ENVALITH
株式会社アクシーズ logo

AXYZ Co.,Ltd.

1381・Standard Market・Fishery, Agriculture & Forestry

Official website
株式会社アクシーズ logo
AXYZ Co.,Ltd.1381

Business

Axyz Co., Ltd. is a food company founded in 1962 and originating in Kagoshima. The company has built an integrated production system spanning feed manufacturing, breeder chicken raising, hatching, broiler fattening, chicken meat processing, processed food manufacturing, and restaurant operations (KFC franchise). Its major customers are large food distributors such as Foodlink Corporation (21.2% of sales) and Nichirei Fresh Co., Ltd. (17.7% of sales). The Food segment is the core business, accounting for approximately 84% of consolidated sales, while the Restaurant business (KFC store operations) and Energy business (biomass power generation) play complementary roles. The company is listed on the Standard Market of the Tokyo Stock Exchange, and its group is composed of 7 consolidated subsidiaries and 1 affiliated company.

Business Model

By completing the entire process, from feed production to final processing, within the group, the company suppresses external procurement costs while enforcing thorough quality control. It supplies differentiated products, raised without medication at directly-operated fattening facilities, to major food distributors, securing stable earnings. The value chain extends downstream into processed foods and food service (KFC franchise). Furthermore, chicken manure is utilized as biomass power generation feedstock, and surplus electricity is sold under the FIT (Feed-in Tariff) scheme. This circular model also secures highly profitable energy revenue (operating margin of 74.0%).

Company Strengths

Group-internal integrated processing spans feed manufacturing (Kinkowan Feed), breeder rearing and hatching, broiler fattening (all facilities directly operated), chicken meat processing, and processed food manufacturing. By eliminating external dependence, the company improved its cost of sales ratio in FY2025 (ended June 2025) by 2.3pt year on year to 74.8%, achieving 35.1% growth in operating profit.

Automated management using proprietary poultry house environmental control technology, combined with in-house manufactured feed, has achieved antibiotic-free rearing across all fattening facilities. The company has supplied ABF (Antibiotic-Free) chicken to Nichirei since 1998, building long-term trading relationships with major food distribution companies that emphasize food safety and security.

Chicken manure is supplied to equity-method affiliate Minami-Kyushu Biomass Co., Ltd. for use in biomass power generation. In FY2025 (ended June 2025), the Energy segment recorded net sales of ¥476 million against segment profit of ¥352 million (operating margin of 74.0%). Effective utilization of waste achieves both high profitability and reduced environmental impact.

ENVALITH's Perspective

For the cumulative 3rd quarter of FY2026 (ending June 2026), food segment profit expanded sharply to ¥2,394 million (+209.6% year-on-year). The main external factors were a moderate decline in feed raw material prices combined with firm chicken market prices, with internal efforts such as operational efficiency improvements and cost reductions also contributing. However, there is a risk that the decline in feed costs could reverse depending on market conditions, and continued attention should be paid to international market trends in feed raw materials (corn and soybean meal) regarding the sustainability of the current profit level.

On April 30, 2026, the company revised its full-year consolidated earnings forecast, announcing net sales of ¥28,800 million (+9.0% year-on-year), operating profit of ¥3,400 million (+60.3% year-on-year), and net income of ¥2,400 million (+39.5% year-on-year). Cumulative operating profit for the 3rd quarter of ¥2,895 million represents a progress rate of 85.1% against the full-year forecast of ¥3,400 million, putting achievement well within reach with one quarter (Q4) remaining. Meanwhile, the restaurant segment saw a 16.2% decline in profit year-on-year due to upfront costs from three new store openings and increases in raw material and labor costs, reaffirming the group's heavy dependence on the food segment within its overall profit structure.

Sales concentration among the top two major customers (Foodlink and Nichirei Fresh) remains a structural risk. The restaurant segment opened three new stores (KFC) during FY2025, with net sales expanding +7.0% year-on-year, but segment profit fell to ¥226 million (-16.2% year-on-year) as new store opening costs weighed on earnings. Improving profitability in the restaurant segment (cumulative 3rd quarter profit margin of 7.2%) is a task going forward, with the timing at which new stores reach breakeven and the profit contribution of existing stores serving as key medium-term evaluation points.

Growth Strategy

Growth driven by both the Food and Food Service segments through expanded integration capabilities and increased store openings

The company is currently implementing renovation investments in fattening facilities aimed at future production capacity expansion, efficiency improvement, and labor savings. By progressively advancing these capital investments, it aims to simultaneously pursue sales volume growth and manufacturing cost reduction in the Food segment. Food segment sales for the cumulative nine months of FY2026 (ending June 2026) reached ¥18,337 million (+12.8% year-on-year), reflecting the effects of increased production on sales.

In the Food Service segment, 3 new stores (KFC outlets) were opened during 2025, expanding sales by 7.0% year-on-year to ¥3,127 million. Segment profit declined 16.2% year-on-year due to upfront costs associated with new store openings, but profit contribution is expected once existing stores reach their break-even point.

The company secures stable FIT (feed-in tariff) electricity sales revenue through circular biomass power generation utilizing chicken manure. As Food segment production expands, the supply volume of biomass raw material also increases accordingly. Energy segment profit for the cumulative nine months of FY2026 (ending June 2026) was ¥273 million (+5.1% year-on-year), continuing its stable growth.

Last updated: July 17, 2026