Kibun Foods <2933> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 on the 14th. Revenue increased by 0.8% year-on-year to 47.759 billion yen, operating profit rose 405.4% to 0.546 billion yen, ordinary profit was 0.44 billion yen (a loss of 0.069 billion yen in the same period last year), and the net loss attributable to shareholders of the parent company was 0.055 billion yen (compared to a loss of 0.658 billion yen in the same period last year).

In the domestic food business, revenue decreased by 1.6% year-on-year to 32.17 billion yen, while the segment loss was 0.289 billion yen (compared to a loss of 0.502 billion yen in the same period last year). In terms of sales, the main product of fish paste for the retail market successfully captured stable demand through promotions highlighting the health-oriented and convenient nature of the ingredients. Due to a decrease in the supply of chicken eggs, processed egg products that saw limited sales last year achieved a significant increase in sales compared to the same period last year due to stable procurement and production volumes, contributing to an increase in sales of prepared foods. On the other hand, extended periods of high temperatures and intensified promotional competition between companies at retail outlets also impacted sales. For noodle products, although promotions were strengthened, sales decreased. Furthermore, the trading division struggled due to the effects of the weak yen level on imported agricultural, livestock, and seafood products. In terms of profits, increased profits were achieved as a result of stable raw material prices, improvements in business mix, and cost reductions and efficiency gains.

In the overseas food business, revenue increased by 1.9% to 5.771 billion yen, and segment profit rose by 87.6% to 0.489 billion yen. In terms of sales, there were declines in retail due to inflation and interest rate trends affecting economic slowdown, as well as impacts on agricultural exports due to currency fluctuations. However, seafood paste products, particularly crab sticks, performed well, leading to increased revenue. In terms of profits, increased costs were evident due to soaring freight charges resulting from geopolitical impacts, but the increase in sales of seafood paste products raised the revenue composition ratio of the company’s own products, resulting in improved profit margins and increased profits.

In the food-related business, revenue increased by 8.9% to 9.817 billion yen, and segment profit rose by 20.9% to 0.309 billion yen. In terms of sales, there was a volume increase in the logistics business, which is the mainstay of this segment, due to new orders, the expansion of existing customers' delivery areas, and joint deliveries for restaurants. Additionally, in the information business, the introduction of biometric authentication system products to food factories progressed, resulting in increased revenue. In terms of profits, continued implementation of business efficiency improvements, including fare revisions, promotion of mechanization, and improvements in delivery efficiency, led to increased profits.

Regarding the consolidated performance forecast for the fiscal year ending March 2025, revenue is expected to increase by 4.2% compared to the previous fiscal year to 110.951 billion yen, operating profit is planned to increase by 0.2% to 4.727 billion yen, ordinary profit is expected to decrease by 3.9% to 4.221 billion yen, and the net income attributable to shareholders of the parent company is projected to increase by 0.9% to 2.855 billion yen, maintaining the initial plan.