Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (Under Japanese GAAP)

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2025 [Japanese GAAP]

May 9, 2025

Company name: NICHIMO CO., LTD. Stock exchange listing: Tokyo

Code number: 8091

URL: https://www.nichimo.co.jp/english/

Representative: Shinya Aoki, President, Representative Director

Contact: Akinobu Kojima, Executive Officer, Finance and General Affairs Phone: +81-3-3458-3535

Scheduled date of Annual General Meeting of Shareholders: June 27, 2025 Scheduled date of commencing dividend payments: June 30, 2025

Scheduled date of filing annual securities report: June 27, 2025

Availability of supplementary briefing material on financial results: Available

Schedule of financial results briefing session: Scheduled (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

1. Consolidated Operating Results (% indicates changes from the previous corresponding period.)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 133,900 127,756	% 4.8 0.7	Millions of yen 3,002 2,020	% 48.6 (29.7)	Millions of yen 3,601 2,562	% 40.6 (20.5)	Millions of yen 2,666 2,349	% 13.5 (3.6)

   (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	2,557 million	[	(39.6)%]
   	Fiscal year ended March 31, 2024:	¥	4,236 million	[	25.1 %]

   	Net profit per share	Diluted net profit per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
   Fiscal year ended	Yen	Yen	%	%	%
   March 31, 2025	320.06	-	9.1	4.4	2.2
   March 31, 2024	283.24	-	9.0	3.2	1.6

   (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2025:	¥	674 million
   Fiscal year ended March 31, 2024:	¥	592 million

   (Notes)

   1. Diluted net profit per share is not shown, due to the absence of residual shares.

   2. The Company executed a 2-for-1 stock split of common shares on January 1, 2024. Net profit per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

2. Consolidated Financial Position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 83,098 81,092	Millions of yen 30,229 28,349	% 36.4 34.9	Yen 3,625.90 3,400.25

   (Reference) Equity: As of March 31, 2025:	¥	30,212 million
   As of March 31, 2024:	¥	28,333 million

   (Note) The Company executed a 2-for-1 stock split of common shares on January 1, 2024. Net assets per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

3. Consolidated Cash Flows

1. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2024 March 31, 2025	Yen - -	Yen 90.00 45.00	Yen - -	Yen 45.00 52.00	Yen -97.00	Millions of yen 770 830	% 31.8 30.3	% 2.8 2.8
   Fiscal year ending March 31, 2026 (Forecast)	-	50.00	-	50.00	100.00		33.3

   (Note) The Company executed a 2-for-1 stock split of common shares on January 1, 2024. The year-end dividend per share for the fiscal year ended March 31, 2024 takes the effect of this stock split into account and the total annual dividends are shown as "-." The year-end dividend per share for the fiscal year ended March 31, 2024, without taking the stock split into account, would be 90 yen per share, resulting in an annual dividend of 180 yen per share.

2. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(% indicates changes from the previous corresponding period.)

* Notes:

1. Significant changes in the scope of consolidation during the period: No

   New	- (Company name:	)
   Exclusion:	- (Company name:	)

2. Changes in accounting policies, changes in accounting estimates and retrospective restatement

   1. Changes in accounting policies due to revision of accounting standards and other regulations: Yes

   2. Changes in accounting policies other than 1) above: No

   3. Changes in accounting estimates: No

   4. Retrospective restatement: No

3. Total number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 9,008,800 shares

      March 31, 2024: 9,008,800 shares

   2. Number of treasury shares at the end of the period:

      March 31, 2025: 676,431 shares

      March 31, 2024: 676,071 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 8,332,464 shares

Fiscal Year ended March 31, 2024: 8,294,268 shares

(Notes)

1. The Company has introduced a stock compensation plan for Directors, and treasury shares at the end of the period include the Company shares held by the trust account. These shares are included in the number of shares deducted from the average number of shares outstanding during the period.

2. The Company executed a 2-for-1 stock split of common shares on January 1, 2024. The number of shares outstanding at end of the period, number of treasury shares at end of the period, and average number of shares during the period are calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

1. Non-consolidated Operating Results (% indicates changes from the previous corresponding period.)

   	Net sales		Operating profit		Ordinary profit		Net profit
   Fiscal year ended	Millions of yen 76,387 71,331	%	Millions of yen 1,554 1,025	%	Millions of yen 2,116 1,698	%	Millions of yen 1,406 1,128	%
   March 31, 2025		7.1		51.7		24.6		24.7
   March 31, 2024		(2.0)		(24.4)		(15.4)		(34.2)

   	Net profit per share	Diluted net profit per share
   Fiscal year ended	Yen	Yen
   March 31, 2025	167.82	-
   March 31, 2024	135.25	-

   (Notes)

   1. Diluted net profit per share is not shown, due to the absence of residual shares.

   2. The Company executed a 2-for-1 stock split of common shares on January 1, 2024. Net profit per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

2. Non-consolidated Financial Position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 57,097 52,531	Millions of yen 17,682 17,113	% 31.0 32.6	Yen 2,109.98 2,042.06

   (Reference) Equity: As of March 31, 2025: ¥ 17,682 million

   As of March 31, 2024: ¥ 17,113 million

   (Note) The Company executed a 2-for-1 stock split of common shares on January 1, 2024. Net assets per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

   *Financial results are not subject to audit by a certified public accountant or auditing firm.

   *Explanation of appropriate use of financial results forecast and other notes

   The forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that the Company deems reasonable, and they are not intended to promise that the Company will achieve the goals mentioned in those statements. Actual results may differ significantly due to various factors. For the assumptions on which the forecast is based and notes for the use of financial results forecasts, please refer to "1. Overview of Business Results, etc. (4) Future Outlook" on page 4.

   Attachment Table of Contents

   1. Overview of Business Results, etc 2

      1. Overview of Business Results for the Fiscal Year Ended March 31, 2025 2

      2. Overview of Financial Position for the Fiscal Year Ended March 31, 2025 3

      3. Overview of Cash Flows for the Fiscal Year Ended March 31, 2025 3

      4. Future Outlook 4

   2. Basic Views on Selection of Accounting Standards 4

   3. Consolidated Financial Statements 5

      1. Consolidated Balance Sheets 5

      2. Consolidated Statements of Income and Comprehensive Income

         Consolidated Statements of Income 7

         Consolidated Statements of Comprehensive Income 8

      3. Consolidated Statements of Changes in Net Assets 9

      4. Consolidated Statements of Cash Flows 11

      5. Notes to Consolidated Financial Statements 13

Notes on Going Concern Assumption 13

Changes in Accounting Policies 13

Segment Information by Business Type 13

Per Share Information 16

Significant Subsequent Events 16

1

1. Overview of Business Results, etc.

(1) Overview of Business Results for the Fiscal Year Ended March 31, 2025

In the Japanese economy during the consolidated fiscal year under review, stimulation of consumption and investment activities had been expected owing to factors including an improved employment and income environment, in addition to the effects of various policy measures as well as heightened inbound tourism demand. On the other hand, price hikes on account of geopolitical tensions and surging raw material and energy prices continued to weigh down improvement in consumer spending, and from the beginning of this year, U.S. policy trends caused uncertainties to grow even further, and going forward the economic outlook remained unclear.

In such an economic environment, the fishery, seafood processing and distribution and food products industries, which form the operating base of the Nichimo Group (the "Group"), have all struggled amid severe business conditions. Despite growth in inbound tourism demand that exerted a boost, primarily to the food services industry, challenges included rising ocean temperatures and poor catches in inshore waters around Japan, as well personal consumption that became more oriented toward frugality due to rising prices, which led to a difficult-to-navigate environment where the Company was expected to respond flexibly to the diverse needs of consumers.

Under such circumstances, the Group, during the final year of its three-year management plan, the "Fiscal 2023 Medium-term Management Plan (Toward the next stage)," has been promoting sales activities through a unified system that is unique to the Group under its management policy, "From Ocean To Dining."

As a result, net sales for the consolidated fiscal year under review totaled 133,900 million yen (an increase of 6,144 million yen year on year), operating profit stood at 3,002 million yen (an increase of 982 million yen year on year), and ordinary profit totaled 3,601 million yen (an increase of 1,038 million yen year on year).

As for extraordinary income and losses, the Group recorded extraordinary income of 295 million yen and extraordinary losses of 406 million yen. As a result, profit attributable to owners of parent totaled 2,666 million yen (an increase of 317 million yen year on year).

The following is a summary of the business according to segments.

Food Business

In the surimi (fish paste) section, in addition to lower raw material fish catches in Hokkaido, South American surimi production was also lackluster, and sales declined, although by striving to manage for profitability operating profit rose. In the fresh frozen seafood products section, commercial and mail-order crab sales were robust, sales of scallops to overseas markets grew, and its production was also brisk, resulting in respective increases to both sales and operating profit. Both sales and operating profit from frozen fish from northern waters also increased as a result of higher sales to China, mainly of Pacific ocean perch and Atka mackerel. Both sales and operating profit of Pollock roe products, however, declined significantly as we were unable to offset production cost increases despite having strived to pass on costs and focus on profitable sales amid soaring raw material costs. In the processed food products section, sales increased as a result of favorable sales of cultured coho salmon and tuna products, although operating profit declined as sales of boiled and grilled fish and other processed food products were unable to proceed according to plan.

As a result of the above factors, net sales for the food business totaled 84,102 million yen (an increase of 1,813 million yen year on year), and operating profit totaled 1,953 million yen (an increase of 317 million yen year on year).

Marine Business

In the fishing net and fishing gear section, sales of ground nets, mainly for overseas baseball fields, remained strong, although with sales of various fishing gear, replacement demand in the previous fiscal year fell off, and the impact of lower catches both in and outside of Japan depressed sales and the result was a decline in both sales and operating profit. In the ship and machinery section, sales and operating profit both fell on account of decreased demand amid a trend in ship reduction. On the other hand, in the aquaculture section, in addition to brisk sales of aquaculture machinery and materials and aquaculture feed, we have firmly captured demand for capital investment in seaweed machinery and materials. As a result, both sales and operating profit rose substantially.

As a result of the above factors, net sales for the marine business totaled 22,377 million yen (an increase of 563 million yen year on year), and operating profit totaled 755 million yen (an increase of 251 million yen year on year).

2