Consolidated operating results (cumulative)
| H1 FY11/2025 | H1 FY11/2026 |
YoY Change |
|
|---|---|---|---|
| Net sales | 95,293 million yen | 97,866 million yen | 2.7% |
| Ordinary profit | 3,832 million yen | 2,475 million yen | -35.4% |
| Profit attributable to owners of parent |
2,797 million yen | 1,748 million yen | -37.5% |
H1 FY11/2026 (December 2025 to May 2026)
| Net sales | ：62,693 million yen (up 0.0% year on year) |
| Sales volume |
：81,952 tons (down 5.6% year on year) |
Supply and demand trends in Japan
- Amid mounting inflationary pressures, consumer spending trends showed signs of slowing.
- The trends toward food price adjustments continued.
- In the domestic dairy industry, sluggish demand for dairy products particularly for drinking milk has led to a slackening in the supply-and-demand balance for raw milk, resulting in an increase in domestic skim milk powder inventories.
The Company’s situation
- Although international prices for major dairy ingredients entered a correction phase starting in the second half of 2025, procurement prices remained at high levels due to the continued weakening of the yen. The business environment for sales of imported ingredients remains challenging.
- In dairy ingredients sales, demand for food products in general remained sluggish due to rising prices, and sales volume decreased year on year.
- Sales volume of butter increased year on year as the company continued to source raw materials from price-competitive regions. Sales of raw materials for ice cream and high-protein products also remained strong.
- Cheese sales have been affected by sluggish demand due to price adjustments, and domestic cheese imports are on a downward trend. As a result, although our sales volume of cheese decreased year on year, sales remained firm because we were able to secure competitively priced raw materials by leveraging our procurement capabilities.
- Thanks to higher unit sales prices resulting from the weak yen, this division's net sales remained on par with the same period last year.
Topics
- As domestic supply and demand for raw milk have eased and inventories of domestically produced skim milk powder are on the rise, measures aimed at balancing supply and demand will continue to be implemented in FY2026.
- 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,” a substance expected to serve as a new protein source and strengthened our partnership with it.
H1 FY11/2026 (December 2025 to May 2026)
| Net sales |
：11,893 million yen (up 2.9% year on year) |
| Sales volume |
：16,713 tons (up 3.3% year on year) |
Supply and demand trends in Japan
- Sales of processed meat products, such as ham and sausage, remained sluggish due to price adjustment, and demand for pork for processing has been somewhat weak.
The Company’s situation
- Although sales volume of chilled pork decreased year on year, sales of frozen pork remained strong.
- Although sales of Spanish pork and dry-cured ham declined following the suspension of imports from Spain, sales volume of frozen pork increased because the company was able to maintain its supply system by securing alternative sources, and because inquiries from new customers seeking alternative suppliers rose.
- Sales of processed foods including chicken products, as well as spices and spice extracts, which we began carrying in the previous fiscal year, expanded steadily.
Topic
- Following the suspension of imports of Spanish pork, inquiries from customers seeking alternative suppliers have increased, leading to the development of new sales channels. This is a prime example of how securing multiple suppliers in normal times has enabled the company to gain a competitive advantage in terms of stable supply.
H1 FY11/2026 (December 2025 to May 2026)
| Net sales | ：6,316 million yen (up 67.1% year on year) |
| Sales volume |
：4,273 tons (up 40.4% 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 weakening of the yen, 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
- We maintained a stable supply system by leveraging our procurement capabilities, while promoting proposals and responses tailored to our business partners’ needs, resulting in increased sales of plant-based products, primarily soy protein.
- A business model that provides comprehensive support ranging from raw material procurement to contract manufacturing of finished products, has become firmly established, and the company has expanded its 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 working to expand sales of Japanese matcha.
H1 FY11/2026 (December 2025 to May 2026)
| Net sales | ：11,854 million yen (down 4.5% year on year) |
| Sales volume |
：18,943 tons (down 8.4% 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
- Sales of locally sourced ingredients in Southeast Asia, primarily to Japanese food manufacturers, remained steady.
- Although the recovery of the powdered milk mixtures business for the Japanese market was delayed due to an increase in skim milk powder inventories in Japan, sales for the current interim period remained steady as we supplied raw materials in accordance with our customers’ production schedules.
Topic
- For products in high demand, such as Japanese matcha and raw materials for supplements, we will work in collaboration with the Life Sciences Business Division to promote sales of related products.
H1 FY11/2026 (December 2025 to May 2026)
| Net sales | ：3,851 million yen (up 22.6% year on year) |
| Sales volume | ：3,143 tons (up 11.2% 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, primarily from the local foodservice industry, bakeries, and processed food manufacturers.
- Sales of both processed cheese and natural cheese products remained strong.
- In Malaysia in particular, demand for processed foods rose against the backdrop of government cash handouts to citizens as part of household support measures, and sales of the related ingredients (cheese) manufactured by our company remained strong.
Topic
- Due to delays in the construction process, the start of operations at the new factory in Singapore has been postponed, and production is now scheduled to begin during in the second half of FY2026. Since obtaining the necessary 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.
