Kyokuyo reports record sales but Q2 profit declines

Kyokuyo reported an 11.0% increase in sales, reaching 155.9 billion yen for the second quarter of the fiscal year ending March 2026. This marks a new record for two consecutive periods, driven by increased marine product sales, including exports and triangular trade, the consolidation of a newly acquired overseas subsidiary, and higher sales of tuna, skipjack, and sushi ingredients. Despite the strong top-line performance, operating profit decreased by 16.6% to 4.5 billion yen, and ordinary profit fell by 21.5% to 4.1 billion yen. Net income attributable to parents, however, saw a slight increase of 3.9% to 2.8 billion yen.

The decline in profitability was primarily attributed to the overseas purse seine business within the fresh fish segment, which experienced lower catch volumes. Additionally, the company incurred upfront costs for newly established overseas factories and faced reduced factory utilization due to raw material shortages at acquired subsidiaries. The company plans to focus on profit improvement in the second half of the fiscal year by expanding sales of high-value products during the year-end sales season and implementing thorough inventory management strategies.

Kyokuyo maintained its dividend policy, aiming for 150 yen per share for fiscal year 2026, an increase of 20 yen from the previous period, marking 26 consecutive periods of maintaining or increasing dividends. The company also announced an average monthly salary increase of 19,700 yen for employees and a raise in starting salaries to 300,000 yen from April 2025, to improve motivation and secure human resources.