Koikeya Inc. (TSE: 2226), Japan's well-known potato chip and snack brand best recognised for its premium "Koikeya Pride Potato" and spicy "Karamucho" lines, reported consolidated results for FY2026 (year ended March 31, 2026) under Japanese GAAP. Revenue rose 3.0% year-on-year to ¥61,156 million, reflecting resilient domestic demand for high-value-added snack products and a solid overseas performance. However, operating profit slipped 3.7% to ¥3,868 million, ordinary profit fell 6.1% to ¥3,773 million, and profit attributable to owners of the parent was nearly unchanged at ¥2,594 million (+0.2%). EPS came in at ¥243.24.
The profitability squeeze stemmed primarily from an unexpected deterioration in potato quality caused by high summer temperatures, which drastically reduced potato yields below initial forecasts and raised manufacturing costs. A poor Hokkaido potato harvest further compounded the problem, forcing management to fundamentally revise its product lineup and sales strategy in the second half. On top of this, broad raw material cost increases and higher personnel expenses — from wage hikes and headcount additions — pressured margins. The company responded by executing cost-reduction measures and selective price increases to protect profitability.
Domestic segment: sales grew, margins compressed
The domestic segment, which accounts for the large majority of revenues, recorded sales of ¥54,733 million (+3.0% YoY) and segment profit of ¥3,439 million (-2.6% YoY). The premium "Koikeya Pride Potato" brand remained the core growth driver, complemented by a strong performance from corn-based longseller "Scon" — in particular the "Exquisite Grilled Corn" variant. Koikeya also revitalised the "Pure Potato" line with a full taste and packaging overhaul, emphasising 100% domestic potato content. "Don Tacos" and "Polinky" (celebrating its 35th anniversary with commemorative products and a recreated TV campaign) contributed incremental brand equity gains. A new Chubu-region production facility in Kaizu, Gifu — Koikeya's first outside its traditional home base — began operations, aimed at expanding capacity and improving logistics efficiency. Yet the structural margin benefits of the new plant were more than offset by the potato-related cost shock during FY2026.
Overseas segment: growth across Vietnam, Thailand, and the U.S.
The overseas segment delivered a cleaner story: sales reached ¥6,422 million (+3.1% YoY) and segment profit jumped 12.6% to ¥649 million. The global brand "Karamucho" continued to expand both in existing and new markets. Vietnam saw revenue and profit growth driven by strong domestic sales and export demand, alongside improved gross margins and reduced promotional expenses. Thailand achieved growth through channel diversification and concentrated new-product launches in Q4. Taiwan was the sole soft spot, where deteriorating market conditions led to marginally lower sales and profit. Most significantly, Koikeya launched its U.S. operations in earnest: a local subsidiary was incorporated in June 2025, commenced business in October 2025 under a revamped business model, and launched a new brand "SATISFRY" in November 2025, targeting the U.S. snack market.
Balance sheet and cash flow
Total assets increased by ¥8,308 million to ¥47,363 million, reflecting capital expenditure on the new Chubu plant — property and equipment additions drove the increase, partially offset by a reduction in construction-in-progress assets as the facility came online. Total liabilities rose ¥6,091 million to ¥25,737 million, chiefly from long-term borrowings (+¥3,141 million) and long-term lease liabilities (+¥1,593 million) financing the plant investment. Net assets grew ¥2,215 million to ¥21,626 million, supported by retained earnings growth; the equity ratio stood at 45.0%. Operating cash flow was ¥3,996 million, while investment outflows totalled ¥6,928 million (primarily ¥6,981 million for property, plant and equipment), financed by net borrowings of ¥4,200 million in long-term loans. Cash and equivalents at period-end rose ¥787 million to ¥4,354 million.
FY2027 guidance: revenue +6.9%, operating profit recovers to ¥3.90 billion
Management guided for FY2027 (ending March 31, 2027) consolidated revenue of ¥65,400 million (+6.9%), operating profit of ¥3,900 million (+0.8%), ordinary profit of ¥3,800 million (+0.7%), and net profit of ¥2,600 million (+0.2%), implying EPS of ¥243.72. The company intends to continue its premium-brand strategy domestically, leverage the new Chubu plant to improve production efficiency, and implement further price revisions as market conditions warrant. Overseas, the focus will be on strengthening "Karamucho" globally, expanding high-margin corn and wheat-based product sales, and deepening U.S. market penetration through channel expansion. Management noted that the outlook does not incorporate any impact from Middle East geopolitical risks, and will promptly disclose any revisions should that situation materially affect forecasts. No material subsequent events were reported.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue | 61,156 | 59,371 | +3.0% |
| Operating profit | 3,868 | 4,016 | −3.7% |
| Ordinary profit | 3,773 | 4,019 | −6.1% |
| Net profit (owners) | 2,594 | 2,589 | +0.2% |
| EPS (¥) | 243.24 | — | — |
| Domestic segment revenue | 54,733 | 53,138 | +3.0% |
| Domestic segment profit | 3,439 | 3,531 | −2.6% |
| Overseas segment revenue | 6,422 | 6,228 | +3.1% |
| Overseas segment profit | 649 | 577 | +12.6% |
| Total assets | 47,363 | 39,055 | +21.3% |
| Equity ratio | 45.0% | — | — |
| FY2027 revenue guidance | 65,400 | — | +6.9% |
| FY2027 operating profit guidance | 3,900 | — | +0.8% |
| FY2027 EPS guidance (¥) | 243.72 | — | — |
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.