Nissin Foods (2897) Q2 2027 earnings summary

Executive summary

• H1 revenue was ¥408,739 million, up 9.5% YoY; core operating profit of existing businesses rose 4.9% to ¥36,514 million. Revenue and core profit increased across all three businesses.

• Operating profit rose 3.0% to ¥32,763 million, while profit attributable to owners of the parent fell 2.5% to ¥22,040 million.

Financial highlights

• At constant currency, revenue was ¥392.2bn, up 5.1%, and core operating profit of existing businesses was ¥34.9bn, up 0.2% YoY.

• Core operating profit of existing businesses increased ¥1.7bn: revenue effects added ¥16.0bn, while COGS and distribution costs reduced profit by ¥11.7bn and fixed expenses by ¥4.6bn.

• Gross profit was ¥138,415 million versus ¥128,271 million; SG&A increased to ¥111,961 million from ¥101,513 million.

• Profit before tax was ¥33,478 million versus ¥33,303 million; basic EPS was ¥76.76 versus ¥77.97.

• Operating cash flow was ¥27,173 million versus ¥34,660 million; cash and cash equivalents ended H1 at ¥101,205 million.

Outlook and guidance

• FY3/2027 forecasts remain revenue ¥860.0bn, core operating profit of existing businesses ¥73.5bn, operating profit ¥66.0–69.5bn, attributable profit ¥45.5–48.0bn and EPS ¥159–167.

• Full-year Middle East cost impact is estimated at ~¥17.0bn: ~¥12.5bn for materials and packaging, ~¥2.0bn for utilities and ~¥2.5bn for logistics; H1 impact was ¥6.1bn.

• Management aims to offset cost pressure through strategy execution, rigorous cost control and price revisions; the full-year core operating profit forecast is unchanged.

• FY3/2027 guidance assumes new-business investment of 5%–10% of core operating profit of existing businesses.