Showa Sangyo <2004> announced its consolidated financial results for the first quarter of the fiscal year ending March 2025 (April-June 24) on the 5th. Sales decreased by 4.3% compared to the same period last year to 85.929 billion yen, operating profit increased by 24.3% to 4.118 billion yen, ordinary profit increased by 28.4% to 5.191 billion yen, and net income for the quarter attributable to the parent company's shareholders increased by 91.2% to 5.322 billion yen.

The sales of the food business decreased by 3.2% compared to the same period of the previous year to 71.315 billion yen, and operating profit increased by 18.4% to 3.971 billion yen. The market environment remained challenging due to factors such as the high energy costs caused by the depreciation of the yen and the increase in logistics costs, despite the recovery of inbound demand and the recovery trend of demand for out-of-home food and beverage. Under such circumstances, the company focused on strengthening its one-stop proposal sales by utilizing its expertise in market analysis and reinforcing its customer-oriented sales organization by target business type, which was introduced in April last year. In the milling category, the company implemented a price revision for wheat flour products in July after the government selling price of imported wheat was lowered by an average of 0.6% (tax-inclusive price) in April. Sales of wheat flour fell below the same period last year, but sales of premixes were the same as the same period of the previous year. Pasta sales were strong in the out-of-home market and exceeded the same period last year, while sales of bran fell below the same period last year. However, sales of household-use wheat flour and premixes fell below the same period last year, while pasta sales exceeded the same period last year. As a result, sales in the milling category were below those of the same period last year. In the oil processing category, the company worked on sales activities at appropriate prices and proposed products that were functionally valuable, such as long-life oil and bakery oil with little oil penetration, and problem-solving sales. Sales of commercial oils exceeded those of the same period last year, capturing the recovery in demand and the opportunity with various sales measures. Sales of household oils also exceeded the same period last year, mainly due to the growth in sales of general-purpose oil and rice oil. As a result, sales in the oil processing category were below those of the same period last year. In the sweetener category, the company worked with its subsidiaries, Shikishima Starch and San-Ei Kika, to sell its products at appropriate prices. Sales of sweetening products exceeded those of the same period last year, thanks to the expansion of the unique product group, such as low-residual glucose syrup and powdered sugar and the increase in demand for beverage purposes. Sales of cornstarch exceeded those of the same period last year, driven by increased demand for beer purposes. Sales of modified starch fell below those of the same period last year. As a result, sales in the sweetener category were below those of the same period last year.

Sales in the feed business decreased by 10.2% to 13.444 billion yen, and operating profit was 0.112 billion yen (compared to a loss of 0.007 billion yen in the same period last year). The company's initiatives included proposing sales to meet customer needs, strengthening initiatives with producers to support sales of livestock products and enhance added value, and expanding sales of high value-added products. The sales of formulated feed and eggs exceeded those of the previous year, as the import of laying hens has progressed since infection was confirmed at a bird flu outbreak farm in October 2022, and egg production has recovered. However, sales of formulated feed average selling price fell below that of the previous year due to a decline in raw material prices, and sales of eggs decreased due to a softening egg market as a result of the easing of the supply and demand balance. As a result, sales in the feed category were below those of the same period last year.

Sales in other categories increased by 0.3% to 1.169 billion yen, and operating profit increased by 27.2% to 0.385 billion yen. For the warehouse business, the company strengthened initiatives with trading companies and major customers to intensify the focus on cargo-handling capacity in the midst of intense competition for cargo acquisition, resulting in sales volume exceeding those of the same period last year.

The company has maintained its initial plan for the consolidated business performance forecast for the fiscal year ending March 2025, with sales of 346 billion yen, down 0.1% from the previous year, operating income of 12 billion yen, down 8.7% from the previous year, ordinary income of 13 billion yen, down 21.5% from the previous year, and net profit attributable to the parent company's shareholders of 11 billion yen, down 11.0% from the previous year.