Nippon Beet Sugar Manufacturing (2108): FY2025 Results Summary — Net Income Up 86.1% on Share Sales, Dividend Raised to 160 Yen

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

Note: Nippon Beet Sugar Manufacturing does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company refers to this period as the fiscal year ended March 31, 2026, which this site classifies as FY2025; the labels used in the text and tables below follow the source materials. Amounts in the tables are in millions of yen unless otherwise noted.

For the fiscal year ended March 31, 2026, Nippon Beet Sugar Manufacturing posted net sales of 68,696 million yen (up 6.0% year on year), operating profit of 52 million yen (down 90.2%), ordinary profit of 758 million yen (down 32.5%), and net income of 5,032 million yen (up 86.1%). Operating profit declined on the impact of lower selling prices in the sugar business in the second half, while net income increased as the company proceeded with sales of cross-shareholdings. The company plans to raise the dividend per share to 160 yen, consisting of an ordinary dividend of 80 yen plus a special dividend of 80 yen.

Consolidated Results (Full Year Actual)

Net sales rose 6.0% to 68,696 million yen, but operating profit came to 52 million yen, down 90.2% year on year, and ordinary profit stopped at 758 million yen, down 32.5%. On the other hand, extraordinary income and losses expanded from 2,827 million yen to 6,301 million yen, so net income was 5,032 million yen, up 86.1% year on year.

Item	FY ended March 2026	FY ended March 2025	Change	Change (%)
Net sales	68,696	64,796	3,900	6.0%
Operating profit	52	535	▲483	▲90.2%
Ordinary profit	758	1,124	▲365	▲32.5%
Extraordinary income and losses	6,301	2,827	3,473	122.9%
Net income	5,032	2,703	2,328	86.1%

Segment Results

By business, the sugar business recorded net sales of 46,694 million yen (up 8.9% year on year), but its operating loss widened to 2,557 million yen (a loss of 1,598 million yen in the previous fiscal year) on the impact of lower selling prices caused by the decline in overseas raw sugar prices from the second half onward. The food business posted net sales of 2,801 million yen (up 3.7%) and operating profit of 171 million yen (down 22.6%), affected by factors such as higher unit fuel costs for yeast. The feed business posted net sales of 12,744 million yen (down 0.9%), while operating profit rose to 1,363 million yen (up 11.7%) on lower raw material prices and other factors. The agricultural materials business posted net sales of 3,987 million yen (up 1.5%) and operating profit of 270 million yen (a loss of 50 million yen in the previous fiscal year), returning to profit. The real estate business posted net sales of 1,166 million yen (down 5.4%) and operating profit of 594 million yen (down 1.3%), as occupancy rates at some rental properties fell and tenant income declined following the sale of the head office building. Other businesses (freight transportation, petroleum product sales, etc.) posted net sales of 1,300 million yen (up 10.4%) and operating profit of 209 million yen (up 50.2%) on an increase in freight transportation.

Business	Net sales (current FY)	Net sales (previous FY)	Operating profit (current FY)	Operating profit (previous FY)
Sugar business	46,694	42,897	▲2,557	▲1,598
Food business	2,801	2,700	171	221
Feed business	12,744	12,858	1,363	1,221
Agricultural materials business	3,987	3,928	270	▲50
Real estate business	1,166	1,233	594	602
Other businesses, etc.	1,300	1,177	209	139

Full-Year Forecast

For the fiscal year ending March 31, 2027, the company plans net sales of 69,000 million yen (up 0.4% year on year), operating profit of 1,300 million yen (an increase of 1,247 million yen), and ordinary profit of 1,800 million yen (up 137.2%). Operating profit is expected to increase on an anticipated recovery in the sugar business, but net income is planned at 1,200 million yen (down 76.2%) in reaction to the extraordinary gains from sales of cross-shareholdings. Energy costs and transportation costs are expected to remain at high levels, but the company says it will work to further reduce costs and secure profits. The plan does not incorporate the impact of the situation in the Middle East on manufacturing costs, as that impact is unclear.

Item	FY ending March 2027 (Plan)	FY ended March 2026 (Actual)	Change	Change (%)
Net sales	69,000	68,696	303	0.4%
Operating profit	1,300	52	1,247	－
Ordinary profit	1,800	758	1,041	137.2%
Extraordinary income and losses	－	6,301	▲6,301	－
Net income	1,200	5,032	▲3,832	▲76.2%

Shareholder Returns

On shareholder returns, the company plans a dividend per share for the fiscal year ended March 31, 2026 of 160 yen, an ordinary dividend of 80 yen plus a special dividend of 80 yen. It also changed its dividend policy from the previous “dividend per share of 80 yen or more” to “DOE of 4.0% as a guide,” with the aim of controlling shareholders’ equity to improve capital efficiency. Share buybacks in the fiscal year ended March 31, 2026 amounted to 1,002 million yen, and the company says it will continue to consider flexible share repurchases. On cross-shareholdings, its policy is to reduce them to 20% of consolidated net assets by the fiscal year ending March 31, 2028; in the fiscal year ended March 31, 2026 it sold six issues (four of them partially), recording sale proceeds of 8,000 million yen and gains on sale of 6,900 million yen.

Category	FY ended March 2025	FY ended March 2026
Ordinary dividend	50 yen	80 yen
Special dividend	30 yen	80 yen
Total dividend	80 yen	160 yen

Medium-Term Management Plan / Topics

Under the Second Medium-Term Management Plan, the company targets operating profit of 3,000 million yen and ROE of 5% or more (aiming for 8% or more over the medium to long term) for the fiscal year ending March 31, 2028, the final year of the plan, and there was no change to these targets as of the May 2026 announcement. Actual results for the fiscal year ended March 31, 2026 were ROE of 6.7% and operating profit of 52 million yen. ROE has improved from 2.9% in the fiscal year ended March 31, 2022 to 6.7% in the fiscal year ended March 31, 2026, and PBR from 0.32 times to 0.64 times, but the company says continued efforts are needed to achieve management that is conscious of the cost of capital and the share price. In addition, the company plans to change its trade name from Nippon Beet Sugar Manufacturing Co., Ltd. to Nitten Co., Ltd. effective October 1, 2026, aiming to make the leap from the “beet sugar business” to the “beet industry.”

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.