NICHIWA SANGYO CO., LTD.
2055・Standard Market・Foods
Feed Business
Hiwa Sangyo's main segment, centered on the manufacture and sale of compound feed
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥43,669 million | ¥46,698 million | ↓ |
| Segment profit (operating income) | ¥1,485 million | ¥1,087 million | ↑ |
| Segment assets | ¥20,670 million | ¥20,223 million | ↑ |
| Depreciation and amortization | ¥435 million | ¥507 million | ↓ |
| Increase in property, plant and equipment and intangible assets | ¥25 million | ¥804 million | ↓ |
| Impairment loss | ¥0 million | ¥299 million | ↓ |
Business Details
This segment manufactures and sells compound feed for poultry, hogs, cattle, and fish farming, and also handles the sale of livestock products produced by customers. Corn, soybean meal and other grains serve as the main raw materials, with domestic livestock and fisheries operators as the primary customers. This core business accounts for approximately 96% of consolidated net sales. In FY2026 (ending March 2026), segment profit improved significantly, up 36.6% year on year, driven by raw material price trends, while net sales declined due to reductions in compound feed prices.
Recent Overview
Net sales declined, but segment profit rose 36.6% year on year on improved raw material price trends
In the Feed Business for FY2026 (ending March 2026), net sales to external customers declined to ¥43,669 million (down 6.5% year on year) due to three rounds of compound feed price cuts implemented in April, July, and October 2025. On the other hand, segment profit improved significantly to ¥1,485 million (up 36.6% year on year) due to trends in raw material prices such as corn and soybean meal. The impairment loss of ¥299 million recorded in the prior fiscal year was zero in the current period. Note that a compound feed price increase was implemented in January 2026.
Key Products
Growth Drivers
- Reduction in cost of sales through improved trends in raw material prices (corn, soybean meal)
- Profit improvement effect from the compound feed price increase implemented in January 2026
- Improved profitability for poultry farmers and sustained feed demand due to elevated egg and poultry meat prices
- Improved profit margins through a focus on reducing production costs
- Maintenance and expansion of the customer base through enhanced sales measures
Risks
- Risk of sharp increases in prices of main raw materials such as corn and soybean meal (driven by international grain market conditions, Middle East tensions, U.S. export demand, etc.)
- Risk of rising raw material procurement costs due to yen depreciation
- Decline in livestock farmers' production volumes and feed demand due to livestock diseases such as avian influenza and African swine fever
- Decline in sales and profit margins due to price-cutting competition in compound feed
- Impact of rising transportation costs on raw material procurement costs amid escalating tensions in the Middle East
- Risk of impairment losses (the segment recorded an impairment loss of ¥299 million in the prior fiscal year)
Last updated: June 25, 2026