NISSHIN SEIFUN GROUP INC.

Business Details

Domestic flour milling operations are conducted by Nisshin Flour Milling Inc. and Kumamoto Flour Milling Co., Ltd., while overseas flour milling is conducted through Miller Milling Company, LLC (US), Rogers Foods Ltd. (Canada), Allied Pinnacle Pty Ltd. (Australia), and others. Main products are wheat flour, bran, and wheat-flour-related products. Domestically, the company mills and sells wheat flour for commercial and household use, with foodservice operators and food manufacturers as its main customers. Overseas, it maintains production and sales bases in North America, Oceania, and Asia. In FY2026 (ending March 2026), this is the group's largest segment, accounting for ¥428,533 million of the group's total sales of ¥865,004 million (approximately 49.5% of sales to external customers).

Recent Overview

Domestic flour milling reorganized with Mizushima Smart Plant startup and closure of Okayama/Sakaide plants; overseas faced market and FX headwinds

In FY2026 (ending March 2026), Flour Milling Business sales were ¥428,533 million (96.6% of the prior year), and operating profit was ¥27,724 million (94.3% of the prior year on a restated basis after the change in allocation basis). Domestically, the Mizushima Smart Plant began operations in May 2025, and the Okayama plant (July 2025) and Sakaide plant (September 2025) were closed. A plant closure loss of ¥2,001 million (including an impairment loss of ¥1,562 million within the Flour Milling segment) was recorded as an extraordinary loss. Startup costs at the Mizushima plant weighed on profit. In the overseas flour milling business, sales fell below the previous year due to the decline in wheat prices and foreign exchange translation effects, and a decline in shipments also affected profit. In the US, production system enhancements (the new Saginaw line and the Winchester expansion) were completed. The government's selling price for imported wheat, on a five-brand average basis, was reduced by 4.6% in April 2025 and by 4.0% in October 2025, and price revisions for commercial-use wheat flour were implemented (July 2025 and January 2026).

Key Products

Growth Drivers

• Domestic flour milling: increased shipments driven by expanding inbound and foodservice demand, and the effect of sales expansion measures
• Full-scale operation of the Mizushima Smart Plant enabling automation, labor savings, and improved production efficiency (materialization of rationalization effects from the closure of the Okayama and Sakaide plants)
• Strengthened North American flour milling production system through the new line at the Saginaw plant and the completed expansion of the Winchester plant
• Differentiation and market development through high value-added products such as the High Dietary Fiber Wheat Flour "Amyria"
• Structural reform and profit expansion in the Australian flour milling business through supply chain review, rationalization, and automation

Risks

• Direct impact on sales and profit from fluctuations in the government's selling price for imported wheat and declines in international wheat prices
• Foreign exchange translation impact (erosion of yen-translated sales and profit of the overseas flour milling business during yen appreciation phases)
• Rising manufacturing costs in the domestic flour milling business (labor costs, power costs, transportation costs), including Mizushima plant startup expenses
• Demand stagnation, continued inflation, and changes in the competitive environment in the overseas flour milling business (particularly in Australia and Asia)
• Risk of rising costs for raw materials, energy, and supplies against a backdrop of surging crude oil prices amid escalating tensions in the Middle East
• Deterioration of the business environment due to global economic uncertainty stemming from geopolitical risks and US tariff policy, among other factors