Kewpie Nine-Month Operating Profit Rises 17% on Price Revisions and Overseas Growth; Net Profit Falls on Prior-Year Asset-Sale Gain

Price revisions and a better mix

Kewpie Corporation (TSE: 2809), the Tokyo-based maker of mayonnaise, dressings and egg products, reported consolidated results for the first nine months of FY11/2026, the period from December 1, 2025 to August 31, 2026, on October 8, 2026 under Japanese GAAP. Net sales rose 3.6% to ¥397,119 million, operating profit 17.0% to ¥31,658 million and ordinary profit 17.4% to ¥34,315 million. Profit attributable to owners of the parent fell 18.2% to ¥21,311 million, or ¥155.50 per share against ¥187.90.

In Japan, the company said, volumes of processed egg products held up and price revisions to offset higher raw-material costs took hold, while consumers stayed cautious. Egg prices eased as the outbreak of highly pathogenic avian influenza subsided but remained high. Operating profit grew on domestic sales gains, a shift toward higher-value products and more efficient supply-chain management, which outweighed higher depreciation at new overseas plants and lower profit in China.

Food service leads the domestic gains

The retail market segment grew sales 0.4% to ¥144,502 million and profit 20.8% to ¥11,808 million, helped by higher condiment prices, a shift toward higher-value prepared salads and stable raw-material costs for cut vegetables. Food service, which sells to restaurants and bakeries, grew sales 2.9% to ¥140,971 million and profit 35.1% to ¥11,089 million on price revisions for condiments and egg products and higher volumes of processed eggs.

The overseas segment grew sales 13.7% to ¥83,664 million on strong sales in Asia Pacific and a recovery in the Americas, as new plants in both regions came fully on stream, but profit rose only 1.0% to ¥11,180 million after higher depreciation and lower earnings in China. Fruit solutions grew sales 0.8% to ¥13,504 million but profit fell 8.8% to ¥577 million on higher raw-material costs, while fine chemicals lifted profit 73.8% to ¥716 million on mail-order sales of hyaluronic acid and acetic-acid-bacteria supplements.

Balance sheet and buybacks

Total assets rose 0.5% to ¥482,807 million from November 30, with higher inventories and investment securities partly offset by lower cash. Net assets rose to ¥353,793 million and the equity ratio to 67.9% from 67.4%. Treasury stock rose to 6,229,707 shares from 2,326,558 at the end of the previous year, reflecting share repurchases.

Guidance unchanged

Kewpie kept the full-year FY11/2026 forecast it published on January 14, 2026: net sales of ¥530,000 million (+3.2%), operating profit of ¥38,000 million (+9.7%), ordinary profit of ¥40,000 million (+7.0%) and net profit of ¥25,500 million (−16.4%), or ¥184.95 per share. Nine-month operating profit already represents about 83% of the full-year target. The dividend forecast is also unchanged at ¥65.00 (¥32 interim and ¥33 year-end), against ¥64.00 for FY11/2025, which included a ¥10 commemorative dividend for the 100th anniversary of Kewpie Mayonnaise.

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.