NIPPN CORPORATION

Business Details

The core business since the founding of the Group. The Company manufactures Wheat Flour & Bran and sells them through distributors (Nippn Shoji Co., Ltd. and others), while Matsuya Seifun Co., Ltd. manufactures and sells Buckwheat Flour. Main customers are primarily commercial-use (Foodservice, Ready-to-Eat Related Food, and food manufacturers). The business has a structure in which price revisions linked to the government's selling price for imported wheat directly affect earnings, and it is responsible for generating stable cash flow through the promotion of problem-solving sales activities and improved production efficiency. The Chita Plant began operations in February 2026 and is expected to make a full-scale contribution as the next earnings base.

Recent Overview

Net sales decreased due to the reduction in the government's selling price, but higher shipment volumes and the start-up of the Chita Plant drove an increase in operating profit.

In the Flour Milling Business for FY2026 (ending March 2026), net sales decreased to ¥120,000 million (98.6% year on year) due to the impact of price revisions following reductions in the government's selling price for imported wheat in April and October 2025. On the other hand, sales remained solid and shipment volumes exceeded the previous year, resulting in an increase in operating profit to ¥9,471 million (102.9% year on year). In addition, the Chita Plant began operations in February 2026, and reductions in raw material procurement costs through berthing of large grain vessels, along with improved production efficiency through smart factory initiatives, are expected to contribute to strengthening the earnings base going forward.

Key Products

Growth Drivers

• Reduction in raw material procurement costs by leveraging the berthing of large grain vessels following the February 2026 start-up of the Chita Plant (Chita City, Aichi Prefecture)
• Promotion of smart factory initiatives through automation technology and DX utilization, improving production efficiency and productivity
• Increase in shipment volumes through the promotion of problem-solving sales activities (achieved year-on-year growth again in FY2026)
• Improved profitability through the development and expanded sales of value-added products such as Whole Wheat Flour & Domestic Wheat Value-Added Products
• Expansion of the overseas flour milling business through the full-scale and stable operation of Utah Flour Milling, LLC (United States)

Risks

• Direct impact on sales and profit from revisions to the government's selling price for imported wheat (a factor in sales decline when prices are lowered)
• Profit pressure from rising costs such as logistics and labor costs
• Risk of demand fluctuation due to strengthening consumer thrift consciousness
• Risk associated with the ramp-up of the new Chita Plant and profit pressure from increased depreciation burden (increased depreciation burden explicitly noted in the forecast for FY2027, ending March 2027)
• Impact on raw material procurement costs from U.S. trade policy trends and exchange rate fluctuations
• Risk to raw material procurement from energy price spikes and supply chain disruptions associated with escalating tensions in the Middle East