Nissin Foods (2897) Q4 2026 earnings summary

Executive summary

• FY3/2026 revenue rose 1.5% year-over-year to ¥788.1 billion, but core operating profit of existing businesses fell 15.5% to ¥70.6 billion, exceeding revised forecasts.

• Operating profit declined 16.2% year-over-year to ¥62.3 billion; net profit attributable to owners dropped 17.5% to ¥45.4 billion.

• Comprehensive income rose sharply to ¥88,028 million, driven by significant gains in other comprehensive income.

• Profitability was pressured by higher material costs domestically and a revenue drop in the U.S., though price revisions and anniversary initiatives supported volume share gains in Japan.

• Shareholder returns remained robust with a ¥70 per share dividend and a total payout ratio of 88.4%, including a ¥20 billion share repurchase.

Financial highlights

• Gross profit decreased to ¥269,066 million from ¥272,951 million year-over-year.

• Basic earnings per share dropped to ¥157.33 from ¥184.41 year-over-year.

• Total assets increased to ¥981,195 million, and equity attributable to owners of the parent rose to ¥517,168 million.

• Cash and cash equivalents at period end increased to ¥98,334 million.

• Operating cash flow improved to ¥80,431 million, while investing cash flow remained negative at ¥-72,657 million.

Outlook and guidance

• FY3/2027 revenue is forecast to grow 9.1% to ¥860.0 billion, with core operating profit of existing businesses up 4.1% to ¥73.5 billion (excluding Middle East impact).

• Operating profit is projected at ¥66.0–69.5 billion (+5.9–11.5%), and EPS at 159–167 yen.

• Profit attributable to owners of the parent is projected in the range of ¥45,500–¥48,000 million.

• Middle East conflict impact is not included in the forecast; estimated Q1 cost increase of ¥2.5 billion, but no major operational disruptions expected.

• Guidance reflects active investment in new businesses, targeting 5–10% of core operating profit.