Nisshin Seifun (2002) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 rose 0.4% year-over-year to ¥431,310 million, driven by engineering, yeast, biotechnology, and prepared foods, despite headwinds from falling wheat prices and currency impacts in overseas flour milling.

• Operating profit declined 13.0% year-over-year to ¥22,633 million, mainly due to higher costs at the new Mizushima Plant, lower overseas flour milling shipments, and increased costs in processed food and mesh cloth businesses.

• Profit attributable to owners of parent dropped 49.3% year-over-year to ¥10,325 million, primarily due to impairment losses in the India yeast business.

• Comprehensive income surged to ¥22,441 million, a 781.8% increase year-over-year.

Financial highlights

• First half FY2026 net sales: ¥431.3 billion (+0.4% YoY); operating profit: ¥22.6 billion (−13.0% YoY); ordinary profit: ¥24.8 billion (−8.5% YoY); profit attributable to owners: ¥10.3 billion (−49.3% YoY).

• Gross profit decreased to ¥95,203 million from ¥97,155 million year-over-year.

• Impairment losses of ¥8.7 billion recognized in the India yeast business.

• Cash flows from operating activities improved to ¥34,454 million; capital expenditures increased to ¥21,600 million.

• Earnings per share for the period were ¥35.65, down from ¥68.48 in the prior year.

Outlook and guidance

• Full-year FY2026 net sales forecast at ¥870,000 million (unchanged), operating profit at ¥47,000 million (+1.3% YoY), ordinary profit at ¥50,000 million (+1.6% YoY), and profit attributable to owners at ¥30,000 million (−13.5% YoY).

• Earnings per share for the full year are forecast at ¥104.46.

• Second half expected to see significant profit recovery due to price revisions, cost reductions, and sales expansion, especially in overseas flour milling, processed food, and mesh cloth businesses.

• Annual dividend forecast raised to ¥60 per share, up ¥5 from previous year.