Shoei Foods sees Q3 revenue climb, profit mixed amid cost pressures

Shoei Foods Corporation posted a 7.5% increase in net sales for the third quarter of its fiscal year, reaching JPY94,526 million, up from JPY87,926 million a year prior. Growth was primarily driven by increased sales in dairy products, dried fruits, and confectionery/retail products in Japan. Gross profit also rose by 3.1% to JPY15,104 million.

However, operating profit remained flat at JPY4,218 million, impacted by higher selling, general, and administrative expenses due to DX-related costs and personnel expenses. Ordinary profit decreased by 2.4% to JPY4,265 million, and net profit attributable to shareholders declined by 5.1% to JPY2,605 million. The company's sales operating profit margin stood at 4.4%.

By segment, Japan reported a 6.9% increase in sales and a 9.4% rise in segment profit. In contrast, the US segment saw sales decrease by 2.6% and segment profit fall by 21.8%, influenced by a stronger yen and lower sales volumes for walnuts and prunes. China's segment sales slightly decreased by 0.3%, with segment profit plummeting by 49.0% due to reduced gross margins on dried fruits and temporary cost burdens.