Calbee’s Q1 FY 2025 Report Sets a Strong Financial Position and Projected Growth Amidst Strategic Reforms

Published Aug 8, 2024

Calbee, Inc. reported a 6.2% increase in Q1 net sales to USD 529.41 thousand for the FY ending March 31, 2025. Successful product revision drove domestic sales to rise by 5.2%, while overseas sales grew by 9.2%, with notable performance in North America, the UK, and Indonesia. Operating profit increased by 5.9% to USD 52.24 thousand (JPY 7.67 million), though ordinary profit fell slightly. Calbee forecasts net sales of USD 2.18 million (JPY 320 million) and operating profit of USD 197.23 thousand (JPY 28.90 million) for the full fiscal year.

Calbee Reports Q1 FY 2025 Results and Forecasts Growth Amidst Strong Financial Position

Calbee, Inc. is a leading Japanese snack food company established in 1949. Renowned for its wide range of products, including potato chips, cereals, and other snack foods, Calbee has a strong domestic market presence and an expanding global footprint. The company is known for its innovation in flavors and commitment to quality, contributing to its popularity in Japan and internationally. Calbee, Inc. has announced its first-quarter financial results for the fiscal year ending March 31, 2025. Its total assets grew to USD 2.09 million (JPY 308.22 million), reflecting a solid financial position. Despite a slight decline in ordinary profit, Calbee projects a 5.6% increase in net sales and a 5.8% rise in operating profit for the full fiscal year.

Calbee Announces Q1 Fiscal Year Results: 6.2% Net Sales Increase and 13.1% Profit Growth

During Apr-24 and Jun-24, the initial three-month period of the current fiscal year, net sales reached USD 529.41 thousand (JPY 77.65 million), a 6.2% year-on-year (YoY) increase. Domestic sales reached USD 395.76 thousand (JPY 58.05 million), marking a 5.2% YoY increase. This growth was fueled by price adjustments, content revisions, and strong sales in the snacks and cereals sectors.Overseas sales grew 9.2% YoY to USD 133.62 thousand (JPY 19.60) million, with notable growth in North America, the United Kingdom (UK), and Indonesia, despite a decline in China.

Table 1. Calbee Q1 FY 2025, Total Production and Sales of Snacks and Foods

*Sales of domestic snack foods, domestic cereals, and domestic others are before deduction of rebates, etc.
Source: Calbee (Q1 FY Ending on March 31, 2025)

Key Takeaways:

Overall Business Growth: The production and sale of snacks and other foods increased, driven by growth in both domestic and overseas markets.
Domestic Market: Domestic snack food sales experienced an upward trend.
Overseas Market: The overseas production and sale of snacks and other foods also contributed to increased overall sales.

Table 2. Snack Foods Sales

*Net sales by product are before deduction of rebates, etc

Calbee's potato chips sales increased due to the launch of the new product, Potato Chips The Atsugiri. This product is now available throughout the country due to its increased popularity. Additionally, JagaRico sales grew by focusing on regular items amidst strong demand. Other snacks sales increased, driven by the popularity of gift snacks like Jaga-Pokkuru and strong sales of Kappa Ebisen, which marked its 60th anniversary.

Figure 1. Potato Chips The Atsugiri (55 grams)

Domestic cereals sales rose by 4.9% YoY to USD 527.96 thousand (JPY 7.73 million), fueled by the growth of regular items such as original Frugra and Frugra Less Carbohydrates. Sales in other domestic businesses increased by 4.9% YoY to USD 23.36 thousand (JPY 3,423 million), attributed to the success of Body Granola, launched in Apr-23.

Calbee’s Regional Sales Performance

In Europe and the Americas, North America and the UK experienced growth. Despite the ongoing recovery of snack contract manufacturing sales in North America,, increased sales of bean-based snack Harvest Snaps and Japanese-origin brands such as JagaRico and Kappa-Ebisen led to higher overall sales. In the UK, steady sales of the Seabrook brand potato chips and increased sales of pellet snacks contributed to growth.

Figure 2. JagaRico Original flavor (57g) and Kappa Ebisen (26g)

In Asia and Oceania, sales grew in Indonesia, South Korea, and Australia but declined in China. The decline in China was due to deteriorating business confidence and stricter customs regulations from the second half of 2023, despite the initiation of outsourced local production of certain products. In Indonesia, sales increased due to strong potato chip sales and the expanded production capacity of pellet snacks implemented in the last fiscal year.

Calbee's FY 2025 Forecast and Strategic Outlook

Under its 2030 vision, "Next Calbee & Beyond," the Calbee Group has introduced the "Change 2025" growth strategy from the fiscal year ending Mar-24 to Mar-26, focusing on structural reform. The fiscal year ending March 31, 2025, is expected to face a challenging economic environment due to rising raw material prices, increased logistics costs, and policy shifts away from monetary easing. Despite these challenges, gradual economic recovery is forecasted, driven by capital investment and significant wage increases.

Calbee will enhance domestic profitability through price and content revisions, strengthen its brand, and optimize its value chain with digital transformation. The company will invest regionally overseas, focusing on North America and China. Additionally, investments in human resources and sustainability management will support long-term growth. Forecasts for the fiscal year ending March 31, 2025, include consolidated net sales of USD 2.18 million (JPY 320 million) and operating profit of USD 197.23 thousand (JPY 28.90 million).