NITTO FUJI FLOUR MILLING CO.,LTD.

Business Details

Nitto Fuji Flour Milling Co., Ltd. (parent company) and Masuda Seifun Sho Co., Ltd. manufacture wheat flour, wheat bran, mixed flour, and food products, which are sold domestically and overseas through distributors such as Mitsubishi Corporation, Sumida Corporation, and Kanesan Co., Ltd. In addition to the domestic flour milling business, the company also operates a mixed flour business through its overseas subsidiaries in Thailand (Nitto Fuji International Thailand) and Vietnam (NITTO-FUJI INTERNATIONAL VIETNAM). Its competitive advantage stems from a procurement and sales structure leveraging the Mitsubishi Corporation group value chain, together with procurement, manufacturing, sales, and R&D synergies with Masuda Seifun Sho.

Recent Overview

Operating income declined sharply by 23.1% year on year due to increased repair costs for aging facilities and falling byproduct prices.

In the flour milling and food business for FY2026 (ending March 2026), net sales decreased 0.4% year on year to ¥60,502 million, reflecting price revisions of commercial-use wheat flour in line with reductions in the government's imported wheat selling price (down 4.6% in the April 2025 revision and down 4.0% in the October 2025 revision). Operating income declined sharply by 23.1% year on year to ¥3,523 million, due to a combination of increased repair costs for aging facilities, declining prices of the feed compounding byproduct, and rising indirect costs such as delivery freight charges. Large-scale repair work is continuing from fiscal 2025 through fiscal 2026.

Key Products

Growth Drivers

• Improved price competitiveness and steady sales volume for commercial-use wheat flour following reductions in the government's imported wheat selling price
• Expansion of the mixed flour business for the Southeast Asian market through overseas subsidiaries in Thailand and Vietnam (overseas sales increased to ¥3,683 million in the fiscal year under review)
• Maximizing procurement, manufacturing, sales, and R&D synergies with Masuda Seifun Sho Co., Ltd.
• Integrated upstream-to-downstream business development leveraging the Mitsubishi Corporation group value chain
• Improved production efficiency and quality standards through labor savings from DX promotion and thorough equipment maintenance
• Normalization of repair cost burden once facilities stabilize following completion of large-scale repair work

Risks

• Elevated repair costs and profit pressure from large-scale repair work on aging facilities (2025–2026)
• Deterioration in earnings due to declining market prices for wheat bran, a feed compounding byproduct
• Profit pressure from rising indirect costs such as delivery freight charges and delays in passing on costs to prices
• Reputational risk and ongoing recall prevention costs stemming from the voluntary recall of premix flour due to foreign matter (resin fragment) contamination
• Fluctuations in raw material procurement costs due to revisions in the government's imported wheat selling price, exchange rate movements, and geopolitical risk
• Contracting equilibrium trend in the domestic wheat flour market due to the declining birthrate and aging population