Nitto Fuji Flour Milling (2003): FY2025 Results Summary — Sales Edge Up 0.6% While Ordinary Profit Falls 21.1% on Higher Repair Costs

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

Note: Nitto Fuji Flour Milling Co., Ltd. does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company refers to this period as the fiscal year ended March 31, 2026, which this site classifies as FY2025; the labels used in the text and tables below follow the source materials.

Nitto Fuji Flour Milling announced its consolidated financial results for the fiscal year ended March 31, 2026 (April 1, 2025 to March 31, 2026). This article is a brief summary based on those results. Net sales rose to 72,777 million yen (up 0.6% year on year), while operating profit was 3,816 million yen (down 25.1%), ordinary profit was 4,386 million yen (down 21.1%), and profit attributable to owners of parent was 3,319 million yen (down 6.5%), so profits declined. The company states that it neither prepared supplementary materials for the financial results nor held a results briefing.

Consolidated Results (Full Year, Actual)

The company explains that sales rose because sales volumes of wheat flour, its mainstay product, remained firm. On the profit side, higher repair costs for aging equipment in the flour milling and food business, the impact of falling prices for by-products used in compound feed, and surging indirect costs such as distribution freight weighed on earnings, while in the restaurant business increases in personnel expenses and food costs also squeezed profit. Profit attributable to owners of parent came to 3,319 million yen, reflecting the absence of the damages loss (extraordinary loss) recorded in the previous interim consolidated period and the recognition of a gain on sale of investment securities as extraordinary income in the fourth quarter, set against an impairment loss on restaurant business outlets. Extraordinary income was 789 million yen (including a gain on sale of investment securities of 785 million yen) and extraordinary losses were 283 million yen (including an impairment loss of 242 million yen and a loss on retirement of non-current assets of 40 million yen), giving profit before income taxes of 4,892 million yen (previous fiscal year: 5,249 million yen). Earnings per share was 91.15 yen (previous fiscal year: 97.49 yen; calculated on the assumption that the share split of one share into four shares effective April 1, 2026 had been carried out at the beginning of the previous fiscal year), return on equity was 6.7% (previous fiscal year: 7.2%), and the operating margin was 5.2% (previous fiscal year: 7.0%). Total assets were 63,742 million yen, net assets were 50,108 million yen, the equity ratio was 78.5% (previous fiscal year: 78.4%), and net assets per share were 1,373.83 yen. Net cash provided by operating activities was 4,667 million yen, net cash used in investing activities was △903 million yen, and net cash used in financing activities was △2,591 million yen, leaving cash and cash equivalents at the end of the period at 11,554 million yen. In addition, a portion (66.6%) of the shares of the logistics subsidiary Nitto Fuji Transportation (now M&F Logistics) was transferred to Maruzen Showa Unyu on October 31, 2025, and the company was excluded from the scope of consolidation and became an equity-method affiliate.

Item	FY ended March 2026	FY ended March 2025	Change
Net sales	72,777 million yen	72,341 million yen	Up 436 million yen (up 0.6%)
Operating profit	3,816 million yen	5,096 million yen	△1,280 million yen (△25.1%)
Ordinary profit	4,386 million yen	5,559 million yen	△1,173 million yen (△21.1%)
Profit attributable to owners of parent	3,319 million yen	3,550 million yen	△231 million yen (△6.5%)
Earnings per share	91.15 yen	97.49 yen	－
Return on equity	6.7%	7.2%	－
Equity ratio	78.5%	78.4%	－
Net cash provided by operating activities	4,667 million yen	5,055 million yen	－

Segment Results

The company has three reportable segments: the Flour Milling and Food business, the Restaurant business, and the Transportation business. In the Flour Milling and Food business, after the government selling price of imported wheat was cut by 4.6% in the revision last April and by 4.0% in the revision last October, the company revised the prices of commercial-use wheat flour from deliveries on July 10 of last year and from deliveries on January 10 of this year, and net sales fell 0.4% year on year to 60,502 million yen. Operating profit fell 23.1% to 3,523 million yen because of higher repair costs for aging equipment at the company’s plants, the impact of falling prices for by-products used in compound feed, and surging indirect costs such as distribution freight, so the segment posted lower sales and lower profit. In the Restaurant business, Sawayaka Corporation (consolidated period from January to December) lifted net sales 6.8% to 12,221 million yen on factors such as openings of new Kentucky Fried Chicken outlets, its mainstay, while operating profit fell 47.9% to 216 million yen on sharp increases in various costs such as personnel expenses and food costs, so the segment posted higher sales and lower profit. In the Transportation business, partly because of the exclusion from the scope of consolidation and the change to an equity-method affiliate from November 2025, net sales fell 28.7% to 1,459 million yen and operating profit fell 4.6% to 39 million yen. The impairment loss of 242 million yen was recorded entirely in the Restaurant business, and the disclosure of information about major customers states net sales to Mitsubishi Corporation of 10,824 million yen (Flour Milling and Food business).

Segment	Metric	FY ended March 2026	FY ended March 2025
Flour Milling and Food	Net sales (total)	60,502 million yen (down 0.4% year on year)	60,772 million yen
Flour Milling and Food	Segment profit	3,523 million yen (down 23.1% year on year)	4,582 million yen
Flour Milling and Food	Segment assets	60,114 million yen	58,971 million yen
Restaurant	Net sales (total)	12,221 million yen (up 6.8% year on year)	11,438 million yen
Restaurant	Segment profit	216 million yen (down 47.9% year on year)	415 million yen
Restaurant	Segment assets	3,819 million yen	3,810 million yen
Transportation	Net sales (total)	1,459 million yen (down 28.7% year on year)	2,046 million yen
Transportation	Segment profit	39 million yen (down 4.6% year on year)	40 million yen
Reportable segments total	Segment profit	3,778 million yen	5,038 million yen
Adjustments	Segment profit	37 million yen	58 million yen
Consolidated	Operating profit	3,816 million yen	5,096 million yen

Full-Year Forecast

For the fiscal year ending March 31, 2027, the consolidated forecast calls for net sales of 73,000 million yen (up 0.3% from the previous fiscal year), operating profit of 4,200 million yen (up 10.1%), ordinary profit of 4,700 million yen (up 7.2%), profit attributable to owners of parent of 3,300 million yen (down 0.6%), and earnings per share of 90.44 yen. For the cumulative second-quarter period, the company expects net sales of 34,000 million yen (down 4.0% year on year), operating profit of 1,700 million yen (up 5.6%), ordinary profit of 2,000 million yen (up 6.7%), profit attributable to owners of parent of 1,300 million yen (up 13.8%), and earnings per share of 35.63 yen. The company says that, under the updated Medium-Term Management Plan Rolling Plan that it intends to announce shortly, it will push forward measures aimed at strengthening its earnings base and achieving sustainable growth. In the mainstay flour milling and food business, in addition to maintaining and strengthening its stable supply structure, it will seek to improve profitability by reviewing its pricing strategy and improving its cost structure, and it will work on improving production efficiency and further raising quality levels through labor saving driven by DX and through thorough equipment maintenance. In the restaurant business, it will make store operations more efficient and work to restore earnings.

Item	Forecast	FY ended March 2026 (Actual)
Net sales	73,000 million yen (up 0.3% from the previous fiscal year)	72,777 million yen
Operating profit	4,200 million yen (up 10.1% from the previous fiscal year)	3,816 million yen
Ordinary profit	4,700 million yen (up 7.2% from the previous fiscal year)	4,386 million yen
Profit attributable to owners of parent	3,300 million yen (down 0.6% from the previous fiscal year)	3,319 million yen
Earnings per share	90.44 yen	91.15 yen
Second quarter (cumulative) net sales	34,000 million yen (down 4.0% year on year)	－
Second quarter (cumulative) ordinary profit	2,000 million yen (up 6.7% year on year)	－
Annual dividend per share	70.00 yen (interim 35.00 yen, year-end 35.00 yen; after the share split)	280.00 yen (interim 140.00 yen, year-end 140.00 yen; before the split)

Shareholder Returns

The company recognizes returning profits to shareholders as one of its important issues and states that, while comprehensively taking into account business performance in each fiscal year and its future business development and keeping the maintenance of stable dividends as its basic stance, it will also continue to strengthen profit returns by continuing progressive dividends. For the fiscal year ended March 31, 2026 it has already paid an interim dividend of 140 yen per share, and the year-end dividend is an ordinary dividend of 140 yen per share, for an annual dividend of 280 yen per share (on a pre-split basis). Total dividends were 2,554 million yen, the consolidated payout ratio was 76.8%, and the consolidated dividend on net assets ratio was 5.1%. For the fiscal year ending March 31, 2027, taking into account the share split of one share into four shares carried out with an effective date of April 1, 2026, the company plans an annual dividend of 70 yen, comprising 35 yen at the interim and 35 yen at the year-end, with a forecast payout ratio of 77.4%. It states that, if that share split were not taken into account, the dividend would be 280 yen per share, the same amount as the previous fiscal year’s dividend after retroactive adjustment for the split. As for treasury stock, only acquisitions of 3 million yen through purchase requests for shares less than one unit were recorded during the period, and no new acquisition policy is stated.

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.