MEITO CO., LTD.
2207・Prime Market・Foods
Food Business
The Group's largest segment, centered on confectionery, powdered beverages, and frozen desserts
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue | ¥25,166 million | ¥24,405 million | ↑ |
| Segment Profit | ¥1,739 million | ¥1,477 million | ↑ |
| Segment Assets | ¥31,915 million | ¥27,668 million | ↑ |
| Depreciation and Amortization | ¥1,500 million | ¥1,397 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥4,614 million | ¥1,109 million | ↑ |
Business Details
Manufactures and sells chocolate, powdered beverages, jelly, Baumkuchen, ice cream, sweet potato snacks, candy, cakes, nutritional foods, and other products. In addition to the Company itself, Ace Bakery Co., Ltd. (jelly, bakery), Meito Dairy Products Co., Ltd., PCS Co., Ltd., Oimoya Co., Ltd. (sweet potato snacks), and Hiramatsu Shoten Co., Ltd. handle the business. The segment is centered on the domestic market and is built around the core brands "Alphabet Chocolate," "Pukupukutai," and the "Stick Mate" series.
Recent Overview
Achieved higher revenue and profit, though inventory valuation losses and rebranding costs partially weighed on earnings
In FY2026 (ending March 2026), Food Business revenue was ¥25,166 million (up 3.1% year on year), and segment profit was ¥1,739 million (up 17.8% year on year). The cumulative effect of multiple rounds of content volume changes and price revisions implemented in prior fiscal years improved the cost of sales ratio and drove profit growth. On the other hand, the recording of inventory valuation losses due to the sharp decline in cocoa bean prices partially weighed on profit. The Company also implemented brand awareness initiatives such as nationwide broadcast of a corporate commercial commemorating the company name change and a pop-up event for "Alphabet Chocolate."
Key Products
Growth Drivers
- Improvement in the cost of sales ratio through the cumulative effect of content volume changes and price revisions
- Expansion of promotional measures utilizing character collaborations (such as Moomin) in the Powdered Beverages division and growth in cocoa product sales
- Strong performance of jelly products at Ace Bakery Co., Ltd., centered on its "Freeze-and-Eat Sherbet" series
- Contribution to revenue growth in the Other Food Products division from the addition of a new consolidated subsidiary
- Improved brand recognition through nationwide broadcast of a corporate commercial and pop-up events commemorating the change of company name to "meito Co., Ltd."
- Capital investment and production capacity enhancement, including a new plant construction plan, under the medium-term management plan "MEITO CHALLENGE 2026" (capital expenditure of ¥4,614 million in FY2026)
- Strengthened promotion of core brands (Alphabet Chocolate, Pukupukutai, etc.)
Risks
- Risk of inventory valuation losses arising from a sharp decline in prices of main raw materials such as cocoa beans (materialized in FY2026)
- Cost pressure from soaring raw material prices (such as cocoa beans) and persistently high energy costs
- Further increases in packaging material prices (explicitly cited as a risk in the FY2027 outlook)
- Sluggish household demand due to a strengthening consumer tendency toward frugality and low-price preferences
- Upward pressure on SG&A expenses due to rising labor and logistics costs
- Market contraction and intensifying sales competition amid Japan's declining and aging population
- Tendency for sluggish sales in both in-house and OEM candy products
Last updated: June 24, 2026