Kewpie Corporation (2809): FY2025 Results Summary — Record Operating Income of ¥34.6 Billion, Ordinary Dividend Raised to ¥65

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

Kewpie Corporation announced its FY2025 (fiscal year ended November 30, 2025) results on January 14, 2026. Net sales rose 6% year on year to ¥513.4 billion (+¥29.4 billion), and operating income increased 1% to ¥34.6 billion (+¥0.3 billion), a record high achieved despite a cost environment that exceeded expectations, driven by rapid price revisions in Japan and overseas growth. Profit attributable to owners of parent jumped 42% to ¥30.5 billion, boosted by a gain on the sale of a factory site. For FY2026, the company targets operating income of ¥38.0 billion (+10%) and plans an ordinary dividend increase of ¥11 to ¥65, together with a ¥10.0 billion acquisition of treasury shares.

Consolidated Results (Full-Year Actual)

Kewpie positions FY2025 as building on three consecutive years of record-high operating income. In Japan, the company implemented swift price revisions for major categories to strengthen market responsiveness, while overseas it achieved double-digit growth in the Americas and Asia-Pacific through demand creation via expanded brand investment; overseas sales grew 8% year on year in local currency. In the operating income bridge, ‘growing headwinds’ of -¥11.9 billion were more than offset by ‘earning power’ of +¥13.7 billion, including a +¥8.8 billion effect from price revisions. Profit attributable to owners of parent rose sharply as net extraordinary gains swung to ¥10.1 billion from -¥3.2 billion in FY2024, mainly on a +¥12.0 billion increase in gain on sale of non-current assets. ROE improved 2.4 points to 9.7%.

Item	FY2025	FY2024	YoY change
Net sales	¥513.4 billion	¥484.0 billion	+6% (+¥29.4 billion)
Operating income	¥34.6 billion	¥34.3 billion	+1% (+¥0.3 billion)
Ordinary income	¥37.4 billion	¥36.9 billion	+1%
Profit attributable to owners of parent	¥30.5 billion	¥21.4 billion	+42%
ROE	9.7%	7.3%	+2.4%
ROIC	6.6%	6.8%	-0.2%
EPS	¥220.6	¥154.1	–

Segment Results

Food Service led top-line growth with sales up 9% (+¥15.5 billion), driven by Eggs (+14%), although segment business profit slipped 1% as Eggs profit fell 18% amid soaring raw material costs. Retail Market sales rose 2% on price revisions for condiments and cut vegetables plus demand stimulated by mayonnaise 100th-anniversary events, but business profit declined 12%, with Condiments down 17%. Overseas delivered increases in both sales (+9%, to ¥100.3 billion) and business profit (+9%, to ¥13.6 billion), with sales in the Americas up 14%, Asia-Pacific up 13%, and China up 3%.

Segment	Net sales FY2025 (¥bn)	Sales YoY	Business profit FY2025 (¥bn)	Profit YoY
Retail Market	189.8	+2%	12.6	-12%
Food Service	185.6	+9%	11.9	-1%
Overseas	100.3	+9%	13.6	+9%
Fruits Solutions	17.6	+3%	0.7	+245%
Fine Chemicals	11.8	+4%	0.7	+24%
Common Business	8.3	+27%	1.4	+0%
Company-wide expenses	–	–	-6.1	–
Total	513.4	+6%	34.6	+1%

FY2026 Forecast

For FY2026, Kewpie projects operating income of ¥38.0 billion (+10%), describing a highly reliable growth trajectory toward achieving the Medium-Term Business Plan ROE target. The plan assumes ‘earning power’ of +¥15.3 billion — including a +¥6.9 billion effect from price revisions — against ‘growing headwinds’ of -¥5.9 billion, based on an assumed chicken egg market price of ¥305/kg and exchange rates of ¥150 per USD and ¥21 per CNY. Overseas sales are targeted to grow 11% in local currency, with the Americas at +19%, Asia-Pacific at +13%, and China at +3%. Profit attributable to owners of parent is expected to decline 16% to ¥25.5 billion, mainly reflecting the absence of the ¥12.0 billion gain on the sale of the factory site recorded in FY2025.

Item	FY2026 Target	FY2025 (Actual)	YoY change
Net sales	¥530.0 billion	¥513.4 billion	+3% (+¥16.6 billion)
Operating income	¥38.0 billion	¥34.6 billion	+10% (+¥3.4 billion)
Ordinary income	¥40.0 billion	¥37.4 billion	+7%
Profit attributable to owners of parent	¥25.5 billion	¥30.5 billion	-16%
ROE	8.0%	9.7%	-1.7%
ROIC	7.1%	6.6%	+0.5%
EPS	¥184.9	¥220.6	-16%

Shareholder Returns

Kewpie states it will steadily implement the ¥50.0 billion shareholder return framework under the Medium-Term Business Plan, with additional returns, continuously increasing capital efficiency through gradually increasing dividends and acquiring treasury shares. The FY2025 dividend plan is ¥64 per share (ordinary dividend ¥54 plus commemorative dividend ¥10), and for FY2026 the company plans ¥65 per share, an ordinary dividend increase of ¥11. Share repurchase authorizations total ¥24.0 billion for FY2025 (approximately ¥14.0 billion related to making AOHATA a wholly owned subsidiary and approximately ¥10.0 billion for capital efficiency) and ¥10.0 billion for FY2026 (all for capital efficiency); the company is also considering treasury share acquisitions for 2027 and 2028.

Item	FY2025 plan	FY2026 plan
Dividend per share	¥64 (ordinary ¥54 + commemorative ¥10)	¥65 (ordinary ¥65)
Share repurchase authorization	¥24.0 billion	¥10.0 billion

Medium-Term Plan / Topics

Under the FY2025–FY2028 Medium-Term Business Plan, Kewpie targets net sales of at least ¥600.0 billion, operating income of at least ¥45.0 billion, ROE of at least 8.5%, ROIC of at least 8.5%, a domestic business profit margin of at least 8.0%, and overseas sales CAGR of at least double digits in local currency. The plan calls for ¥100.0 billion in capital investment, comprising ¥75.0 billion of ‘aggressive investment’ — 1.8 times the level of the previous Medium-Term Business Plan — and ¥25.0 billion of business continuity investment. Domestically, structural reform aims at a high-profitability portfolio through maximizing added value, optimizing and reorganizing the supply chain, and assessing profit-generating output. In global categories, combined mayonnaise and dressings net sales reached ¥178.0 billion in FY2025 (Japan ¥98.4 billion, Overseas ¥79.6 billion), up from ¥170.6 billion in FY2024.

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.