 billion.

• Comprehensive income totaled ¥11.4 billion, up from ¥11.0 billion in the prior year.

• Overseas sales surged 16% year-over-year, with notable gains in Europe and Southeast Asia.

Financial highlights

• Processed Foods net sales up 9% year-over-year to ¥77.8 billion; operating profit up 54% to a record ¥5.8 billion for Q1.

• Logistics net sales up 7% year-over-year to ¥61.3 billion; operating profit down 15% due to higher depreciation and inventory normalization.

• Marine Products and Meat & Poultry Products segments saw declines in net sales but improved operating profit through product mix and price revisions.

• Q1 operating margin at 5.6%; ordinary profit up 24% year-over-year.

• EPS for the quarter was ¥50.46, up from ¥38.88 year-over-year.

Outlook and guidance

• Full-year net sales forecast raised to ¥700 billion (+3% year-over-year), aiming for record high.

• Operating profit forecast revised up to ¥40.5 billion (+10% year-over-year), driven by Processed Foods.

• EPS forecast increased to ¥204 (+6% year-over-year), reflecting higher operating profit.

• Dividend per share forecast raised to ¥82.00 for FY ending March 31, 2025.

• Segment sales forecasts: Processed Foods ¥318 billion, Logistics ¥276 billion, Meat and Poultry ¥68 billion.