KYOKUYO CO.,LTD.

Business Details

Kyokuyo's core segment, conducting the purchasing, processing, and sale of marine products both domestically and internationally. Domestically, sells salmon, shrimp, scallops, crab, fish roe, mackerel, and North Pacific fish to mass retailers and food service operators. Overseas, operates the Export Business (scallop products, mackerel, sardines, etc.) and Overseas Local Sales through local subsidiaries (in the US, Thailand, Europe, etc.). As the largest segment, accounting for approximately 58% of consolidated external sales, FY2026 (ending March 2026) achieved substantial revenue growth of 15.6% year-on-year, while profit declined from the prior period.

Recent Overview

Revenue increased but profit fell short of plan; declining European utilization rate and upfront costs at new overseas plants weighed on results.

In FY2026 (ending March 2026), sales reached ¥195,039 million (up 15.6% year-on-year), a substantial revenue increase, but operating profit declined to ¥5,750 million (down 5.9% year-on-year). Domestically, sales volume of salmon and shrimp declined due to weakened consumer sentiment, while fish roe, crab, processed mackerel products, and North Pacific fish grew. Overseas, the contribution from the company acquired in the prior year and expansion at local subsidiaries in Thailand, North America, and Europe progressed, but profit for the business overall fell short of plan due to reduced utilization at the European processing plant from a shortage of raw material supply and upfront costs from new plants in the US and Vietnam. As a subsequent event, on May 15, 2026, the company resolved to dissolve the joint venture in its US surimi crab business (with KAMEC acquiring GOGH's 30% stake for USD 5.4 million) and decided to continue the business on a wholly-owned basis.

Key Products

Growth Drivers

• Unit price increase effect from elevated marine product market prices (scallops, mackerel, fish roe, crab, etc.)
• Increased demand for scallop products, mackerel, and sardines in the Export Business, along with growing popularity of Japanese cuisine
• Expansion of Overseas Local Sales (strong sushi ingredient sales in Thailand, increased handling by North American and European subsidiaries)
• Sales contribution and strengthened business foundation from Engelsviken Canning Denmark A/S and two other companies acquired in the prior year
• Continued M&A and overseas sales expansion policy under the medium-term management plan 'Gear Up Kyokuyo 2027'
• Expansion of overseas production capacity as new plants in the US and Vietnam reach full operation (profit contribution expected once upfront costs are absorbed)
• Dissolution of the joint venture in the US surimi crab business, transitioning to wholly-owned operation and improving business efficiency

Risks

• Risk of fluctuations in marine product market prices (deteriorating profitability from price declines in salmon, shrimp, crab, etc.)
• Decline in domestic consumption due to rising prices (reduced sales volume)
• Risks related to integration and operation of overseas acquired subsidiaries (raw material supply shortages at the European processing plant, continuing upfront costs at new US and Vietnam plants)
• Rising costs and reduced competitiveness of imported processed products due to yen depreciation
• Impact on the supply chain from geopolitical risk and US tariff policy, among other factors
• Risk from local economic conditions affecting Overseas Local Sales
• Rising interest rate risk associated with increases in short-term borrowings and commercial paper
• Business risk from the transition to wholly-owned operation of the US surimi crab business and changes in shareholder composition due to GOGH group's acquisition of the company's shares (up to approximately 2.78%)