Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . nippn Consolidated Financial Results for the First Quarter of FY2027 FASF [ J - GAAP ] ( August 6 , 2026 ) Listed company name : Listing : Code number : URL Representative : Contact : TEL : Payment date of cash dividends : NIPPN CORPORATION The Prime Market of the Tokyo Stock Exchange 2001 https://www.nippn.co.jp/en/index.html Toru Otao , President and CEO Hideaki Kataoka , General Manager of Corporate Communications Div . + 81-3-3511-5307 Supplementary materials prepared : Results information meeting held : None None * Amounts less than one million yen have been rounded down . 1. Consolidated financial results for the first quarter of FY2027 ( From April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Millions of yen , percentage figures show the rate of change from the same period of the previous year . ) Net Sales Operating Income Ordinary Income Profit Attributable to Owners of Parent 1Q of FY2027 1Q of FY2026 107,213 104,219 2.9 % 2.2 % 4,305 5,570 ( 22.7 ) % 8.5 % 5,948 6,764 ( 12.1 ) % 4,292 ( 8.8 ) % 3.4 % 4,705 ( 50.1 ) % ( Note ) Comprehensive income : 1Q of FY2027 ¥ 1,826 million 1Q of FY2026 6,287 million [ ( 71.0 ) % ] [ ( 59.0 ) % ] Profit per Share ( Yen ) Fully Diluted Profit per Share ( Yen ) 1Q of FY2027 1Q of FY2026 51.92 58.08 51.88 53.52 ( Note ) During the first nine months of FY2026 , provisional accounting methods pertaining to the business combination were determined , and figures pertaining to the first three months of FY2026 reflect the contents of the determined provisional accounting methods . ( 2 ) Consolidated financial position Total Assets 1Q of FY2027 FY2026 ( Reference ) Equity capital : 1Q of FY2027 469,473 476,826 ¥ 281,166 million 2. Dividends FY2026 FY2027 FY2027 ( Forecast ) ( Millions of yen ) Net Assets Equity Ratio 288,770 289,877 FY2026 59.9 % 59.2 % ¥ 282,330 million 1Q - end 2Q - end Dividends per Share ( Yen ) 3Q - end Year - end Full Year 33.00 35.00 68.00 34.00 34.00 68.00 ( Note ) Adjustment for the most recent forecast of the dividends in the current term : None 3. Forecast of consolidated financial results for FY2027 ( From April 1 , 2026 to March 31 , 2027 ) ( Millions of yen , percentage figures show the rate of changes from the same period of the previous year . ) Half Year Full Year Net Sales Operating Income Ordinary Income 214,000 430,000 2.9 % 2.8 % Profit Attributable to Owners of Parent 9,000 ( 17.1 ) % 10,000 ( 17.6 ) % 10,300 19,500 ( 11.7 ) % 21,000 ( 15.6 ) % 21,200 Profit per Share ( Yen ) 11.1 % ( 2.8 ) % 124.61 256.47 ( Note ) Adjustment for the most recent forecast of the consolidated financial results in the current term : None
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* Notes (1) Significant changes in the scope of consolidation during the quarter under review: None (2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, accounting estimates, and retrospective restatements 1) Changes in accounting policies due to revisions of accounting standards : None 2) Changes other than 1) : None 3) Changes in accounting estimates : None 4) Retrospective restatements : None (4) Number of shares issued and outstanding (common stock) 1) Number of shares outstanding at the end of each period (including treasury shares): 1Q of FY2027 84,727,163 shares FY2026 84,727,163 shares 2) Number of treasury shares at the end of each period: 1Q of FY2027 2,062,629 shares FY2026 2,066,083 shares 3)Average number of shares (quarterly consolidated cumulative period): 1Q of FY2027 82,664,560 shares 1Q of FY2026 81,017,137 shares (Note) The number of treasury shares at the end of the period includes our shares (219,500 shares at the end of the first quarter of FY2027, 219,500 shares at the end of FY2026) held by Custody Bank of Japan, Ltd. (Trust E Account). The number of treasury shares deducted in calculating the average number of shares during the period includes our shares (219,500 shares at the end of 1Q of FY2027, 225,900 shares at the end of 1Q of FY2026) held by Custody Bank of Japan, Ltd. (Trust E Account). * Review of the accompanying quarterly consolidated financial statements by certified public accountants or an audit corporation: None * Explanation regarding the appropriate use of projected financial results and other special instructions Descriptions regarding the future, including the financial outlook contained in this material, are based on certain information currently available to us and particular assumptions, which are, at our discretion, deemed reasonable, and actual financial results may significantly vary due to various factors. Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Results, (3) Information on forecast of the consolidated financial results” on page 4 for information on preconditions underlying the above outlook and other related information.
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- 1 - Contents 1. Qualitative Information on Quarterly Consolidated Financial Results ....................................................................... 2 (1) Overview of business results ...................................................................................................................................... 2 (2) Overview of financial position .................................................................................................................................... 4 (3) Information on forecast of the consolidated financial results .................................................................................. 4 2. Quarterly Consolidated Financial Statements and Primary Notes .............................................................................. 5 (1) Quarterly consolidated balance sheets ...................................................................................................................... 5 (2) Quarterly consolidated statements of income and comprehensive income ............................................................ 7 (Quarterly consolidated statements of income) .................................................................................................. 7 (Quarterly consolidated statements of comprehensive income) ........................................................................ 8 (3) Notes on quarterly consolidated financial statements .............................................................................................. 9 (Notes on going concern assumption) ...................................................................................................................... 9 (Notes to significant changes in the amount of shareholders' equity) ................................................................... 9 (Notes on quarterly consolidated statements of cash flows) .................................................................................. 9 (Notes on segment information, etc.) ....................................................................................................................... 10
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- 2 - 1. Qualitative Information on Quarterly Consolidated Financial Results (1) Overview of business results (Millions of yen) First three months of Fiscal 2026 First three months of Fiscal 2027 Difference Change Net Sales 104,219 107,213 2,993 102.9% Operating Income 5,570 4,305 (1,265) 77.3% Ordinary Income 6,764 5,948 (815) 87.9% Profit Attributable to Owners of Parent 4,705 4,292 (413) 91.2% During the first three months of the fiscal year ending March 31, 2027, the Japanese economy has gradually recovered in circumstances where the trend toward improvements in the employment and income environment is being established. On the other hand, the geopolitical risks such as the Mideast situation still remain highly uncertain, and the unclear situations such as energy prices at high levels and disturbance of the supply chains have continued. In the food industry, due to the geopolitical risks and the foreign exchange fluctuations, the procurement costs for items such as packaging materials and inks have continued to rise resulting, for example, from crude oil supply instability, in addition to the escalation of raw material prices and logistics costs. Owing to product price revisions under these circumstances, the harsh business environment continued to remain, as indicated by enhanced consumer inclination toward spending less. In these circumstances, we are striving to continuously improve our corporate value based on the management philosophy of “Contributing to the realization of a sustainable society by pursuing the well - being (happiness, health, and smiles) of people.” During the first three months of fiscal 2027, we pursued a unified brand strategy across categories, by seeking to enhance high-value-added products in each category, for our core brand “Oh’my Premium.” For frozen pasta, we sought to further increase the brand awareness and value penetration, by launching a new TV commercial underlining the visual richness and abundance of ingredients and the expected satisfaction. Furthermore, for frozen one-plate meals, we launched “nippn IRODORI GOHAN” as a new master brand following the brand “Oh’my Premium” under the brand message, “Joy in every bite,” driven by the desire to bring consumers great taste that satisfies both body and soul. We will continue to focus more than ever on delivering the great taste that is the value our consumers truly seek. In addition, as a new approach, we concluded a principal partner contract with a volleyball team “FRAGOLAD KAGOSHIMA,” which participates in the SV League, the top volleyball league in Japan. In the future, we will work to contribute to the community through co -creation with the volleyball team, in addition to strengthening the ability to communicate the brand through display of our logo on the uniform, etc. With these measures, we will strive to further strengthen the competitive market advantage of our brand, stabilize the revenue base, and increase our corporate value. In the first three months of fiscal 2027, net sales increased by 2.9% year-on-year to ¥107,213 million, due to firm sales volumes as well as price revisions implemented in response to various rising costs. In terms of profit, due to an increase in various costs, including raw material, personnel and logistics costs, in each business, and due to an increase in depreciation expenses resulting from newly operational mills and plants, operating income decreased by 22.7% year-on-year to ¥4,305 million, ordinary income decreased by 12.1% year-on-year to ¥5,948 million, and quarterly profit attributable to owners of parent decreased by 8.8% year- on-year to ¥4,292 million. Further, during the first nine months of FY2026, provisional accounting methods pertaining to the business combination were determined, and figures pertaining to the first three months of FY2026 reflect the contents of the determined provisional accounting methods. The performance of individual business segments was as follows.
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- 3 - (1) Flour Milling (Millions of yen) First three months of Fiscal 2026 First three months of Fiscal 2027 Difference Change Net Sales 30,744 30,214 (530) 98.3% Operating Income 2,517 2,039 (478) 81.0% In the Flour Milling business, although sales remained steady and shipments were higher than the previous year, due to the impact of the price revision for wheat flour following the reduction of the government selling price of foreign wheat, net sales decr eased by 1.7% year-on-year to ¥30,214 million, and operating income decreased by 19.0% year-on-year to ¥2,039 million. Due to the revision of the government selling price of foreign wheat in April this year and rising costs such as logistics and personnel costs, we revised the price of wheat flour for professional use in late June this year. (2) Food (Millions of yen) First three months of Fiscal 2026 First three months of Fiscal 2027 Difference Change Net Sales 60,650 62,624 1,973 103.3% Operating Income 2,368 1,435 (933) 60.6% In the professional use food product category, net sales increased year-on-year, due to steady sales both in Japan and abroad. In the home use food product category, net sales increased year -on-year due to steady sales volumes for the frozen “Oh’my Premium” series and the frozen “One Plate Meal Series,” in addition to the growth of sales volume for the “Chewy and Delicious Spaghetti” and “Exquisitely Al Dente Delicious Spaghetti” series. In terms of the Nakashoku (Ready-made meal) Business, net sales decreased from the previous year due to enhanced consumer inclination toward spending less. As a result, net sales of the Food Business increased by 3.3% year -on-year to ¥62,624 million, and operating income decreased by 39.4% year-on-year to ¥1,435 million. (3) Other (Millions of yen) First three months of Fiscal 2026 First three months of Fiscal 2027 Difference Change Net Sales 12,824 14,375 1,551 112.1% Operating Income 683 867 184 126.9% In the Pet Care business, net sales increased year-on-year, due to sales volume growth, etc. In the Food Service business, net sales increased year-on-year due to strong sales. In the Engineering business, net sales increased year-on-year, due to an increase in inquiries for large-scale construction projects. As a result, net sales of the other businesses increased by 12.1% year -on-year to ¥14,375 million, and operating income increased by 26.9% year-on-year to ¥867 million.
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- 4 - (2) Overview of financial position (Millions of yen) As of March 31, 2026 As of June 30, 2026 Difference Current assets 194,203 186,289 (7,914) Non-current assets 282,534 283,099 565 Deferred assets 88 84 (4) Total assets 476,826 469,473 (7,353) Current liabilities 82,786 77,814 (4,972) Non-current liabilities 104,162 102,888 (1,274) Total liabilities 186,949 180,702 (6,246) Total net assets 289,877 288,770 (1,106) Total liabilities and net assets 476,826 469,473 (7,353) Total assets at the end of the first three months of fiscal 2027 decreased by ¥7,353 million from the previous fiscal year-end (March 31, 2026) to ¥469,473 million. This was mainly because cash and deposits; investment securities; and merchandise and finished goods decreased by ¥7,245 million, ¥2,548 million, and ¥1,344 million, respectively, and property, plant and equipment increased by ¥4,044 million. Total liabilities decreased by ¥6,246 million from the previous fiscal year -end to ¥180,702 million. This was mainly because income taxes payable; long-term loans payable; notes and accounts payable – trade; other non-current liabilities decreased by ¥4,14 7 million, ¥718 million, ¥611 million, and ¥528 million, respectively, and other current liabilities increased by ¥45 million. Total net assets decreased by ¥1,106 million from the previous fiscal year -end to ¥288,770 million. This was mainly because the unrealized holding gains (losses) on securities and the retirement benefit liability adjustments decreased by ¥2,379 million and ¥199 million, respectively, and the retained earnings and the non-controlling interests increased by ¥1,385 million and ¥57 million, respectively. (3) Information on forecast of the consolidated financial results For the second quarter and beyond, the forecasts of the consolidated financial results for the first six months and the full year of fiscal 2027 announced on May 12, 2026 have been unchanged. With regard to dividends, we plan to pay total cash dividends of ¥68 per share for the full year ending March 31, 2027, unchanged from the forecast.
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- 5 - 2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly consolidated balance sheets (Millions of yen) FY2026 (As of March 31, 2026) First quarter of FY2027 (As of June 30, 2026) Assets Current assets Cash and deposits 69,173 61,928 Notes and accounts receivable – trade and contract assets 57,818 57,810 Merchandise and finished goods 29,696 28,352 Work in process 98 210 Raw materials and supplies 23,116 22,733 Other current assets 14,325 15,275 Allowance for doubtful accounts (26) (22) Total current assets 194,203 186,289 Non-current assets Property, plant and equipment Buildings and structures, net 62,065 61,935 Machinery, equipment, and vehicles, net 28,532 32,613 Land 48,752 48,738 Construction in progress 14,155 14,013 Other, net 3,997 4,245 Total property, plant, and equipment 157,502 161,546 Intangible assets Goodwill 1,517 1,424 Other 1,352 1,496 Total intangible assets 2,869 2,920 Investments and other assets Investment securities 102,647 100,099 Other 19,733 18,756 Allowance for doubtful accounts (219) (223) Total investments and other assets 122,161 118,632 Total non-current assets 282,534 283,099 Deferred assets 88 84 Total assets 476,826 469,473
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- 6 - (Millions of yen) FY2026 (As of March 31, 2026) First quarter of FY2027 (As of June 30, 2026) Liabilities Current liabilities Notes and accounts payable – trade 35,107 34,496 Short-term loans payable 15,820 15,700 Income taxes payable 5,158 1,010 Provision for bonuses 1,027 888 Other 25,672 25,717 Total current liabilities 82,786 77,814 Non-current liabilities Bonds payable 20,000 20,000 Long-term loans payable 43,249 42,530 Retirement benefit liabilities 4,210 4,199 Accrued retirement benefits for directors 371 340 Provision for share awards for directors (and other officers) 150 165 Other 36,180 35,651 Total non-current liabilities 104,162 102,888 Total liabilities 186,949 180,702 Net assets Shareholders’ equity Capital stock 18,670 18,670 Capital surplus 16,244 16,244 Retained earnings 187,106 188,492 Treasury shares (4,751) (4,751) Total shareholders’ equity 217,270 218,655 Accumulated other comprehensive income Unrealized holding gains (losses) on securities 52,661 50,282 Deferred gains (losses) on hedges 30 62 Foreign currency translation adjustments 5,652 5,651 Retirement benefit liability adjustments 6,714 6,514 Total accumulated other comprehensive income 65,059 62,510 Subscription rights to shares 98 98 Non-controlling interests 7,448 7,505 Total net assets 289,877 288,770 Total liabilities and net assets 476,826 469,473
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- 7 - (2) Quarterly consolidated statements of income and comprehensive income (Quarterly consolidated statements of income) (Millions of yen) First quarter of FY2026 (From April 1, 2025 to June 30, 2025) First quarter of FY2027 (From April 1, 2026 to June 30, 2026) Net sales 104,219 107,213 Cost of sales 77,980 81,419 Gross profit 26,239 25,794 Selling, general and administrative expenses 20,668 21,489 Operating income 5,570 4,305 Non-operating income Interest income 135 213 Dividend income 1,300 1,279 Other 168 495 Total non-operating income 1,604 1,988 Non-operating expenses Interest expenses 97 276 Foreign exchange losses 205 － Other 107 68 Total non-operating expenses 410 345 Ordinary income 6,764 5,948 Extraordinary income Gain on sale of fixed assets 0 0 Gain on sale of investment securities 0 186 Total extraordinary income 0 186 Extraordinary expenses Loss on sale and disposal of fixed assets 13 10 Loss of valuation of investment securities － 4 Loss on sale of investment securities 0 0 Other 16 0 Total extraordinary expenses 30 15 Profit before income taxes 6,734 6,120 Income taxes – current 1,287 971 Income taxes – deferred 660 771 Total income taxes 1,948 1,743 Profit 4,786 4,377 Profit attributable to non-controlling interests 81 85 Profit attributable to owners of parent 4,705 4,292
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- 8 - (Quarterly consolidated statements of comprehensive income) (Millions of yen) First quarter of FY2026 (From April 1, 2025 to June 30, 2025) First quarter of FY2027 (From April 1, 2026 to June 30, 2026) Profit 4,786 4,377 Other comprehensive income Unrealized holding gains (losses) on securities 2,229 (2,381) Deferred gains (losses) on hedges 5 30 Foreign currency translation adjustments (825) (51) Retirement benefit liability adjustments (97) (199) Share of other comprehensive income of entities accounted for using equity method 189 51 Total other comprehensive income (loss) 1,500 (2,550) Comprehensive income 6,287 1,826 (Comprehensive income attributable to) Comprehensive income attributable to owners of parent 6,197 1,742 Comprehensive income attributable to non-controlling interests 89 83
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- 9 - (3) Notes on quarterly consolidated financial statements (Notes on going concern assumption) Not applicable. (Notes on significant changes in the amount of shareholders' equity) Not applicable. (Notes on quarterly consolidated statements of cash flows) Quarterly consolidated statements of cash flows for the first quarter of fiscal 2027 have not been prepared. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the first quarter of fiscal 2026 and fiscal 2027 are as follows. (Millions of yen) First quarter of FY2026 (From April 1, 2025 to June 30, 2025) First quarter of FY2027 (From April 1, 2026 to June 30, 2026) Depreciation 2,593 3,289 Amortization of goodwill 103 93 (Note) During the first nine months of FY2026, provisional accounting methods pertaining to the business combination were determined, and figures pertaining to the first three months of FY2026 reflect the contents of the determined provisional accounting methods.
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- 10 - (Notes on segment information, etc.) [Segment information] I First quarter of FY2026 (From April 1, 2025 to June 30, 2025) 1. Information on net sales and income (loss) by reportable segment and composition of revenue (Millions of yen) Reportable segments Other Note: 1 Total Adjustments Note: 2 Amount recorded in quarterly consolidated financial statements Note: 3 Flour Milling Food Total Net sales Revenue from contracts with customers 30,744 60,639 91,384 12,597 103,981 － 103,981 Other revenue － 11 11 226 238 － 238 Net sales to external customers 30,744 60,650 91,395 12,824 104,219 － 104,219 Internal sales or transfers between segments 727 244 972 647 1,619 (1,619) － Total 31,472 60,895 92,367 13,471 105,839 (1,619) 104,219 Segment profit (loss) 2,517 2,368 4,886 683 5,570 0 5,570 Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including Pet Food, Health Food, Engineering, Food Service, and Real Estate Leasing business. 2. Segment profit (loss) adjustment of ¥0 million refers to elimination of inter-segment transactions. 3. Segment profit (loss) is adjusted to reconcile total segment income to operating income in the quarterly consolidated financial statements. 2. Information on Impairment losses on non-current assets, goodwill, etc., by reportable segment Not applicable.
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- 11 - II First quarter of FY2027 (From April 1, 2026 to June 30, 2026) 1. Information on net sales and income (loss) by reportable segment and composition of revenue (Millions of yen) Reportable segments Other Note: 1 Total Adjustments Note: 2 Amount recorded in quarterly consolidated financial statements Note: 3 Flour Milling Food Total Net sales Revenue from contracts with customers 30,214 62,612 92,826 14,130 106,956 － 106,956 Other revenue － 11 11 245 257 － 257 Net sales to external customers 30,214 62,624 92,838 14,375 107,213 － 107,213 Internal sales or transfers between segments 659 239 898 649 1,548 (1,548) － Total 30,873 62,863 93,736 15,025 108,762 (1,548) 107,213 Segment profit (loss) Note: 4 2,039 1,435 3,475 867 4,343 (37) 4,305 Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including Pet Food, Health Food, Engineering, Food Service, and Real Estate Leasing business. 2. Segment profit (loss) adjustment of ¥(37) million refers to elimination of inter-segment transactions. 3. Segment profit (loss) is adjusted to reconcile total segment income to operating income in the quarterly consolidated financial statements. 4. During the first nine months of FY2026, provisional accounting methods pertaining to the business combination were determined, and the segment information for the first three months of FY2026 reflects the contents of the determined provisional accounting methods. 2. Information on Impairment losses on non-current assets, goodwill, etc., by reportable segment Not applicable.