Lower chicken prices meet higher costs
AXYZ Co., Ltd. (TSE: 1381), the Kagoshima-based broiler producer that keeps feed manufacture, rearing, chicken production and processing within one group, reported consolidated results for the first quarter of FY6/2027, July 1 to September 30, 2026, on October 30, 2026 under Japanese GAAP. Net sales rose 2.5% to ¥7,396 million, but gross profit slipped 1.1% to ¥2,216 million and selling, general and administrative expenses rose 12.7% to ¥1,345 million. Operating profit fell 16.8% to ¥871 million and the operating margin narrowed from 14.5% to 11.8%. The comparison base is high: a year earlier, first-quarter operating profit had risen 256.7%.
Ordinary profit fell 18.8% to ¥898 million and net profit attributable to owners of the parent 19.4% to ¥626 million, or ¥111.64 per share against ¥138.44. The filing says chicken market prices have been trending down while the price of feed ingredients, the main production cost, has risen along with personnel and other production costs, and it expects the difficult business environment to continue.
Food profit down 22.5%; a new KFC store lifts Restaurants
Food net sales edged up 0.4% to ¥6,082 million: sales to major customers were steady, but the fall in chicken prices kept growth small. Segment profit fell 22.5% to ¥652 million as lower selling prices squeezed the gross margin and rearing costs rose. The company is renovating rearing facilities in stages to build future capacity and save labour. Restaurants sales rose 13.8% to ¥1,158 million after a new KFC store opened in May 2026, while segment profit dipped 1.3% to ¥89 million on higher raw-material and personnel costs. Energy sales rose 8.3% to ¥155 million and segment profit 13.0% to ¥129 million.
Forecast and dividend unchanged
AXYZ left unchanged the FY6/2027 forecast it published on August 7, 2026: net sales of ¥28,400 million (-2.9%), operating profit of ¥2,500 million (-36.0%), ordinary profit of ¥2,550 million (-37.8%) and net profit of ¥1,800 million (-38.5%), for earnings per share of ¥320.54. First-quarter operating profit equals 34.8% of the full-year target. The dividend plan remains ¥120.00, paid at year end, the same as for FY6/2026. Total assets fell ¥998 million from June 30 to ¥27,462 million, mainly as cash and deposits dropped to ¥9,195 million from ¥10,422 million; liabilities fell to ¥3,367 million and net assets were ¥24,095 million, lifting the equity ratio to 87.7% from 84.6%.
| Metric | Q1 FY6/2027 | Q1 FY6/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 7,396 | 7,217 | +2.5% |
| Gross profit (¥ million) | 2,216 | 2,241 | -1.1% |
| SG&A expenses (¥ million) | 1,345 | 1,193 | +12.7% |
| Operating profit (¥ million) | 871 | 1,047 | -16.8% |
| Operating margin | 11.8% | 14.5% | -2.7 pt |
| Ordinary profit (¥ million) | 898 | 1,107 | -18.8% |
| Net profit attrib. to owners of parent (¥ million) | 626 | 777 | -19.4% |
| Comprehensive income (¥ million) | 684 | 848 | -19.3% |
| EPS (¥) | 111.64 | 138.44 | -19.4% |
| Food — revenue (¥ million) | 6,082 | 6,056 | +0.4% |
| Food — segment profit (¥ million) | 652 | 842 | -22.5% |
| Restaurants — revenue (¥ million) | 1,158 | 1,017 | +13.8% |
| Restaurants — segment profit (¥ million) | 89 | 90 | -1.3% |
| Energy — revenue (¥ million) | 155 | 143 | +8.3% |
| Energy — segment profit (¥ million) | 129 | 115 | +13.0% |
| Total assets (¥ million) | 27,462 | 28,461 | -3.5% |
| Net assets (¥ million) | 24,095 | 24,084 | +0.0% |
| Equity ratio | 87.7% | 84.6% | +3.1 pt |
| FY6/2027 guidance — revenue (¥ million) | 28,400 | — | -2.9% |
| FY6/2027 guidance — operating profit (¥ million) | 2,500 | — | -36.0% |
| FY6/2027 guidance — ordinary profit (¥ million) | 2,550 | — | -37.8% |
| FY6/2027 guidance — net profit (¥ million) | 1,800 | — | -38.5% |
| FY6/2027 guidance — EPS (¥) | 320.54 | — | -38.5% |
| Annual dividend per share (¥) | 120.00 | 120.00 | unchanged |
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.