Yutaka Foods Swings to an H1 Operating Loss as New Chilled-Foods Plant and Naphtha-Linked Costs Erase Gains From 14% Sales Growth

The chilled plant weighs on margins

Yutaka Foods Corporation (TSE: 2806) reported non-consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 4, 2026. Cost of sales rose 23.3%, far faster than sales, so the gross margin fell to about 4.4% from 11.5%. Chilled foods grew sales 46.1% to ¥1,387 million on more contract work, but depreciation at its newly operating plant turned the segment to a loss of ¥566 million from a profit of ¥151 million. Net profit fell 88.0% to ¥45 million, helped by a ¥42 million gain on the sale of fixed assets.

The other segments improved. Liquid products, led by eel-sauce sales, rose 5.7% to ¥2,781 million with segment profit more than doubling to ¥215 million. Powders grew 6.7% to ¥2,625 million on contract granule products, lifting profit 47.5% to ¥249 million. Instant noodles were flat at ¥859 million with profit of ¥16 million, and Other, mainly seafood trading, rose 72.9% to ¥658 million.

Guidance lowered

The company said a prolonged Middle East conflict kept raw-material prices high, mainly for naphtha-derived materials, and a weaker yen pushed production costs above plan. It revised its forecasts, expecting full-year operating profit, ordinary profit and net profit all to come in below its earlier targets despite further cost cuts and price increases; the revised figures were published separately. Operating cash flow rose to ¥2,397 million, helped by ¥1,105 million of depreciation and a fall in consumption tax receivable, and cash rose to ¥2,296 million. The equity ratio was about 87.7%.

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