Nissin Foods (2897) Q4 2025 earnings summary

Executive summary

• Achieved record-high consolidated revenue of 776.6 billion yen (+6% YoY) and core operating profit of 83.5 billion yen (+4% YoY), with growth in all domestic segments despite cost pressures.

• Overseas business saw profit declines, mainly in the U.S. and some affiliates, but strong performance in Brazil, China, Asia, and EMEA offset some weakness.

• FY 3/2026 targets record-high revenue (810.0 billion yen, +4.3% YoY) and stable core operating profit, factoring in higher depreciation and FX impacts.

• Shareholder returns included a 40 billion yen buyback in FY 3/2025 (total return ratio over 100%) and a new 20 billion yen buyback for FY 3/2026 to achieve 15% ROE.

• Basic earnings per share was 184.41 yen, reflecting a three-for-one stock split effective January 1, 2024.

Financial highlights

• Revenue: 776.6 billion yen (+6.0% YoY); core operating profit: 83.5 billion yen (+3.6% YoY); operating profit: 74.4 billion yen (+1.4% YoY).

• Profit attributable to owners: 55.0 billion yen (+1.6% YoY); core OP margin: 10.8%; operating margin: 9.6%.

• EBITDA exceeded 100 billion yen; operating cash flow decreased due to temporary reduction in trade payables.

• Cash and cash equivalents at year-end decreased to 73.0 billion yen from 96.7 billion yen.

• Dividend per share for FY 3/2025 was 70.00 yen, with a payout ratio of 38.0%.

Outlook and guidance

• FY 3/2026 revenue planned at 810.0 billion yen (+4.3% YoY); core operating profit of existing businesses projected at 83.6 billion yen (+0.1% YoY).

• Operating profit forecast: 75.6–79.6 billion yen (+1.7–7.0% YoY); EPS: 180–191 yen/share.

• U.S. tariffs impact limited to material costs; 20% IEEPA tariffs on China incorporated in forecasts.

• Capital investment to peak in FY 3/2026, then normalize; free cash flow expected to turn positive post-2026.