Nisshin Seifun (2002) Q4 2025 earnings summary

Executive summary

• FY2025 net sales were ¥851.5 billion, down 0.8% year-over-year; operating profit was ¥46.4 billion, down 3.0%, but profit attributable to owners rose 9.3% to ¥34.7 billion, driven by gains on sale of investment securities and cross-shareholding reductions.

• FY2026 targets a return to growth with operating profit projected at ¥50 billion, despite a highly uncertain business environment.

• The group is restructuring its business portfolio, discontinuing Nisshin Pharma Inc.'s fine chemicals business, and transferring healthcare foods to Oriental Yeast Co., Ltd.

• Comprehensive income dropped sharply to ¥14.97 billion from ¥90.68 billion, mainly due to valuation losses on securities.

Financial highlights

• FY2025 net sales: ¥851.5 billion (down 0.8%), operating profit: ¥46.4 billion (down 3.0%), ordinary profit: ¥49.2 billion (down 1.6%), profit attributable to owners: ¥34.7 billion (up 9.3%).

• Gross profit increased to ¥190.2 billion, but operating margin declined to 5.4% from 5.6%.

• Cash flows from operating activities decreased to ¥55.2 billion; capital expenditures rose due to new plant investments, totaling ¥41.7 billion.

• Cash and cash equivalents at year-end were ¥92.0 billion, down from ¥107.7 billion; equity ratio improved to 61.4%.

• Annual dividend per share increased to ¥60.00, with a payout ratio of 51.1% (adjusted for non-recurring items).

Outlook and guidance

• FY2026 forecasts: net sales ¥870.0 billion (+2.2%), operating profit ¥50.0 billion (+7.8%), ordinary profit ¥53.0 billion (+7.7%), profit attributable to owners ¥39.0 billion (+12.4%), EPS forecasted at ¥134.61.

• Price revisions and productivity improvements planned to offset cost increases; further reductions in cross-shareholdings expected.

• Dividend payout ratio for FY2026 expected at 48.7%.

• Medium-Term Management Plan targets for FY2027: net sales ¥950.0 billion, operating profit ¥57.0 billion, EPS ¥140, ROE 8.0%.