Fuji Nihon Corporation

Business Details

A core business engaged in the manufacture and sale of refined sugar, liquid sugar, and sugar-related products. The company collaborates with affiliate Nan-Ei Sugar Co., Ltd. (Kagoshima Prefecture, raw sugar production) and Taiheiyo Seito Co., Ltd. (contract manufacturing of refined sugar), while consolidated subsidiary Fuji Nihon Shoji Co., Ltd. handles sales of refined sugar, liquid sugar, and molasses, as well as procurement of domestic raw sugar. The main customer is Sojitz Foods Corporation (approximately 38% of consolidated net sales combined for sugar and functional materials). While inbound demand supports shipments to confectionery and food service customers, the long-term decline in domestic sugar consumption due to the declining birthrate and aging population, as well as encroachment by alternative sweeteners, remains a structural challenge. Following the organizational change effective April 1, 2025, the segment name was changed from "Refined Sugar Business" to "Sugar Business."

Recent Overview

Logistics cost increases exceeded expectations, offsetting favorable inbound demand and resulting in lower sales and profit

In the Sugar Business for FY2026 (ending March 2026), net sales were ¥13,444 million (down 2.6% year on year) and operating profit was ¥2,507 million (down 0.9% year on year), resulting in lower sales and profit. Shipments to confectionery, food service, and souvenir customers trended favorably due to inbound demand, and full-year sales volume increased year on year; however, the decline in sales unit price resulting from the price reduction (per kilogram of Josaku large bag) implemented in November 2025, the first in about seven years, and a greater-than-expected rise in logistics costs weighed on profitability. The overseas raw sugar market ended the period at ¢15.52, having fallen to the ¢13 range at times during the period.

Key Products

Growth Drivers

• Favorable trend in shipments to confectionery, food service, and souvenir customers due to continued growth in inbound demand
• Improved customer satisfaction and retention of business relationships through strengthened sales structure
• Cost reduction through steady raw material procurement (efficient purchasing of raw sugar and production consolidation)
• Stable product supply and maintenance of customer trust through thorough quality control

Risks

• Long-term decline in domestic sugar consumption due to the declining birthrate and aging population, and encroachment by sugar-added preparations and alternative sweeteners
• Volatility risk in overseas raw sugar market conditions (production trends in Brazil, India, Thailand, etc., and the impact of exchange rates and crude oil prices)
• Pressure on profitability from elevated logistics and manufacturing costs
• Decline in sales unit prices due to the price reduction in the domestic product market (the first reduction in about seven years, implemented in November 2025)
• Consumers' cost-conscious spending amid rising prices (sluggish beverage-related sales)