FUJICCO Co., Ltd. (2908): FY2025 Results Summary — Profit Up 50.1% on Cost Control Despite Lower Sales

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

FUJICCO Co., Ltd. reported net sales of 55,534 million yen for the fiscal year ended March 31, 2026, down 1,542 million yen or 2.7% year on year, while operating profit rose 335 million yen or 29.7% to 1,466 million yen. Ordinary profit increased 22.2% to 1,900 million yen and profit attributable to owners of parent rose 50.1% to 1,428 million yen. The company states that the curb on fixed SG&A expenses through structural transformation and ROI-focused advertising proved successful, absorbing the impact of lower sales and resulting in an increase in operating profit. Basic earnings per share was 50.18 yen.

Note on year labels: the company labels the fiscal year ended March 31, 2026 as “FY3/2026” and the following year as “FY3/2027”; this site classifies the most recent completed fiscal year as FY2025, and the labels used in the text, tables and segment data below follow the source materials.

Consolidated Results (Full-Year Actual)

Cost of sales was 39,749 million yen, or 71.6% of net sales, against 71.1% a year earlier, and gross profit fell 701 million yen to 15,785 million yen. SG&A expenses declined 1,037 million yen to 14,318 million yen, or 25.8% of net sales versus 26.9% in the previous year, lifting the operating profit margin from 2.0% to 2.6%.

Item (Millions of yen)	FY3/2025	FY3/2026	YoY change	YoY % change
Net sales	57,077	55,534	(1,542)	-2.7％
Cost of sales	40,591	39,749	(841)	—
Gross profit	16,486	15,785	(701)	—
SG&A expenses	15,355	14,318	(1,037)	—
Operating profit	1,131	1,466	335	29.7％
Non-operating income	423	433	10	—
Ordinary profit	1,554	1,900	345	22.2％
Profit before income taxes	1,258	1,702	443	—
Profit attributable to owners of parent	951	1,428	476	50.1％
Basic earnings per share	33.44 yen	50.18 yen	16.74 yen	—

On extraordinary items, the materials show extraordinary income of 492 million yen in FY3/2025 and 141 million yen in FY3/2026, and extraordinary loss of 788 million yen and 339 million yen respectively, for a net balance of (295) million yen and (197) million yen — an improvement of 97 million yen.

Results by Product Category

Kombu products and yogurt products grew year on year, while delicatessen, bean and dessert products declined. In the following table, the right-hand column is presented in the materials as an index of net sales against the previous fiscal year (the previous year equals 100), not as a rate of change.

Product category (Millions of yen)	FY3/2025 results	% of total	FY3/2026 results	% of total	YoY change	% of previous year
Delicatessen	19,064	33.4	17,655	31.8	(1,408)	92.6
Kombu products	15,917	27.9	16,348	29.4	431	102.7
Bean products	10,483	18.4	10,146	18.3	(337)	96.8
Yogurt products	6,759	11.8	7,081	12.8	322	104.8
Dessert products	2,715	4.8	2,166	3.9	(548)	79.8
Other products	2,138	3.7	2,135	3.8	(2)	99.9
Total	57,077	100.0	55,534	100.0	(1,542)	97.3

By category, the materials note that delicatessen sales decreased on a decline in prepared Chinese foods following the transfer of shares of Foods Palette Co., Ltd. and weak daily delivered delicatessen products; kombu product sales rose above the previous year level after a turnaround strategy centered on autumn TV commercials, with value-sized Shio-kombu (salted kombu) seeing significant growth; bean product sales fell on market contraction despite new products in the year-end sales campaign; yogurt product sales exceeded the previous year, with the new Caspian Sea Yogurt Richmo contributing to growth; and for dessert products the company worked on a transition to value-based selling after the price revision.

Quarterly Trend and Comparison with the Revised Forecast

Quarterly net sales were below the prior year in every quarter, while operating profit improved year on year in the first three quarters. In the table below, the right-hand columns are shown in the materials as an index against the same quarter of the previous year.

Quarter (Millions of yen)	Net sales FY3/2025	Net sales FY3/2026	Net sales % of previous year	Operating profit FY3/2025	Operating profit FY3/2026	Operating profit margin FY3/2026
Q1 (Apr.–Jun.)	13,931	13,836	99.3％	6	242	1.8％
Q2 (Jul.–Sept.)	14,124	13,908	98.5％	251	264	1.9％
Q3 (Oct.–Dec.)	15,790	14,982	94.9％	659	774	5.2%
Q4 (Jan.–Mar.)	13,231	12,807	96.8％	213	185	1.4%

Against the forecast revised on October 24, net sales of 55,534 million yen fell 1,065 million yen (-1.9%) short of the 56,600 million yen plan and operating profit of 1,466 million yen was 183 million yen (-11.1%) below the 1,650 million yen plan, while ordinary profit matched the 1,900 million yen plan and profit attributable to owners of parent of 1,428 million yen exceeded the 1,350 million yen plan by 78 million yen (5.8%). The company explains that the decrease in contribution margin due to lower sales significantly impacted operating profit even as various costs were steadily reduced through structural transformation and management streamlining.

Financial Position

Total assets stood at 80,089 million yen as of March 31, 2026 against 79,429 million yen a year earlier, and net assets were 69,686 million yen against 68,596 million yen. The equity-to-asset ratio improved from 86.4% to 86.9%. Cash and deposits decreased 1,443 million yen from 11,692 million yen to 10,249 million yen, with inventories and other items rising from 13,250 million yen to 15,903 million yen. The materials cite profit before income taxes of 1,702 million yen and depreciation of 3,512 million yen as positive factors, and an increase in inventories of (2,417) million yen, purchase of non-current assets of (2,707) million yen, purchase of shares of subsidiaries of (869) million yen, contribution to a retirement benefit trust of (530) million yen and dividends of (1,313) million yen as negative factors, alongside a 1,000 million yen short-term transfer of long-term time deposits.

FY3/2027 Forecast

For the fiscal year ending March 31, 2027 the company forecasts higher sales and operating profit but lower ordinary profit and net profit. It states that it aims to increase both sales and profit for the full fiscal year by increasing the contribution margin including product price increases, absorbing the increase in material costs, and curbing labor costs through productivity improvements via DX investment.

Item (Millions of yen)	FY3/2026 results	FY3/2027 forecast	YoY change	YoY % change
Net sales	55,534	57,000	1,465	2.6％
Cost of sales	39,749	40,900	1,150	—
Gross profit	15,785	16,100	314	—
SG&A expenses	14,318	14,600	281	—
Operating profit	1,466	1,500	33	2.3％
Non-operating income	433	300	(133)	—
Ordinary profit	1,900	1,800	(100)	-5.3％
Profit before income taxes	1,702	1,800	97	—
Profit	1,428	1,240	(188)	-13.2％
Basic earnings per share	50.18 yen	43.55 yen	-6.63 yen	—
Dividend per share	46 yen (interim 23 yen)	46 yen (interim 23 yen)	±0	—

Product category (Millions of yen)	FY3/2026 results	% of total	FY3/2027 forecast	% of total	YoY change	% of previous year
Delicatessen	17,655	31.8	19,521	34.2	1,866	110.6
Kombu products	16,348	29.4	15,929	28.0	(419)	97.4
Bean products	10,146	18.3	9,952	17.5	(193)	98.1
Yogurt products	7,081	12.8	7,597	13.3	515	107.3
Dessert products	2,166	3.9	2,116	3.7	(49)	97.7
Other products	2,135	3.8	1,882	3.3	(253)	88.1
Total	55,534	100.0	57,000	100.0	1,465	102.6

On capital spending, the materials state that in FY3/2026 the company made an investment in establishing a production line for Richmo, and that in FY3/2027 it plans investments of 3.3 billion yen such as for facility renewals and labor-saving aimed at streamlining each plant, with depreciation projected to be at the same level as the previous fiscal year at 3.5 billion yen.

Shareholder Returns

The dividend policy stated in the materials is that, as a stable dividend, the company aims for a continuous dividend of a minimum annual dividend of 46 yen. The annual dividend per share was 46 yen for FY3/2026 and the forecast for FY3/2027 is also 46 yen, including an interim dividend of 23 yen, unchanged year on year. The company also offers shareholder benefits, with sets described in the materials as equivalent to 1,000 yen, 3,000 yen and 4,500 yen. Under its capital allocation approach, the company seeks to maximize operating cash flow and, within that scope, perform growth investment and shareholder returns while further accumulating cash. The cash flow chart shows share buybacks of 1.6 billion yen and 1.3 billion yen in the periods indicated.

Medium-Term Management Plan and Topics

FY3/2026 was the first year of the 2025–2027 Medium-term Management Plan. The company says it improved management efficiency through structural transformation, promoting business restructuring, plant consolidation and cost reduction, and secured profit growth and a lower break-even point despite sluggish sales. It set the yogurt business as the third pillar and started forming a strategy to double sales, with the new product Caspian Sea Yogurt Richmo performing better than planned, and acquired a Thai frozen food firm for its overseas business. It also started operation of eight DX tools and established an environment where employees can utilize generative AI. The challenge identified was a decrease in sales volume as the number of customers fell: despite higher unit prices from the March price increase, sales volume dropped sharply and product value enhancement failed to keep pace with price increases.

Topics during the year included the decision in May to close the Hamasaka Plant (to be closed in March 2027), the transfer of Foods Palette Co., Ltd. in August, the acquisition of FB Food Service (2017) Co., Ltd., a Thailand-based delicatessen company, and the release of Caspian Sea Yogurt Richmo in September, and the absorption-type merger of FUJICCO NEW DELICA CO., LTD. in October. For FY3/2027 the company set three major policies — completely restore earning power, execute the growth strategy moving from defense to offense, and carry out strengthening of the business foundation and job satisfaction reform — supported by six priority items including accelerating growth with yogurt as the third pillar and shifting the overseas business to an autonomous growth phase. Job satisfaction indicators cited for FY3/2025 to FY3/2026 include employee engagement of 6.70 to 6.79, paid leave usage rate of 61.3% to 62.3%, ratio of female managers of 10.3% to 11.0% and ratio of male employees taking childcare leave of 53.3% to 86.4%, the latter two calculated on a non-consolidated basis.

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.