Sakata Seed (1377) Q4 2025 earnings summary

Executive summary

• Achieved record-high sales of ¥92,920 million (up 4.8% year-over-year), with operating profit up 16.8% to ¥12,257 million and ordinary profit up 10.7% to ¥12,311 million for the year ended May 2025.

• Net profit declined 39.9% year-over-year to ¥9,711 million, mainly due to the absence of prior-year extraordinary gains from non-current asset sales and adverse FX impacts.

• Comprehensive income dropped 76.0% year-over-year to ¥6,487 million, reflecting negative foreign currency translation adjustments and lower extraordinary income.

Financial highlights

• Gross profit margin improved to 62.9% from 60.9% the previous year, with gross profit at ¥58,486 million.

• Operating profit margin rose to 13.2% (from 11.8% year-over-year).

• Basic earnings per share fell to ¥222.58 from ¥365.22 year-over-year.

• Capital adequacy ratio improved to 84.5% as of May 31, 2025.

• Cash and cash equivalents at year-end increased to ¥22,445 million.

Outlook and guidance

• For the year ending May 2026, sales are forecast to rise 2.8% to ¥95,500 million, with gross profit margin expected at 62.3%.

• Operating profit and net profit are projected to decrease by 10.3% and 7.3% year-over-year, respectively, due to higher R&D and SGA expenses.

• Annual dividend forecast for FY2026 is ¥75.00 per share, unchanged from FY2025.