Consolidated Financial Results (Japanese Accounting Standards)for the Three Months Ended June 30, 2025 (Q1 FY2025)

July 31, 2025

Consolidated Financial Results (Japanese Accounting Standards) for the Three Months Ended June 30, 2025 (Q1 FY2025)

Company name: House Foods Group Inc. Stock exchange listing: Tokyo Stock Exchange Stock code: 2810

URL: https://housefoods-group.com

Representative: Hiroshi Urakami, President

Contact: Eiki Miyake, General Manager, Public & Investors Relations Division Tel. +81-3-5211-6039

Scheduled date of commencement of dividend payment: –Supplementary documents for financial results: Yes

Financial results briefing: None

(Amounts of less than one million yen are rounded to the nearest million yen.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (April 1, 2025 – June 30, 2025)

   1. Consolidated Results of Operations (Accumulated Total) (Percentages show year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      June 30, 2025	75,699	1.3	3,418	(38.6)	3,666	(36.0)	1,801	(49.4)
      June 30, 2024	74,733	6.1	5,572	13.4	5,724	9.0	3,556	(55.4)

      (Note) Comprehensive income: 1,090 million yen (-84.1%) for the three months ended June 30, 2025

      6,839 million yen (-35.9%) for the three months ended June 30, 2024

      	Profit per share (basic)	Profit per share (diluted)
      Three months ended June 30, 2025 June 30, 2024	Yen 19.20 36.71	Yen – –

      (Note) The provisional accounting method pertaining to business combinations was determined on March 31, 2025. The values for the three months ended June 30, 2025 reflect the content of the determined provisional accounting method.

   2. Consolidated Financial Position

   	Total assets	Net assets	Equity ratio		Net assets per	share
   As of	Million yen	Million yen		%		Yen
   June 30, 2025	425,533	319,597	68.2		3,102.36
   March 31, 2025	435,074	322,878	67.3		3,113.86

   (Reference) Shareholders’ equity: As of June 30, 2025: 290,102 million yen

   As of March 31, 2025: 292,823 million yen

2. Dividends

   	Dividend per share
   	End of first quarter	End of second quarter	End of third quarter	Year-end	Annual
   Year ended March 31, 2025 Year ending March 31, 2026	Yen – –	Yen 24.00	Yen –	Yen 24.00	Yen 48.00
   Year ending March 31, 2026 (forecast)		24.00	–	24.00	48.00

   (Note) Revisions to dividend forecasts published most recently: None

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2026 (April 1, 2025 – March 31, 2026)

(Percentage figures represent the changes from the previous year)

(Note) Revisions to financial forecasts published most recently: None

* Notes

1. Major changes in the scope of consolidation during the period: None

2. Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: Yes

3. Changes in accounting policies and changes or restatement of accounting estimates

   1. Changes in accounting policies caused by revision of accounting standards: None

   2. Changes in accounting policies other than (i): None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of shares outstanding (common shares):

   1. Number of shares outstanding at end of period (including treasury shares) As of June 30, 2025: 98,498,416 shares

      As of March 31, 2025: 98,498,416 shares

   2. Number of treasury shares at end of period

      As of June 30, 2025: 4,988,452 shares

      As of March 31, 2025: 4,459,697 shares

   3. Average number of shares outstanding during the term

Three months ended June 30, 2025: 93,766,997 shares

Three months ended June 30, 2024: 96,879,806 shares

(Note) Number of treasury shares at end of period includes shares in the Company held by the House Foods Group Employee Shareholding Association Trust (517,200 in the three months ended June 30, 2025, 598,700 in the fiscal year ended March 31, 2025). In addition, treasury shares deducted when calculating the average number of shares outstanding during the term include the Company shares held by the trust (561,933 shares during the three months ended June 30, 2025).

• Review of the accompanying quarterly consolidated financial statements by certified public accountants or audit corporations: None

• Explanations and other special notes concerning the appropriate use of business results forecasts

• The forward-looking statements such as result forecasts included in this document are based on the information available to the Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially from the forecast depending on a range of factors.

• For other matters relating to the forecasts, please refer to “1. Analysis of Operating Results and Financial Position, (3) Information on the Future Outlook, Including Consolidated Business Results Forecasts” on page 4 of the accompanying materials.

Accompanying Materials – Contents

1. Analysis of Operating Results and Financial Position 2

   1. Analysis of Operating Results 2

   2. Analysis of Financial Position 4

   3. Information on the Future Outlook, Including Consolidated Business Results Forecasts 4

2. Quarterly Consolidated Financial Statements and Key Notes 5

   1. Quarterly Consolidated Balance Sheets 5

   2. Quarterly Consolidated Statements of Income and Comprehensive Income 7

   3. Notes to Quarterly Consolidated Financial Statements 9

      Notes Relating to Application of Particular Accounts Procedures to the Preparation of

      Quarterly Consolidated Financial Statements 9

      Notes to Segment Information 9

      Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value 11

      Notes Relating to Assumptions for the Going Concern 11

      Notes Relating to Quarterly Consolidated Statements of Cash Flows 11

3. Supplementary Information 12

   1. Business Results 12

   2. Number of Group Companies 12

   3. Consolidated Statements of Income 13

   4. Consolidated Balance Sheets 17

   5. Capital Investment 18

   6. Depreciation 18

   7. Major Management Indicators, etc 18

   8. Reference Information 19

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating ResultsThe Group is pursuing its eighth medium-term business plan under the theme of “Striving to become a high quality company that provides “Healthy Life Through Foods” Growth through the establishment of a global value chain (VC). In our mid-term business plan, we are building a global VC structure to lay the foundation for further growth in the future, and at the same time, we are taking steps to increase corporate value from a back-casting perspective, including the introduction of ROIC (return on invested capital) for management that is conscious of the cost of capital. In addition, we are working to strengthen profitability by addressing business costs, which are becoming increasingly severe with every year, and by reforming the profit-and-loss structure of our U.S. Business.

During the three months ended June 30, 2025, our business environment remained uncertain due to interest rate and exchange rate fluctuations caused by the economic policies of various countries and geopolitical risks, rising business costs, especially raw materials, and consumers’ increasing thriftiness.

During the three months ended June 30, 2025, the International Food Business and the Restaurant Business posted higher sales and profits, while the Spice/Seasoning/Processed Food Business was affected by a significant decline in profits due to a preceding rise in business costs, mainly raw materials. However, the impact of the rise in raw material costs on the Spice/Seasoning/Processed Food Business was significant, resulting in an increase in both sales and income on a consolidated basis. Ordinary profit and net profit attributable to owners of the parent also decreased.

The Group finalized the provisional accounting treatment for business combinations in the fiscal year ended March 31, 2025, and amounts for the three months ended June 30, 2024 used for comparison and analysis reflect adjustment associated with the finalization of provisional accounting treatment due to business combinations.

As a result, the Group’s operating results were as shown below.

The following is an overview of results by segment (before the elimination of inter-segment transactions).

(Note) 1. Adjustment (elimination) comprises profit or loss not distributed to segments and the elimination of inter-segment transactions.

Spice / Seasoning / Processed Food Business

In the Household Use Business segment, price revisions were made to mainstay products such as curry in May. Due to rush demand that developed ahead of this revision, sales in the current quarter declined. However, the Company is actively implementing measures to stimulate demand in order to achieve an early recovery in sales volume and generate the benefits of the price revision. The Food Service Business recorded an increase in sales due to the impact of rush demand before the price revision implemented in June. Profits decreased due to rising business costs, mainly from raw materials, outpacing sales.

As a result of the above, sales in the Spice/Seasoning/Processed Food Business stood at 29,761 million yen, down 3.2% year on year, and operating profit was 1,167 million yen, down 59.1% year on year. As a result, the ratio of operating profit to net sales was 3.9%, declining 5.4 percentage points from the same period of the previous fiscal year.

Health Food Business

Net sales decreased due to lower sales of Ukon No Chikara and Ichinichibun No Vitamin Jelly, while C1000 performed well. Profits decreased due to lower sales and soaring raw material prices.

As a result of the above, sales in the Health Food Business declined 4.8% year on year, to 4,072 million yen, and operating profit decreased 54.3%, to 356 million yen. As a result, the ratio of operating profit to net sales was 8.7%, declining 9.5 percentage point from the same period of the previous fiscal year.

International Food Business Period covered by the consolidated financial statements: Mainly from January to March 2025

The U.S. soybean business is working to quickly improve profitability through profit-and-loss structural reforms. During the quarter, the TOFU business suffered a decline in sales due to lost sales opportunities caused by temporary production problems, and the PBF business continued to struggle with sales, resulting in an overall decline in sales and profit in the soybean business.

In the Chinese curry business, both sales and profit increased due to a shift to a distribution-based sales strategy and steady sales in the household use business, where sales had declined in the same period of the previous year due to inventory adjustments in the distribution channel. The Food Service Business focused on new business development and secured an increase in both sales and profit. As a result of the above, the business as a whole achieved increases in both sales and profit.

In the Southeast Asia functional drink business, both sales and profits declined due to a drop in the overall beverage market caused by unseasonable weather in Thailand and the impact of Osotspa sales measures. In terms of Japanese yen, both sales and profits increased due to the impact of foreign exchange rates.

As a result of the above, sales in the International Food Business rose 6.0% year on year, to 15,912 million yen, and operating profit increased 22.4%, to 1,328 million yen. Consequently, the ratio of operating profit to net sales was 8.3%, rising 1.1 percentage points from a year earlier.

Restaurant Business Periods covered by the consolidated financial statements: From March to May 2025 for Ichibanya Co., Ltd. and from January to March 2025 for subsidiaries

Net sales increased due to contributions from the domestic business promoted by Ichibanya Co., Ltd. including price revisions in August last year and sales of limited-time-only menus, as well as business expansion at domestic subsidiaries. Profits increased due to higher sales, despite higher costs for rice and other food ingredients and headquarter expenses. As a result of the above, sales in the Restaurant Business increased 10.6% year on year, to 15,744 million yen, and operating profit increased 24.4% year on year, to 933 million yen. Consequently, the ratio of operating profit to net sales was 5.9%, rising 0.7 percentage points from a year earlier.