Kikkoman FY26 Revenue Crosses ¥745bn (+5.2%) on Overseas Soy Sauce Demand; Net Profit Flat at ¥61.6bn as Margins Hold; Dividend Held at ¥25

Kikkoman Corporation (TSE: 2801), the global soy sauce leader and one of Japan's most recognizable consumer-staples brands abroad, released its FY3/2026 consolidated earnings short report (Kessan Tanshin) under IFRS on April 24, 2026. Revenue rose 5.2% year-on-year to ¥745,539 million, business profit (sales less cost of sales and SG&A) rose 2.9% to ¥79,512 million, operating profit rose 3.0% to ¥75,940 million, and pre-tax profit was effectively flat at ¥84,069 million (+0.4%). Profit attributable to owners of the parent edged down 0.1% to ¥61,615 million, with basic EPS of ¥65.99 (vs. ¥64.99) supported by a reduced share count from the prior year's buyback. Comprehensive income surged to ¥97,326 million from ¥56,083 million, almost entirely on FX translation of overseas operations.

Overseas-led top-line growth, domestic stable

By reporting segment, overseas operations did the heavy lifting. Overseas food manufacturing & sales revenue rose 3.8% to ¥173,506 million, with North America, Europe (Germany, France, Italy, Netherlands all up) and Asia/Oceania (Indonesia, Philippines, China) all growing. Overseas food wholesale — Kikkoman's Oriental-foods distribution business — grew the fastest at +6.2% to ¥432,941 million, with broad-based gains across North America, Europe and Asia/Oceania. Together the two overseas segments now account for roughly 81% of consolidated revenue. Domestically, food manufacturing & sales rose 3.8% to ¥160,138 million as the food category (tsuyu sauces, Del Monte condiments, soymilk) outweighed mixed performance in the core soy sauce category, while domestic other (clinical-diagnostic enzymes, real estate, logistics) rose 0.9% to ¥21,765 million but jumped 38.8% in business profit on a low base.

Business profit vs. operating profit: an IFRS distinction

Kikkoman reports both business profit (¥79,512 million, +2.9%) and operating profit (¥75,940 million, +3.0%) under IFRS. Business profit is the company's preferred operating-level measure — sales less cost of sales and SG&A only — while operating profit additionally folds in other income and other expenses (asset disposal gains/losses, impairments, restructuring items). The 10.7% business-profit margin slipped slightly from 10.9% as raw-material costs and overseas SG&A grew faster than reported sales, partly offset by ¥36.6 billion of FX-driven revenue uplift on a weaker yen against the euro (average EUR/JPY ¥174.54 vs. ¥163.62; USD/JPY ¥150.97 vs. ¥152.48). Pre-tax profit was held back by a step-up in financial costs from ¥2.0 billion to ¥4.4 billion as Kikkoman drew down cash to fund overseas capex, capping growth versus the operating line.

Balance sheet stays one of Japan's most fortress-like

Total assets grew to ¥751,660 million from ¥679,414 million, with non-current assets (property, plant and equipment) rising ¥58.2 billion on capex for the upcoming third U.S. soy sauce plant. Equity attributable to owners rose to ¥560,924 million, with the equity ratio holding at 74.6% (vs. 74.8%) — among the highest in the Japanese food sector and roughly double the 35–40% typical of Japanese trading houses or consumer-electronics peers. Operating cash flow was ¥90.5 billion (up 22.3% from ¥74.0 billion), investing cash flow used ¥43.2 billion (mainly tangible-asset acquisitions), and financing cash flow used ¥53.1 billion (dividends ¥23.5 billion, buybacks ¥21.0 billion, lease repayments ¥8.2 billion). Cash and equivalents ended at ¥111.8 billion.

Dividend held at ¥25; new ¥30bn buyback program approved

For FY3/2026, the annual dividend was held at ¥25.00 per share (¥10 interim + ¥15 year-end) — flat year-on-year, though FY25's ¥15 year-end included a ¥2 special component, so on an ordinary-only basis FY26 represents a ¥2 ordinary lift to ¥15. The consolidated payout ratio was 37.9% (vs. 38.5%). For FY3/2027 the company guides an unchanged ¥25.00 annual dividend (¥10 + ¥15). Separately, the board approved on the same day a new buyback program of up to 24 million shares (2.59% of shares outstanding ex-treasury) for up to ¥30 billion, to be executed via TSE open-market purchases between May 7, 2026 and March 31, 2027. Treasury shares already stood at 42.9 million at fiscal year-end (vs. 26.9 million a year earlier), reflecting an accelerating return-of-capital cadence.

FY27 guidance: ¥799bn revenue (+7.2%), EPS roughly flat

For FY3/2027, Kikkoman guides revenue of ¥799,100 million (+7.2%), business profit of ¥82,300 million (+3.5%), operating profit of ¥78,800 million (+3.8%), pre-tax profit of ¥84,400 million (+0.4%), and net profit attributable to owners of ¥61,300 million (−0.5%) for basic EPS of ¥65.65. The guidance assumes an average USD/JPY of ¥155 (vs. ¥150.97 actual in FY26) — a tailwind on translation but partially absorbed by raw-material cost pressure. Kikkoman's medium-term plan (FY3/2026–FY3/2028) targets sales growth of 5%+ ex-FX, a business-profit margin of 10%+ and ROE of 12%+. The opening of the third U.S. soy sauce plant in autumn 2026 is the key capacity event of FY27 — Kikkoman expects it to underpin steady North American expansion alongside continued share-gain in Europe and double-digit ASEAN growth. The board notes Middle East geopolitical uncertainty is not yet baked into the forecast.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.