Nissin Foods (2897) Q2 2025 earnings summary

Executive summary

• Revenue grew 7.9% year-over-year in H1 FY3/2025 to ¥378.1B, with all business segments contributing to growth.

• Core operating profit of existing businesses declined 6.4% year-over-year to ¥44.5B, but exceeded internal plans.

• Profit attributable to owners fell 9.2% year-over-year to ¥29.1B, mainly due to higher costs and negative currency effects.

• Shareholder returns strengthened with a completed ¥20B buyback and an additional ¥20B buyback announced.

• Comprehensive income dropped to ¥26.5B from ¥64.0B, mainly due to foreign currency translation losses.

Financial highlights

• Consolidated H1 revenue: ¥378.1B (+7.9% YoY); core operating profit: ¥44.5B (–6.4% YoY); operating profit: ¥41.7B (–7.2% YoY).

• Gross profit increased to ¥135.7B from ¥124.6B YoY.

• Total assets stood at ¥814.6B as of September 30, 2024; equity ratio was 59.7%.

• Cash and cash equivalents decreased by ¥20.0B to ¥76.6B.

• Profit margin attributable to owners: 7.7% (down 1.5pt YoY).

Outlook and guidance

• H1 results in line with internal plan; H2 expected to deliver higher profit, aiming for full-year targets via increased US sales and improved equity-method affiliate profits.

• FY3/2025 full-year guidance: revenue ¥785.0B (+7.1% YoY), core operating profit of existing businesses ¥84.6B (+5.0% YoY), profit attributable to owners ¥54.5–57.5B.

• Basic EPS guidance is ¥179–189.

• Plan to invest 5–10% of core operating profit in new businesses.

• Forecasts remain unchanged, with active investment in new businesses planned.