Showa Sangyo Co., Ltd.
2004・Prime Market・Foods
Business
Showa Sangyo, founded in 1936, is a comprehensive grain processing manufacturer forming a group with 28 consolidated subsidiaries and 7 equity-method affiliates. Its core business is the Food segment (net sales of ¥271,828 million), which manufactures and sells flour, premixes, vegetable oils, and saccharified products. It also operates a Feed segment (net sales of ¥58,740 million) handling compound feed and eggs, as well as Other businesses (net sales of ¥4,844 million) including warehousing and real estate leasing. Its main customers are primarily commercial-use demand such as food processing manufacturers, restaurant chains, and convenience stores, while it also handles household-use products. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Procures grains such as wheat, soybeans, rapeseed, and corn, and processes and manufactures products across the flour milling, oil, sugar/starch, and feed categories for sale to commercial and household customers. By operating multiple manufacturing sites within the group in an integrated manner, the company enhances cost efficiency while leveraging the sales network through Shosan Shoji. Through a circular model that utilizes by-products as feed materials, the group aims to maximize profitability across the entire organization.
Company Strengths
The food business consists of three categories—flour milling, oil milling, and starch/sugar products—and has established a robust operational base comprising seven domestic flour milling plants (including group companies), an oil milling system built through collaboration with Boso Oil & Fat and Tsuji Oil Mills, and a three-plant system with Shikishima Starch and Sanei Sucrochemical for stable starch/sugar supply. A diversified multi-product lineup that avoids dependence on a single item contributes to earnings stability.
The company promotes integrated operation of production sites, including consolidated subsidiaries, achieving logistics cost reductions and improved production efficiency. In FY2026 (ending March 2026), operating profit in the food business reached ¥11,323 million, up 3.2% year on year. In the starch/sugar category, a three-plant system for stable supply has been established, contributing to earnings stability across the group as a whole.
The company has a unique business model that spans the entire value chain, from procurement of feed raw materials, to compound feed manufacturing (outsourced processing to Kashima Feed), to manufacturing and sales by Kyushu Showa Sangyo, to egg sales by Showa Keiran. In FY2026 (ending March 2026), operating profit in the feed business reached ¥1,005 million, up 107.2% year on year, demonstrating strong earnings growth capability.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥346,358 million in FY2024 (ended March 2024), then moved sideways at ¥334,425 million in FY2025 (ended March 2025) and ¥335,413 million in FY2026 (ending March 2026). Operating profit recovered from a trough of ¥4,184 million in FY2023 (ended March 2023), maintaining a stable level thereafter at ¥13,146 million in FY2024, ¥11,126 million in FY2025, and ¥11,941 million in FY2026. As external factors, reductions in the government selling price of imported wheat in April and October 2025 pushed down revenue in the flour milling category, while firm egg market prices contributed to a significant profit increase in the feed business (operating profit +107.2%). Cost of sales decreased by ¥1,717 million year on year, improving the gross profit margin (17.1% in the previous period to 17.8% in the current period), but an increase in SG&A expenses (from ¥45,956 million in the previous period to ¥47,846 million in the current period) constrained the growth in operating profit.
Growth Strategy
Under the new Medium-Term Management Plan 26-29, the company aims to strengthen its earnings structure through a shift to high-value-added products and reinforcement of its business foundation across segments.
As a basic strategy of the new medium-term management plan "Medium-Term Management Plan 26-29," the company is promoting a shift to high-value-added products in each category of flour milling, oils and fats, and starch/sugar, and reducing costs through integrated operation of production facilities. Specific measures include expanding sales of functional products such as commercial-use pasta and long-life oils.
With the completion of a new plant by Showa Sangyo International Vietnam Co., Ltd., overseas manufacturing of premix products has begun. The full consolidation of Tokatsu Foods Co., Ltd. (Chinese-style steamed buns and Chinese-style prepared foods) has expanded the product lineup of the food business. The company will continue to strengthen its business foundation across business segments going forward.
In February 2026, new group environmental targets were established. The targets are to reduce CO2 emissions by 46% or more (FY2030 target, versus FY2013), reduce food loss by 30% or more, and reduce water usage intensity by 12% or more, with decarbonization by FY2050 positioned as a key management priority.
From FY2027 (ending March 2027), the dividend policy will change to "whichever is higher between a payout ratio of 40% or DOE of 3.0%." The forecast annual dividend for FY2027 (ending March 2027) is ¥140 (an increase of ¥25 from ¥115 in the previous fiscal year). The dividend payout ratio is being raised in stages: 28.1% in FY2025 (ended March 2025) → 35.2% in FY2026 (ending March 2026) → a projected 47.9% in FY2027 (ending March 2027).
Last updated: July 19, 2026