Nichirei (2871) Q1 2027 earnings summary

Executive summary

• Group net sales rose 8% year-over-year to ¥229,037 million, driven by robust overseas business, but operating profit fell by ¥2.9 billion due to weaker Foods Business performance and increased costs from system failures and external factors.

• Full-year net sales forecast was revised upward to ¥618.5 billion, while operating profit and net profit were revised downward to ¥30.0 billion and ¥20.4 billion, respectively.

• Management is progressing on five key issues, including redefining top management indicators and business portfolio strategy.

• The reporting period reflects a transitional fiscal year change, affecting comparability.

Financial highlights

• Q1 consolidated net sales: ¥229.0 billion (+8% year-over-year); operating profit: ¥8.2 billion (-26% year-over-year); net profit: ¥6.9 billion (flat year-over-year).

• Overseas sales in core businesses increased 19% year-over-year.

• Foods Business operating profit dropped 40% due to lower household-use sales and adverse conditions in Thailand.

• Temperature-controlled Logistics net sales up 16% year-over-year, with overseas segment up 30%.

• Gross profit increased to ¥40,858 million from ¥31,656 million year-over-year.

Outlook and guidance

• Full-year net sales forecast raised to ¥618.5 billion (+6.2% year-over-year); operating profit forecast cut to ¥30.0 billion (-7.5% year-over-year); net profit forecast cut to ¥20.4 billion (-11.5% year-over-year).

• Foods Business expects flat household-use sales and 4% growth in commercial-use, with operating profit of ¥14.5 billion (-9% year-over-year).

• Temperature-controlled Logistics expects 12% sales growth and 4% operating profit growth, with overseas profit up 22%.

• EPS for the fiscal year is forecast at ¥81.40.