I would like to highlight the earnings that may shift the trajectory of the company’s share price.
I had unfortunate timing writing on Feed One on 3/7/26, as the stock had been trending lower on concerns over rising freight costs amid Iran–U.S. tensions. However, the FY3/26 results likely helped ease those investor concerns.
FY3/26 results:
- Net sales ¥290.675bn (‑1.8%)
- Operating profit ¥8.091bn (+27.6%)
- Ordinary profit ¥8.612bn (+26.9%)
- Net income ¥6.377bn (+18.4%) → Record profit at all levels
Feed (core)
- Sales ¥223.744bn (‑3.7%)
- Segment profit ¥10.243bn (+20.0%)
- EBITDA ¥12.987bn (+17.3%)
- Lower volume/ASP → revenue decline; but, margin control + pricing → profit growth
Aquatic Feed
- Sales ¥24.863bn (‑3.0%)
- Segment profit ¥1.426bn (+22.6%)
- EBITDA ¥2.005bn (+19.4%)
- Lower volume/ASP → revenue decline; raw material cost decline + margin control → profit growth
Food
- Sales ¥42.053bn (+10.3%)
- Segment profit ¥0.163bn (‑42.4%)
- EBITDA ¥0.398bn (‑12.8%)
- Meat: lower pork prices → revenue down; structural reforms → profit up
- Eggs: high egg prices → revenue up; higher procurement + new‑plant depreciation → profit down → Segment overall: profit decline
Other
- Sales ¥0.13bn (‑9.1%)
- Segment profit ¥0.40bn (‑61.3%)
- EBITDA ¥0.41bn (‑60.6%)
- Includes overseas + real estate; overseas is equity‑method only (no sales), profit mainly equity‑method gains/losses
FY3/27 Company Guidance
- Although there are concerns about rising import raw‑material prices, the impact is expected to be temporary due to price revisions. Profit growth is projected through expansion of differentiated products.
- Fishmeal prices have reached the highest level since statistics began. Profit growth is expected as the expansion of fishmeal‑free feed strengthens competitive advantage.
- Net sales ¥317.0bn (+9.1%)
- Operating profit ¥8.5bn (+5.1%)
- Ordinary profit ¥8.8bn (+2.2%)
- Net income ¥6.5bn (+1.9%)
My 3/7/26 note is available for trial clients for free of charge!