Kagome (2811): FY2025 Results Summary — Profit Decline on Tomato Paste Market Downturn; New Mid-Term Plan Launched

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Kagome Co., Ltd. (Securities Code: 2811) reported consolidated results for FY2025 (fiscal year ended December 31, 2025). Revenue declined 4.1% year on year to 294.2 billion yen, as revenue of the International Business declined due to the downturn in the tomato paste market and other factors. Core operating income fell 16.2% to 22.6 billion yen, reflecting lower revenue from the International Business and the impact of one-off losses such as manufacturing process defects. Net income attributable to shareholders of parent dropped 40.8% to 14.8 billion yen, mainly due to the recoil from a one-off valuation gain of 9.3 billion yen recorded in the previous fiscal year from the consolidation of Ingomar of the United States. Alongside the results, the company announced its 2035 Vision and a new Mid-Term Management Plan, Kagome Group Plan 2028, under newly appointed President Harunobu Okuya.

Consolidated Results (Full-Year Actual)

Operating income declined 37.5% to 22.6 billion yen. Other income totaled 0.6 billion yen, a decrease of 9.4 billion yen from the previous fiscal year, due to the recoil from the one-off gain of 9.3 billion yen recognized in FY2024 from the consolidation of Ingomar. The effective tax rate was 24.0%, up 4.7 percentage points year on year but still below the usual level of around 30%, because of Ingomar’s tax return adjustments, among other factors. In the materials, amounts are rounded down to the nearest 0.1 billion yen.

Item (billion yen)	FY2025 Result	FY2024 Result	YoY Change	Change (%)
Revenue	294.2	306.8	-12.6	-4.1%
Core operating income	22.6	27.0	-4.4	-16.2%
Operating income	22.6	36.2	-13.5	-37.5%
Net income (attributable to shareholders of parent)	14.8	25.0	-10.2	-40.8%

Segment Results

The Domestic Processed Food Business posted revenue of 157.3 billion yen (up 1.0% year on year) and core operating income of 15.5 billion yen, roughly at the same level as the previous fiscal year. Tomato juice shipments reached record highs for the fourth consecutive year, leading the beverages category, while direct marketing revenue increased on steady sales of the direct-marketing-exclusive “Japanese Tomatoes juice” and soups. Core operating income remained flat as higher raw materials, packaging, and personnel costs were offset by cost-reduction initiatives in manufacturing and more efficient use of advertising expenses. The International Business reported revenue of 129.8 billion yen (down 13.0%) and core operating income of 9.2 billion yen (down 33.4%), due to lowered selling prices caused by the downturn in the global tomato paste market, softer sales to some existing customers, and one-off losses caused by manufacturing process defects and other factors.

Segment (billion yen)	Revenue FY2025	Revenue FY2024	Core operating income FY2025	Core operating income FY2024
Domestic Processed Food Business total	157.3	155.7	15.5	15.5
— Beverages	84.1	82.7	8.6	9.1
— Direct marketing	13.9	13.3	0.9	0.2
— Food – Other	59.1	59.6	5.9	6.2
International Business total	129.8	149.3	9.2	13.9
— Tomato and other primary processing	69.6	82.2	5.3	8.3
— Tomato and other secondary processing	63.6	70.5	4.4	7.0
Others/Adjustments	7.1	1.8	-2.0	-2.4
Total	294.2	306.8	22.6	27.0

FY2026 Forecast

For FY2026, the first year of the new Mid-Term Management Plan, Kagome forecasts revenue of 310 billion yen (up 5.3% year on year) and core operating income of 23 billion yen (up 1.3%). Net income is set to decline 9.5% to 13.4 billion yen, because the effective tax rate in FY2025 was lower than usual as a result of Ingomar’s tax return adjustments and other factors. By segment, the Domestic Processed Food Business is expected to increase both revenue and core operating income on price revisions for consumer use and institutional and industrial use beverages implemented from February 2026. In the International Business, tomato and other primary processing is forecast to see higher revenue on increased sales volume despite the downturn in tomato paste prices, while its core operating income is set to decline due to weaker profit margins. The forecast includes the impact of Silbury, a UK food wholesaler made a consolidated subsidiary in January 2026 (sales +2.6 billion yen and core operating income +0.1 billion yen in primary processing; sales +5.6 billion yen and core operating income +0.4 billion yen in secondary processing). Note that starting in FY2026 the segment classification for Vegitaria was changed from the International Business to the Domestic Processed Food Business, and FY2025 segment figures in the forecast table below have been restated to conform with the new classification.

Item (billion yen)	FY2026 Forecast	FY2025 (Actual)	YoY Change	Change (%)
Revenue	310.0	294.2	+15.8	+5.3%
Core operating income	23.0	22.6	+0.4	+1.3%
Operating income	23.0	22.6	+0.4	+1.6%
Net income (attributable to shareholders of parent)	13.4	14.8	-1.4	-9.5%
EPS (yen)	147.47	161.42	-13.95	-8.6%

Segment (billion yen)	Revenue FY2026 Forecast	Revenue FY2025 (restated)	Core operating income FY2026 Forecast	Core operating income FY2025 (restated)
Domestic Processed Food Business total	161.0	158.0	16.0	15.6
International Business total	139.0	127.4	9.0	9.1
— Tomato and other primary processing	69.0	67.2	4.0	5.2
— Tomato and other secondary processing	73.0	63.6	5.5	4.4
Others/Adjustments	10.0	8.8	-2.0	-2.0
Total	310.0	294.2	23.0	22.6

Shareholder Returns

Under the new Mid-Term Management Plan, Kagome will raise its total return ratio from 40% to 50% and introduce a progressive dividend policy, enhancing shareholder returns through stable dividends and share buybacks. The annual dividend per share was 48 yen for FY2025, and the dividend forecast for FY2026 is 58 yen per share, an increase of 10 yen. For reference, the total return ratio over the previous mid-term period was 41.3%. The cash allocation plan for Kagome Group Plan 2028 assumes cash flow from operating activities of approximately 73.0 billion yen as a source of funds, with approximately 23.0 billion yen allocated to shareholder returns, approximately 50.0 billion yen to investment in organic growth, and a strategic investment allocation of around 50.0 billion yen funded partly by interest-bearing debt.

Medium-Term Plan: Kagome Group Plan 2028 and 2035 Vision

Kagome announced a new Mid-Term Management Plan, Kagome Group Plan 2028, covering 2026 to 2028, with the theme of evolving the concept of a value chain founded in agriculture and building competitive advantages domestically and internationally. Quantitative targets for FY2028 are revenue of 325.0 billion yen, core operating income of 27.0 billion yen, and ROE of 9% or higher (versus 7.9% in FY2025), supported by a budget for growth investments of around 50.0 billion yen. Under the plan, the company targets a core operating income margin of approximately 10% in the Domestic Processed Food Business, approximately 8% in international tomato and other primary processing, and, in tomato and other secondary processing, revenue CAGR of approximately 8% with a core operating income margin of approximately 9% by 2028. The company also unveiled its 2035 Vision, with the level it aims for in 2035 set at revenue of 500 billion yen, core operating income of 50 billion yen, and ROE of 12% or higher, driven by two concepts: expanding food and agriculture well-being services and pioneering an Earth-positive tomato business.

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