The annual dividend forecast is set at ¥150 per share (approximately $1.02 USD per share).

Kyokuyo Reports Mixed Q1 Results as Sales Rise, But Profits Decline

JAPAN
Wednesday, August 06, 2025, 06:00 (GMT + 9)

The Japanese seafood company saw a double-digit increase in net sales for the first quarter of the fiscal year ending March 2026, but operating and ordinary profits fell due to various challenges across its business segments.

TOKYO - Kyokuyo Co., Ltd. announced its first-quarter consolidated financial results for the period from April 1 to June 30, 2025, revealing a mixed performance driven by a challenging market environment. While net sales saw a healthy increase, key profit metrics declined compared to the same period last year.

The company reported consolidated net sales of ¥76.03 billion (approximately $517 million USD), a significant increase of 11.5% year-on-year. However, this growth did not translate to the bottom line, as operating profit fell by 15.9% to ¥2.607 billion (approximately $17.7 million USD), and ordinary profit decreased by 25.5% to ¥2.455 billion (approximately $16.7 million USD). Net income attributable to parent company shareholders also saw a decline of 30.9%, landing at ¥1.667 billion (approximately $11.3 million USD).

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The company noted that the overall economic environment in Japan is gradually recovering, but the seafood and food industries face a difficult landscape due to prolonged high prices and a stronger savings mentality among consumers.

Segment Performance Highlights:

• Fisheries Business: This segment was a major driver of growth, with sales and profit both increasing. Strong demand for mackerel in international trade and exports helped boost performance. Sales of high-value products like roe and crab were also robust. Overseas business saw growth in China, Thailand, and Europe, partly due to the consolidation of two new foreign subsidiaries.

• Fresh Food Business: Despite an increase in sales, profit decreased significantly. While sales of tuna for restaurants and supermarkets were strong, the overseas purse seine business experienced a large drop in catch volume, which heavily impacted both sales and profit.

• Food Products Business: Sales increased slightly, but profit declined. The frozen food category saw mixed results, with sales of products like shrimp fries and "Ocean King" crab-flavored surimi performing well, but sales of seafood materials for convenience stores dropped due to high raw material costs. Canned food sales also decreased, but profitability improved due to price revisions.

• Logistics Services: Both sales and profit for this segment decreased year-on-year. The refrigerated warehouse business was sluggish due to slow inventory movement.

Looking ahead, Kyokuyo has not revised its full-year consolidated earnings forecast, which was originally published on May 12, 2025. The company projects full-year sales of ¥350 billion ($2.38 billion USD), operating profit of ¥12.5 billion ($85 million USD), and net income of ¥8.2 billion (approximately $55.8 million USD). The annual dividend forecast is set at ¥150 per share (approximately $1.02 USD per share).

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