26/11 Q2 results: Progress with restructuring in Japan

Research evidence excerpt

26/11 Q2 results: Progress with restructuring in Japan

Global Markets Research

9 July 2026Kewpie

2809.T 2809 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

26/11 Q2 results: Progress with restructuring in Rating NeutralJapan

Target price JPY 4,100Quick Note

Closing price

9 July 2026 JPY 4,490First impression slightly positive: Company retains full-year guidance despite tough

cost climate (Note: Quick Note reports are not a

Kewpie released 26/11 Q2 results after the close on 9 July. Our first impression is slightly vehicle for changes to ratings, target

positive. We had been concerned about downside risks to earnings from cost increases, prices, or earnings forecasts)

including those related to the situation in the Middle East, but the company nevertheless

retained its 26/11 operating profit guidance. Value-added strategies look to have paid off

and restructuring looks to have delivered productivity gains too. We also think the upturn

in sales in China and the Americas, while in line with our expectations, will have reassured

Research Analystsinvestors about Kewpie's overseas growth story. However, we expect input costs to rise

sharply in 27/11, particularly for vegetable oil. It remains to be seen whether the company Japan food

can hike prices for dressings as well as for mayonnaise, for which it has a strong brand Makoto Morita - NSC

presence. makoto.morita@nomura.com

+81 3 6703 1211

Q2 operating profits totaled ¥12.2bn (up 18% y-y). Efforts to pass on cost increases and

boost value-added proved successful. Profit growth was driven by condiments for the retail

and commercial markets, and by egg products. Overseas, sales picked up in China and

the Americas, but profits came in flat y-y because of a sharp rise in fixed costs following

the startup of a new plant.