Nichirei (2871): FY2025 Results Summary — Record Net Profit and a Move to a December Fiscal Year-End

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

Nichirei Corporation reported consolidated net sales of ¥716.1 billion for FY2025 (up 2% year on year) and operating profit of ¥39.0 billion (up 2%), while profit attributable to owners of parent rose 11% to ¥27.3 billion, marking a new record high due to the sale of cross-shareholdings and other factors. Operating profit came in ¥0.5 billion below the company’s previous plan of ¥39.5 billion. Nichirei also announced that it will change its fiscal year-end from March 31 to December 31, making FY2026 an irregular nine-month accounting period (April to December 2026) in Japan. In Nichirei’s presentation, FY2025 covers April 2025 to March 2026 for Japan and January to December 2025 for overseas operations.

Consolidated Results (Full-Year Actual)

Net sales increased ¥14.1 billion year on year to ¥716.1 billion, exceeding the previous plan of ¥700.0 billion by ¥16.1 billion. Overseas sales grew 5% to ¥173.8 billion. Operating profit rose ¥0.7 billion to ¥39.0 billion (operating margin 5.4%), as the Temperature-controlled Logistics Business covered profit declines in the Foods Business and Others; the shortfall versus the previous plan was mainly due to a one-time negative earnings impact overseas in the Temperature-controlled Logistics Business. EPS was ¥109.1 (up 12%), EBITDA was ¥61.1 billion (down 2%), ROIC was 7.3% and ROE was 10.0%. The company notes that a change in depreciation method and other factors contributed ¥3.8 billion to FY2025 results (¥1.4 billion in Foods, ¥2.4 billion in Temperature-controlled Logistics). Average exchange rates for the January–December period were ¥149.71 to the U.S. dollar and ¥169.00 to the euro.

Item (Billions of yen)	FY2025 Results	YoY Variance	YoY % Change	Previous Plan	vs. Plan
Net Sales	716.1	14.1	2%	700.0	16.1
Overseas Sales	173.8	8.0	5%	172.3	1.5
Operating Profit	39.0	0.7	2%	39.5	-0.5
Ordinary Profit	40.1	0.3	1%	40.3	-0.2
Profit Attributable to Owners of Parent	27.3	2.5	11%	28.0	-0.7
EPS (yen)	109.1	11.8	12%	111.7	-2.6
EBITDA	61.1	-1.5	-2%	61.5	-0.4
ROIC (%)	7.3%	-0.1pt	–	7.6%	-0.3pt
ROE (%)	10.0%	0.4pt	–	10% or higher	0pt

Segment Results

In the Foods Business, net sales fell 2% to ¥426.7 billion and operating profit declined ¥1.4 billion to ¥19.9 billion. Within Foods, the Processed Foods Business grew net sales 7% to ¥334.2 billion, but operating profit decreased ¥0.9 billion due to unexpected cost increases despite price revisions and the launch of balanced pricing products; Marine Products sales dropped 15% and Meat and Poultry sales fell 25% on systematic reduction of low-profitability products. The Temperature-controlled Logistics Business increased net sales 8% to ¥301.0 billion, with operating profit up ¥2.8 billion to ¥18.6 billion on steady capture of domestic storage and transportation demand, smooth expansion of the retail business, and changes in depreciation method — although it fell ¥1.2 billion short of the previous plan due to a delayed start-up of a new warehouse in Poland and one-time costs associated with M&A in Southeast Asia.

Segment (Billions of yen)	Net Sales FY2025	Net Sales YoY	Operating Profit FY2025	Operating Profit YoY
Foods	426.7	-7.2 (-2%)	19.9	-1.4 (-7%)
(Processed Foods)	334.2	22.6 (7%)	17.9	-0.9 (-5%)
(Marine Products)	50.1	-8.5 (-15%)	1.4	-0.0 (-2%)
(Meat and Poultry)	50.9	-16.5 (-25%)	0.6	-0.5 (-46%)
Temperature-controlled Logistics	301.0	22.7 (8%)	18.6	2.8 (18%)
Real Estate	5.0	-0.2 (-4%)	1.9	-0.0 (-0%)
Others	5.3	-1.2 (-19%)	0.5	-0.6 (-57%)
Total (after Adjustment)	716.1	14.1 (2%)	39.0	0.7 (2%)

FY2026 Plan and Change in Fiscal Year-End

Nichirei is changing its fiscal year-end from March 31 to December 31 to strengthen its global management base and improve management transparency. As a result, FY2026 will be an irregular accounting period covering April to December 2026 (nine months) in Japan and January to December 2026 (twelve months) overseas. On this irregular-period basis, the company plans net sales of ¥609.4 billion (up 5% year on year), operating profit of ¥33.8 billion (up 4%), and profit attributable to owners of parent of ¥25.2 billion (up 9%), driven by growth in the Temperature-controlled Logistics Business while the Foods Business focuses on securing profit equivalent to the previous fiscal year amid continued cost increases. On a reference basis converted to twelve months for Japan, FY2026 figures are net sales of ¥743.1 billion, operating profit of ¥40.4 billion, and profit attributable to owners of parent of ¥29.0 billion. Exchange-rate assumptions are ¥157.00 per U.S. dollar and ¥184.00 per euro. The plan does not yet reflect an estimated ¥6 to 7 billion of cost increases for electricity, gas, packaging materials and other items related to the situation in the Middle East, for which countermeasures including possible price revisions are being considered. Effective April 2026, the former Processed Foods Business and Marine, Meat and Poultry Products Business are integrated and disclosed as the Foods Business.

Item (Billions of yen)	FY2026 Plan (9-month period in Japan)	YoY Variance	YoY % Change
Net Sales	609.4	26.9	5%
(Overseas Sales)	194.8	22.1	13%
Foods Net Sales	343.1	1.8	1%
Temperature-controlled Logistics Net Sales	272.2	22.1	9%
Operating Profit	33.8	1.4	4%
Ordinary Profit	34.7	1.3	4%
Profit Attributable to Owners of Parent	25.2	2.1	9%
EPS (yen)	100.6	8.6	–
EBITDA	54.7	4.3	8%

Medium-Term Business Plan Update

Nichirei revised the financial targets of its Medium-term Business Plan “Compass × Growth 2027” in response to major changes in the business environment. The group-wide operating profit target for FY2027 was lowered from ¥56.0 billion to ¥45.2 billion, and the net sales target from ¥800.0 billion to ¥777.3 billion. The Foods Business operating profit target was cut by ¥6.7 billion to ¥22.0 billion, reflecting difficulty in covering cost increases within the plan period, while the Temperature-controlled Logistics net sales target was raised by ¥28.0 billion to ¥340.0 billion on overseas growth through capital investment and M&A. The profit attributable to owners of parent target was revised from ¥38.0 billion to ¥32.0 billion, with EPS of ¥127.7 and EBITDA of ¥71.2 billion. Targets of ROIC of 8% or higher and ROE of 10% or higher are unchanged. Under the revised cash allocation, capital expenditures over the three-year plan total ¥139.4 billion (initial plan: ¥127.0 billion), dividends total ¥36.5 billion or more, and M&A and other growth strategic investments remain at ¥30 to 50 billion.

Item (Billions of yen)	FY2025 Results	FY2027 Revised Targets	Change from Initial Targets
Net Sales	716.1	777.3	-22.7
Foods Net Sales	426.7	447.5	2.5
Temperature-controlled Logistics Net Sales	301.0	340.0	28.0
Operating Profit	39.0	45.2	-10.8
Foods Operating Profit	19.9	22.0	-6.7
Temperature-controlled Logistics Operating Profit	18.6	22.6	–
Profit Attributable to Owners of Parent	27.3	32.0	-6.0
EPS (yen)	109.1	127.7	-24.0
EBITDA	61.1	71.2	-12.4
ROIC (%)	7.3%	8% or higher	–
ROE (%)	10.0%	10% or higher	–

Shareholder Returns

Nichirei’s dividend policy is a stable dividend increase based on a progressive dividend with a lower limit of DOE of 4.0%, with treasury stock acquisitions implemented flexibly based on a comprehensive assessment of financial standing and free cash flow prospects. Dividends per share were ¥47 for FY2025, and the FY2026 forecast is ¥50, representing a dividend increase for the 11th consecutive term. The company conducted a 2-for-1 stock split of common shares on April 1, 2025; per-share figures are shown on a post-split basis, and the actual annual dividend for FY2024 before the split was ¥92 (ordinary dividend of ¥82 and special dividend of ¥10). Under the previous plan “Compass Rose 2024,” dividends paid totaled ¥24.6 billion and treasury stock purchases ¥15.0 billion, for a total return ratio of 56%; under “Compass × Growth 2027,” dividends are planned at ¥36.5 billion or more.

New Management Policy

The presentation includes a review of the structure under former President Okushi (FY2019 to FY2025): net sales grew from ¥580.1 billion to ¥716.1 billion, operating profit from ¥29.5 billion to ¥39.0 billion, and market capitalization from ¥363.6 billion to ¥493.6 billion, while the overseas sales ratio rose from 13.6% to 24.3%. The new president identified five key management issues — redefining top management objectives, building a business portfolio strategy, identifying growth drivers, a shift in fighting style, and defining strengths to be honed and value to be provided — and plans to refine responses through dialogue with capital markets, presenting answers by early next year. The company also states that although it has achieved steady growth in both sales and profit, capital efficiency remains in the process of improvement.

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.