Consolidated operating results (cumulative)
| Q1-Q3 FY11/2025 | Q1-Q3 FY11/2026 |
YoY Change |
|
|---|---|---|---|
| Net sales | 137,431 million yen | 144,886 million yen | 5.4% |
| Ordinary profit | 4,907 million yen | 3,873 million yen | -21.1% |
| Profit attributable to owners of parent |
3,559 million yen | 2,776 million yen |
-22.0% |
Q1-Q3 FY11/2026 (December 2025 to August 2026)
| Net sales | ：91,022 million yen (up 1.2% year on year) |
| Sales volume |
：120,547 tons (down 3.3% year on year) |
Supply and demand trends in Japan
- Price increases for food products, reflecting various cost increases, continued to be implemented.
- Amid further intensifying inflationary pressures, some signs of caution were evident in consumer spending patterns.
- In the domestic dairy industry, sluggish demand for dairy products particularly, for drinking milk, eased supply-and-demand balance for raw milk, resulting in an increase in domestic skim milk powder inventories.
- Industry-led measures were continued with the aim of balancing raw milk supply and demand.
The Company’s situation
- Due to rising prices, demand for food products in general remained sluggish, and sales volume of dairy ingredients decreased year-on-year.
- Sales volumes increased year-on-year for butter—supported by raw materials procurement from price-competitive regions—and for whey powder, which was adopted in new products by certain customers.
- On the other hand, sales of certain raw materials remained sluggish, including ice cream-related ingredients affected by unfavorable summer weather, and high-protein ingredients hit by surging international prices.
- Although consumption remains sluggish, Japan’s cheese imports through August of this year were slightly higher than the same period last year, and our cheese sales—which have secured a steady market share—remained firm.
- Thanks to higher unit sales prices driven by the weak yen, revenue for this division remained almost flat year-on-year.
Topic
- Anticipating rising demand for protein over the medium to long term, we have invested in a company engaged in the development and manufacturing of “Rubisco protein,” which is expected to serve as a new protein source, thereby strengthening our partnership.
Q1-Q3 FY11/2026 (December 2025 to August 2026)
| Net sales |
：18,009 million yen (up 5.0% year on year) |
| Sales volume |
：25,337 tons (up 4.1% year on year) |
Supply and demand trends in Japan
- Demand for processed meat products, such as pork, ham, and sausage, remains sluggish due to the impact of price increases.
The Company’s situation
- Although imports of Spanish pork were suspended due to African Swine Fever, we were able to maintain our supply system by securing alternative sources. In addition, sales volume of frozen pork increased due to growing inquiries from new customers seeking alternative suppliers.
- Sales of chilled pork and seasoned pork remained under pressure due to international market conditions and the weak yen.
- Sales of processed foods including chicken products, as well as spices and spice extracts introduced in the previous fiscal year, both expanded steadily.
Topic
- With an eye toward business expansion through diversification of our product lineup, we plan to expand our offerings of processed foods and various ingredients in collaboration with other departments.
Q1-Q3 FY11/2026 (December 2025 to August 2026)
| Net sales | ：10,288 million yen (up 63.4% year on year) |
| Sales volume |
：6,694 tons (up 38.4% year on year) |
Supply and demand trends in Japan
- Against the backdrop of rising global demand for high-protein ingredients, international prices continued to trend upward. Furthermore, due to the continued yen weakness, import prices for raw materials remained at high levels.
- In response to soaring prices for dairy-based protein ingredients, some customers have begun shifting toward plant-based ingredients.
The Company’s situation
- Driven by using our procurement capabilities to maintain a stable supply system and offering tailored proposals and responses to meet customers’ needs, sales of high-protein ingredients and related products remained strong.
- Amid continued price hikes for dairy-derived high-protein ingredients, sales volume of soy protein increased in response to rising demand for plant-based ingredients.
- A business model that provides comprehensive support, ranging from raw material procurement to contract manufacturing of finished products, has become firmly established, and we have expanded our offerings to include a wide variety of products related to its customers’ businesses, including packaging and materials.
Topics
- Although supply of high-protein ingredients remains tight amid rising global demand, the Group leverages its supply network to maintain a competitive advantage in ensuring a stable supply.
- To meet the growing demand for matcha in Japan and Southeast Asia, we are actively driving sales expansion of Japanese matcha.
- We are also working to expand our lineup of functional and high-value-added ingredients, strengthening sales of gelatin and collagen, primarily in the beauty and health sectors.
Q1-Q3 FY11/2026 (December 2025 to August 2026)
| Net sales | ：17,050 million yen (down 1.0% year on year) |
| Sales volume |
：26,712 tons (down 7.6% year on year) |
Supply and demand trends in Southeast Asia and China
- Amid growing uncertainty surrounding the situation in the Middle East, business sentiment in China and Southeast Asian countries has remained subdued.
The Company’s situation
- In sales to local companies, we faced challenges in certain business segments due to intensifying price competition in the Philippines, Thailand, and China.
- Meanwhile, in Singapore, Vietnam, Malaysia, and Indonesia, in addition to stable business with existing customers, we acquired new customers, resulting in an increase in sales volume compared to the previous period.
- Although the business related to powdered milk mixtures for the Japanese market was somewhat affected by rising skim milk powder inventories in Japan, cumulative sales volume through the third quarter remained solid.
Topics
- For high-demand products, such as Japanese matcha and raw materials for supplements, we will collaborate with the Life Sciences Business Division to expand sales of related products.
- With a view to expanding our business operations in Asia, we are currently preparing to establish a local subsidiary in Vietnam.
Q1-Q3 FY11/2026 (December 2025 to August 2026)
| Net sales | ：5,723 million yen (up 24.6% year on year) |
| Sales volume | ：4,658 tons (up 13.9% year on year) |
Supply and demand trends in Southeast Asia and China
- Cheese consumption in Southeast Asia continued to grow.
The Company’s situation
- Demand remained strong, driven by local foodservice industry, bakeries, and processed food manufacturers, primarily in Malaysia, China, Vietnam, and Thailand.
- Sales of both processed cheese and natural cheese products remained strong.
- The cheese manufacturing and sales business in Asia continued to grow steadily, which cumulative third-quarter sales volume reaching a record high of 4,658 tons.
Topic
- Delivery of the new factory in Singapore was completed in September 2026. Since obtaining various certifications will take some time, full-scale commercial production is expected to begin in the fiscal year ending November 2027.
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.
