• Progressing on schedule to its Medium Term Plan – H1 FY3/26 results were in line with guidance on the back of strong performance of the Flour Milling segment. The Food segment saw mixed performance, but could deliver meaningful earnings growth if costs pressures normalize. We think the Company delivering margin expansion with existing facilities is a positive sign. As NIPPN’s ¥125.0bn pipeline of strategic capex projects come online over the next few years, the trend of incremental efficiency gains and margin improvement, although initially impacted by higher depreciation charges, is likely to continue. Furthermore, ROE should see incremental benefit as NIPPN continues to optimize its capital structure.
