Nisshin Seifun (2002) Q2 2025 earnings summary

Executive summary

• Achieved significant growth during the Medium-Term Management Plan, with upward revisions to FY2025 and FY2027 targets due to strong performance, especially in overseas flour milling and mesh cloth businesses.

• Net sales for the first half of fiscal 2025 rose 0.6% year-over-year to ¥429.5 billion, with operating profit up 2.0% to ¥26.0 billion and profit attributable to owners of parent up 10.4% to ¥20.4 billion.

• Comprehensive income dropped sharply to ¥2.5 billion from ¥52.9 billion in the prior year period, mainly due to negative other comprehensive income items.

• Strategic investments in automation, plant expansion, and R&D are ongoing to support future growth.

• Earnings per share increased to ¥68.48 from ¥62.04 year-over-year.

Financial highlights

• First six months of FY2025: Net sales ¥429.5bn (+0.6% YoY), operating profit ¥26.0bn (+2.0% YoY), profit attributable to owners of parent ¥20.4bn (+10.4% YoY).

• FY2025 forecast: Net sales ¥870.0bn (+1.4% YoY), operating profit ¥51.0bn (+6.7% YoY), profit attributable to owners of parent ¥39.0bn (+22.9% YoY).

• Gross profit increased to ¥97.2bn from ¥91.1bn YoY; SG&A expenses rose to ¥71.1bn.

• Ordinary profit grew 2.1% YoY to ¥27.1bn; extraordinary income surged to ¥4.3bn from investment securities sales.

• Total assets decreased to ¥784.2bn from ¥826.7bn; equity ratio improved to 63.0%.

Outlook and guidance

• Upward revision of final-year Medium-Term Plan targets: FY2027 net sales ¥950bn, operating profit ¥57bn, EPS ¥140, ROE 8%.

• Full-year profit growth expected, with a stronger second half due to benefits from prior strategic expenditures.

• Full-year EPS forecast is ¥131.16; dividend forecast revised upward to ¥55.00 per share.

• Overseas flour milling, processed food, and mesh cloth businesses are key growth drivers.