Nichirei (2871) Q2 2027 earnings summary

Executive summary

• Q2 net sales rose 5% YoY to ¥188.3bn, led by overseas growth; operating profit increased ¥0.8bn to ¥10.0bn on Foods price revisions and improved external conditions.

• Six-month net sales were ¥417,359m, operating profit ¥18,244m and profit attributable to owners of parent ¥13,524m; period comparisons were affected by the fiscal-year transition.

Financial highlights

• Six-month ordinary profit was ¥18,349m versus ¥18,770m; comprehensive income was ¥6,065m versus ¥13,521m.

• Q2 Foods operating profit rose ¥1.3bn YoY to ¥5.1bn; consolidated profit attributable to owners of parent fell ¥1.7bn to ¥6.6bn, mainly due to system failures.

• Gross profit increased to ¥75,548m from ¥63,766m, while SG&A rose to ¥57,303m from ¥45,458m.

• Extraordinary income included a ¥4,005m gain on sale of investment securities; total extraordinary income was ¥6,095m versus ¥4,325m.

Outlook and guidance

• FY2026 forecast: net sales ¥618,500m, operating profit ¥30,000m, ordinary profit ¥30,900m and parent-attributable profit ¥21,400m; sales and operating-profit targets were unchanged, while parent-attributable profit rose ¥1.0bn.

• The increase in forecast parent-attributable profit reflects increased sales of cross-shareholdings.

• Segment forecasts: Foods sales ¥350,100m and operating profit ¥14,500m; Temperature-controlled Logistics sales ¥279,000m and operating profit ¥16,600m.

• FY forecast EPS is ¥85.38; forecasts combine nine months for March-year-end entities and 12 months for December-year-end entities.

• Forecast exchange rates are ¥159/$, ¥184/€ and ¥4.70/THB.