MEITO CO., LTD.
2207・Prime Market・Foods
Business
meito Co., Ltd. operates three segments: a food business centered on chocolate, powdered beverages, and frozen desserts; a chemical products business that markets high-value-added chemical products such as the cheese-coagulating enzyme "Rennet" and "dextran magnetite," a raw material for medical devices, primarily overseas; and a real estate business handling golf course operations and real estate leasing. Founded in 1945, the company changed its name from "Meito Sangyo Co., Ltd." to its current name in September 2025. It is listed on both the Tokyo and Nagoya Stock Exchanges and is composed of 8 consolidated subsidiaries and 2 affiliated companies. Consolidated net sales for FY2026 (ending March 2026) were ¥29,106 million.
Business Model
In the food business, the company sells proprietary-brand products such as "Alphabet Chocolate" and "Puku Puku Tai" to mass retailers, securing profitability through cost ratio improvements achieved via price revisions and content volume changes. In the chemical products business, the company supplies enzymes and polysaccharide derivatives leveraging fermentation and synthesis technologies to overseas markets including Europe, the US, and Asia, achieving a high segment profit margin of 22.8%. The real estate business functions as a stable earnings source, boasting a profit margin exceeding 50% through golf course leasing and real estate leasing.
Company Strengths
The chemical products business achieved a segment profit margin of 22.8% (profit of ¥808 million) in FY2026 (ending March 2026). "Rennet," a milk-clotting enzyme for cheese production, is steadily expanding its share in the organic and vegetarian markets of Europe and the United States, while "Dextran Magnetite" is expanding supply for medical devices used in cancer metastasis detection. The company has obtained quality certifications such as FSSC22000 and GMP at multiple plants, forming a barrier to entry.
"Alphabet Chocolate," a flagship brand that marked its 55th anniversary since launch, supports confectionery segment sales of ¥18,949 million together with "Pukupukutai" and the "Nuts Chocolate Collection." The product lineup has diversified with the addition of subsidiary brands acquired through M&A, including Ace Bakery's "Frozen Sherbet" (a sherbet series meant to be eaten frozen) series and imogashi (sweet potato confectionery) from Oimoya Co., Ltd.
Net assets at the end of FY2026 (ending March 2026) stood at ¥62,164 million, with fixed assets of ¥84,247 million. Investment securities increased by ¥8,669 million due to rising share prices, and the company recorded a combined gain of over ¥4,812 million on the sale of investment securities as extraordinary income in FY2025 (ended March 2025) and FY2026 (ending March 2026). In the real estate business, rental land acquired in September 2025 became a new source of revenue, achieving a segment profit margin of 50.4%.
ENVALITH's Perspective
Performance Trend
Net sales rose for the fifth consecutive period, growing from ¥21,136 million in FY2022 (ended March 2022) to ¥29,106 million in FY2026 (ending March 2026), up 3.7% year on year. Operating income was sluggish over FY2022–FY2024 (ranging from ¥95 million to ¥350 million), then recovered sharply to ¥1,405 million in FY2025 (ended March 2025), before declining to ¥1,230 million in FY2026 (ending March 2026). The decline was attributable to costs related to a corporate name change commemorative campaign (advertising expenses up ¥406 million) and, as an external factor, an inventory valuation loss recorded due to a sharp drop in cacao bean prices. Ordinary income increased to ¥2,913 million (up 9.0% year on year), supported by higher dividend income received and gains on sale of investment securities (non-operating income). Net income declined to ¥3,067 million (down 35.0% year on year), reflecting the reversal of the prior period's extraordinary income (gain on sale of investment securities of ¥3,363 million). Comprehensive income expanded significantly to ¥9,370 million (up 114.8% year on year), driven by an increase in valuation difference on available-for-sale securities resulting from a rise in the share price of held equities (an external factor).
Growth Strategy
Under "MEITO CHALLENGE 2026," the company aims for net sales of ¥30,500 million and operating profit of ¥1,800 million in FY2027 (ending March 2027)
Through the cumulative effect of multiple rounds of product content volume changes and price revisions implemented over past fiscal years, food business segment profit in FY2026 (ended March 2026) reached ¥1,739 million, up 17.8% year on year. Although packaging material price increases are expected to continue in FY2027 (ending March 2027), the company forecasts food business net sales of ¥26,400 million (up 4.9% year on year), supported by the continued effects of the revisions.
Centered on expanded sales of the cheese coagulant enzyme "Rennet" in overseas markets, chemical products business net sales in FY2026 (ended March 2026) reached ¥3,546 million, up 4.6% year on year. For FY2027 (ending March 2027), the company forecasts ¥3,600 million (up 1.5% year on year). Amid intensifying competition from overseas rivals, the company continues active sales activities and differentiation through high-value-added products.
In connection with the new plant construction plan, the company changed its depreciation method from the declining-balance method to the straight-line method (a positive effect of ¥103 million on operating profit for the fiscal year under review). Capital investment in FY2026 (ended March 2026) surged to ¥11,799 million (up sharply from ¥2,921 million in the previous fiscal year), and the company plans ¥7,500 million in FY2027 (ending March 2027) as well. Development of the production base is underway with a view toward stable long-term operation.
With the addition of rental income from land acquired in September 2025, real estate business net sales in FY2026 (ended March 2026) expanded significantly to ¥393 million (up 42.3% year on year), and segment profit rose 110.3% year on year to ¥198 million (profit margin of 50.4%). For FY2027 (ending March 2027), the company forecasts net sales of ¥500 million (up 27.0% year on year), reflecting the full-year contribution of newly acquired assets.
The annual dividend is planned to increase substantially from ¥55 in FY2026 (ended March 2026, up from ¥35 in the previous fiscal year) to ¥80 in FY2027 (ending March 2027). The share buyback allowance has been expanded from a total of ¥2.0 billion to ¥3.5 billion over the medium-term management plan period, with the remaining approximately ¥2.0 billion to be acquired and retired in FY2027 (ending March 2027). The company has made explicit its progressive dividend policy, aiming to achieve both improved capital efficiency and enhanced shareholder value.
Last updated: July 19, 2026