Calbee (2229) Q3 2026 earnings summary

Executive summary

• Q3 and nine-month sales increased year-over-year, but operating profit declined due to higher fixed costs, cost deterioration from a smaller potato harvest, and quality issues domestically.

• Net sales for the first nine months rose 5.3% year-over-year to ¥256,740 million, driven by growth in both domestic and overseas businesses.

• Overseas operations achieved double-digit sales growth in local currency, with notable profit growth in North America and Greater China, aided by the acquisition of Hodo, Inc.

• Operating profit declined 20.8% to ¥19,987 million, with margin falling to 7.8% due to higher depreciation and inflationary cost pressures.

• Profit attributable to owners of parent dropped 25.8% to ¥13,621 million.

Financial highlights

• Q3 net sales rose 4.9% year-over-year to ¥91.0bn; operating profit fell 4.8% to ¥9.8bn; net profit dropped 11.5% to ¥6.8bn.

• Nine-month net sales increased 5.3% to ¥256.7bn; operating profit declined 20.8% to ¥20.0bn; net profit decreased 25.8% to ¥13.6bn.

• EBITDA for Q3 was ¥14.2bn (+2.7% YoY); nine-month EBITDA was ¥32.6bn (-7.9% YoY).

• Gross profit decreased to ¥83,548 million from ¥85,018 million year-over-year.

• Earnings per share were ¥109.39, down from ¥146.92 in the prior year period.

Outlook and guidance

• Q4 aims to achieve revised full-year targets by optimizing limited potato supplies, expanding sales, and continuing cost-reduction initiatives.

• Full-year net sales forecast at ¥339,000 million, up 5.1% year-over-year.

• Operating profit projected to decrease 10.5% to ¥26,000 million; profit attributable to owners of parent expected to fall 16.2% to ¥17,500 million.

• No change in previously announced forecasts.

• Plans to respond to ongoing inflation with strategic price and content revisions.