Calbee, Inc.

Business Details

This is the sole reportable segment of the Calbee Group. Domestically, the segment centers on snack foods such as potato chips and Jagarico as well as cereal foods, while overseas it manufactures and sells products across North America, the UK, Asia, Oceania, and Greater China. The company is also an equity-method affiliate of PepsiCo, Inc., and is pursuing growth investments in overseas markets and new food categories, underpinned by the earnings power of its core domestic business. In FY2026 (ending March 2026), revenue reached ¥340,151 million (up 5.5% year on year), while operating profit declined to ¥26,173 million (down 10.0% year on year) due to increased fixed costs, among other factors.

Recent Overview

Despite revenue growth, operating profit fell 10.0% year on year due to higher fixed costs and reduced potato yields

In FY2026 (ending March 2026), revenue reached ¥340,151 million (up 5.5% year on year). Domestically, revenue growth was driven by the effects of price revisions and increased sales volume of snacks and cereals not dependent on potato raw materials. Overseas, revenue increased across all regions—Europe and the Americas, and Asia and Oceania (overall overseas growth of +11.6%). On the other hand, profit was pressured by increased fixed costs, including depreciation, associated with the operation of the Setouchi Hiroshima plant, as well as rising costs due to inflation, resulting in operating profit of ¥26,173 million (down 10.0% year on year). Net profit was ¥17,329 million (down 17.0% year on year), partly reflecting the reversal of tax benefits applied in the prior period. For FY2027 (ending March 2027), the company forecasts revenue of ¥370,000 million (up 8.8% year on year) and operating profit of ¥26,200 million (up 0.1% year on year). The company has also formulated a new growth strategy, "Accelerate the Future," targeting enhanced corporate value with FY2036 (ending March 2036) as its target year.

Key Products

Growth Drivers

• Improvement in domestic average selling prices from price and package size revisions (strategic price and package size revisions to continue in FY2027 (ending March 2027))
• Increased sales volume and enhanced promotion of Jagarico and other snacks (miino, Crisp, etc.)
• Double-digit growth in overseas operations on a local currency basis (Europe and the Americas +8.7%, Asia and Oceania +11.4%)
• Expansion of the food and health business (plant-based protein foods) through the consolidation of Hodo, Inc. in North America
• Expanded sales of Seabrook-brand potato chips in the UK through national retail chains, supported by increased potato chip production capacity
• Expanded sales to retail stores in Greater China through the launch of local contract manufacturing of Jagabee and Mygra
• Increased production capacity and productivity through improved utilization at the Setouchi Hiroshima plant
• Pursuit of the new growth strategy "Accelerate the Future," focused on "enhancing earnings power," "improving capital efficiency," and "fostering growth expectations"
• Strengthened shareholder returns through a progressive dividend policy (annual increase of at least ¥3 per share)

Risks

• Constraints on sales of potato chips and Jagarico due to reduced Hokkaido potato yields, along with raw material procurement risk (materialized in the second half of FY2026)
• Profit pressure from increased fixed costs, including depreciation, associated with the operation of the Setouchi Hiroshima plant (operating margin fell to 7.7% in FY2026)
• Continued rise in raw material and labor costs due to inflation (affecting both domestic and overseas operations)
• Risk of higher raw material and materials costs due to escalating tensions in the Middle East (explicitly cited as a key uncertainty in the FY2027 (ending March 2027) earnings forecast)
• Impact on overseas operations from US trade policy (tariffs) and political conflicts among various countries
• Foreign exchange risk (overseas revenue accounts for approximately 26% of consolidated revenue; forecast exchange rates are 1 US dollar = ¥155.0 and 1 Chinese yuan = ¥22.1)
• Financial burden from large-scale capital investments such as the construction of a new plant in the Kanto region (progress rate of 38.6% as of the end of FY2026 against a three-year growth investment plan of ¥80,000 million)
• Decline in cash on hand and deterioration in cash flow from financing activities due to share buybacks (via ASR, ¥9,999 million)
• Risk of sluggish e-commerce channel sales in Greater China due to economic stagnation and tightened customs regulations