• More improvements to come – FY3/26 results were ahead of
guidance, driven by efficiency gains at the Flour Milling segment. The
Food segment saw growth, but profitability was impacted by cost
pressures. We continue to think the segment could deliver
meaningful earnings growth if costs stabilize. Importantly, further
production efficiency gains are ahead, as NIPPN’s new Chita Mill
commenced operations in February 2026. As NIPPN’s record pipeline
of strategic capex projects comes online over the next few years, we
think the trend of incremental efficiency gains is likely to continue,
although tempered by higher depreciation charges. Furthermore,
NIPPN’s commitment to optimizing its capital structure, as evidenced
by FY3/26, and to reducing cross-shareholdings should drive
incremental earnings growth.
