Food company Kibun Foods <2933> announced its Q1 2025 (April-June 24) consolidated financial results on the 13th. Sales revenue was ¥23.111 billion, down 2.4% from the same period last year, operating profit was ¥0.451 billion, an increase of 332.0% from the same period last year, ordinary profit was ¥0.459 billion (a loss of ¥0.025 billion in the same period last year), and net profit for the quarter attributable to parent company shareholders was ¥0.231 billion (a loss of ¥0.255 billion in the same period last year).

Domestic food business sales revenue decreased by 6.9% compared to the same period last year to ¥15.585 billion, and segment profit was ¥0.007 billion (a loss of ¥0.182 billion in the same period last year). In terms of sales, the company's main product, seafood-based processed products, aimed at the food retail market, received a solid demand as a home food stock that was convenient and ready to eat, but suffered a small decrease year-on-year due to the effects of rising temperatures from early spring and increased competition. However, the major products of crab sticks, Marín and Shitaraba, showed strong sales growth. In the current period, egg-processed products, which had limited sales due to a decrease in the supply of chicken eggs last year, had a significant increase in sales compared to the same period last year due to the stable supply and production volume, contributing to the increase in sales of the processed food products. Sales of noodle-like products decreased. In the trading department, which functions as a raw material procurement window within the group from this fiscal year, the handling of imported agricultural, livestock, and aquatic products among others struggled greatly due to the impact of record-low levels of the yen. On the profit side, costs such as materials and energy are still at a high level, but the price of the main raw material, surimi, has stabilized, leading to increased profits.

Sales revenue of the overseas food business increased by 6.8% to ¥2.723 billion, and segment profit was ¥0.207 billion, an increase of 36.5% from the same period last year. In terms of sales, the company's main products, crab sticks and seafood-based processed products, exceeded the sales performance of the same period last year due to reconstruction of the distribution network and product development that meets market needs, despite the low-price orientation of consumers due to high commodity prices in each market and the intensification of competition among companies. On the profit side, the cost increase, such as the sharp rise in freight charges due to the geopolitical impact, was evident, but the profitability increased due to the increase in sales of seafood-based processed products and an increase in the proportion of sales of in-house products.

Sales revenue of the food-related business increased by 9.3% to ¥4.802 billion, and segment profit was ¥0.116 billion, an increase of 97.4% from the same period last year. In terms of sales, the logistics business, which is the core of the business segment, has advanced in developing new customers and receiving business orders, and has also been successful in expanding existing businesses such as joint distribution. In addition, in the information business, sales of biometric authentication devices have been steadily increasing, leading to an increase in sales. On the profit side, the automation of in-house work with the aim of improving productivity and quality, and efforts to suppress and improve transportation costs by rearranging shipping routes in response to an increase in the quantity of goods, led to increased profits.

For the consolidated performance forecast for the full year ending in March 2025, sales revenue will be ¥110.951 billion, an increase of 4.2% from the previous year, operating profit will be ¥4.727 billion, an increase of 0.2% from the previous year, ordinary profit will be ¥4.221 billion, a decrease of 3.9% from the previous year, and net income attributable to parent company shareholders will be ¥2.855 billion, an increase of 0.9% from the planned initial calculation.