NIPPN Corporation (2001): FY2025 Results Summary — Record Sales and Operating Income, Net Income Down on Smaller Asset Sale Gains

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: NIPPN labels the fiscal year ended March 31, 2026 as “FY2026,” and this article keeps the company’s labels in the body text, tables and segment data; on this site the most recent completed fiscal year is classified as FY2025.

NIPPN CORPORATION’s consolidated results for FY2026 (the fiscal year ended March 31, 2026) reached a record high in terms of net sales, operating income and ordinary income, each posting increases for five consecutive terms. Net sales rose 1.8% year on year to 418,425 million yen and operating income rose 2.8% to 22,082 million yen, while profit attributable to owners of parent decreased 11.9% to 21,803 million yen due to a decline in gain on sale of fixed assets. For FY2027 the company expects consolidated net sales to increase for the sixth consecutive term and operating income before depreciation (EBITDA) to rise on growth in sales volume, even as operating income is projected to decline on higher costs and depreciation.

Consolidated Results (Full-Year Actual)

Net sales increased by 7.5 billion yen from the previous year, driven by the expansion of inbound demand, sales promotion utilizing enhanced marketing strategies, and price revisions implemented in response to rising costs. Operating income increased by 0.6 billion yen from the previous year due to steady sales growth, despite increases in various costs across each business, including personnel and logistics costs. Ordinary income increased based on factors such as higher operating income and an increase in dividend income and foreign exchange gains, while profit attributable to owners of parent decreased as extraordinary income fell by 6,261 million yen.

Item (Millions of yen)	FY2026 Results	FY2025 Results	YoY	YoY Change (%)
Net sales	418,425	410,878	7,546	1.8%
Gross profit	104,766	99,590	5,176	5.2%
Selling, general and administrative expenses	82,684	78,103	4,580	5.9%
Operating income	22,082	21,486	595	2.8%
Operating income before depreciation	33,412	32,381	1,031	3.2%
Ordinary income	24,874	24,393	481	2.0%
Extraordinary income	7,138	13,399	(6,261)	(46.7)%
Profit before income taxes	31,707	36,879	(5,172)	(14.0)%
Profit attributable to owners of parent	21,803	24,757	(2,953)	(11.9)%

Against the initial forecast for FY2026, net sales came in 5,574 million yen lower ((1.4)%), while operating income exceeded the forecast by 582 million yen (2.7%) and ordinary income by 374 million yen (1.5%). Cash flows from operating activities were 25,272 million yen, cash flows from investing activities were (27,088) million yen and cash flows from financing activities were 24,467 million yen, leaving cash and cash equivalents at end of period of 64,222 million yen.

Segment Results

In Flour Milling, although sales remained steady and the wheat flour shipment volume was higher than the previous year, net sales decreased due to the impact of the price revision for wheat flour following the reduction of the government selling price of foreign wheat; operating income nevertheless rose, driven by improved productivity and growth in sales volume. In Food, net sales of professional use foods increased on expanding inbound demand and steady overseas business, home use foods increased through marketing initiatives, and Nakashoku (ready-made meals) and deli increased on price revisions, but operating income decreased due to a rise in personnel and logistics costs and a decline in demand led by inflation. In Other, the Pet Care, Food Service and Engineering businesses all grew and segment operating income rose on increased sales volume.

Metric	Segment	FY2026 Results	FY2025 Results	YoY	YoY Change (%)
Net sales	Flour Milling	120,000	121,663	(1,663)	(1.4)%
Net sales	Food	243,694	238,353	5,340	2.2%
Net sales	Other	54,730	50,861	3,869	7.6%
Net sales	Total	418,425	410,878	7,546	1.8%
Operating income	Flour Milling	9,471	9,203	267	2.9%
Operating income	Food	9,065	9,283	(217)	(2.3)%
Operating income	Other, etc.	3,545	3,000	544	18.1%
Operating income	Total	22,082	21,486	595	2.8%

FY2027 Performance Forecasts

Net sales are expected to reach a record high of 430.0 billion yen, with sales projected to continue on a stable growth track. While operating income is expected to decrease primarily due to increases in various costs, including personnel, logistics and raw material costs, as well as an increased depreciation burden associated with the operation of the new mill, operating income before depreciation is projected to mark a record high of 33.7 billion yen mainly due to increased sales volume resulting from sales expansion. By segment, Flour Milling net sales are expected to remain at the same level as the previous year as unit selling prices are projected to be lower following the price revisions implemented during FY2026, while Food net sales are forecast to rise on higher sales volumes of premix products and frozen foods and further price revisions.

Item (Millions of yen)	FY2027 Forecast	FY2026 Results	YoY	YoY Change (%)
Net sales — Flour Milling	120,000	120,000	0	0%
Net sales — Food	254,000	243,694	10,306	4.2%
Net sales — Other	56,000	54,730	1,270	2.3%
Net sales — Total	430,000	418,425	11,575	2.8%
Operating income — Flour Milling	7,200	9,471	(2,271)	(24.0)%
Operating income — Food	8,800	9,065	(265)	(2.9)%
Operating income — Other, etc.	3,500	3,545	(45)	(1.3)%
Operating income — Total	19,500	22,082	(2,582)	(11.7)%
Operating income before depreciation	33,700	33,412	288	0.9%
Ordinary income	21,000	24,874	(3,874)	(15.6)%
Profit attributable to owners of parent	21,200	21,803	(603)	(2.8)%

Shareholder Returns

The dividend per share for FY2026 is planned to increase by 2 yen, from 66 yen to 68 yen, with the aim of strengthening shareholder returns in line with profit growth. The company also completed an acquisition of its own shares on March 24, 2026, purchasing 1,555,800 shares for a total of 3,999,814,261 yen through market purchase on Tokyo Stock Exchange, Inc. between November 25, 2025 and March 24, 2026; the buyback is stated to contribute to ROE improvement (0.05%). Shareholder returns against the FY2026 results total 9.6 billion yen — dividends of 5.6 billion yen at 68 yen per share plus 4.0 billion yen of own share acquisition — against consolidated profit (calculated excluding extraordinary and special gains and losses) of 17.0 billion yen, for a total payout ratio of 57%. NIPPN’s basic dividend policy is to maintain a stable and sustainable dividend with a target dividend payout ratio of 30% or more excluding extraordinary gains and losses, and to strive to improve the total payout ratio through flexible acquisition of own shares. Cross-shareholdings worth 5.9 billion yen were sold in FY2026, and the company aims to reduce cross-shareholdings to under 20% of consolidated net assets by the end of FY2027.

Item	FY2025	FY2026	FY2027 (Forecast)
Interim dividend	¥33	¥33	¥34
Year-end dividend	¥33	¥35	¥34
Annual dividend	¥66	¥68	¥68
Consolidated Dividend Payout Ratio	33.3%	33.5%	39.7%
Total Payout Ratio	33.3%	57.2%	39.7%

Medium-term Targets, Strategy and Financial Position

NIPPN formulated its Long-term Vision 2030 in May 2024 and at the same time upwardly revised the FY2023-2027 Medium-term Targets, since the original targets were achieved during FY2024. The FY2027 Medium-term Targets are net sales of 450.0 billion yen, operating income of 21.0 billion yen, operating income before depreciation of 35.8 billion yen, ROE of 8% or more and ROIC of 5% or more; the FY2031 Long-term Vision 2030 economic value targets are net sales of 500.0 billion yen and operating income of 25.0 billion yen. In FY2026, ROE was 10.6% before adjustment in FY2025 and 8.3% in FY2026 (6.6% and 6.4% respectively after adjustment, calculated excluding extraordinary and special gains and losses), with ROIC of 4.7% and 4.3%. Depreciation was 11,330 million yen in FY2026 against capital investment of 33,479 million yen, with FY2027 depreciation forecast at 14,200 million yen and capital investment at 37,000 million yen.

Operational highlights include the commencement of operation of the new Chita Mill in February 2026, which raised the share of coastal flour mills in the Flour Milling business from 83% to 95% and is the group’s first carbon-neutral mill powered by effectively 100% renewable energy through the use of non-fossil certificates. The new plant of Utah Flour Milling, LLC, in which NIPPN holds a 25% stake, commenced full-scale operation in September 2025, and the company is preparing for the commencement of operation of a new plant in Vietnam. In the priority Frozen Food Business, NIPPN targets net sales of 90.0 billion yen in FY2031 from 52.0 billion yen in FY2024, and in the Overseas Business it targets 60.0 billion yen in FY2031 from 20.0 billion yen in FY2024.

At the end of March 2026, total assets stood at 476,826 million yen (up 19.4% year on year), total liabilities at 186,949 million yen and total net assets at 289,877 million yen. On the balance sheet management slide the company shows total assets of ¥476.8 billion, a net D/E ratio of 0.03x and an equity ratio of 59.2%, and targets an equity ratio of 54% or higher and a net D/E ratio of 0.34 times or lower while maintaining its long-term issuer rating of A Flat (JCR).

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.