NH Foods' fresh-meat business did the heavy lifting in the quarter to June, raising prices on imported cuts fast enough to swallow higher procurement costs and a weaker yen. Group business profit rose 19.5% year-on-year to ¥19.4bn on sales up 8.7% to ¥384.9bn. Net profit attributable to owners fell 5.6% to ¥10.8bn.
The Fresh Meats division supplied the gain. Sales rose 12.2% to ¥280.8bn as the company passed through higher livestock procurement costs and held sales volumes in its Australian beef business even as prices rose. Segment business profit climbed 20.4% to ¥15.3bn, which management attributed to disciplined import pricing, inventory management and a branding push in its sales operations.
| Segment | Sales | Business profit | Profit change YoY |
|---|---|---|---|
| Fresh Meats | ¥280.8bn | ¥15.3bn | +20.4% |
| Processed Foods | ¥132.2bn | ¥746mn | -13.9% |
| Sports & Entertainment | ¥12.5bn | ¥4.9bn | +29.2% |
Processed Foods told the opposite story. Sales grew only 2.5% to ¥132.2bn, and business profit dropped 13.9% to ¥746mn as raw-material costs climbed on what the company links to Middle East tensions, even with higher output at its North American and Thai plants.
A smaller bright spot came from the newly formed Sports and Entertainment division, created in April when NH Foods folded its ballpark operations into a standalone unit. Strong attendance at Escon Field Hokkaido pushed ticket, advertising, merchandise and food-and-drink revenue higher, lifting segment sales 13.2% to ¥12.5bn and profit 29.2% to ¥4.9bn.
NH Foods left its full-year outlook unchanged: sales of ¥1.5tn, business profit of ¥61.0bn and net profit of ¥38.0bn, each figure implying a smaller profit than last year despite higher sales. The company did raise its full-year dividend forecast to ¥180.00 per share from ¥160.00 paid the prior year.