ARIAKE JAPAN (2815): FY2025 Results Summary — Europe Drives Higher Profits and a ¥50 Dividend Increase

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

ARIAKE JAPAN Co., Ltd. posted higher net sales and profits for the fiscal year ended March 31, 2026. Consolidated net sales rose 2.4% year on year to ¥66.96 billion, operating profit rose 6.0% to ¥11.78 billion, ordinary profit rose 14.6% to ¥13.76 billion and profit rose 15.3% to ¥9.46 billion, as growth at the European group companies offset a slowdown at Ariake Japan on a non-consolidated basis and a decline in China. The annual dividend was raised by ¥50 to ¥180 per share. For the fiscal year ending March 31, 2027 the company plans consolidated net sales of ¥69.23 billion (up 3.4%) and consolidated operating profit of ¥11.25 billion (down 4.5%).

Note on fiscal-year labels: the presentation labels the fiscal year ended March 31, 2026 as “FY2026” and the preceding year as “FY2025”. This site classifies the most recent completed fiscal year as FY2025 in its title and URL, while the labels in the text and tables below follow the source material. All figures are taken from the company’s “Supplementary Material on Financial Results for the Fiscal Year Ended March 31, 2026 (FY2026)” (dated May 13, 2026), the English version published on the company’s IR news page.

Consolidated Results (Full-Year Actual)

The consolidated operating profit to net sales ratio was 17.6% (previous year: 17.0%, +0.6 points) and the non-consolidated ratio was 17.0% (previous year: 16.4%, +0.6 points). Against the company’s own plan, consolidated net sales came in ¥0.15 billion (-0.2%) short and consolidated operating profit ¥0.44 billion (-3.6%) short, while consolidated ordinary profit exceeded plan by ¥0.86 billion (6.6%) and consolidated profit by ¥0.76 billion (8.7%). Figures are in billions of yen, rounded to the nearest ¥10 million; numbers without a sign indicate +.

Item	FY2026 Results	Fiscal year ended March 31, 2025	Year on year change	Year on year (%)	Plan	Change compared to plan (%)
Consolidated net sales	66.96	65.40	+1.56	2.4%	67.11	-0.2%
Consolidated operating profit	11.78	11.12	+0.67	6.0%	12.22	-3.6%
Consolidated ordinary profit	13.76	12.00	+1.76	14.6%	12.90	6.6%
Consolidated profit	9.46	8.21	+1.25	15.3%	8.70	8.7%
Non-Consolidated net sales	48.21	47.52	+0.69	1.4%	49.00	-1.6%
Non-Consolidated operating profit	8.21	7.78	+0.43	5.5%	8.43	-2.6%
Non-Consolidated ordinary profit	10.09	8.72	+1.38	15.8%	9.60	5.2%
Non-Consolidated profit	7.23	6.38	+0.85	13.2%	6.70	7.8%

On a non-consolidated basis, the 1.4% increase in net sales broke down into a 1.0% decrease in volume and a 2.5% increase in unit price. By customer category, sales to convenience stores, ready-made meal operators and supermarkets fell 5.4% year on year, sales to restaurants grew 2.5%, sales to food manufacturers grew 2.1% and B2C (B2B2C) sales to retailers grew 13.6%. Non-consolidated operating profit rose ¥430 million (5.5%) to ¥8,210 million, and ordinary profit rose ¥1,376 million (15.8%) to ¥10,095 million.

Results by Group

Subsidiaries’ figures are after consolidation adjustments. Figures shown as “currency neutral” exclude the effect of exchange-rate movements; results for the overseas subsidiaries cover January to December 2025. Average rates moved from ¥164.92 to ¥184.33 for the euro, from ¥21.67 to ¥22.36 for the renminbi, from ¥4.84 to ¥4.98 for the Taiwan dollar and from ¥0.0098 to ¥0.0094 for the rupiah.

Group	Metric	FY2026 (A)	FY2025 (B)	Change (A-B)	%	Currency neutral
Ariake Japan	Net sales	48.21	47.52	0.69	1.4%	1.4%
Subsidiaries total*	Net sales	18.75	17.88	0.87	4.9%	-1.6%
Asia	Net sales	9.99	10.30	-0.31	-3.0%	-5.7%
Europe	Net sales	8.46	7.27	1.19	16.3%	4.1%
Japan	Net sales	0.30	0.31	-0.01	-2.9%	-2.9%
Ariake Group	Net sales	66.96	65.40	1.56	2.4%	0.6%
Ariake Japan	Operating profit	8.21	7.78	0.43	5.5%	5.5%
Subsidiaries total*	Operating profit	3.58	3.34	0.24	7.1%	1.4%
Asia	Operating profit	2.43	2.51	-0.08	-3.1%	-5.9%
Europe	Operating profit	1.14	0.81	0.33	40.4%	25.6%
Japan	Operating profit	0.01	0.02	-0.01	-20.4%	-20.4%
Ariake Group	Operating profit	11.79	11.12	0.67	6.0%	4.3%

The operating profit figures in the by-group table are shown as printed in the materials. They differ slightly from the consolidated summary because of rounding: the by-group table shows Ariake Group operating profit of ¥11.79 billion and subsidiaries total of ¥3.58 billion, while the consolidated summary table and the five-year data section show ¥11.78 billion (¥11,783 million) for the group and ¥3.57 billion for the subsidiaries.

Subsidiary Results

In Asia, China saw declines in both net sales and profit as the economic downturn triggered by the real-estate recession worsened, though cost reductions kept the fall in operating profit minimal. Taiwan recorded higher net sales but lower profit as market saturation in the ramen industry limited sales growth while raw material costs rose, and Indonesia saw both net sales and profit decline. In Europe, Belgium increased net sales and profit on higher exports to Japan and higher sales within Europe, France saw net sales and profit decline after consolidation adjustments, and the Netherlands (Henningsen) reached operating profit of ¥1.35 billion with an operating profit margin of 27.5%, described in the materials as the highest level ever achieved.

Company name	Net sales (Billions of yen)	Year on year (%)	Operating profit (Billions of yen)	Year on year (%)	Operating profit ratio (%)	Year on year (points)
China	6.25	-4.5%	1.34	-0.1%	21.5	+1.0p
Taiwan	3.38	+1.4%	1.04	-5.0%	30.9	-2.1p
Indonesia	0.36	-14.7%	0.04	-35.1%	11.6	-3.7p
Asia subtotal	9.99	-3.0%	2.43	-3.1%	24.3	0
France	0.91	-4.8%	0.09	-38.8%	9.8	-5.5p
Belgium	2.64	+11.9%	-0.30	+11.2%	-11.3	+3.0p
Netherlands	4.92	+24.0%	1.35	+34.6%	27.5	+2.1p
Europe subtotal	8.46	+16.3%	1.14	+40.4%	13.5	+2.3p
ACC (Japan)	0.30	-2.9%	0.01	-20.4%	4.7	-1.1p
Totals of subsidiaries	18.75	+4.9%	3.57	+7.1%	19.1	+0.4p

Plan for the Fiscal Year Ending March 31, 2027

The company expects higher net sales but lower profits. Consolidated ordinary profit is planned at ¥13.16 billion (-4.4% year on year) and profit at ¥9.55 billion (+1.0% year on year); on a non-consolidated basis, ordinary profit is planned at ¥8.88 billion (-12.0%) and profit at ¥6.20 billion (-14.2%). The consolidated operating profit to net sales ratio is planned at 16.2% (previous year: 17.6%, -1.4 points) and the non-consolidated ratio at 15.5% (previous year: 17.0%, -1.5 points). Exchange-rate assumptions are unchanged from the previous year at ¥184.33 per euro, ¥22.36 per renminbi, ¥4.98 per Taiwan dollar and ¥0.009 per rupiah. The materials attribute the expected profit decline to higher packaging material and utility costs stemming from the situation in the Middle East, together with the continued weakening of the yen.

Group	Metric	FY2027 Plan (A)	FY2026 Results (B)	Change (A-B=C)	Change rate (C/B)
Ariake Japan	Net sales	49.10	48.21	0.89	1.9%
Subsidiaries total*	Net sales	20.13	18.75	1.38	7.4%
Asia	Net sales	10.73	9.99	0.74	7.4%
Europe	Net sales	9.10	8.46	0.64	7.6%
Japan	Net sales	0.30	0.30	0.00	0.0%
Ariake Group	Net sales	69.23	66.96	2.27	3.4%
Ariake Japan	Operating profit	7.60	8.21	-0.61	-7.4%
Subsidiaries total*	Operating profit	3.65	3.58	0.07	2.0%
Asia	Operating profit	2.52	2.43	0.09	3.7%
Europe	Operating profit	1.12	1.14	-0.02	-1.8%
Japan	Operating profit	0.01	0.01	0.00	0.0%
Ariake Group	Operating profit	11.25	11.78	-0.53	-4.5%

Shareholder Returns

For the fiscal year ended March 2026 the dividend was increased by ¥50 per share, to be resolved at the 48th Annual General Meeting of Shareholders. DOE (dividend on equity ratio) was 4.4% (previous year: 3.4%) and the payout ratio was 60.6% (previous year: 50.5%).

Item	Fiscal year ended March 2026	Previous year
Interim dividend per share	¥60	¥20
Year-end dividend per share	¥120	¥110
Total per share	¥180	¥130
DOE	4.4%	3.4%
Payout ratio	60.6%	50.5%

For the fiscal year ending March 31, 2027 the company forecasts an interim dividend of ¥60 per share and a year-end dividend of ¥120 per share, a total of ¥180 per share, unchanged due to geopolitical risks, plus a 60th Anniversary Commemorative Dividend of ¥120 per share with a record date of March 31, 2027 (to be resolved at the 49th Annual General Meeting of Shareholders). On the ordinary dividend alone the expected DOE is 4.2% and the expected payout ratio 55.5%; including the commemorative dividend, the expected DOE is 7.0% and the expected payout ratio 96.9%. The dividend policy is being changed to set a benchmark of DOE of 4% or higher while also taking the payout ratio into account (previously DOE of 3% or higher). The company will also conduct share buybacks of up to a maximum of 1 million shares or ¥6 billion over the one-year period ending May 12, 2027; if implemented, the forecast total payout ratio for the fiscal year ending March 31, 2027 is 160%.

Medium-Term Plan and Topics

Under the Medium-term Three-year Business Plan covering the fiscal years ending March 31, 2027 through March 31, 2029, planned consolidated net sales are ¥69.2 billion for FY2027, ¥72.1 billion for FY2028 and ¥75.7 billion for FY2029, against results of ¥67.0 billion in FY2026 and ¥65.4 billion in FY2025. Planned consolidated operating profit is ¥11.3 billion, ¥12.2 billion and ¥13.1 billion respectively, against ¥11.8 billion in FY2026 and ¥11.1 billion in FY2025. The FY2029 sales target represents an increase of ¥8.7 billion (13%) compared with the fiscal year ended March 31, 2026, and the FY2029 operating profit target an increase of ¥1.3 billion (11%). The company aims for a record consolidated operating profit of ¥12.20 billion in the fiscal year ending March 31, 2028 (against ¥11.95 billion in the fiscal year ended March 31, 2019), for basic earnings per share of ¥348 by the fiscal year ending March 31, 2029 (described in the materials as a 17% increase from 2025) and for an ROE of 8% in the fiscal year ending March 31, 2029, with a long-term goal of over 10%. On a non-consolidated basis the target is net sales of ¥50.0 billion in the fiscal year ending March 31, 2028 and ¥51.0 billion in the fiscal year ending March 31, 2029, an increase of ¥2.8 billion (5.8%) compared with the fiscal year ended March 31, 2026; the overseas group companies are targeted to reach ¥24.7 billion in net sales (up ¥5.9 billion, or 32%, over three years) and ¥4.7 billion in operating profit (up ¥1.1 billion, or 31%).

For the five-year period from the fiscal year ending March 31, 2027 to the fiscal year ending March 31, 2031, the cash allocation plan totals approximately ¥132 billion — operating cash flow of approximately ¥53 billion for five years plus net cash (cash and deposits plus securities) of approximately ¥79 billion as of March 31, 2026 — to be allocated to shareholder returns (¥47.0 billion), capital investment (¥38.5 billion), growth investment (¥21.5 billion) and working capital (¥25.0 billion). Planned capital expenditure is ¥16.5 billion for 2026-2028 and ¥22.0 billion for 2029-2030, including a new plant in the Netherlands (¥4.0 billion) and plant construction or expansion in China (¥5.0 billion in each period).

As a new business area the company will launch a pet food business, applying its technologies as a manufacturer of seasonings derived from livestock products. Pet food production facilities will be installed at the No. 1 Kyushu plant with an initial investment of approximately ¥600 million, securing maximum production capacity of approximately ¥3 billion per year; an amendment to the Articles of Incorporation covering the manufacture and sale of pet food was to be proposed at the Annual General Meeting of Shareholders held in June 2026. The materials give the target for the start of operations as August 2026 on the business plan slides and as September 2026 on the accompanying topic slide. The contribution of the pet food and plant-based product businesses is not included in the current fiscal year or medium-term sales plans. The longer-term vision is consolidated net sales of ¥100 billion in 2030; the company currently estimates approximately ¥85 billion and plans to make up the ¥15 billion shortfall through higher-than-planned growth in existing domestic businesses, new businesses, overseas markets and M&A.

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.