Pharma Foods ended the first nine months of the year ending July 2026 in a much deeper operating hole than a year earlier, yet it left its full-year profit target untouched. Sales for the cumulative third quarter rose 3.7% to ¥48,555 million, but operating loss widened to ¥1,430 million from ¥217 million, ordinary loss widened to ¥1,545 million from ¥231 million, and net loss attributable to owners was ¥1,061 million. The company still forecasts full-year sales of ¥67,000 million, operating profit of ¥2,000 million, ordinary profit of ¥2,000 million and net profit of ¥1,500 million, unchanged from the outlook it last updated in March.
| Metric | Latest/disclosed | Comparison |
|---|---|---|
| Nine-month sales | ¥48,555mn | +3.7% year on year |
| Nine-month operating result | ¥1,430mn loss | vs ¥217mn loss |
| Nine-month ordinary result | ¥1,545mn loss | vs ¥231mn loss |
| Nine-month net result | ¥1,061mn loss | vs ¥1,123mn loss |
| Net assets at Apr. 30 | ¥10,084mn | down from ¥11,547mn at Jul. 31, 2025 |
| Equity ratio | 28.9% | down from 35.4% |
| Interest-bearing debt | ¥17,235mn | up from ¥12,661mn |
| Full-year sales target | ¥67,000mn | unchanged |
| Full-year operating profit target | ¥2,000mn | unchanged |
| Full-year net profit target | ¥1,500mn | unchanged |
That gap is the point. Gross profit improved to ¥39,196 million from ¥37,726 million, but selling, general and administrative expenses climbed to ¥40,627 million from ¥37,944 million. Research and development spending rose to ¥1,116 million, and advertising expense increased to ¥30,061 million. In its supplemental slides, management said the year was designed with an active investment first half and a second-half shift back to profit, and that the cumulative third-quarter loss was already built into the full-year budget.
The balance sheet is also moving the wrong way. Net assets fell to ¥10,084 million at April 30 from ¥11,547 million at July 31, 2025, pulling the equity ratio down to 28.9% from 35.4%. Liabilities rose to ¥24,772 million from ¥21,101 million, while short-term borrowings increased to ¥16,400 million from ¥11,400 million. In the presentation, Pharma Foods said interest-bearing debt had climbed to ¥17,235 million from ¥12,661 million, lifting its D/E ratio to 1.71 from 1.09.
The company also kept its full-year dividend forecast unchanged at 25 yen. That leaves readers with a plain but awkward split: management says the nine-month loss was planned, but the published numbers show a deeper cumulative operating loss and a thinner equity cushion than a year earlier. The fourth quarter now has to show that the unchanged year-end target is achievable.