Kyokuyo Co., Ltd. (1301): FY2025 Results Summary — Record Net Sales on Marine Products Growth, Profits Slip

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Kyokuyo Co., Ltd. posted net sales of 334,612 million yen for FY2025 (the fiscal year ended March 31, 2026), up 31,931 million yen or 10.5% year on year. According to the company’s presentation, net sales and profit attributable to owners of parent hit all-time highs, while operating profit and ordinary profit continued to exceed 10 billion yen. Operating profit declined 3.1% to 10,731 million yen and ordinary profit fell 7.6% to 10,031 million yen, but profit attributable to owners of parent rose 1.5% to 6,841 million yen. The company attributes the top-line growth mainly to stronger domestic sales in the Marine Products Business, while profits were held back by higher production costs, including raw-material price hikes, and sluggish performance in overseas operations.

Consolidated Results (Full-Year Actual)

Net sales achieved the full-year forecast at 101.4% of plan, driven by stronger domestic sales in the marine products segment. Operating profit and ordinary profit fell short of the forecast, at 97.6% and 97.4% respectively, owing to higher production costs, including raw-material price hikes, and sluggish performance in overseas operations. Profit attributable to owners of parent came in at 102.1% of the full-year forecast. The forecast used for comparison is the one disclosed in the “Notice Concerning Revisions to Full-Year Financial Results Forecasts” released on the Tokyo Stock Exchange on 6 February 2026.

Item (Millions of yen)	FY2025	FY2024	Change	Change ratio	Forecast for FY2025	Versus the full-year forecast
Net sales	334,612	302,681	31,931	10.5%	330,000	101.4%
Operating profit	10,731	11,079	-347	-3.1%	11,100	97.6%
Ordinary profit	10,031	10,857	-826	-7.6%	10,300	97.4%
Profit attributable to owners of parent	6,841	6,740	101	1.5%	6,700	102.1%

On a five-year view the presentation notes that, driven by ongoing profit-improvement efforts, operating profit has recorded a 14.2% CAGR over the past five fiscal years, about twice the growth rate of net sales. Total assets stood at 214,128 million yen at 31 March 2026 against 182,125 million yen a year earlier, an increase of 32,002 million yen, mainly reflecting a rise in inventories of raw materials and finished goods. Net assets rose to 78,868 million yen from 68,355 million yen, fueled by the build-up of shareholders’ equity from this period’s profit. The equity ratio was 36.1%, the D/E ratio 1.2, ROE 9.5% and ROA 5.1%. Cash flows from operating activities were negative at -745 million yen, mainly because inventories expanded, with the shortfall met through short-term borrowings including commercial paper.

Segment Results

The Marine Products Business, the largest segment at 58.3% of net sales, saw sales up but profit down: net sales rose 26,371 million yen to 195,039 million yen while segment profit fell 359 million yen to 5,750 million yen. Domestic sales were pressured as rising prices weakened consumer sentiment and reduced sales volumes of salmon and other key items, though sales efforts in alternative fish species, fish roe, crabs, scallops, mackerel and northern ocean fishes helped. In the Overseas Business, exports of scallop products, mackerel and sardines increased, and overseas in-market sales expanded the business scale, but profit fell short of plan. For the segment as a whole the presentation shows net sales up 15.6% year on year and profit down 5.9%.

The Freshfoods Business grew both sales and profit, up 8.9% and 6.7% respectively, led by frozen bluefin tuna, yellowfin tuna and southern bluefin tuna and processed products, aquaculture using group-raised domestic farmed tuna, and expanded sushi and sashimi distribution to conveyor-belt sushi chains and mass retailers. The Processed Food Business recorded sales down 0.6% but profit up 3.6%, with canned products such as mackerel, tuna and saury lifting both sales and profit while frozen foods for home-use declined on higher seafood raw-material prices and increased production and selling costs. The Logistics Business grew sales 4.2% and profit 18.0% on higher inbound volume, increased cargo turnover and price revisions.

Segment (Millions of yen)	Net sales FY2025	Net sales FY2024	Net sales Y-o-Y	Segment profit FY2025	Segment profit FY2024	Segment profit Y-o-Y
Marine Products Business	195,039	168,668	26,371	5,750	6,109	-359
Freshfoods Business	71,725	65,850	5,875	3,856	3,615	241
Processed Food Business	65,528	65,940	-412	2,534	2,446	87
Logistics Business	1,737	1,667	70	347	294	52
Other	581	554	27	-1,756	-1,386	-370
Total	334,612	302,681	31,931	10,731	11,079	-348

Overseas net sales reached 54.7 billion yen in FY2025, an overseas net sales ratio of 16.4%, versus 32.5 billion yen (10.8%) in FY2024 and 21.8 billion yen (8.3%) in FY2023. The medium-term business plan target shown alongside is an overseas net sales ratio of 15% or more (60 bn yen). During the year the company reorganized its export business in October 2025, transferring export sales operations from the Overseas Business Department to each product-specific domestic sales department, and in September 2025 acquired Engelsviken Canning Denmark A/S, a seafood processing and sales company with production and sales hubs across the Nordic region, now a consolidated subsidiary.

FY2026 Forecast

For FY2026 the company forecasts net sales of 365.0 bn yen, operating profit of 12.0 bn yen and ordinary profit of 11.0 bn yen. These sit below the medium-term business plan targets for FY2026 of 400.0 bn yen in net sales and 13.5 bn yen for both operating profit and ordinary profit. The capital investment plan for FY2026 totals 4.1 bn yen, comprising 1.2 bn yen at Kyokuyo and 2.9 bn yen at affiliated companies, including 0.4 bn yen for systems implementation under the advancement of DX; this figure does not include overseas M&A deals. FY2025 capital investment results totalled 3.0 bn yen, and depreciation was 3,034 million yen against 2,624 million yen in FY2024.

Item	FY2023 Results	FY2024 Results	FY2025 Results	FY2026 Consolidated Performance Forecast	Medium-term Business Plan Targets (FY2026)
Net sales	261.6 bn yen	302.6 bn yen	334.6 bn yen	365.0 bn yen	400.0 bn yen
Operating profit	8.8 bn yen	11.0 bn yen	10.7 bn yen	12.0 bn yen	13.5 bn yen
Ordinary profit	8.8 bn yen	10.8 bn yen	10.0 bn yen	11.0 bn yen	13.5 bn yen

A new Processed Marine Products segment will be launched in FY2026, covering fish cuts and fillets previously in the Marine Products Business segment plus the “Dandori Jozu” series previously in the Processed Food Business segment. On the new basis the company forecasts the following segment breakdown.

Segment (Millions of yen)	FY2026 Forecast Net Sales	FY2026 Forecast Segment Income
Marine Products Business	186,600	6,000
Processed Marine Products	28,500	1,000
Freshfoods Business	84,500	4,400
Processed Food Business	63,000	2,300
Logistics Business	1,800	350
Other	600	-2,050
Total	365,000	12,000

Shareholder Returns

The company states that it considers proper returns of profits to shareholders to be one of the key points in its business management. In addition to greater retained earnings to strengthen its corporate organization and lay the groundwork for future business expansion, it also aims to continue paying a steady dividend while raising the level of its dividend through medium to long-term profit growth. The dividend per share for FY2025 is planned at 150 yen, a payout ratio of 26.0% and DOE of 2.5%, up from 130 yen for FY2024. The forecast for FY2026 is 160 yen, a payout ratio of 26.4%.

Fiscal year	Dividend per share	Dividend payout ratio	DOE
FY2021	90 yen	20.9%	2.3%
FY2022	100 yen (Ordinary dividend 90 yen / Commemorative dividend 10 yen)	18.5%	2.4%
FY2023	100 yen	18.2%	2.2%
FY2024	130 yen	22.9%	2.5%
FY2025 plan	150 yen	26.0%	2.5%
Forecast for FY2026	160 yen	26.4%	―

The company also operates a shareholder gift programme awarded in July every year. Shareholders listed on the registry as of March 31 each year who own between at least one unit of shares (100 shares) and less than three units (300 shares) receive 2,500 yen worth of the company’s products; those who own three units (300 shares) or more receive 6,000 yen worth of products.

Medium-Term Plan and Topics

Progress on the priority measures of the medium-term business plan spans globalization, expansion of the business base and human resources. Alongside the export business reorganization and the Nordic acquisition, the company completed a dedicated Neribushi plant in April 2025 to enhance business profitability and step up initiatives for more efficient use of resources, announced Spring 2026 new products in February 2026 focused on products that make it simple to enjoy the flavor and health benefits of fish, and began airing a second corporate commercial featuring its own employees in April 2026. On human resources, a no-smoking rule during working hours was introduced in October 2025, and from April 2026 the average monthly wage for union members was raised by 14,000 yen with the starting salary lifted to 315,500 yen.

The FY2026 roadmap sets out segment-level measures: securing stable seafood supply through stronger supplier relationships and selective equity stakes in the Marine Products Business; scaling up production of fish fillets in the “Dandori Jozu” series in the new Processed Marine Products segment; leveraging the fully integrated value chain and promoting short-cycle aquaculture in the Freshfoods Business; securing profits through low-cost operations and focusing on Home Meal Replacement and in-home consumption markets in the Processed Food Business; and proposing integrated “storage + delivery” service packages in the Logistics Business.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.