WELLNEO SUGAR (2117): FY2025 Results Summary — Toyo Sugar Refining Consolidation Lifts Revenue 16.3%

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

Note: WELLNEO SUGAR Co., Ltd. labels the fiscal year ended March 31, 2026 as “FY3/26,” while this site classifies the most recent completed fiscal year as FY2025; the labels used in the text, tables and segment data below follow the company’s materials. For FY3/26 the company reported revenue of 112,904 million yen, up 15,834 million yen or 16.3% year on year, and operating profit of 10,324 million yen, up 2,118 million yen or 25.8%. Profit attributable to owners of parent rose 725 million yen, or 12.6%, to 6,472 million yen. Operating profit exceeded the company’s own FY3/26 forecast of 8,500 million yen by 1,824 million yen (21.5%), while revenue came in 1,095 million yen (1.0%) below the 114,000 million yen forecast.

Consolidated Results (Full-Year Actual)

The company states that the Sugar segment increased profit due to the consolidation of Toyo Sugar Refining, and that the Food & Wellness segment increased profit due to factors including the consolidation of Toyo Sugar Refining and the fact that, although impairment losses were recorded in the Fitness business, the amount recorded was lower than in the previous fiscal year. Operating profit for the Sugar segment includes impairment losses on sugar production facilities of 37 million yen, and Food & Wellness includes impairment losses in the Fitness Business and Warehousing Business of 428 million yen; the prior-year corporate expenses line includes one-time expenses of 688 million yen. Share of profit (loss) of investments accounted for using the equity method was -581 million yen, against 252 million yen a year earlier.

Item	FY3/26	FY3/25	Change	YoY
Revenue	112,904	97,069	15,834	16.3%
Operating profit	10,324	8,206	2,118	25.8%
Share of profit (loss) of investments accounted for using equity method	-581	252	-833	－
Profit before tax	9,764	8,558	1,205	14.1%
Profit	6,508	5,746	761	13.3%
Profit attributable to owners of parent	6,472	5,746	725	12.6%

(Unit: million yen) Cash flows from operating activities were 10,764 million yen of income, against 8,927 million yen in FY3/25, reflecting income before income taxes of 9,764 million yen and other items. Cash flows from investing activities were 4,707 million yen of expenditures, including acquisition of non-current assets of 4,560 million yen, versus 8,977 million yen of expenditures a year earlier. Cash flows from financing activities were 11,039 million yen of expenditures, including a net decrease in short-term borrowings of 5,800 million yen and dividend payments of 3,588 million yen. Cash and cash equivalents at the end of the year stood at 10,461 million yen, down from 15,445 million yen. Total assets were 105,827 million yen at the end of FY3/26 against 110,585 million yen a year earlier, current liabilities fell to 24,558 million yen from 32,009 million yen, and equity rose to 77,197 million yen from 74,586 million yen.

Segment Results

Sugar revenue rose 12,911 million yen, or 15.4%, to 96,712 million yen, and Food & Wellness revenue rose 2,922 million yen, or 22.0%, to 16,192 million yen. Sugar operating profit increased 1,761 million yen, or 18.9%, to 11,084 million yen, while Food & Wellness operating profit improved by 135 million yen to 118 million yen from a loss of 16 million yen. Corporate expenses narrowed by 221 million yen to 879 million yen. The company cites the consolidation of Toyo Sugar Refining as a profit increase for the Sugar segment and lower selling prices from weaker overseas raw sugar markets as a profit decrease; within Food & Wellness it cites an increase in the number of school members and a decrease in the amount of impairment losses recorded on goodwill and non-current assets (from 589 to 407) as profit increases, and higher fixed costs including depreciation and amortization associated with the start-up of the Mihama Bio Plant as a profit decrease.

Segment	Metric	FY3/26	FY3/25
Sugar	Revenue	96,712	83,800
Food & Wellness	Revenue	16,192	13,269
Sugar	Operating profit	11,084	9,323
Food & Wellness	Operating profit	118	-16
Corporate expenses	Operating profit	-879	-1,100

FY3/27 Forecast

For FY3/27 the company forecasts revenue of 110,000 million yen, down 2,904 million yen or 2.6%, and operating profit of 9,200 million yen, down 1,124 million yen or 10.9%. Profit attributable to owners of parent is forecast at 6,500 million yen, up 27 million yen or 0.4%. The Sugar segment is expected to record lower profit, despite efforts to pursue profitability-focused management, due to the significant impact of increases in costs such as energy, packaging materials, and logistics costs caused by the worsening situation in the Middle East. The Food & Wellness segment is expected to record higher profit because impairment losses were recorded in the Fitness business in the previous fiscal year.

Item	FY3/2027 (Forecast)	FY3/2026 (Actual)	Change	Change (%)
Revenue	110,000	112,904	-2,904	-2.6%
Sugar	94,500	96,712	-2,212	-2.3%
Food & Wellness	15,500	16,192	-692	-4.3%
Operating profit	9,200	10,324	-1,124	-10.9%
Sugar	9,600	11,084	-1,484	-13.4%
Food & Wellness	600	118	481	405.6%
Corporate expenses	-1,000	-879	-120	－
Profit before tax	9,400	9,764	-364	-3.7%
Profit	6,500	6,508	-8	-0.1%
Profit attributable to owners of parent	6,500	6,472	27	0.4%

Shareholder Returns

The dividend policy is to pay dividends based on the greater of either a 60% consolidated dividend payout ratio (DPR) or a 3% dividend on equity attributable to owners of parent (DOE). The FY3/27 annual dividend per share forecast is 119 yen, on a benchmark of DPR 60%. The company also offers its own products as shareholder benefits based on the length of continuous holding: products equivalent to 1,000 yen for a holding period of less than three years, and products equivalent to 2,000 yen for three years or more. The materials state that the company aims to improve return on equity attributable to owners of parent (ROE) over the medium to long term, and to achieve both investment in growth and enhanced shareholder returns.

Fiscal year	Interim dividend	Year-end dividend	Annual dividend	Dividend payout ratio
FY3/2024	46yen	56yen	102yen	60.5%
FY3/2025	46yen	56yen	102yen	60.0%
FY3/2026	54yen	65yen	119yen	60.3%
FY3/2027 (Forecast)	60yen	59yen	119yen	60.0%

Medium-Term Management Plan and Financial Strategy

Under the medium-term management plan WELLNEO Vision 2027, FY3/26 operating profit plus share of profit (loss) of investments accounted for using the equity method came in at 9,742 million yen against a forecast of 8,500 million yen, with the Sugar segment at 10,738 million yen and Food & Wellness at -117 million yen. The company guides to 9,500 million yen for FY3/27 and plans 10,100 million yen for FY3/28, with profit attributable to owners of parent of 6,500 million yen and 7,000 million yen respectively. ROE was 8.6% in FY3/26 against a cost of equity of 6.0%, and the company targets 8.3% for FY3/27 and 9% for FY3/28. The company states it has changed the plan for operating profit plus share of profit (loss) of investments accounted for using the equity method for the Sugar segment and the Food & Wellness segment in FY3/2028.

The plan is built on four priority strategies: expansion of the Food & Wellness business, strengthening the Sugar foundation, promotion of human capital management, and promotion of sustainability management. In the Sugar business the company reports synergies of approximately 1.2 billion yen in operating profit achieved over two years through optimization of production, procurement, sales and logistics, and notes that five of the current 10 domestic sugar factories are its own production sites (including some joint-production factories). In functional materials, a new Toyo Sugar Refining plant is under construction in Sakura City, Chiba Prefecture, scheduled to begin operation in April 2027 with capacity expanding to approximately two to three times the current Chiba Plant’s capacity, and CI (cyclodextran) production was transferred from the Okinawa Lab in April 2026, expanding capacity by approximately 10 times. On cash allocation, cumulative operating cash flow over the two periods FY3/2025 and FY3/2026 was 27.9 billion yen against investment of 19.7 billion yen and dividends of 11.0 billion yen, and the company says funds for growth investment are expected to be covered by borrowings.

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