House Foods forecasts growth amid cost pressures, restructuring in US

House Foods Group (TSE:2810) announced its FY2024 results and FY2025 forecast, projecting net sales of JPY333.0 billion, a 5.6% increase year-over-year, and operating profit of JPY21.5 billion, up 7.5%. The company's strategy involves mitigating rising business costs, especially in the Spice/Seasoning/Processed Food segment, and restructuring its U.S. business. The FY2024 results saw net sales reach JPY315.4 billion, a 5.3% increase, and operating profit of JPY20.0 billion, up 2.7%. Despite overall growth, profit attributable to owners of parent decreased to JPY12.5 billion due to the absence of a prior-year gain from retirement benefit plan revisions and an impairment loss related to the Keystone acquisition in the U.S. The Company has planned capital investments of JPY23.2 billion for the year and intend to allocate JPY10.0 billion (upper limit) for treasury share acquisitions as well as pay JPY48 in dividend per share. Further, the company plans to build a new curry roux manufacturing plant to meet growing demand for Japanese-style curry in Indonesia with the purpose of expanding sales into global halal market. House Foods aims to establish a high-quality company that provides "Healthy Life Through Foods" and builds global value chains while staying true to sincerity, originality and enthusiasm.