26/12 Q2 results: Better than we had expected, but company lowers full-year guidance

Research evidence excerpt

26/12 Q2 results: Better than we had expected, but company lowers full-year guidance

Global Markets Research

30 July 2026Kagome

2811.T 2811 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

26/12 Q2 results: Better than we had expected, but Rating Neutralcompany lowers full-year guidance

Target price JPY 2,700Quick Note

Closing price

30 July 2026 JPY 2,832.5First impression slightly negative: Issues come to light in Japan and overseas

Kagome released 26/12 Q2 results at 15:40 JST on 30 July, posting business profits of (Note: Quick Note reports are not a

¥5.0bn (down 13% y-y). Business profits at the domestic processed food segment pegged vehicle for changes to ratings, target

level y-y on profit growth at the soft drinks business following price revisions in Q1. prices, or earnings forecasts)

However, profits fell y-y at the international segment as margins fell at both the primary

processing business (production and sale of tomato paste) and the secondary processing

business (production and sale of tomato sauces) because of lower selling prices.

Versus our forecast of ¥4.7bn, business profits beat our forecasts by around ¥0.6bn Research Analysts

apiece at the domestic processed food and international segments thanks to curbs on Japan food

sales promotion costs in Q2 at the former and solid volumes at both primary and Sho Kamiguchi - NSC

secondary processing businesses at the latter. However, increased tensions in the Middle sho.kamiguchi@nomura.com

East made themselves felt at the other segment from Q2 onwards. Profits undershot our +81 3 6703 1244

forecast because of lower sales of seeds to the Middle East and cost increases for

packaging materials for Kagome Agri-Fresh, which is involved in agriculture.