Nichirei (2871) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 were ¥170.8 billion, nearly flat year-over-year, while operating profit declined mainly due to weaker performance in Processed Foods.

• Profit attributable to owners was ¥5.6 billion, down from ¥6.4 billion year-over-year.

• Comprehensive income dropped sharply to ¥3.1 billion from ¥11.4 billion in the prior year period.

• Full-year plan is unchanged, with focus on improving profitability from Q2 onward.

• Business risks have increased, including higher raw material costs and a deteriorating Asian foods market in the U.S.

Financial highlights

• Q1 net sales: ¥170.8 billion (flat year-over-year); operating profit: ¥8.7 billion (down ¥0.9 billion, -9% year-over-year).

• Profit attributable to owners: ¥5.6 billion (down ¥0.8 billion, -12% year-over-year).

• Full-year forecast: net sales ¥700.0 billion, operating profit ¥45.0 billion, EPS ¥117.7.

• Equity ratio at 51.1% as of June 30, 2025, down from 52.1% at previous year-end.

• Total assets as of June 30, 2025, were ¥502.6 billion, up from ¥499.2 billion at March 31, 2025.

Outlook and guidance

• Full-year plan remains unchanged, with expected operating profit improvement of ¥6.7 billion driven by mainstay businesses and depreciation method changes.

• EPS projected to rise by ¥20 year-over-year to ¥118.

• Dividend forecast for FY ending March 31, 2026, is ¥47.00 per share.

• No revisions to previously published financial or dividend forecasts.

• Focus on expanding sales and implementing price revisions to offset cost increases.