Fuji Oil (2607): FY2025 Results Summary — Record-High Business Profit on Strong CBE Demand

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

Fuji Oil Co., Ltd. (2607) reported record-high business profit for FY2025 (fiscal year ended March 31, 2026). Net sales rose to 772.3 billion yen, up 101.1 billion yen year on year, driven by higher sales prices reflecting rising raw material prices in the Vegetable Oils and Fats Business and the Industrial Chocolate Business. Business profit increased 22.8 billion yen to 36.0 billion yen, primarily thanks to firm sales of vegetable fats for chocolate (CBE) and reduced expenses of cocoa-related factors (“Cocoa Special Factors”) at Blommer. For FY2026, the company guides for business profit of 37.5 billion yen and plans to raise the annual dividend by JPY 10 to 62 yen per share.

Note: The Fuji Oil Group has voluntarily applied International Financial Reporting Standards (IFRS) since the first quarter of FY2025, and FY2024 figures have been modified and are indicated based on IFRS. Unless otherwise stated, figures below are in JPY billion and are rounded to the nearest JPY billion, as presented in the materials.

Consolidated Results (Full-Year Actual)

Profit attributable to owners of parent increased 7.3 billion yen to 11.1 billion yen. Profits increased thanks to strong performance in the Vegetable Oils and Fats Business and reduced expenses of Cocoa Special Factors at Blommer, despite the recording of an impairment loss and a reversal of deferred tax assets related to Blommer in the Industrial Chocolate Business — a goodwill impairment loss of (4.1) billion yen and a reversal of deferred tax assets of (5.1) billion yen, for a total of (9.3) billion yen, reflecting disparities between the initial business plan and actual results due to weak U.S. demand and increased fixed costs.

Item (JPY billion)	FY2025	FY2024	YOY
Net Sales	772.3	671.2	+101.1
Business Profit	36.0	13.3	+22.8
Cocoa Special Factors at Blommer	(10.4)	(30.5)	+20.1
Profit Attributable to Owners of Parent	11.1	3.9	+7.3

Segment Results

In FY2025 the group shifted from a pure holding company structure to a business holding company structure; group administrative expenses are now allocated to each business, and disclosure areas were changed to three: Japan, Europe/Americas, and Asia. By business, Vegetable Oils and Fats grew profit on realized raw material gains in the first half, firm CBE sales, and higher sales prices. Industrial Chocolate returned to a profit as compound chocolate sales remained firm and Blommer achieved price optimization and reduced Cocoa Special Factors, despite a decline in pure chocolate sales volume amid decreased U.S. chocolate consumption. Emulsified and Fermented Ingredients saw lower sales volume of functional ingredients, and Soy-based Ingredients posted a wider loss on rising raw material prices and reduced sales volume reflecting weak demand in Asia.

Segment (JPY billion)	Net Sales FY2025	Net Sales FY2024	Business Profit FY2025	Business Profit FY2024
Vegetable Oils and Fats	271.1	207.3	33.4	26.8
Industrial Chocolate	370.9	334.7	2.4	(14.2)
Emulsified and Fermented Ingredients	97.4	94.3	1.1	1.7
Soy-based Ingredients	32.9	34.9	(0.9)	(0.8)
Consolidated Adjustment	–	–	(0.0)	(0.2)
Total	772.3	671.2	36.0	13.3

At Blommer, FY2025 net sales were 184.3 billion yen (FY2024: 180.9 billion yen) and the business loss was (11.4) billion yen (FY2024: (31.1) billion yen), with Cocoa Special Factors of (10.4) billion yen. Sales volumes declined more than expected, reflecting weak market conditions and customer inventory adjustments, and temporary costs were incurred in FY2025 Q4; however, Cocoa Special Factors were reduced in FY2025 Q4.

FY2026 Forecast

For FY2026, the company plans for a decrease in net sales, as sales prices are projected to decline in line with lower raw material prices, and an increase in profit mainly driven by profit growth in the Industrial Chocolate Business, supported by improved profitability at Blommer and contributions from new facilities coming online across regions, as well as a rebound from the previous fiscal year’s impairment loss at Blommer. Blommer itself is forecast to post net sales of 162.1 billion yen and business profit of 3.0 billion yen (YOY +14.4 billion yen). The forecast reflects risks including the situation in the Middle East, U.S. tariffs, volatility in key raw material prices, and market trends.

Item (JPY billion)	FY2026 Forecast	FY2025 (Actual)	YOY
Net Sales	754.0	772.3	(18.3)
Business Profit	37.5	36.0	+1.5
Profit Attributable to Owners of Parent	19.5	11.1	+8.4

Shareholder Returns

The FY2025 annual dividend is 52 yen per share, unchanged from the initial plan. For FY2026, reflecting profit growth, the annual dividend is planned to increase by JPY 10 to 62 yen per share. The dividend policy targets a payout ratio of 30% to 40% and continued stable and continuous dividends to shareholders; additional shareholder returns will be considered in light of profit progress and market conditions.

Medium-Term Plan / Topics

FY2025 achieved record-high business profit of 36.0 billion yen, and the company states that initiatives toward the mid-term management plan targets are progressing steadily. The FY2027 targets are business profit of 45.0 billion yen, ROE of over 10.0%, and FUJI ROIC of over 6.0% (FY2025 results: ROE 5.0%, FUJI ROIC 5.1%). On the balance sheet, the FY2027 mid-term plan targets are net interest-bearing debt of 180.0 billion yen and a net D/E ratio of 0.80 times; operating cash flow improved significantly and turned positive in FY2025, driven by profit growth and improved working capital at Blommer. Key initiatives include JPG FUJI SDN. BHD., a joint venture with Johor Plantations in Malaysia, beginning operations in 2H FY2026 to strengthen the vegetable oils supply chain, and new chocolate production facilities launching sequentially across regions, including a new plant in Japan from May 2026.

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.