St.Cousair CO.,LTD. Q4 FY2025 earnings call

This is a market commentary article discussing Japanese political and policy developments, not a formal corporate earnings call. Key contextual points are summarized below:

• Political Context: On January 19, 2026, Japanese Prime Minister Takaichi formally announced that the House of Representatives will be dissolved on January 23, 2026. The upcoming general election will be officially announced on January 27, with voting and vote counting held on February 8. Prime Minister Takaichi stated the dissolution is a weighty decision to avoid delaying policy decisions and let the Japanese public determine the country's direction, and she has staked her position as Prime Minister on the election outcome. If she gains public trust, she intends to boldly pursue divisive major policy reforms that could lead to significant change for Japan.
• Consumption Tax Policy Consensus: Prime Minister Takaichi announced that food and drink products currently subject to the reduced consumption tax rate will be fully exempt from consumption tax for a 2-year period, aligning with the policy position of the Nippon Ishin no Kai. Other major parties also support consumption tax cuts for food products: the new Chudo Kaikaku Rengo (Middle Way Reform Coalition) calls for a permanent zero consumption tax on food products, while the Kokumin Minshu-to calls for a uniform cut to a 5% consumption tax until real wages turn positive. This makes it highly likely that Japan will move forward with consumption tax cuts at least in the food sector.
• Stock Market Reaction: Uncertainty from comments by U.S. President Trump regarding Greenland has driven a risk-off mood in Japanese stock markets, leading to selling of previously strong high-tech stocks such as semiconductor equities. Against this backdrop, food and retail-related stocks expected to benefit from consumption tax cuts have outperformed and risen against the broader market trend.
• Profiled Food and Retail Firms:
  • サンクゼール (2937): A food SPA (planning, development, sourcing, manufacturing, store design, and retail all in-house) company best known for its Kuze Fukku Shouten brand, with nationwide store operations and has been public since December 2022. The firm is focused on establishing new businesses, and recently launched a new confectionery business focused on creating signature local sweets for tourist regions across Japan.
  • 紀文食品 (2933): A 90-year-old company founded in 1938 that manufactures and sells fish paste products (kanpyo, kamaboko, chikuwa), pre-cooked oden, and various prepared foods. It has recently faced headwinds from raw material price increases, but is steadily implementing price adjustments. Growing interest in protein from fitness trends has gradually increased attention on its fish paste product line.
  • シマダヤ (250A): A noodle-specialized manufacturer widely known for its Ryusui Men product line, that held its IPO in October 2024 as a relatively new public stock. It markets salad noodle products to household consumers focused on convenience and nutritional balance. A new frozen noodle production line is scheduled to start operations in June 2026, strengthening the company's medium- to long-term production capacity, and the firm will celebrate its 100th founding anniversary in 2031.
  • 森永製菓 (2201): A major food company centered on confectionery (brands including Hi-Chew, DARS) and frozen dessert (Choco Monaka Jumbo, Ice Box). Hi-Chew has grown in popularity overseas alongside rising brand recognition from Major League Baseball exposure. For the fiscal year ending March 2026, the company is expected to post record-high annual sales for the 5th consecutive year, supporting its reputation for a stable business foundation.

No detailed segment financial performance data (absolute values or revenue contribution percentages) for individual firms is provided in this incomplete transcript.

No forward-looking corporate guidance from firm management is provided in this transcript. Market commentary only notes that food and retail-related stocks are expected to continue receiving market attention due to growing expectations for consumption tax cuts from a policy shift, against a backdrop of persistent public concern over rising prices.

• Persistently high consumer price inflation: A Bank of Japan survey released January 19, 2026 (covering December 2025) showed that more than 88% of respondents expect prices to rise one year from now, a very high level that has left most Japanese consumers concerned about household finances.
• This article explicitly notes that it does not recommend any specific investments, and any investment decisions made based on content in the article are the sole responsibility of the investor, with the publisher and author accepting no liability for investment outcomes.
• Broad market risk: Uncertainty from geopolitical comments by U.S. officials has created a broad risk-off mood in Japanese equities that could impact all sectors.

No question-and-answer section between management and analysts is included in this incomplete market commentary transcript.