Strong Seed Earnings
Sakata Seed and Kaneko Seeds Report Strong FY2026 Earnings, Boosting Dividends Amid Global Expansion
Anonymous
Key Points
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Sakata Seed’s FY2026 gross margin stood at 63.6%, indicating margin resilience even as selling, general, and administrative expenses rose 15.1%.
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Sakata Seed maintains a robust equity base with an equity-to-asset ratio above 80%, and operating cash flow of ¥9.2 billion, though free cash flow turned slightly negative due to higher investment outlays.
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Kaneko Seeds disclosed dividend guidance for the second quarter of fiscal year ending May 31, 2027, with a payout of ¥20 per share, and proposed the FY2026 dividend of ¥37 per share (payable August 28, 2026).
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Kaneko Seeds also projects stronger FY2027 performance, forecasting net sales of ¥70.0 billion, operating profit of ¥2.0 billion, and basic EPS of ¥150.46.
Sakata Seed Corporation posted a standout fiscal year 2026, with net sales climbing 12.2% to about ¥104.3 billion and net profit jumping 25.2% to ¥12.2 billion, according to TipRanks. The Japanese seed giant beat its own forecasts, lifted its annual dividend to ¥85 per share, and signaled a further raise toward ¥90.
Smaller rival Kaneko Seeds also delivered, posting FY2026 net profit of ¥1.33 billion on revenue of ¥67.7 billion. Kaneko raised its dividend from ¥38 to ¥48 per share and is targeting a 40% payout ratio going forward. Both companies are expanding their global footprint in seeds and horticulture.
Sakata Seed's Revenue and Profit Beat Expectations
Sakata Seed's gross profit rose 13.4% in FY2026, with a gross margin of 63.6%, according to TipRanks. That margin held steady even as selling, general, and administrative expenses rose 15.1%. Favorable exchange rates helped push results higher across the board.
The company generated operating cash flow of ¥9.2 billion. However, free cash flow turned slightly negative because of higher investment spending. Sakata's equity-to-asset ratio stayed above 80%, showing a strong financial base with room to keep investing in growth.
Sakata Raises Dividend and Sets Forward Guidance
Sakata Seed proposed a year-end dividend of ¥50.00 per share for FY2026, payable on August 26, 2026, according to MarketScreener UK. Combined with an earlier interim payout, the full-year dividend reached ¥85 per share. The company also issued guidance for a second-quarter FY2027 dividend of ¥35 per share, putting it on a path toward ¥90 for the full year.
For FY2027, Sakata forecasts net sales of ¥52.5 billion for the six months ending November 30, 2026, per MarketScreener AU. Full-year targets signal continued top-line growth. The company is betting that its global horticulture push will keep margins resilient even if costs keep rising.
Kaneko Seeds Lifts Dividend and Eyes FY2027 Growth
Kaneko Seeds earned ¥120.07 in basic earnings per share for FY2026. The company raised its dividend sharply — from ¥38 to ¥48 per share — and proposed the FY2026 year-end payout of ¥37 per share, payable August 28, 2026. It also set a second-quarter FY2027 dividend of ¥20 per share, according to TipRanks.
Looking ahead, Kaneko projects FY2027 net sales of ¥70.0 billion, operating profit of ¥2.0 billion, and basic EPS of ¥150.46. That would mark a meaningful step up from FY2026 levels. The company is targeting a 40% payout ratio, signaling a firm commitment to returning cash to shareholders.
Global Expansion Drives Disciplined Growth for Both Firms
Both Sakata and Kaneko are leaning on global seed and horticulture markets to fuel growth. Sakata's international reach helped it benefit from currency tailwinds in FY2026. Its net sales crossed ¥100 billion for the first time, a milestone that underscores how far the company has expanded beyond Japan.
Kaneko, though smaller, is showing similar discipline. Its revenue of ¥67.7 billion and improved dividend policy point to a company managing costs while investing for the long term. With both firms raising payouts and guiding for higher FY2027 earnings, the Japanese seed sector is sending a confident signal to investors.
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