Pickles Holdings (2935): FY2025 Results Summary — Lower Sales, Higher Profit; Operating Profit Up 63.0%

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

Note: Pickles Holdings 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 FY ended February 2026 financial results summary (tanshin, not subject to audit by an audit firm), with figures transcribed as reported. The company’s fiscal year ends in February; the results here are for the fiscal year ended February 28, 2026, which this site classifies as FY2025.

For the fiscal year ended February 2026, Pickles Holdings posted net sales of 40,923 million yen (down 1.4% year on year), operating profit of 2,085 million yen (up 63.0%), ordinary profit of 2,148 million yen (up 59.7%), and profit attributable to owners of parent of 1,384 million yen (up 44.4%), representing lower sales but higher profit. The company states that profit rose because the purchase prices of raw-material vegetables were more stable than initially expected, and because the appropriate adjustment of sales terms, such as product price revisions and reductions in discounts, proceeded as planned, allowing it to curb raw-material, labor, and logistics costs. In addition, from the consolidated fiscal year under review the company changed the depreciation method for property, plant and equipment from the declining-balance method to the straight-line method; compared with the previous method, this change increased operating profit and ordinary profit by 207 million yen and profit before income taxes by 206 million yen.

Consolidated Results (Fiscal Year Ended February 2026)

Net sales declined: although sales were firm in the first half owing to campaigns run by convenience stores, they fell because of consumers’ heightened frugality amid rising prices and because of a consolidation of the number of items aimed at improving productivity. The Group operates in a single segment, the manufacture and sale of pickled products, so segment information is omitted. There are no matters applicable to notes on the going-concern assumption.

Item	FY ended Feb 2026	FY ended Feb 2025	Change
Net sales	40,923 million yen	41,518 million yen	down 1.4%
Operating profit	2,085 million yen	1,279 million yen	up 63.0%
Ordinary profit	2,148 million yen	1,345 million yen	up 59.7%
Profit attributable to owners of parent	1,384 million yen	958 million yen	up 44.4%

Financial Position

Total assets were 30,204 million yen (down 38 million yen from the previous year-end), and net assets were 20,053 million yen (up 1,169 million yen). The equity ratio was 65.1% (61.0% at the previous year-end), and net assets per share were 1,568.51 yen (1,482.42 yen a year earlier).

Item	FY ended Feb 2026	FY ended Feb 2025
Total assets	30,204 million yen	30,242 million yen
Net assets	20,053 million yen	18,884 million yen
Equity ratio	65.1%	61.0%
Net assets per share	1,568.51 yen	1,482.42 yen

Cash Flows

Cash flows from operating activities were an inflow of 4,196 million yen (an inflow of 831 million yen in the previous year). Cash flows from investing activities were an outflow of 428 million yen (an outflow of 4,693 million yen in the previous year). Cash flows from financing activities were an outflow of 2,527 million yen (an inflow of 1,082 million yen in the previous year). Cash and cash equivalents at the end of the period stood at 6,214 million yen (4,974 million yen in the previous year).

Business Environment and Future Initiatives

The company states that during the consolidated fiscal year the Japanese economy remained on a moderate recovery track against a backdrop of improving employment and income conditions, while the outlook stayed uncertain amid concerns over downside risks to the economy from intermittent price increases, surging logistics and labor costs, and the impact of U.S. tariff policy. In the food industry, it states that the business environment was severe: eating-out demand was firm as inbound demand expanded, while at-home dining demand declined as consumers grew more frugal in the face of rising prices. Products related to “rice companions” such as pickles also continued to face a difficult situation due to the impact of higher rice prices. On the sales front, the company undertook price revisions for lightly pickled products and prepared foods, including the “Gohan ga Susumu Kimchi” series. Looking ahead, it expects the difficult management environment to continue amid ongoing high raw-material and energy prices, and states that it will work to improve earnings by reviewing product specifications and selling prices, to curb raw-material procurement costs by expanding contract farming, and to curb logistics costs by reviewing its shipping structure and delivery routes.

Shareholder Returns

The annual dividend per share was raised to 29.00 yen for the fiscal year ended February 2026 (payout ratio 26.2%), up from 26.00 yen for the fiscal year ended February 2025 (payout ratio 33.7%). For the fiscal year ending February 2027, the company plans a dividend of 29.00 yen (forecast payout ratio 29.5%).

Item	FY ended Feb 2026 (Actual)	FY ending Feb 2027 (Forecast)
Annual dividend per share	29.00 yen	29.00 yen
Payout ratio	26.2%	29.5%

Full-Year Forecast (Fiscal Year Ending February 2027)

For the fiscal year ending February 2027, the company plans net sales of 41,000 million yen (up 0.2% year on year), operating profit of 1,820 million yen (down 12.7%), ordinary profit of 1,860 million yen (down 13.4%), profit attributable to owners of parent of 1,231 million yen (down 11.0%), and profit per share of 98.33 yen.

Item	FY ending Feb 2027 (Forecast)	Change
Net sales	41,000 million yen	up 0.2%
Operating profit	1,820 million yen	down 12.7%
Ordinary profit	1,860 million yen	down 13.4%
Profit attributable to owners of parent	1,231 million yen	down 11.0%

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.