Kewpie Corporation · TSE:2809
Kewpie — FY2025 1H Earnings Presentation
39 slides from Kewpie's earnings presentation, Jul 3, 2025
Slide 1: FY2025 1H (Medium-term) Financial Results Briefing Materials
FY2025 1H (Medium-term) Financial Results Briefing Materials July 3, 2025 Kewpie Corporation
Slide 2: Today's Message
Today’s Message Full-scale launch of management that combines business strategy and financial strategy • Faced with unexpected environmental factors such as the significantly rising price of chicken eggs and vegetables, and geopolitical risks, we have implemented swift price revisions in Japan to co
Slide 3: Notes and Contents
Notes regarding the information in this document • The amounts stated in this document are rounded to the nearest 0.1 billion yen when figures are presented in billions of yen. • The numbers related to Overseas cover the period from October through September of the following year and include exports
Slide 4: FY2025 1H Financial Results Highlights
FY2025 1H Performance - Financial Results Highlights Net sales Operating income Started to counter headwinds from the ¥251.9bn ¥16.2bn YoY +6% YoY -14% significantly rising price Gain on sale of factory site of vegetables and Ordinary income Profit chicken eggs in Japan ¥17.4bn ¥18.8bn YoY -14% YoY
Slide 5: FY2025 1H Financial Results Highlights: Net Sales and Operating Income
FY2025 1H Performance - Financial Results Highlights (¥bn) Increase in sales (+¥15.0bn) Operating Net sales ¥251.9bn Percentage change +6% income ¥16.2bn Decrease in income (-¥2.7bn) Percentage change -14% • Increased income by expanding sales overseas, while investing in future investment costs. •
Slide 6: Factors Behind the Change in Operating Income
FY2025 1H Performance - Factors Behind the Change in Operating Income Operating income FY2025 1H: ¥16.2bn YoY change: -¥2.7bn (¥bn) + + The resulting “earning power” Effect of price +2.1 revisions Increased production +0.2 + +¥5.7bn efficiency Enhanced added +0.6 value, etc. Overseas and “Growing -0
Slide 7: Net Sales and Business Income by Segment
FY2025 1H Performance - Net Sales and Business Income by Segment (¥bn) Initial target Net sales FY2024 FY2025 YoY change YoY change Q1 Q2 Initial target 1H progress 1H 1H (%) YoY change YoY change Annual rate Retail Market 92.4 94.6 +2.2 +2% +0.5 +1.7 189.6 50% FY2025 1H ¥251.9bn Food Service 83.3 8
Slide 8: Retail Market Segment
FY2025 1H Performance and Financial Results Outlook - Retail Market Segment Net sales ¥94.6bn YoY change(¥bn) Business +¥2.2bn (+2%) ¥5.7bn YoY change -¥2.3bn (-29%) income (¥bn) Retail Market: Increase in Net sales FY2025 YoY change Q1 Q2 Revised YoY 1H YoY change (%) YoY change YoY change forecast
Slide 9: Food Service Segment
FY2025 1H Performance and Financial Results Outlook - Food Service Segment Business Net sales ¥89.1bn YoY change +¥5.8bn (+7%) (¥bn) income ¥4.4bn YoY change -¥2.0bn (-31%) (¥bn) Food Service: Increase in Net sales FY2025 YoY change Q1 Q2 Revised YoY 1H YoY change (%) YoY change YoY change forecast
Slide 10: Overseas Segment
FY2025 1H Performance and Financial Results Outlook - Overseas Segment Business Net sales ¥49.4bn YoY change +¥5.7bn (+13%) (¥bn) income ¥7.9bn YoY change +¥1.4bn (+21%) (¥bn) Q1 Q2 Overseas: Increase in sales Net sales FY2025 YoY YoY change YoY YoY Revised YoY 1H change (%) change change forecast c
Slide 11: 2. FY2025 Financial Results Outlook
2. FY2025 Financial Results Outlook © Kewpie Corporation All rights reserved. 11
Slide 12: FY2025 Outlook: Net Sales and Business Income by Segment
FY2025 Financial Results Outlook - Net Sales and Business Income by Segment *No change to company-wide targets, revised breakdown for each segment (¥bn) Net sales FY2024 FY2025 Initial target FY2025 Revised forecast YoY change YoY percentage change Change from initial target FY2025 Retail Market 186
Slide 13: FY2025 Outlook: Factors Behind the Change in Operating Income
FY2025 Financial Results Outlook - Factors Behind the Change in Operating Income Operating income FY2025 plan: ¥34.5bn YoY change: +¥0.2bn (¥bn) + The resulting “earning power” + 34.3 34.5 +¥15.9bn Effect of price “Growing revisions +9.6 Increased production +0.4 headwinds” efficiency Enhanced added
Slide 14: FY2028 Approach to Achieving ROE of at Least 8.5%
FY2028 Approach to Achieving ROE of at Least 8.5% ROE of at least 8.5% Drive both business and financial strategies to expand the spread over shareholders’ equity costs. Financial strategy to improve Business strategy to enhance capital efficiency profitability and growth potential Utilization of St
Slide 15: Making AOHATA Corporation a Wholly-Owned Subsidiary and Acquisition of Treasury Shares
Making AOHATA Corporation a Wholly-Owned Subsidiary and Acquisition of Treasury Shares Maximizing corporate value by improving capital efficiency and governance To Make AOHATA Corporation a wholly owned subsidiary Scheduled for November 2025 Maximize brand value Maximize brand value by sharing exper
Slide 16: Acquiring Treasury Shares to Improve Capital Efficiency
Acquiring Treasury Shares as Financial Strategy to Improve Capital Efficiency Acquisition of treasury shares To make AOHATA Corporation As financial strategy to improve capital a wholly owned subsidiary efficiency Share exchange Approx. 6.0 Acquire by billion yen September consideration <1.66 millio
Slide 17: FY2025 Financial Results Outlook
FY2025 Financial Results Outlook We expect to achieve the annual plan with steady overseas growth and rapid price revisions in Japan. Net sales Operating income Ordinary income Profit ¥505.0bn ¥34.5bn ¥36.6bn ¥29.2bn YoY +4% YoY +0% YoY -1% YoY +36% Domestic business ROE ROIC income ratio Overseas g
Slide 18: Medium-Term Business Plan – Strategy Progress (Future Outlook)
3. FY2025 to FY2028 Medium-Term Business Plan – Strategy Progress (Future Outlook) © Kewpie Corporation All rights reserved. 18
Slide 19: Growth will start to accelerate in the Americas
FY2025 to FY2028 Medium-Term Business Plan - Strategy Progress Growth will start to accelerate in the Americas. Starting operation at the Tennessee Factory Increasing supply to shift into a higher gear for growth Strengthen branding Raise brand awareness in areas with a lot of foot traffic © Kewpie
Slide 20: Overview of the FY2025 to FY2028 Medium-Term Business Plan
Overview of the FY2025 to FY2028 Medium-Term Business Plan Our Ideal and 2030 Vision —Change & Challenge— Improving management efficiency in mature markets and accelerating investment in growth areas Evolution of the value creation process Profitability Structural reform of domestic business Growth
Slide 21: Medium-Term Business Plan Strategies
FY2025 to FY2028 Medium-Term Business Plan Strategies Business strategy to enhance Financial strategy to improve profitability and growth potential capital efficiency Overseas Japan Financial strategy Deepening market and expanding business areas Shift to a high-profitability portfolio Increase capi
Slide 22: Initiatives for Overseas Growth: Enhance Supply Capacity
Initiatives for Overseas Growth: Enhance Supply Capacity Starting operation at three plants, building a supply structure by FY2030 US Thailand Indonesia Supports demand in the A site to export to nearby Supports the expanding Americas countries and the local region domestic market Approximately 2 ti
Slide 23: Initiatives for Overseas Growth: 100th Anniversary Global Branding
Initiatives for Overseas Growth: 100th Anniversary as an Opportunity for Global Branding In major cities in 14 countries and regions, we will develop measures that integrate digital and reality. Proposing a new way of experiencing food with Kewpie mayonnaise Digital advertising Town Jack Influencers
Slide 24: Initiatives for Overseas Growth: Strengthen Marketing
Initiatives for Overseas Growth: Strengthen Marketing Develop and expand the market by strengthening sales and marketing Americas Asia Pacific China Propose products through localization Further develop the market and ensure Boost initiatives to capture the and products based on trends among brand p
Slide 25: Domestic Structural Reform: High-Profitability Portfolio
Domestic Structural Reform: Initiatives for a High-Profitability Portfolio Strengthen value-added products, optimize and reorganize SCM, and assess profit-generating output to advance higher domestic profitability, increasing “11.5 billion yen” in profit. Strengthen value-added products Further Focu
Slide 26: Domestic Structural Reform: Strengthen Value-Added Products
Domestic Structural Reform: Initiatives to Strengthen Value-Added Products Demonstrate earning power built in Japan to counter headwinds FY2025: 11.1 billion yen Increased income will boost next year’s performance. 1.5 billion yen shift to high value- 9.6 billion yen “value for money” added products
Slide 27: Domestic Structural Reform: High-Profitability Portfolio
Domestic Structural Reform: Initiatives for a High-Profitability Portfolio Strengthen value-added products, optimize and reorganize SCM, and assess profit-generating output to advance higher domestic profitability, increasing “11.5 billion yen” in profit. Focus on Strengthen value-added products Fur
Slide 28: Improving Corporate Value by Making AOHATA a Wholly Owned Subsidiary
Improving Corporate Value of the Kewpie Group by Making AOHATA Corporation a Wholly Owned Subsidiary Policy Maximize brand value Use management resources Optimize management Target returns Overseas business synergy Increased production and investment efficiency • Potential to expand sales channels o
Slide 29: Disclaimer and Contact
Information regarding future performance, such as Kewpie Corporation’s earnings forecasts, presented in these briefing materials are based on certain assumptions determined as rational using the obtainable information at the time of their publishing. Actual results, etc., may differ from these forec
Slide 30: 4. Reference Materials
4. Reference Materials © Kewpie Corporation All rights reserved. 30
Slide 31: FY2025 Full-Year Outlook
Reference FY2025 Full-Year Outlook (¥bn) FY2025 FY2025 FY2028 Change from FY2024 Initial target Revised forecast YoY change initial target Medium-term target (Announced January 9) (Announced July 3) Net sales 484.0 505.0 505.0 +21.0 - At least 600.0 Operating income 34.3 34.5 34.5 +0.2 - At least 45
Slide 32: FY2025 1H Cash Flow Status
Reference FY2025 1H Cash Flow Status (¥bn) Cash Flows from Cash Flows from Cash Flows from Operating Activities Investing Activities Financing Activities FY2023 1H 32.2 FY2024 1H FY2025 1H 11.7 10.1 -4.1 -6.3 -6.1 -10.1 -12.4 -15.4 YoY change YoY change YoY change Increase in loss (gain) Increase in
Slide 33: Points to Note regarding Changes in Balance Sheet
Reference FY2025 1H Points to Note regarding Changes in Balance Sheet (¥bn) Assets Liabilities and Net Assets FY2024 1H 345.9 249.8 258.6 263.8 321.3 331.6 FY2024 full-year 203.7 207.0 182.8 FY2025 1H 130.7 124.9 111.3 Current assets Fixed assets Liabilities Net assets Change Change Current assets +
Slide 34: Overview of Non-operating Income (Expenses) and Extraordinary Gains (Losses)
Reference Overview of Non-operating Income (Expenses) and Extraordinary Gains (Losses) (¥bn) FY2025 1H FY2024 1H FY2025 1H YoY change Main factors Operating income 18.9 16.2 -2.7 • Increase in commission Non-operating income (expenses), net 1.4 1.3 -0.1 expenses -0.1 Ordinary income 20.3 17.4 -2.9 •
Slide 35: Net Sales by Segment
Reference Net Sales by Segment (¥bn) FY2025 full-year forecast FY2024 1H FY2025 1H YoY change YoY change (%) Revised forecast YoY change YoY change (%) Retail Market 92.4 94.6 +2.2 +2% 190.5 +3.8 +2% Condiments 38.8 38.5 -0.2 -1% 78.0 +0.5 +1% Delicatessen 32.5 32.1 -0.4 -1% 66.0 +0.7 +1% Cut vegeta
Slide 36: Business Income by Segment
Reference Business Income by Segment FY2025 full-year forecast (¥bn) FY2024 1H FY2025 1H YoY change YoY change (%) Revised forecast YoY change YoY change (%) Retail Market 8.1 5.7 -2.3 -29% 13.3 -1.0 -7% Condiments 5.6 4.2 -1.4 -25% 9.2 -1.0 -10% Delicatessen 1.9 1.3 -0.6 -33% 2.7 -0.4 -13% Cut vege
Slide 37: Factors behind Changes in Business Income (by Segment)
Reference Factors behind Changes in Business Income (by Segment) (¥bn) Change in gross Other selling, FY2025 1H profit resulting from Change in gross Sales promotion expenses and Transportation and warehousing general and YoY change increase (decrease) profit margin administrative advertising expens
Slide 38: Mayonnaise/Dressings Changes in Net Sales
Reference Mayonnaise/Dressings Changes in Net Sales (¥bn) FY2023 1H FY2024 1H FY2025 1H Japan 27.4 29.6 29.5 Mayonnaise Overseas 18.4 23.1 26.9 Japan 19.3 19.5 19.2 Dressings Overseas 9.2 11.1 12.4 Japan 46.7 49.1 48.7 Total Overseas 27.6 34.3 39.3 Total 74.3 83.4 88.0 © Kewpie Corporation All right
Slide 39: Sustainability Targets and Performance
Reference Sustainability Targets and Performance FY2025 FY2028 FY2030 Alignment with Material Issues Initiative Theme Indicators Baseline 1H Target Target SDGs Contribution to extending We are promoting initiatives centered on increasing opportunities to eat salads and adding value to eggs in order