Showa Sangyo <2004> announced its consolidated financial results for the second quarter of the fiscal year ending in March 2025 (April to September 24th year). Sales revenue decreased by 4.0% year-on-year to 168.582 billion yen, operating profit decreased by 6.6% to 6.867 billion yen, ordinary profit decreased by 3.5% to 8.262 billion yen, and net income attributable to the parent company's shareholders increased by 32.4% to 7.586 billion yen.
Revenue from the food business decreased by 3.4% year-on-year to 138.693 billion yen, and operating profit decreased by 10.3% to 6.563 billion yen. Leveraging the company's strength in market analysis, efforts were made in customer-specific sales organization for target industries, one-stop proposal sales, and selling at appropriate prices. Due to import fluctuations, adjustments were made in product pricing leading to different sales trends in categories like flour, edible oils, and starch.
Revenue from the fodder business decreased by 7.3% to 27.513 billion yen, while operating profit increased significantly by 166.0% to 0.317 billion yen. Efforts were directed towards proposal-based sales in response to customer needs, enhancing the support for livestock sales and increasing value, and expanding the sales of high value-added products. Initiatives such as introducing egg-laying hens to farms affected by avian influenza in October 2022 led to increased sales of compound feed and eggs compared to the previous year. However, due to lower raw material prices, the average selling price of compound feed decreased compared to the previous year, resulting in lower overall revenue.
Revenue from other sources increased by 0.7% to 2.376 billion yen, while operating profit increased by 11.6% to 0.737 billion yen. The warehousing business saw an increase in cargo handling volume compared to the previous year due to intensified competition, strengthened efforts with trading companies and major customers.
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.