Nisshin Seifun (2002) Q4 2026 earnings summary

Executive summary

• Net sales for FY2026 rose 1.6% year-over-year to ¥865,004 million, driven by growth in engineering, processed food, and yeast/biotechnology segments, despite headwinds from lower wheat prices and currency impacts in overseas flour milling.

• Operating profit increased 0.7% year-over-year to ¥46,685 million, with gains in processed food and yeast/biotechnology offsetting startup costs at the Mizushima Plant and declines in overseas flour milling and mesh cloths.

• Ordinary profit grew 4.4% to ¥51,397 million year-over-year.

• Profit attributable to owners of parent fell 6.0% to ¥32,589 million due to impairment losses in the India yeast business, despite progress in reducing cross-shareholdings.

• Comprehensive income surged to ¥71,365 million, up 376.7% year-over-year, driven by significant gains in other comprehensive income.

Financial highlights

• FY2026 net sales: ¥865.0 billion (+1.6% YoY); operating profit: ¥46.7 billion (+0.7% YoY); ordinary profit: ¥51.4 billion (+4.4% YoY); profit attributable to owners: ¥32.6 billion (–6.0% YoY).

• Second half FY2026 saw net sales up 2.8% and operating profit up 18.1% year-over-year.

• Overseas sales ratio for FY2026 was 29.2%.

• Gross profit increased to ¥194,669 million from ¥190,179 million year-over-year.

• Extraordinary losses included ¥8.8 billion impairment in India yeast business and ¥1.6 billion factory closure losses; gain on sale of investment securities was ¥10.7 billion.

Outlook and guidance

• FY2027 net sales forecast: ¥870.0 billion (+0.6% YoY); operating profit: ¥46.0 billion (–1.5% YoY, including a ¥1.5 billion negative impact from Middle East-related cost increases); ordinary profit: ¥49.0 billion (–4.7% YoY); profit attributable to owners: ¥41.0 billion (+25.8% YoY, due to absence of prior year impairments); EPS forecast at ¥146.59.

• Dividend per share is forecast to increase to ¥65.00, with a payout ratio of 54.1%.

• Focus on stable supply, productivity improvements, and adapting to cost increases amid geopolitical uncertainty.