KENKO Mayonnaise (2915): FY2025 Results Summary — Higher Sales but Lower Profit on Egg Costs; Annual Dividend Raised by 24 Yen to 67 Yen

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

Note: KENKO Mayonnaise 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. This site classifies the most recent completed fiscal year as “FY2025”; the company’s own label for this period is the fiscal year ended March 2026 (FY3/2026), and the labels used in the text, tables and images below follow the source materials.

KENKO Mayonnaise posted consolidated results for the fiscal year ended March 2026 of net sales of 92,354 million yen (+0.7% year on year), operating profit of 4,155 million yen (△14.3%) and profit attributable to owners of parent of 2,926 million yen (△16.4%). Mayonnaise and dressings and potato salad grew, lifting sales, while an increase in raw material costs caused by persistently high egg market prices weighed on profit, resulting in higher sales but lower profit. For the fiscal year ending March 2027 the company forecasts net sales of 97,000 million yen (+5.0%) and operating profit of 4,000 million yen (△3.7%). The annual dividend was set at 67 yen (an increase of 24 yen from the previous fiscal year), and 70 yen is forecast for the fiscal year ending March 2027.

Consolidated Results (FY3/2026 Actual)

Net sales were 92,354 million yen (+0.7% year on year) and gross profit was 20,857 million yen (gross profit margin 22.6%, +1.6%). Selling, general and administrative expenses rose to 16,702 million yen (SG&A ratio 18.1%, +6.4%), and operating profit was 4,155 million yen (operating margin 4.5%, △14.3%), ordinary profit was 4,329 million yen (△13.4%) and profit attributable to owners of parent was 2,926 million yen (△16.4%). Earnings per share were 198.99 yen, and EBITDA was 6,911 million yen (EBITDA margin 7.5%, △4.6%).

Item	FY3/2026 Actual	FY3/2025 Actual	YoY
Net sales	92,354	91,703	+0.7%
Gross profit (gross profit margin)	20,857 (22.6%)	20,537 (22.4%)	+1.6%
Selling, general and administrative expenses (SG&A ratio)	16,702 (18.1%)	15,691 (17.1%)	+6.4%
Operating profit (operating margin)	4,155 (4.5%)	4,845 (5.3%)	△14.3%
Ordinary profit (ordinary profit margin)	4,329 (4.7%)	4,999 (5.5%)	△13.4%
Profit attributable to owners of parent	2,926 (3.2%)	3,503 (3.8%)	△16.4%
Earnings per share	198.99 yen	221.62 yen	–
EBITDA (EBITDA margin)	6,911 (7.5%)	7,248 (7.9%)	△4.6%

Segment Results

The Seasoning and Processed Foods Business recorded net sales of 73,434 million yen (+2.2% year on year), an increase. Salads and Delicatessen rose 1.8% on higher potato salad sales; Mayonnaise and Dressings rose 4.1% on higher sales of mayonnaise products and sauce products; and Processed Egg Products rose 0.1% on higher sales of egg salad, boiled eggs and kinshi (narrowly stripped cooked eggs). On the other hand, a time lag in price revisions, an increase in raw material costs caused by persistently high egg market prices and higher fixed costs reduced the segment’s profit to 3,094 million yen (△20.6%). The Delicatessen-related Business recorded net sales of 18,180 million yen (△4.1%), a decline, but a review of its framework through measures on expenses, stores and products lifted segment profit to 1,004 million yen (+16.4%). Other (Salad Cafe) posted net sales of 740 million yen (△14.1%) on the closure of three stores and surging raw material prices, with segment profit of △35 million yen (3 million yen in the previous fiscal year).

Category	FY3/2026	FY3/2025	YoY
Net sales total	92,354	91,703	+0.7%
Seasoning and Processed Foods Business	73,434	71,887	+2.2%
Salads and Delicatessen	21,324	20,948	+1.8%
Mayonnaise and Dressings	28,478	27,355	+4.1%
Processed Egg Products	21,807	21,795	+0.1%
Other	1,823	1,788	+2.0%
Delicatessen-related Business	18,180	18,954	△4.1%
Other	740	861	△14.1%
Segment profit total	4,155	4,845	△14.3%
Seasoning and Processed Foods Business	3,094	3,894	△20.6%
Delicatessen-related Business	1,004	862	+16.4%
Other	△35	3	—
Adjustments	91	84	+8.2%

Full-Year Forecast (FY3/2027)

For the fiscal year ending March 2027, against a backdrop of higher raw material costs caused by external factors and the implementation of price revisions, the company forecasts net sales of 97,000 million yen (+5.0% year on year), operating profit of 4,000 million yen (△3.7%, operating margin 4.1%), ordinary profit of 4,150 million yen (△4.1%) and profit attributable to owners of parent of 2,840 million yen (△3.0%). Earnings per share are expected to be 193.09 yen and EBITDA 6,623 million yen (EBITDA margin 6.8%, △4.2%). By segment, net sales of the Seasoning and Processed Foods Business are forecast to rise 6.5% year on year (Salads and Delicatessen 23,152 million yen, +8.6%; Mayonnaise and Dressings 29,466 million yen, +3.5%; Processed Egg Products 23,669 million yen, +8.5%; Other 1,930 million yen, +5.9%), the Delicatessen-related Business 18,160 million yen (△0.1%) and Other (Salad Cafe) 620 million yen (△16.2%).

Item	FY3/2027 Forecast	FY3/2026 Actual	YoY
Net sales	97,000	92,354	+5.0%
Operating profit (operating margin)	4,000 (4.1%)	4,155 (4.5%)	△3.7%
Ordinary profit (ordinary profit margin)	4,150 (4.3%)	4,329 (4.7%)	△4.1%
Profit attributable to owners of parent	2,840 (2.9%)	2,926 (3.2%)	△3.0%
Earnings per share	193.09 yen	198.99 yen	–
EBITDA (EBITDA margin)	6,623 (6.8%)	6,911 (7.5%)	△4.2%

Shareholder Returns

The annual dividend for the fiscal year ended March 2026 was set at 67 yen (an increase of 24 yen from the previous fiscal year), with a dividend payout ratio of 33.7%, a dividend yield of 3.04% and dividends on equity (DOE) of 2.5%. A dividend of 70 yen is forecast for the fiscal year ending March 2027. Under Phase 1 (from fiscal 2025) of the medium- to long-term management plan “KENKO Vision 2035,” the company targets DOE of 2.5% or more.

Fiscal year	Dividend (yen/share)	Payout ratio (%)	Dividend yield (%)	DOE (%)
FY3/2023	17	56.9	1.41	0.8
FY3/2024	30	17.7	1.49	1.3
FY3/2025	43	19.4	2.31	1.7
FY3/2026	67	33.7	3.04	2.5
FY3/2027 (Forecast)	70	36.3	—	—

Medium- to Long-Term Management Plan and Topics

Under the medium- to long-term management plan “KENKO Vision 2035,” the company has set targets for Phase 1 (fiscal 2024 to fiscal 2027) of net sales of 102,000 million yen and an EBITDA margin of 7.0% in fiscal 2027, followed by net sales of 145,000 million yen and an EBITDA margin of 10.0% in fiscal 2031 (Phase 2) and net sales of 200,000 million yen and an EBITDA margin of 12.0% in fiscal 2035 (Phase 3). The Phase 1 plan (fiscal 2024 to fiscal 2027) sets, against cash inflows including operating cash flow of 24.0 billion yen, shareholder returns of 3.0 billion yen, capital expenditure and similar investment of 5.0 billion yen, investment to strengthen the business base of 6.0 billion yen and an M&A investment budget of approximately 20.0 billion yen; the cumulative results for fiscal 2024 and fiscal 2025 were operating cash flow of 7.5 billion yen, investment of 5.7 billion yen and shareholder returns of 1.3 billion yen. Topics included the closure of the Aizu-Wakamatsu plant of Kanto Diet Egg and its consolidation into the Shizuoka Fujisan plant (transfer completed in February 2026; investment of 250 million yen, cost reduction of approximately 280 million yen per year), the installation of a new small-container sauce line at the West Japan plant (scheduled to start operating from September 2026; investment of 2.6 billion yen) and the relocation of the Tokyo head office (February 2026). The company also marked the 40th anniversary of the launch of “gobo (burdock) salad,” which it introduced for the first time in Japan in 1986.

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.