Consolidated operating results (cumulative)
| FY11/2024 | FY11/2025 |
YoY Change |
|
|---|---|---|---|
| Net sales | 170,907 million yen | 182,816 million yen | 7.0% |
| Ordinary profit | 4,320 million yen | 5,796 million yen | 34.1% |
| Foreign exchange impact on ordinary profit |
-71 million yen | -76 million yen | － |
|
Ordinary profit after |
4,392 million yen | 5,872 million yen | 33.7% |
| Profit attributable to owners of parent |
3,146 million yen | 4,317 million yen | 37.2% |
FY11/2025 (December 2024 to November 2025)
| Net sales | ：118,679 million yen (up 3.9% year on year) |
| Sales volume | ：165,501 tons (down 6.2% year on year) |
Supply and demand trends in Japan
- Price increases for final products led to a decline in overall food consumption. Consumption of dairy products also weakened due to price increases reflecting milk price revisions.
- Markets for products such as ice cream and protein continue to expand, resulting in strong demand for dairy-based ingredients.
- With feed prices stabilizing compared to the previous year and milk price revisions (for processed milk in June and drinking milk in August), dairy farmers have become more dairy farmers have become more willing to increase raw milk production. Raw milk production has been strong, mainly in Hokkaido.
The Company’s situation
- International prices for major dairy ingredients remained at high levels from the first half through mid-year, and the depreciation of the Japanese yen in the foreign exchange market created a challenging business environment for sales of imported ingredients.
- Demand for food products in general was lower than expected due to the impact of rising prices, resulting in a decline in sales volume for dairy ingredients compared to the previous fiscal year.
- On the other hand, the market for ice cream and high-protein products continued to expand, and sales volumes of related ingredients remained strong.
- Rising prices for cheese products have also affected our business, resulting in weak demand, particularly in the retail sector.
- Although sales volumes of dairy ingredients and cheese decreased, sales increased compared to the same period last year due to higher sales unit prices caused by rising raw material prices and the weak Japanese yen.
Topics
- Dairy-derived high-protein ingredients and fat-based dairy ingredients such as butter and cream are in high demand globally, and this trend is expected to continue into the next fiscal year and beyond.
- Domestic skim milk powder inventories are trending upward due to worsening a deteriorating supply-demand balance.
FY11/2025 (December 2024 to November 2025)
| Net sales | ：22,770 million yen (up 4.5% year on year) |
| Sales volume |
：32,794 tons (up 3.0% year on year) |
Supply and demand trends in Japan
- As prices rose, demand for pork and processed pork products including ham and sausage products was weak.
The Company’s situation
- The difference between domestic and global price of imported pork narrowed due to factors such as the international market price of imported pork, our core product, remaining at a high level and the depreciation of the Japanese yen in the foreign exchange market.
- Sales volume increased because of actively developing new supplier relationships and making proposals tailored to customer needs.
- Sales of chicken-related products increased year on year due to steady sales of existing customers and progress in developing new customers.
- As the agent in Japan for a long-established German spice manufacturer, we began offering spices, spice extracts, rock salt, and other products this fiscal year, and sales are progressing sales have been steady.
Topics
- Strengthen collaboration between the newly launched domestic distributor business (sales of spices, spice extracts, rock salt, etc.) and the existing business.
- Promote the development of new suppliers’ relationships to reduce production risks.
FY11/2025 (December 2024 to November 2025)
| Net sales | ：9,594 million yen (up 86.6% year on year) |
| Sales volume | ：7,073 tons (up 68.4% year on year) |
Supply and demand trends in Japan
- The domestic procurement prices of raw materials remained at high levels due to the increase in global demand for high-protein raw materials and the weakening of the Japanese yen in the foreign exchange market.
- Due to rising demand, the purchase prices of dairy-derived protein ingredients in Japan have risen sharply, with some users shifting some of their ingredients to plant-based alternatives.
The Company’s situation
- Leveraging our procurement capabilities, one of our strengths, we were able to provide a stable supply of high-protein ingredients, which resulted in higher sales volume and a significant increase in revenue.
- We also focused on expanding sales of plant-based high-protein ingredients, primarily soy protein.
- Our services tailored to customer needs, such as support in building supply chains, were well received, and we expanded our business with both existing and new customers.
Topics
- We focused on ingredient development to expand our offerings of beyond functional ingredients other than high-protein ingredients.
- To further expand sales, we will promote sales of raw materials and products in Southeast Asia.
FY11/2025 (December 2024 to November 2025)
| Net sales | ：22,819 million yen (up 5.7% year on year) |
| Sales volume | ：38,078 tons (down 4.2% year on year) |
Supply and demand trends in Southeast Asia and China
- While the impact of China's economic slowdown continues, demand for dairy products in Southeast Asian countries continues to expand.
- Import volumes of imported dairy ingredients are returning to pre-COVID levels.
The Company’s situation
- Ingredient sales in Southeast Asia remained strong, driven primarily by sales to Japanese food manufacturers.
- The recovery of the powdered milk mixtures business in Japan was delayed more than anticipated due to elevated domestic skim milk powder inventories.
- Although sales volumes of dairy ingredients decreased, sales increased compared to the same period last year due to higher sales unit prices driven by rising raw material prices and the weak Japanese yen.
Topic
- Demand for protein is growing in Southeast Asia, particularly among middle- and high-income consumers. In collaboration with the headquarters' Functional Food Ingredients Division（Name change effective December 2025：Life Science Business Division）, we have commenced sales of functional ingredients and products starting this fiscal period.
FY11/2025 (December 2024 to November 2025)
| Net sales | ：6,391 million yen (up 14.2% year on year) |
| Sales volume | ：5,640 tons (up 4.0% year on year) |
Supply and demand trends in Southeast Asia and China
- Cheese consumption continues to grow in the Southeast Asian region.
The Company’s situation
- Demand from local food service industries, bakeries, and processed food manufacturers is strong.
- Our commitment to quality and after-sales support has been well received, leading to steady sales growth. Sales volume increased compared to the previous fiscal year.
- To pass on the increased cost of raw materials, we conducted a series of sequential price revision negotiations. As a result, although sales volume fell short of our plan, the profit margin, sales volume, and revenue improved compared to the previous fiscal year.
Topics
- The new factory in Singapore is scheduled to begin full-scale operations during the fiscal year ending November 2026.
- For the next fiscal year, costs will be incurred upfront due to the parallel operation of both the new and existing factories.
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.
