Kewpie H1 Operating Profit Jumps 24% to ¥20bn as Sales Rise 3.9%, but Net Profit Falls 30% on Prior-Year Gain

Kewpie, Japan's largest maker of mayonnaise, dressings and egg products, said first-half operating profit jumped 23.9% to ¥20.0 billion as sales rose 3.9% to ¥261.6 billion, though net profit attributable to owners fell 29.7% to ¥13.2 billion against a prior year lifted by a one-off gain.

Kewpie mayonnaise products Kewpie · TSE

Kewpie (TSE: 2809), Japan's leading maker of mayonnaise, dressings and egg products, reported results for the first half of the fiscal year ending November 2026 — the six months from December 1, 2025 to May 31, 2026. Sales rose 3.9% to ¥261,648m, operating profit jumped 23.9% to ¥20,020m and ordinary profit climbed 23.3% to ¥21,518m. Net profit attributable to owners, however, fell 29.7% to ¥13,214m, and interim EPS declined to ¥95.95 from ¥135.27.

Operating profit jumps on pricing and mix

Operating profit rose strongly as price revisions and an improved product mix more than offset continued pressure from raw-material and logistics costs. The 23.9% gain to ¥20,020m lifted the half-year operating margin, and comprehensive income rose 5.0% to ¥20,774m. The result puts Kewpie well ahead of the pace it needs to meet its full-year operating-profit target, with the interim figure representing about 53% of the ¥38,000m guidance.

Net profit falls on prior-year one-off gain

The 29.7% drop in net profit attributable to owners, to ¥13,214m, reflects a high year-earlier base rather than a deterioration in the underlying business. The prior-year first half included a large one-off gain that had lifted year-earlier net profit by 50.3%, so the current half-year comparison is against an inflated figure. With that gain absent this year, interim EPS fell to ¥95.95 from ¥135.27, a decline of 29.1%.

Balance sheet and dividend

Total assets stood at ¥486,100m and net assets at ¥350,278m as of May 31, 2026, for an equity ratio of 66.9%. Kewpie guided a full-year FY11/26 dividend of ¥65.00 — an interim payout of ¥32.00 and a year-end payout of ¥33.00. That compares with ¥64.00 in FY11/25, a figure that had included a ¥10.00 commemorative dividend marking 100 years of Kewpie mayonnaise.

Full-year outlook unchanged

Kewpie left its full-year FY11/26 guidance unchanged, projecting sales of ¥530,000m (+3.2%), operating profit of ¥38,000m (+9.7%), ordinary profit of ¥40,000m (+7.0%) and net profit of ¥25,500m (−16.4%), for EPS of ¥184.95. The forecast decline in net profit again reflects the absence of the prior-year one-off gain, even as operating profit is expected to keep growing.

Kewpie — H1 FY11/2026 Key Financials (J-GAAP, consolidated)
MetricH1 FY11/26H1 FY11/25YoY
Sales (¥m)261,648251,852+3.9%
Operating profit (¥m)20,02016,164+23.9%
Ordinary profit (¥m)21,51817,448+23.3%
Net profit attrib. (¥m)13,21418,803−29.7%
EPS (¥)95.95135.27−29.1%
Equity ratio66.9%67.4%−0.5pp

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.