Consolidated operating results (cumulative)
| Q1 FY11/2025 | Q1 FY11/2026 |
YoY Change |
|
|---|---|---|---|
| Net sales | 45,984 million yen | 48,572 million yen | 5.6% |
| Ordinary profit | 1,598 million yen | 1,138 million yen | -28.8% |
| Profit attributable to owners of parent |
1,202 million yen | 770 million yen | -35.9% |
Q1 FY11/2026 (December 2025 to February 2026)
| Net sales | ：31,151 million yen (up 1.6% year on year) |
| Sales volume |
：40,726 tons (down 7.4% year on year) |
Supply and demand trends in Japan
- Against the backdrop of growing consumer cost-consciousness amid rising prices, consumption of high-preference finished products made from cheese and other dairy ingredients has continued to slow down.
- Some food markets, such as ice cream, continue to expand, and demand for related dairy ingredients remains firm.
- While raw milk production in Japan has been strong, particularly in Hokkaido, the volume of raw milk diverted for processing has increased due to sluggish demand for drinking purposes, resulting in skim milk powder inventories remaining at high levels.
The Company’s situation
- Although international prices for major dairy ingredients have been in a correction phase since the second half of 2025, purchasing prices have remained at high levels due to the trend of a weaker yen, and the business environment for the sale of imported ingredients remains challenging.
- Due to rising prices, demand for food products in general remained below expectations, with sales volume for dairy ingredients declining year-on-year.
- Regarding butter, sales volume increased year on year, driven by progress in sourcing ingredients from cost-competitive regions. In addition, sales of ingredients for ice cream and high-protein products remained firm.
- In the cheese market, sales have been sluggish in both the commercial and retail sectors, impacted by rising ingredients and logistics costs, as well as price increases resulting from the weaker yen.
- Although sales volumes for both dairy ingredients and cheese declined year-on-year, net sales ended higher than the previous year due to an uptick in unit selling prices resulting from the soaring ingredients costs and the weak yen.
Topics
- Global demand for high-protein dairy ingredients and fat-based dairy ingredients such as butter and cream remain strong, and this trend is expected to continue into the second quarter and beyond.
- The domestic supply-demand balance has been disrupted, leading to an upward trend in domestic skim milk powder inventories. Countermeasures to adjust supply and demand are scheduled to be implemented in FY2026 as well.
Q1 FY11/2026 (December 2025 to November 2026)
| Net sales |
：5,699 million yen (up 13.4% year on year) |
| Sales volume |
：8,176 tons (up 16.9% year on year) |
Supply and demand trends in Japan
- Due to rising prices, demand for pork and processed pork products such as ham and sausage has been weak.
The Company’s situation
- Sales of imported pork remained firm.
- Since the outbreak of African swine fever (ASF) was confirmed in Spain in November 2025, import restrictions on Spanish pork and related products have been in place; however, there has been no material impacts on our operations as of the end of the first quarter of this FY.
- Sales of processed foods, including chicken-related products, as well as spices and spice extracts which were launched in the previous FY, have remained firm.
Topics
- Due to the suspension of imports of Spanish pork and related products, sales of frozen pork and dry-cured ham from Spain are estimated to decline from the second quarter onward. However, as we are partially shifting procurement to alternative sources, the impact is expected to be limited.
Q1 FY11/2026 (December 2025 to February 2026)
| Net sales | ：3,113 million yen (up 78.5% year on year) |
| Sales volume |
：2,243 tons (up 73.5% year on year) |
Supply and demand trends in Japan
- Against the backdrop of rising global demand for high-protein ingredients, international market prices remain high. Furthermore, with the yen remaining on a weakening trend, import prices for ingredients are expected to remain at high levels.
- While the domestic protein market continues to expand, some customers have shifted towards plant-based ingredients in response to soaring purchase prices for dairy-derived protein ingredients.
The Company’s situation
- Amid the growing global demand for high-protein ingredients, we have leveraged our competitive procurement capabilities to ensure a stable supply of ingredients. Sales of plant-based ingredients, particularly soy protein, have also increased.
- Our commitment to build supply chains tailored to customer needs has been favorably evaluated, leading to an expansion of business with both existing and new customers.
Topics
- We are strengthening initiatives to expand its handling of functional and high-value-added ingredients, in addition to high-protein ingredients.
- To further expand sales, we will work in coordination with our Asian offices to promote the sale of functional ingredients and domestically produced matcha in Southeast Asia.
Q1 FY11/2026 (December 2025 to February 2026)
| Net sales | ：6,523 million yen (up 7.6% year on year) |
| Sales volume |
：10,355 tons (up 5.3% year on year) |
Supply and demand trends in Southeast Asia and China
- While the impact of China’s economic slowdown persists, demand for dairy products in Southeast Asian countries remains firm.
The Company’s situation
- Sales of ingredients tailored to local markets in Southeast Asia remained firm, particularly to Japanese food manufacturers.
- Although the recovery of our powdered milk mixtures business in Japan has been delayed due to increasing skim milk powder inventories, sales for the first quarter remained resilient as we supplied ingredients aligned with our customers’ production schedules.
Topic
- Demand for protein is growing in Southeast Asia, particularly among middle- and high-income consumers. Given the strong demand for products such as domestically produced matcha and ingredients for supplements we are collaborating with the Life Sciences Business Division to expand sales of these related products.
Q1 FY11/2026 (December 2025 to February 2026)
| Net sales | ：1,810 million yen (up 10.4% year on year) |
| Sales volume | ：1,512 tons (up 4.7% year on year) |
Supply and demand trends in Southeast Asia and China
- Cheese consumption in Southeast Asia continues to follow an expansionary trend.
The Company’s situation
- Demand remains firm, primarily from the local foodservice industry, bakeries, and processed food manufacturers.
- For both processed cheese and processed natural cheese products, we maintain a competitive advantage by providing added value not only through product quality but also through attentive service, such as flexible lead-time management.
Topics
- The new Singapore factory is scheduled to commence full-scale operations during FY11/2026. Although the start of operations has been slightly delayed, preparations are proceeding smoothly. In FY11/2026, we estimate upfront costs due to the parallel operation of the new and existing facilities.
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.
