Nippn (2001) Q2 2026 earnings summary

Executive summary

• Consolidated net sales for Q2 FY2026 increased 1.5% year-over-year to ¥207.9 billion, driven by higher sales volume, inbound tourism, and price revisions.

• Operating income rose 3.1% year-over-year to ¥10.86 billion, while ordinary income increased 0.3% to ¥12.13 billion.

• Profit attributable to owners of parent declined 34.0% year-over-year to ¥9.27 billion due to lower extraordinary gains from prior-year asset sales.

• HATANAKA FOODS Co., Ltd. was added as a consolidated subsidiary, and Utah Flour Milling, LLC began full-scale U.S. operations.

• A resolution for the acquisition of own shares was approved to improve capital efficiency and shareholder returns.

Financial highlights

• Q2 FY2026 net sales rose by ¥2.9 billion (1.5%) year-over-year to ¥207.9 billion.

• Operating income increased by ¥330 million (3.1%) to ¥10.86 billion, despite higher raw material, personnel, and logistics costs.

• Ordinary income was up ¥37 million (0.3%) to ¥12.13 billion.

• Profit attributable to owners of parent dropped by ¥4.77 billion (34.0%) to ¥9.27 billion, mainly due to a decrease in extraordinary gains.

• Gross profit increased to ¥52.21 billion from ¥49.26 billion year-over-year.

Outlook and guidance

• FY2026 net sales are projected to reach a record ¥424.0 billion, up 3.2% year-over-year.

• Operating income is forecast at ¥21.5 billion, with ordinary income at ¥24.5 billion.

• Profit attributable to owners of parent is expected to decrease 18.4% to ¥20.2 billion due to lower extraordinary gains.

• Annual dividend forecast remains at ¥66 per share.