ENVALITH
鳥越製粉株式会社 logo

THE TORIGOE CO.,LTD.

2009・Standard Market・Foods

Official website
鳥越製粉株式会社 logo
THE TORIGOE CO.,LTD.2009

Business

Torigoe Flour Milling Co., Ltd. is a comprehensive grain processing group founded in 1935, originating in Ukiha City, Fukuoka Prefecture. The group comprises the company and seven subsidiaries, operating in four segments: milling (wheat flour, rye flour), food (premixes, quality improvers, bread, fresh noodles, etc.), pearled grains (pearled barley, pressed barley, pearled mochi barley), and feed. Milling and food products are manufactured by the company itself, while pearled grains and feed are handled by four companies under the intermediate holding company Torigoe Grain Holdings Co., Ltd. Sales are conducted through wholesalers such as Kaneni Co., Ltd., serving both commercial and household customer segments. The company is listed on the Tokyo Stock Exchange Standard Market and the Fukuoka Stock Exchange. It is currently advancing its medium-term management plan

Business Model

The main raw material, imported wheat, is procured through the government's state trading system, and value is added through the flour milling and processing stages before sale. The flour milling segment is the mainstay, accounting for approximately 44% of net sales, complemented by food products, refined barley, and feed. Sales are centered on indirect sales through wholesalers such as Kaneni Corporation. Storage and handling operations for government-owned imported wheat (the Other segment) are also a source of revenue. Product development capability, backed by R&D expenditure of ¥222 million, and differentiated products developed through long-term technical alliances with U.S., German, and U.K. partners underpin the company's earnings base.

Company Strengths

Against total assets of ¥46,473 million at the end of FY2025 (ending December 2025), net assets stood at ¥36,794 million. The equity ratio remained at an extremely high level of 79.1%, reflecting low reliance on interest-bearing debt. The period-end balance of cash and cash equivalents was also secured at ¥11,972 million, indicating a high level of financial stability.

Sales in the milled wheat and barley segment for FY2025 (ending December 2025) were ¥6,400 million (up 8.4% year on year). In addition to higher selling prices, an increase in shipment volumes of food-use barley contributed to the growth. The integrated operating structure across the four companies under Torigoe Grain Holdings is strengthening competitiveness in the milled grain and feed industries.

The company has entered into multiple long-term technology and business alliance agreements with Dawn Foods (US, premixes and bakery machinery), CSM (Germany, ingredients for confectionery and bread making), AB Mauri (UK, dry yeast), and Fiberstar (US, functional food ingredients), building a supply framework for differentiated products.

ENVALITH's Perspective

Flour Milling segment sales for Q1 FY2026 (ending December 2026) were ¥2,671 million (down 3.1% year on year). Although shipment volume of commercial-use wheat flour increased, the product price cuts associated with the October 2025 reduction in the government's wheat selling price pushed sales down. The structure in which fluctuations in the government selling price directly pass through to product prices and sales is an external factor that remains an ongoing risk, and the effect of the June 2026 price revision will be key to earnings recovery from Q2 onward.

Quarterly net income attributable to owners of the parent decreased to ¥241 million (versus ¥265 million in the same period of the previous year, down 9.0%), but the prior-year period included a gain on sale of investment securities of ¥55,425 thousand recorded as extraordinary income. Excluding this, on an underlying basis core operating profit was ¥360 million (up 1.2% year on year) and ordinary profit was ¥379 million (up 2.2%), maintaining an upward trend. The decline in net income is judged to stem from a one-time factor.

The full-year earnings forecast for FY2026 (ending December 2026) remains unchanged at sales of ¥28,000 million (up 6.7% year on year) and operating profit of ¥1,350 million (up 2.9%). As an external factor, the ongoing rise in logistics costs and personnel expenses is already reflected in selling, general and administrative expenses (¥970 million in Q1, up 3.3% year on year), and further cost increases in the second half will affect whether the profit forecast is achieved. The annual dividend per share forecast of ¥49 is expected to be maintained at the same level as the previous fiscal year.

Growth Strategy

As the final year of "TTC150 Stage3," the company is advancing improvements in capital efficiency and strengthening the profitability of each business segment.

Following the 2.5% increase in the government-set import wheat selling price effective from April 2026, a price revision for commercial-use flour is planned for deliveries from June 20. This aims to reverse the decline in the Milling segment's sales (down 3.1% year on year) that emerged in the first quarter.

The Barley segment achieved first-quarter net sales of ¥1,818 million (up 5.2% year on year) driven by increased shipment volumes. The Food segment also saw improved profitability through product price increases. Continued growth in both segments will be a key driver in achieving full-year net sales of ¥28,000 million.

As the final year of the medium-term management plan "TTC150 Stage3," the company aims to enhance corporate value while maintaining an annual dividend of ¥49 per share. Leveraging its financial base with an equity ratio of 79.5%, the company will continue efforts toward improving ROE.

Last updated: July 17, 2026