NISSHIN SEIFUN GROUP INC.
2002・Prime Market・Foods
Business
Nisshin Seifun Group Inc. was founded in 1900 and transitioned to a pure holding company structure in 2001, serving as the parent company overseeing a food group. With 67 consolidated subsidiaries and 9 equity-method affiliates, the group operates across four segments: flour milling, processed foods, prepared foods and delicatessen items (nakashoku-sozai), and other businesses (engineering, mesh cloth, cargo handling and storage, etc.). As the leading company in the domestic flour milling market with an approximately 40% share, it has built a broad food value chain centered on commercial and household-use flour, extending to processed food brands such as "Ma Ma" and "Aono Dokutsu" (Blue Grotto), prepared foods and delicatessen products for convenience stores, and yeast and bio-products. The group also operates flour milling and food manufacturing facilities in North America, Australia, Southeast Asia, and other regions, conducting business on a global scale. Major customers include FamilyMart (14.0% of net sales) along with other food-related manufacturers, restaurant chains, retail chains, and general consumers.
Business Model
In the flour milling business (approximately 49% of net sales), the company manufactures and sells wheat flour and by-products, securing a stable earnings base, while the food business (approximately 25%) develops high value-added products such as premixes, pasta, and yeast, and the prepared foods and side dishes business (approximately 19%) supplies ready-to-eat foods to convenience stores. Through a vertically integrated structure spanning raw material procurement to manufacturing and sales, the company secures profitability by absorbing raw material cost fluctuations through price revisions and value-added enhancement. Peripheral businesses such as engineering and mesh cloth capture intra-group demand, supplementing earnings.
Company Strengths
Nisshin Seifun Group Inc. is the leading company in the domestic flour market with approximately a 40% share, and has built a solid customer base in both commercial and household use segments. Sales to FamilyMart account for 14.0% of net sales (¥121,505 million), reflecting deep business relationships with major food and distribution chains that make it difficult for competitors to imitate.
In May 2025, the Mizushima Smart Factory, leveraging the latest automation and digital technologies, began operations, achieving rationalization benefits through the closure of the Okayama and Sakaide plants. In the U.S., a new line at the Saginaw plant began operations in March 2025, and the expansion of the Winchester plant was also completed in July 2025, strengthening the production system of the North American flour milling business. Capital expenditures reached ¥41,174 million in FY2026 (ending March 2026) (¥22,341 million for the flour milling business), reflecting a track record of continuous investment in production infrastructure.
"Ma Ma" (celebrating its 70th anniversary) and "Aono Dokutsu" (celebrating its 30th anniversary) are processed food brands that have long been recognized by consumers, and demand has been stimulated through rebranding and promotional activities featuring Shohei Ohtani. The food business posted net sales of ¥216,620 million (105.0% year-on-year) and operating profit of ¥8,224 million (149.6% year-on-year, adjusted basis), demonstrating high growth rates, with results confirming that brand strength translates directly into profitability.
ENVALITH's Perspective
Performance Trend
Net sales were ¥865,004 million (up 1.6% year on year), expanding 27% over five periods from ¥679,736 million in FY2022 to reach a new record high. Growth was driven by an increase in large-scale projects in the engineering business, higher shipments of processed foods and yeast/bio products, and steady sales of prepared deli foods. On the other hand, in the overseas flour milling business, a decline in wheat prices and foreign exchange translation effects (external factors) weighed on sales. Operating profit was ¥46,685 million (up 0.7% year on year), remaining flat since peaking at ¥47,791 million in FY2024. Ordinary profit improved to ¥51,397 million (up 4.4% year on year), but an impairment loss of ¥8,772 million in the India yeast business and a loss of ¥2,001 million from the closure of the Okayama and Sakaide plants were recorded as extraordinary losses, limiting profit attributable to owners of parent to ¥32,589 million (down 6.0% year on year). Operating cash flow improved significantly to ¥69,194 million (from ¥55,209 million in the previous period), indicating enhanced cash-generating capability.
Growth Strategy
Achievement of the Medium-Term Management Plan 2026, built on three pillars: business portfolio restructuring, automation and labor-saving, and expansion of earnings in overseas growth businesses.
The Mizushima plant, utilizing state-of-the-art automation and digital technology, commenced operations in May 2025. The Okayama plant (July 2025) and Sakaide plant (September 2025) were closed, achieving rationalization through production consolidation. Start-up costs incurred during the current period weighed on flour milling segment profit, but improvements in production efficiency and labor-saving effects are expected to materialize over the medium to long term.
At Miller Milling Company, LLC, a new production line at the Saginaw plant (operational March 2025) and a capacity expansion at the Winchester plant (completed July 2025) were implemented. Expanding North American flour milling production capacity aims to strengthen the earnings base of overseas flour milling operations. Wheat price and foreign exchange movements remain factors that could cause performance fluctuations.
From June 2026, Toukatsu Foods Co., Ltd. will be restructured as an operating holding company, aiming to accelerate growth speed through integration of business and organization. Nomura Foods Co., Ltd.'s next-generation frozen food plant (Uji City, Kyoto Prefecture) is under construction, with operations scheduled to begin around June 2027. The company aims to strengthen its capture of Nakashoku (prepared meal) demand through expanded production capacity that is automated, labor-saving, and environmentally conscious.
Under the policy targeting a consolidated dividend payout ratio of around 50% by FY2027 (ending March 2027), a dividend of ¥60 per share (up ¥5 year on year) was paid in FY2026 (ending March 2026), marking a substantive 13th consecutive year of dividend increases. The company acquired 8,997,500 treasury shares (¥17,917 million) and retired 8,546,000 shares. For FY2027 (ending March 2027), a dividend of ¥65 (up ¥5 year on year) is planned. Gains from the reduction of cross-shareholdings are also expected to boost net profit.
Nisshin Pharma's fine chemicals business was terminated on March 31, 2026, and its health food business was transferred to Oriental Yeast Co., Ltd. on April 1, 2026. In the processed foods business, the company carried out rebranding of "Ma Ma" (Ma・Mar) and "Aono Dokutsu" (Blue Cave), launched new products, and conducted promotional activities featuring baseball player Shohei Ohtani. Operating profit in the food business achieved substantial improvement, reaching ¥8,224 million (up 149.6% year on year on an adjusted basis).
Last updated: July 19, 2026