Consolidated operating results (cumulative)
| H1 FY11/2024 | H1 FY11/2025 |
YoY Change |
|
|---|---|---|---|
| Net sales | 84,560 million yen | 95,293 million yen | 12.7% |
| Ordinary profit | 2,260 million yen | 3,832 million yen | 69.5% |
| Foreign exchange impact on ordinary profit |
-24 million yen | 78 million yen | － |
|
Ordinary profit after |
2,285 million yen | 3,754 million yen | 64.2% |
| Profit attributable to owners of parent |
1,654 million yen | 2,797 million yen | 69.1% |
H1 FY11/2025 (December 2024 to May 2025)
| Net sales | ：62,686 million yen (up 6.4% year on year) |
| Sales volume | ：86,799 tons (down 4.7% year on year) |
Supply and demand trends in Japan
- Domestic raw milk production in the first half of the current fiscal year was higher than in the same period of the previous year.
- The amount of domestic skim milk powder in stock remains stable at around 50,000 to 60,000 tons.
- The ice cream and functional food markets are expanding, and demand for related dairy ingredients is brisk.
The Company’s situation
- Sales of ingredients used in functional foods, such as whey protein and ingredients used in ice cream including fat-based dairy ingredients and high-protein ingredients, are strong.
- Due to a shortage in domestic supply, sales of imported products handled by our company have increased.
- Sales of powdered milk mixtures remained strong, reflecting stable inventory levels of domestically produced skim milk powder.
- Although the price increase of cheese had some impact on the end products, sales were strong due to factors such as an increase in our share of existing customers.
- Sales volume of dairy ingredients and cheese exceeded initial forecast.
- Sales prices remained higher than expected due to high raw material prices and the weak yen, resulting in sales exceeding initial forecast.
Topics
- Demand for high-protein ingredients derived from milk and fat-based dairy ingredients such as butter and cream is growing worldwide, and international prices remain high.
- Domestic raw milk production is on the rise, the number of dairy cows under two years of age is declining, and a sharp recovery in domestic raw milk production is not expected.
- Milk price increase for drinking milk is scheduled for August, which may lead to higher dairy product prices and a slowdown in final consumption.
H1 FY11/2025 (December 2024 to May 2025)
| Net sales | ：11,560 million yen (up 9.7% year on year) |
| Sales volume |
：16,180 tons (up 2.1% year on year) |
Supply and demand trends in Japan
- Due to the high end prices of meat in general, the consumption of imported pork has been on a downward trend for both personal and commercial use.
The Company’s situation
- Sales of North American pork, which had decreased in the first quarter, improved in the second quarter, with sales volume returning to initial forecast, mainly for frozen pork.
- Sales of processed foods such as processed chicken products were also strong, resulting in sales volume in the Meat and Ingredients Division slightly exceeding the forecast.
Topics
- We expect demand for processed foods to continue growing and will focus on expanding sales of related products.
- In April 2025, we began importing and selling spices, spice extracts, rock salt, and other products as the Japanese distributor for a German spice manufacturer.
- We aim to expand sales by leveraging synergies with existing businesses.
H1 FY11/2025 (December 2024 to May 2025)
| Net sales | ：3,779 million yen (up 134.9% year on year) |
| Sales volume | ：3,044 tons (up 140.1% year on year) |
Supply and demand trends in Japan
- Demand for high-protein ingredients derived from milk is growing worldwide, and international prices remain high.
- Demand for relatively inexpensive protein ingredients such as soy protein and collagen is also growing.
- The domestic protein-related market continues to grow.
In addition to traditional protein applications, product lineups containing high-protein ingredients are expanding due to growing health consciousness.
The Company’s situation
- Domestic demand for protein ingredients remained high, and sales volume continued to perform well.
- Our comprehensive support, which extends beyond raw material sales to cover the entire supply chain, contributes to expanding transactions and increasing the number of new customers.
Topics
- In addition to high protein ingredients derived from milk, we are also focusing on expanding sales of soy protein and collagen.
- We are strengthening efforts to expand sales for applications other than sports nutrition, such as proposing new recipes to food manufacturers.
H1 FY11/2025 (December 2024 to May 2025)
| Net sales | ：12,418 million yen (up 27.6% year on year) |
| Sales volume | ：20,678 tons (up 11.7% year on year) |
Supply and demand trends in Southeast Asia and China
- Demand for dairy ingredients has remained stable among users in Southeast Asia.
The Company’s situation
- Sales to existing customers, mainly in the Philippines and Thailand, remained strong.
- The agency business in Indonesia has been progressing smoothly. (The supplier is a dairy manufacturer in Oceania.)
- Although price competition intensified in sales to local companies, our Japanese-style attentive customer service was highly evaluated, and sales volume steadily increased.
Topics
- To strengthen the sales system of our group in the Asian region, we are focusing on strengthening cooperation between our overseas bases, and we expect to see further expansion of business in the future.
- Currently, we are strengthening our efforts to develop new business partners in Thailand and Indonesia, where the number of business partners is on the rise and steady results are being achieved.
H1 FY11/2025 (December 2024 to May 2025)
| Net sales | ：3,142 million yen (up 17.3% year on year) |
| Sales volume | ：2,826 tons (up 11.4% year on year) |
Supply and demand trends in Southeast Asia and China
- Demand for products for foodservice and bakeries is recovering, mainly in Malaysia and Singapore.
- Consumption of both processed cheese and natural cheese is on the rise.
The Company’s situation
- Expand business by developing and proposing processed cheese that meets the quality and specifications tailored to the needs of each user.
- Sales volume has been increasing, particularly among local confectionery, bakery, and processed food manufacturers in Singapore and Malaysia.
- Sales to Japanese foodservice companies also remained strong.
- We have implemented price revisions in stages to cover raw material costs.
- Although sales volume fell slightly short of the forecast, the profit margin improved.
- Profit margins improved due to sales activities that focused on balancing sales volume and profits, as well as a decrease in manufacturing costs resulting from increased production volume.
Topics
- The construction of the new plant in Singapore has been delayed slightly due to the time required to obtain various permits and approvals, but it is still scheduled for completion in December 2025 as planned.
- Preparations for the start of operations in November 2026 term are progressing smoothly.
- Although the number of local cheese processing manufacturers is on the rise, many of them mainly handle low-priced products, which has increased our competitive advantage in terms of high quality and stable supply.
Our business model, as a rule, avoids foreign exchange risk
In our basic transactions, we conclude sales contracts in yen with domestic customers at the same time we conclude purchase contracts in foreign currencies with overseas suppliers. We hedge against foreign exchange risk by entering into forward contracts to cover the amounts we purchase in foreign currencies.
However, the Company uses the principle method under the accounting standards for foreign currency transactions. For this reason, our accounting presentation is unique.
Foreign exchange gains and losses may occur during a business transaction. This is because the exchange rate used for accounting purposes differs depending on the stage of the business transaction.
As a result, even if the foreign exchange risk is hedged at the time of the purchase contract , foreign exchange gains and losses are recorded separately in the cost of sales and non-operating expenses or income during the course of the transaction. Therefore, foreign exchange rates may affect not only non-operating expenses or income but also gross profit and operating profit.
For transactions that span fiscal years, foreign exchange gains and losses may be recorded in advance for accounting purposes.
For transactions that span fiscal years (in which items are sold in the following year or later), even if the purchase is settled and recorded as inventory, the sales will not be recorded until the following fiscal year . Only the foreign exchange gains or losses on the purchase settlement will be recorded in advance and reflected in ordinary profit for that year.
