27/3 Q1 results: Tougher-than-expected consumer spending climate for instant noodles in North America

Research evidence excerpt

27/3 Q1 results: Tougher-than-expected consumer spending climate for instant noodles in North America

Global Markets Research

31 July 2026Toyo Suisan

2875.T 2875 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

27/3 Q1 results: Tougher-than-expected consumer spending Ratingclimate for instant noodles in North America Neutral

Target price JPY 12,800Quick Note

Closing price

30 July 2026 JPY 11,355First impression slightly negative: Uncertainty about strategy to increase volumes

Toyo Suisan released 27/3 Q1 results at 12:30 JST on 31 July, posting operating profits of (Note: Quick Note reports are not a

¥22.6bn (up 23% y-y). The overseas instant noodles business drove earnings. In addition vehicle for changes to ratings, target

to the boost to profits from yen depreciation, price hikes implemented in 26/3 had a major prices, or earnings forecasts)

impact, offsetting lower sales volumes, higher input costs, and higher personnel costs.

Operating profits beat our forecast of ¥21.5bn because of the overseas instant noodles

business. Sales volumes were lower than expected, but the effects of price hikes and

curbs on sales promotion costs were greater than expected. Research Analysts

The key point in Q1 results is probably the 5% y-y decline in North American sales Japan food

volumes (down 12% in the US, up 6% in Mexico). While this was partly due to a fallback Makoto Morita - NSC

from rush demand ahead of price hikes a year earlier, sales were nevertheless lower than makoto.morita@nomura.com

our forecast of a 1% decline (down 3% in the US, up 3% in Mexico). The company +81 3 6703 1211

appears to think that sales volumes may not rise even if sales promotion costs are

increased, given the tough consumer spending climate in the US. We had expected the