Fuji Seal International (7864): FY2025 Results Summary — Record Sales and Profit as Swiss Subsidiary Gain Lifts Net Profit 69%

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Fuji Seal International reported record consolidated net sales, operating profit, and net profit for FY2025 (the fiscal year ended March 31, 2026). Net sales rose 2.5% year on year to 217.7 billion yen, operating profit increased 8.6% to 20.4 billion yen with an operating profit margin of 9.4%, and net profit surged 69.3% to 20.6 billion yen, driven in large part by an extraordinary gain from the liquidation of a Swiss subsidiary. All income lines exceeded the company’s full-year forecast, with net profit reaching a progress rate of 119.4% against plan. Reflecting the results, the annual dividend was set at 81 yen per share, 10 yen above the initial forecast. For FY2026, the company forecasts further record sales of 228.6 billion yen (+5.0% year on year) and operating profit of 22.2 billion yen (+8.5%), with an operating profit margin of 9.7%, while net profit is forecast to decline 25.9% in the absence of this year’s one-time gain.

Consolidated Results (Full-Year Actual)

Ordinary profit rose 20.1% year on year to 220 hundred million yen, a progress rate of 111.7% against the FY2025 forecast of 197 hundred million yen, while net profit rose 69.3% to 206 hundred million yen, a progress rate of 119.4% against the forecast of 173 hundred million yen. The average foreign exchange rate for the year was 149.61 yen per US dollar (down 1.4% year on year) and 169.19 yen per euro (up 3.1%), compared with the forecast assumption of 145.00 yen per US dollar and 155.00 yen per euro. From this presentation, amounts are presented in hundreds of millions of yen unless otherwise noted.

Item	FY2024 Full Year	FY2025 Full Year	Change	FY2025 Full Year Forecast	vs. Forecast (Progress Rate)
Net Sales (hundreds of millions of yen)	2,123	2,177	+2.5%	2,160	100.8%
Operating Profit (hundreds of millions of yen)	188	204	+8.6%	194	105.5%
Operating Profit Margin	8.9%	9.4%	+0.5pt	9.0%	+0.4pt
Ordinary Profit (hundreds of millions of yen)	183	220	+20.1%	197	111.7%
Ordinary Profit Margin	8.6%	10.1%	+1.5pt	9.1%	+1.0pt
Net Profit (hundreds of millions of yen)	121	206	+69.3%	173	119.4%
Net Profit Margin	5.7%	9.5%	+3.8pt	8.0%	+1.5pt

Segment Results

By region, net sales in Japan declined 1.9% year on year to 1,006 hundred million yen, while Americas grew 3.2% to 682 hundred million yen (up 4.6% excluding foreign exchange impact), Europe grew 11.6% to 387 hundred million yen (up 8.2% excluding foreign exchange impact), and ASEAN declined 0.6% to 194 hundred million yen (up 0.8% excluding foreign exchange impact). By operating profit (rates of change excluding foreign exchange impact), Japan declined 2.6% to 96 hundred million yen (margin 9.6%), Americas grew 3.2% to 66 hundred million yen (margin 9.7%), Europe grew 19.5% to 26 hundred million yen (margin 6.8%), and ASEAN grew 86.2% to 17 hundred million yen (margin 8.9%).

Segment	Metric	FY2024	FY2025	Rate of Change
Japan	Net Sales (hundreds of millions of yen)	1,025	1,006	-1.9%
Japan	Operating Profit (hundreds of millions of yen)	98	96	-2.6% (excluding foreign exchange impact)
Americas	Net Sales (hundreds of millions of yen)	661	682	+3.2%
Americas	Operating Profit (hundreds of millions of yen)	64	66	+3.2% (excluding foreign exchange impact)
Europe	Net Sales (hundreds of millions of yen)	347	387	+11.6%
Europe	Operating Profit (hundreds of millions of yen)	21	26	+19.5% (excluding foreign exchange impact)
ASEAN	Net Sales (hundreds of millions of yen)	195	194	-0.6%
ASEAN	Operating Profit (hundreds of millions of yen)	9	17	+86.2% (excluding foreign exchange impact)
Eliminations	Net Sales (hundreds of millions of yen)	-106	-93	–
Eliminations	Operating Profit (hundreds of millions of yen)	-6	-1	–
Consolidated	Net Sales (hundreds of millions of yen)	2,123	2,177	+2.5%
Consolidated	Operating Profit (hundreds of millions of yen)	188	204	+8.8% (excluding foreign exchange impact)

FY2026 Financial Forecast

For FY2026, net sales are forecast to grow 5.0% to 2,286 hundred million yen and operating profit is forecast to grow 8.5% to 222 hundred million yen, with the operating profit margin improving to 9.7% from 9.4%. Ordinary profit is forecast to grow 1.8% to 224 hundred million yen, while net profit is forecast to decline 25.9% to 153 hundred million yen; the FY2025 net profit of 206 hundred million yen includes a one-time impact from the liquidation of the Swiss subsidiary, as detailed under Shareholder Returns below. By region, FY2026 net sales are forecast to grow in Japan (+2.2% to 1,028), Americas (+8.8% to 743), and Europe (+6.1% to 411), and ASEAN (+8.1% to 210). The forecast assumes average exchange rates of 150.00 yen per US dollar and 170.00 yen per euro, and factors in the impact to date of rising raw material prices and supply concerns related to the situation in the Middle East, but does not factor in any disruption to raw material procurement that would affect product supply.

Item	FY2025 (Actual)	FY2026 Forecast	Change (Rate)
Net Sales (hundreds of millions of yen)	2,177	2,286	+5.0%
Operating Profit (hundreds of millions of yen)	204	222	+8.5%
Operating Profit Margin	9.4%	9.7%	–
Ordinary Profit (hundreds of millions of yen)	220	224	+1.8%
Ordinary Profit Margin	10.1%	9.8%	–
Net Profit (hundreds of millions of yen)	206	153	-25.9%
Net Profit Margin	9.5%	6.7%	–

Shareholder Returns

Fuji Seal set the FY2025 dividend at 81 yen per share, for a dividend payout ratio of 30.2%. This reflected a one-time impact from the liquidation of Fuji Seal Switzerland AG, comprising a gain on liquidation of 4.9 billion yen and a 1.3 billion yen decrease in corporate tax, for a total of 6.2 billion yen that the company excluded from the dividend source. Including this temporary impact, the FY2025 consolidated dividend payout ratio would have been 20.9%; excluding the temporary impact, EPS for FY2025 was 268.4 yen. For FY2026, the company forecasts a dividend of 87 yen per share, for a payout ratio of 30.3%. Under its revised basic policy on profit distribution, Fuji Seal targets a consolidated dividend payout ratio of 30% in principle, with any significant impact from temporary or non-recurring profit fluctuations to be adjusted for when determining the dividend.

Item	FY2025 (Planned)	FY2026 (Forecast)
Cash Dividend per Share (yen)	81	87
Dividend Payout Ratio	30.2%	30.3%

Medium-Term Plan / Topics (FSG.30)

Under its long-term FSG.30 plan, Fuji Seal targets net sales of 350 billion yen and a double-digit operating profit margin by FY2030, alongside financial KPIs of double-digit ROE (FY2025 result: 9.3%, excluding the one-time impact from the Swiss subsidiary liquidation) and a PBR of more than 1.5x (FY2025 result: 0.9x). Under its FY2024-FY2030 cash allocation plan, the company plans total growth investment of 100 billion yen or more (43.5 billion yen invested to date), shareholder returns of 50 billion yen or more (10.5 billion yen returned to date), and an operating fund of 50 billion yen or more, funded by cash on hand and seven years of operating cash flow. Major growth investments in progress include an 80 million US dollar capacity expansion at the North Carolina shrink label plant, a new Yamagata spouted-pouch factory in Japan (12.5 billion yen, scheduled to begin operations in October 2026), and a new spouted-pouch factory in Thailand (50 million US dollars, scheduled to begin operations in September 2027).

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.