I am Okada from the Finance and Accounting Department. I will explain the consolidated financial results for financial year 2025, Q3. My explanation will be based on the material titled Executive Summary of Consolidated Financial Results for Q3 ended December 31st, 2025, available on our website. For detailed figures, please refer to the financial report and the supplementary materials released at the same time. First, please turn to page one for the key points of the consolidated results for Q3. On a consolidated basis, both net sales and profits decreased compared with the previous fiscal year. Next, are the key points by segment. Food and beverages in Japan recorded decreases in both net sales and profits due to a 7% decline in sales volume of dairy products. Food and beverages overseas saw an increase in sales volume overall, mainly in Asia, Oceania.
However, due to the significant impact of yen appreciation and higher costs, both net sales and profits decreased. Next, please turn to page two for the consolidated results overview. Net sales decreased by JPY 14.4 billion year-over-year to JPY 371.7 billion. Operating profit decreased by JPY 9.8 billion to JPY 40.9 billion. Ordinary profit decreased by JPY 13 billion to JPY 55.6 billion. Profits attributable to owners of parent decreased by JPY 2 billion to JPY 41.5 billion. The impact of foreign exchange is shown in blue, and although yen appreciation had a negative impact, looking at the Q3 three-month period alone, profits at each stage of net sales were almost flat. As a result, in the Q3 three-month period, the food and beverages overseas segment recorded increases in both net sales and profits.
On the far right, we show the full year forecast announced in November. This time, we have left the forecast figures unchanged. As of Q3, sales volume in food and beverages in Japan is below plan. Asia, Oceania, and other regions are progressing steadily, and overall performance is tracking largely in line with the plan. Next, please turn to page three for the consolidated statement of income. Details from net sales to operating profits will be explained later by segment. As of Q3, raw material costs increased by JPY 0.5 billion in Japan and by JPY 1 billion overseas, mainly in the Americas, for a total increase of JPY 1.5 billion. Selling, general, and administrative expenses appear to have decreased by JPY 2 billion, but this includes a negative impact of JPY 4.5 billion due to yen appreciation.
In substance, this represents a cost increase of JPY 2.5 billion. Next is non-operating income and expenses and extraordinary income and losses. Interest income and foreign exchange gains combined decreased more than JPY 5 billion, mainly due to lower interest rates at overseas subsidiaries and unfavorable foreign exchange translation rates for foreign currency denominated assets. In extraordinary income, we recorded JPY 7.7 billion in gain on sale of investment securities as the head office sold a portion of its strategically held shares. Next, please turn to page four for the consolidated financial position. Total assets increased by JPY 16.9 billion from the end of the previous fiscal year to JPY 881.2 billion, and net assets decreased by JPY 3.2 billion to JPY 626.2 billion.
As with the statement of income, there was a negative foreign exchange impact due to yen appreciation, amounting to approximately JPY 9 billion on total asset basis. The equity ratio decreased by 0.7 percentage points to 65.7%. Next, page five shows the consolidated balance sheet. In assets, cash and deposits decreased by JPY 36.1 billion to JPY 232.9 billion. As indicated by the increase in property, plant, and equipment below, the main factors were progress in the construction of a new plant and capital investment at Yakult USA. Inc., the acquisition of treasury stock totaling JPY 15 billion included in the decrease in net assets, and shareholder return, such as progressive dividends. Investment securities increased by JPY 12.1 billion, as mentioned in the statement of income. We worked to reduce strategically held shares, selling five issues and making no new acquisitions.
On the other hand, for the shares we continue to hold, market value increased significantly as the Nikkei Stock Average rose from the JPY 35,000 level to the JPY 50,000 level over these nine months, which contributed to the increase in the amount. Finally, net assets decreased. Quarterly profit was recorded and the market value of strategically held shares increased, but the main factor was a decrease of approximately JPY 13 billion in foreign currency translation adjustments, in addition to the shareholder returns mentioned earlier. Next, please turn to pages six and seven. These pages show the year-over-year comparison of net sales by segment, with page six presenting figures and page seven presenting them in graph form. As you can see, due in part to the significant impact of yen appreciation, overall net sales decreased by JPY 14.4 billion. I will explain by segment.
First, food and beverages in Japan. Sales volume of dairy products decreased by 7.4% overall due to the rise of competing products and impact of a challenging market environment, including rising prices. Regarding the Yakult 1000 series, following the nationwide launch of the Y1000 Toshitsu Off product through home delivery in January last year, it was also launched in retail stores in April. However, we were unable to acquire as many new customers as planned, and some customers discontinued purchases, resulting in a decrease in total series volume. As a result, net sales decreased by JPY 8.9 billion to JPY 176.2 billion. Next is food and beverages overseas. In the Americas, sales volume in Brazil and the U.S. increased compared to the previous year, and price revisions at each operation contributed positively.
However, due to a significant negative foreign exchange impact of JPY 6.2 billion, net sales decreased by JPY 4 billion to JPY 66.6 billion. That said, performance is recovering and in the Q3 three-month period alone, net sales increased by JPY 1.7 billion. Next, Asia, Oceania. Vietnam continued to perform strongly, and the recovery in China accelerated compared with the previous year. As a result, sales volume in Asia increased by 2.1%. However, due to a negative foreign exchange impact of JPY 4.1 billion, net sales decreased by JPY 1.1 billion to JPY 103.5 billion. In Europe, sales volume increased by 2.9% year-over-year, and net sales rose by JPY 0.1 billion to JPY 9.2 billion. Regarding overseas operations, preliminary figures for sales volume from January to December are shown on page 10 of the supplementary materials.
According to this data, total sales volume at overseas subsidiaries reached 101.8% year-over-year, exceeding the previous fiscal year for the first time since 2021. This refers to the full year. If we extract the most recent three month period and calculate the figures for Q4 of three months, total sales volume at overseas subsidiaries reached 104% year-over-year. We intend to continue working toward recovery and growth by gradually increasing sales volume going forward. Finally, on this page is others. The others segment include the operation of pharmaceuticals, cosmetics, and the professional baseball team. Although the professional baseball team increased net sales, the pharmaceutical business recorded a decrease in net sales due to the transfer of sales of oncology ethical pharmaceuticals to Takata Pharmaceutical Co, Ltd in the previous fiscal year with the transfer of the main product, Elplat, completed in mid-May.
As a result, other businesses overall recorded a decrease of JPY 0.6 billion to JPY 24.8 billion. This concludes the segment overview of net sales. Next, please turn to pages eight and nine. These pages show the year-over-year comparison of operating profit by segment, with page eight presenting figures and page nine presenting them in graph form. On a consolidated basis, operating profit decreased by JPY 9.8 billion. I will explain by segment. First, food and beverages in Japan. In addition to the decrease in gross profit due to lower net sales, higher raw material costs, and increased expenses such as personnel costs had an impact, resulting in a decrease of JPY 7 billion to JPY 23.6 billion. Next, food and beverages overseas.
In the Americas, although gross profit increased due to price revisions, higher raw material costs and expenses, as well as a negative foreign exchange impact of JPY 1.5 billion resulted in a decrease of JPY 2.7 billion to JPY 17.9 billion. In Asia, Oceania, although there was an increase in gross profit due to higher sales volume and lower manufacturing costs following the closure of the Shanghai plant one year ago, expenses such as sales promotion costs increased mainly in China and Indonesia, resulting in operating profit of JPY 11.1 billion, almost unchanged from the previous fiscal year. However, in Q3 three month period alone, operating profit increased by JPY 0.6 billion and the degree of recovery has been strengthening. Including Europe, overseas overall recorded a decrease of JPY 2.9 billion to JPY 29.5 billion. Finally, other businesses.
Although the pharmaceuticals business recorded a decrease in net sales, it implemented cost reductions and did not record a decrease in profit. Meanwhile, the operation of the professional baseball team benefited from increased attendance revenue, including news that attendance exceeded 2 million for the first time, and as a result, the others segment overall recorded an increase of JPY 1 billion in operating profit. This concludes the segment overview of operating profit. Next, page 10 shows the composition ratio of net sales by segment in a pie chart. Compared with the previous fiscal year, there were no significant changes. Next, page 11 shows a list of average daily sales volume of dairy products by country. On a consolidated basis, average daily sales volume was 29.37 million bottles on 98.3% year-over-year. By region, Asia, Oceania, and Europe exceeded 100% of the previous fiscal year.
At major operations as well, including Guangzhou, China, Vietnam, Brazil, and the U.S., many exceeded the previous fiscal year. Next, page 12 shows the composition ratio of operating profit by segment in a pie chart. Compared with the previous fiscal year, the ratio of food and beverages in Japan declined due to the relatively larger decrease in profit, while overseas and other businesses increased their shares. Finally, page 13 summarizes the impact of foreign exchange and consolidated profit and loss for the current fiscal year. The graph on the left compares the average exchange rates for January to September 2024 and January to September 2025. It shows the rate of change when the previous fiscal year rates are set at 100. Compared with the materials presented at the end of H1, the degree of yen appreciation has moderated.
However, the yen appreciated against almost all major currencies, and in particular, Mexico experienced yen appreciation of more than 10%. Please refer to the table on the right for the monetary impact on each segment. This concludes the overview of the consolidated financial results for financial year 2025.