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I would like to express my sincerest gratitude to all our stakeholders for their continued support.
In the fiscal year ended March 31, 2026, which was the second year of the Eighth Medium-term Business Plan, the House Foods Group focused on revising the prices of certain products and services and creating demand based on changing consumer behavior. In doing so, it sought to address rising business costs, especially for raw materials, as well as increasing consumer thriftiness both in domestic and overseas markets driven by inflation.
The Spice/Seasoning/Processed Food Business achieved results mostly unchanged from the previous fiscal year, reflecting a gradual recovery notwithstanding a temporary decline in sales volume immediately after price revisions. The Health Food Business faced an uphill struggle, unable to absorb rising business costs due to intensifying competition in the jelly products market. The International Food Business posted gains in sales and profit, driven by the curry business in China. The Restaurant Business achieved higher sales, reflecting the intensification of sales measures after price revisions, but profit fell, squeezed by rising business costs. As a result, the Group’s consolidated net sales increased, but operating profit and ordinary profit decreased under the impact of higher business costs. Profit attributable to owners of parent decreased, primarily due to impairment losses associated with business in the United States.
With the second year of the Eighth Medium-term Business Plan over, there was considerable variance between the Group’s performance and its initial plan, and the Group has failed to achieve investment returns exceeding the cost of capital. To move beyond this situation, we have revised our previous management plan and will push forward with structural reforms based on three key themes: focusing management resources on growth areas, implementing organizational reforms, and strengthening financial strategies. Through the acceleration of global growth centered on the Spice Value Chain and improvement in capital efficiency, we will aim to further increase our enterprise value.
In the fiscal year ending March 31, 2027, business costs, especially for raw materials, will likely continue increasing. The Group will strive to improve profitability by implementing structural reforms as well as responding to changing customer needs in each of its businesses, optimizing the supply chain, and strengthening cost control.
We hope that our shareholders will continue to extend their support and encouragement to the House Foods Group in the future.
House Foods Group Inc.
Representative Director and President
Hiroshi Urakami