Nippon Beet Sugar Manufacturing Co., Ltd.
2108・Prime Market・Foods
Sugar business
Nippon Beet Sugar Manufacturing's core business, accounting for approximately 68% of consolidated net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥46,694 million | ¥42,897 million | ↑ |
| Operating loss | △¥2,557 million | △¥1,598 million | ↓ |
| Net sales YoY change | +8.9% | ― | ↑ |
Business Details
The core segment of the Group, engaged in the manufacture and sale of beet sugar, refined sugar, molasses, and other products. Beet sugar is manufactured in-house using sugar beet grown in Hokkaido as raw material, while refined sugar production is outsourced to Kanmon Seito Co., Ltd. The segment's structure is strongly affected by external factors such as fluctuations in raw beet harvests, overseas raw sugar market prices, and domestic sugar consumption trends, and beet sugar produced in excess of a certain volume is sold as raw sugar with a higher cost ratio. Domestic sugar consumption has been on a declining trend due to consumers' preference for lower sweetness and the increasing use of alternative sweeteners.
Recent Overview
Net sales increased, but operating loss widened year on year due to declining selling prices.
Net sales in the sugar business for FY2026 (ending March 2026) were ¥46,694 million (up 8.9% year on year). Net sales increased as raw sugar sales rose due to the recovery in beet sugar production; however, selling prices declined as New York raw sugar futures fell from 18.89 cents at the start of the fiscal year to 15.51 cents, and domestic market prices also dropped by ¥8 in November (to ¥241-¥243/kg). Operating loss widened to ¥2,557 million from ¥1,598 million in the previous fiscal year. An impairment loss of ¥357 million was recorded on beet sugar-related facilities.
Key Products
Growth Drivers
- Increase in raw sugar sales volume driven by the recovery in beet sugar production
- Promotion of cost reduction measures through energy conservation, labor savings, and reduced manpower under the Second Medium-Term Management Plan of the Nitten Group (April 2023 to March 2028)
- Efforts to improve margins through thorough implementation of appropriate pricing
- Slight recovery in sugar demand supported by robust inbound tourism demand, among other factors
Risks
- Risk of lower selling prices due to declines in overseas raw sugar market prices (fell to 15.51 cents/lb at fiscal year-end)
- Risk of fluctuations in raw beet harvest volume and sugar content (heavily affected by climate change and abnormal weather)
- Pressure on profitability from persistently high manufacturing costs, including fuel and auxiliary material costs
- Declining trend in domestic sugar consumption due to consumers' preference for lower sweetness and the increasing use of alternative sweeteners (isomerized sugar, imported sugar-blended preparations, high-intensity artificial sweeteners)
- Government decision to gradually reduce the policy support volume for sugar beet and beet sugar (from 640,000 tons to 550,000 tons by October 2026)
- Risk of additional impairment losses on beet sugar-related facilities due to the continued downward trend in sugar market prices (an impairment loss of ¥527 million was recorded in the current fiscal year)
- Uncertainty over the growing conditions of raw beets for the 2026 crop and overseas sugar market trends
Last updated: June 24, 2026