ENVALITH
株式会社極洋 logo

KYOKUYO CO.,LTD.

1301・Prime Market・Fishery, Agriculture & Forestry

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株式会社極洋 logo
KYOKUYO CO.,LTD.1301

Business

Kyokuyo Co., Ltd. is a Tokyo Stock Exchange Prime-listed integrated marine food company established in 1937. Together with its group of 36 subsidiaries and 5 affiliated companies, it operates in four segments: the Marine Products segment (procurement, processing, and sale of marine products domestically and internationally), the Fresh Foods segment (fishing, farming, and processing of tuna and skipjack, along with raw consumption products such as sushi ingredients), the Food segment (manufacturing and sale of frozen foods, canned goods, and marine delicacies for commercial and retail use), and the Logistics Services segment (refrigerated warehousing and freight forwarding). Its main customers include conveyor-belt sushi chains, the food service industry, retailers, and convenience stores. Consolidated net sales for FY2026 (ending March 2026) were ¥334,612 million.

Business Model

A vertically integrated business model that spans the entire chain from raw material procurement (fishing, aquaculture, and purchasing) to processing at domestic and overseas plants, and domestic sales, exports, and overseas local sales. The Marine Products segment is the core business, accounting for approximately 58% of sales, while the Fresh Foods and Processed Foods segment adds value. Overseas, the company has expanded its local subsidiaries under a policy of "producing overseas and selling overseas," achieving an overseas sales ratio of 16.4% (FY2026 (ending March 2026) actual).

Company Strengths

For tuna and skipjack, the group completes the entire value chain in-house, from overseas purse seine fishing through Kyokuyo Suisan Co., Ltd. and others, to domestic aquaculture (Kyokuyo Marine Farm, etc.), processing, and sales. This has enabled stable supply of raw fish products for conveyor-belt sushi, and the Fresh Foods segment achieved net sales of ¥71,725 million and operating profit of ¥3,856 million in FY2026 (ending March 2026).

The company made successive investments and turned entities into subsidiaries, including in Turkey and the Netherlands in 2024, and Denmark's Engelsviken Canning Denmark A/S and others in 2025. It also established manufacturing bases in the United States, Vietnam, and Thailand. The overseas sales ratio reached 16.4% in FY2026 (ending March 2026), exceeding the medium-term plan target of 15%. The number of group subsidiaries has expanded to 36.

The four segments—Marine Products (net sales of ¥195,039 million), Fresh Foods (¥71,725 million), Food Products (¥65,528 million), and Logistics Services (¥1,737 million)—complement one another. While diversifying dependence on specific fish species and market conditions, processed products such as canned goods and frozen foods function as a buffer against market fluctuations, allowing operating profit to expand from ¥6,392 million in FY2022 to ¥10,731 million in FY2026 (ending March 2026).

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales rose to ¥334,612 million (+10.5% YoY), but operating profit declined to ¥10,731 million (-3.1% YoY) and ordinary profit fell to ¥10,031 million (-7.6% YoY). Interest expenses surged from ¥844 million in the prior period to ¥1,424 million, while upfront costs for new plants in the US and Vietnam and lower utilization at the European processing plant weighed on profit. The operating margin declined from 3.7% to 3.2%, and it warrants attention that expanded scale has not directly translated into improved profitability.

Total assets expanded to ¥214,128 million (+¥31,003 million from the previous fiscal year-end). Inventories (merchandise, finished goods, raw materials, etc.) increased from ¥88,356 million to over ¥89,411 million at the prior fiscal year-end, short-term borrowings expanded from ¥28,770 million to ¥41,172 million, and commercial paper expanded from ¥15,000 million to ¥20,000 million. Operating cash flow turned negative at ¥-745 million (versus +¥5,843 million in the prior period). The equity ratio declined slightly to 36.1% (from 36.5% at the prior fiscal year-end). While ¥9,079 million was raised through financing activities to secure liquidity on hand, continued attention is warranted regarding the expansion of working capital.

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥365,000 million (+9.1%), operating profit of ¥12,000 million (+11.8%), ordinary profit of ¥11,000 million (+9.7%), and profit attributable to owners of parent of ¥7,200 million (+5.2%). As the final year of the mid-term management plan "Gear Up Kyokuyo 2027," the company aims to return to growth in both sales and profit. However, the degree of difficulty in achieving this target will depend on external factors such as marine products market conditions, foreign exchange rates, and raw material costs. Subsequent events include the dissolution of the US crab-flavored surimi joint venture (making OKPM a wholly owned subsidiary, acquisition amount of US$5.4 million) and the acquisition of the company's shares by LS Corporation (up to 336,000 shares, expected to be completed by the end of April 2029), and changes in the shareholder composition will also be a point of attention.

Growth Strategy

Toward the final year of the medium-term plan 'Gear Up Kyokuyo 2027,' the company is advancing overseas expansion, continued M&A, and plant reinforcement

Promoting overseas sales expansion through local subsidiaries in Thailand, North America, Europe, Vietnam, and other regions. In FY2026 (ending March 2026), Engelsviken Canning Denmark A/S and two other companies were newly consolidated, rapidly expanding overseas sales to ¥54,789 million. The policy is to continue strengthening the business foundation through M&A.

New plants in the US and Vietnam commenced operations in FY2026 (ending March 2026), incurring upfront costs. As operations move into full-scale mode, the elimination of upfront costs is expected to contribute to the profitability of the overseas processing business. Resolving the shortage of raw material supply at the European processing plant is also a challenge.

The policy is to continue stable dividends while raising the dividend level through medium- to long-term profit growth. The year-end dividend for FY2026 (ending March 2026) is ¥150 per share (up from ¥130 in the previous fiscal year), and ¥160 is planned for FY2027 (ending March 2027). The dividend payout ratio is 26.0% (FY2026, ending March 2026).

As a subsequent event, the joint venture in the US crab-stick business with GOGH was dissolved, making OKPM a wholly owned subsidiary of KAMEC (acquisition amount: US$5.4 million). The US crab-stick business will continue as a standalone operation, aiming to unify profit management. The impact on consolidated results is described as minor.

Last updated: July 19, 2026