Mitsui DM Sugar Co., Ltd.
2109・Prime Market・Foods
Business
DM Mitsui Sugar Co., Ltd. is a comprehensive food group centered on its sugar business (approximately 84% of revenue), which focuses on the manufacture and sale of refined sugar and sugar-related products. The company also operates a Life & Energy business handling food additives, nutritional therapy foods, and dysphagia-friendly foods, as well as a real estate business that utilizes company-owned land. With a total of 28 companies, including 17 consolidated subsidiaries and 10 equity-method affiliates, the group has built a nationwide supply chain and maintains overseas bases in Singapore, the UAE, Vietnam, China, Thailand, and elsewhere. Following its business integration with Dai-Nippon Meiji Sugar in 2021, the company dissolved its holding company structure in April 2025 and restarted as an operating company.
Business Model
In the core sugar business, the company procures and refines raw sugar and sells it through a manufacturing-and-sales model targeting household and commercial use. In the Life & Energy business, the company develops high-value-added products such as food additives, nutritional therapy foods, and delivered lunch boxes, pursuing higher growth than the sugar business. In the real estate business, the company leases company-owned land, including former factory sites, to generate stable cash flow. The combination of these three businesses creates a structure that secures earnings while diversifying market-condition risk.
Company Strengths
Through the business integration with Dai-Nippon Meiji Sugar (2021), the company has established the top share in the domestic sugar industry. It owns multiple production sites in Chiba, Kobe, Fukuoka, and other locations, along with a nationwide logistics network, and maintains a major customer base exemplified by sales to Mitsui & Co., Ltd. (¥23,904 million in FY2026 (ending March 2026), 13.3% of sales). It maintains its competitive advantage amid ongoing industry consolidation.
The company holds a group of subsidiaries with distinct technologies and sales channels, including Nutri Co., Ltd. (nutritional therapy foods, dysphagia-friendly foods), Taisho Technos Co., Ltd. (food additives, natural colorants), Hokkaido Sugar Co., Ltd. (contract manufacturing using microbial culture technology), and YOUR MEAL Co., Ltd. (frozen meal delivery). The DM Mitsui Group research institute supports the research foundation for carbohydrates, functional materials, and nutritional design, with R&D expenditure of ¥968 million (FY2026 (ending March 2026)).
The company owns rental properties in Okayama, Kobe Nagata, and Tokyo's Minato Ward (Mita S-Garden) and others, recording sales of ¥2,552 million in FY2026 (ending March 2026). By effectively utilizing former factory sites, it generates stable cash flow unaffected by sugar market conditions. Against segment assets of ¥31,114 million, it has a structure that continuously builds up rental income.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, from ¥147,880 million in FY2022 to ¥180,102 million in FY2026. Operating profit bottomed out at ¥1,100 million in FY2023 and recovered sharply to ¥13,840 million in FY2025, but declined for the second consecutive period in FY2026 to ¥12,909 million (down 6.7% year on year). As an external factor, overseas raw sugar prices fell to as low as 13.61 cents during the period before ending at 15.51 cents, providing some benefit on the raw material cost side; however, declines in domestic market prices, persistently high energy prices, and rising logistics costs weighed on profitability. An impairment loss of ¥6,320 million on the SIS'88 Pte Ltd group (of which ¥4,678 million related to goodwill and intangible fixed assets) pushed net profit down to ¥3,961 million. Operating cash flow decreased to ¥12,343 million (from ¥22,592 million in the prior period), and financing cash flow resulted in an outflow of ¥19,157 million, reflecting bond redemptions of ¥10,000 million and treasury stock acquisitions of ¥3,843 million, among other items.
Growth Strategy
Rebuilding the earnings portfolio through structural reform of the sugar business and expansion of overseas and Life & Energy businesses
Termination of production in the Kyushu region (Kanmon Sugar Co., Ltd. and others) is scheduled for completion by the end of September 2026. Contract production through the business alliance with Wada Sugar Co., Ltd. has moved into full operation and is contributing to group earnings. Reforms in production, sales, and logistics utilizing AI are also being promoted. The provision for business structure improvement of ¥1,002 million recorded in the previous period is expected to materialize as a fixed cost reduction effect.
The UAE repacking base under SIS'88 Pte Ltd and the Vietnam manufacturing base of Asian Blending have moved into full operation, and sales volume has recovered. However, due to failure to meet the business plan, an impairment of ¥6,320 million was recorded for goodwill and other assets. Overseas market capture continues through equity-method affiliates such as COFCO Tunghsu Sugar (Liaoning, China) and Kaset Phol Sugar (Thailand). Strengthening governance and leveraging local brand power to improve profitability are challenges for the next period.
Promoting expansion of businesses targeting sports nutrition, senior nutrition, and active seniors. YOUR MEAL Co., Ltd.'s delivered meal box and online sales have grown, and Nutri Co., Ltd.'s swallowing support products have remained solid. On the other hand, due to increases in advertising expenses, warehousing fees, and other costs, operating profit for FY2026 (ending March 2026) struggled at ¥1,007 million (down 20.3% year on year). Expanding functions, technology, and sales channels through M&A is a pillar of the new medium-term plan.
A new medium-term management plan covering FY2027 (ending March 2027) through FY2030 (ending March 2030) has been formulated. It sets out three transformations—'business model transformation,' 'management foundation transformation,' and 'sustainability management transformation'—and introduces a new shareholder return policy targeting DOE of approximately 5% and a payout ratio of 50%. Building a new core system and promoting DX to improve operational efficiency will also proceed in parallel.
Last updated: July 19, 2026