Nakamuraya (2204): FY2025 Results Summary — Operating Profit Up 23.7% as Cost Reductions Absorb One-Time Costs

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

Note: the company labels this period the fiscal year ended March 2026; it is classified as FY2025 on this site, while the labels in the text and tables below follow the source materials. Note: Nakamuraya 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. On May 15, 2026, Nakamuraya announced its results for the fiscal year ended March 2026. Net sales were 37,351 million yen (up 0.3% year on year), roughly flat, but cost reductions from cutting unprofitable products and leveling factory utilization worked well, and operating profit was 1,324 million yen (up 23.7%), far above the initial plan (660 million yen), even while absorbing 550 million yen of one-time costs. Ordinary profit was 1,599 million yen (up 25.2%) and net income was 918 million yen (up 3.7%).

Results (Full-Year Actual)

The gross profit margin improved to 37.4% (36.8% in the previous fiscal year), and selling, general and administrative expenses were 12,654 million yen (up 0.2% year on year), roughly flat. On the top line, firm sales of chukaman (steamed buns) and an expanded customer base in commercial-use foods absorbed the impact of the review of the confectionery business, producing a slight increase in net sales. On the profit line, improved production efficiency and a price revision on chukaman, the company’s mainstay product, contributed, and operating profit exceeded both the initial plan and the revised plan (operating profit of 1,200 million yen). Figures in the table below are in millions of yen.

Item	FY ended March 2026	FY ended March 2025	YoY
Net sales	37,351	37,248	+0.3%
Gross profit	13,977	13,699	+2.0%
Selling, general and administrative expenses	12,654	12,628	+0.2%
Operating profit	1,324	1,070	+23.7%
Ordinary profit	1,599	1,277	+25.2%
Net income	918	885	+3.7%

Segment Results (by Business)

By business, the Confectionery business posted net sales of 26,220 million yen (down 2.3% year on year) as it strategically scaled back gift confectionery and narrowed down unprofitable products, but segment profit rose to 2,673 million yen (margin of 10.2%, against 9.5% a year earlier) on improved profitability. The Food business secured higher sales and higher profit, with net sales of 10,219 million yen (up 7.6%) and segment profit of 644 million yen (up 42.1%, margin of 6.3%), as deeper initiatives with major retailers in commercial-use foods paid off. The Real Estate Leasing business saw slightly lower sales and profit, with net sales of 913 million yen (down 0.5%) and segment profit of 428 million yen (down 5.5%), reflecting the impact of rent revisions at some stores.

Segment	Metric	FY ended March 2026	FY ended March 2025
Confectionery	Net sales	26,220	26,834
Confectionery	Segment profit (margin)	2,673 (10.2%)	2,545 (9.5%)
Food	Net sales	10,219	9,497
Food	Segment profit (margin)	644 (6.3%)	453 (4.8%)
Real Estate Leasing	Net sales	913	917
Real Estate Leasing	Segment profit (margin)	428 (46.9%)	453 (49.4%)

Full-Year Forecast

For the fiscal year ending March 2027, the company forecasts net sales of 37,700 million yen (up 0.9% year on year), operating profit of 1,400 million yen (up 5.8%), ordinary profit of 1,600 million yen (up 0.1%) and net income of 950 million yen (up 3.5%). Its policy is to secure higher sales by offsetting, through the expansion of new products and new businesses, the negative sales impact of narrowing products and sales channels and of a shortened selling period at a major customer. On profits, it factors in a larger allowance for increases in raw material prices and sales-related expenses associated with geopolitical risk, while planning to secure profit growth through the reduction of unprofitable products and the disappearance of the one-time costs recorded in the previous fiscal year.

Item	FY ending March 2027 (Forecast)	FY ended March 2026 (Actual)	YoY
Net sales	37,700	37,351	+0.9%
Operating profit	1,400	1,324	+5.8%
Ordinary profit	1,600	1,599	+0.1%
Net income	950	918	+3.5%

Shareholder Returns

Nakamuraya sets out a policy that places importance on stable and continuous dividends to shareholders over the long term. For the fiscal year ended March 2026, the dividend per share was 75 yen, an increase from 70 yen in the previous fiscal year. For the fiscal year ending March 2027, because profit is expected to be roughly flat, the dividend is planned to be kept unchanged at 75 yen.

Fiscal year	Dividend per share (yen)	Payout ratio (%)
FY ended March 2024 (Actual)	60	87.9
FY ended March 2025 (Actual)	70	45.9
FY ended March 2026 (Actual)	75	47.1
FY ending March 2027 (Planned)	75	45.5

Growth Strategy and Topics

In its executive summary, the company presented a policy of aiming for sales and profit growth accompanied by earnings improvement, through creating spring and summer demand for chukaman and expanding its sales channels, winning more customers for commercial-use foods, and offering high-value-added products. In addition, as a new business model for corporate customers, it launched in November 2025 a permanently installed in-office company-cafeteria service providing soups; as of March 2026 this had expanded to 26 companies that had adopted it and eight menu items offered, and the company aims for introduction at 100 companies by the end of December 2026. It also implemented price revisions of 11.5% to 11.8% on 14 items, including retort-pouch foods for household use, in 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.