Fujiya Co.,Ltd.
2211・Prime Market・Foods
Business
Fujiya Co., Ltd. is a comprehensive confectionery and food group founded in 1910 in Motomachi, Yokohama. It comprises three segments: the Western confectionery business (850 directly-operated and franchise Western confectionery chain stores, plus restaurants), the confectionery manufacturing business (production and sale of confections and beverages such as Home Pie, Country Ma'am, and Milky), and other operations (licensing, real estate, and administrative outsourcing services). As a consolidated subsidiary of Yamazaki Baking Co., Ltd., the company leverages a business and capital alliance with its parent while also promoting overseas expansion into China, Vietnam, and the United States in addition to the domestic market. Of the company's net sales of ¥119,558 million, the confectionery manufacturing business accounts for approximately 70%, making it the core segment, and the company provides confections and beverages to a broad range of consumers based on highly recognized brands centered on the Peko-chan character.
Business Model
In the confectionery business, the company manufactures confectionery and beverages at its own factories and sells them to wholesalers (Sanboshiya, etc.), mass merchandisers, convenience stores, and restaurant chains. In the Western confectionery business, in addition to retail sales through directly-operated and franchise chain stores (850 stores), the company also engages in OEM supply to wide-area distribution companies and overseas exports. In the Other segment, licensing income from characters such as Peko-chan and real estate leasing income accumulate steadily. Cost efficiency through joint raw material procurement and mutual OEM production with Yamazaki Baking Co. is also an important element of the business model.
Company Strengths
The company holds multiple long-selling brands cherished by consumers over many years, including Home Pie, Country Ma'am, Milky (75th anniversary of launch), Look, and Nectar. Confectionery segment sales showed strong growth, reaching ¥84,067 million (up 111.1% year on year), with brand strength serving as the foundation for sales expansion.
Since 2008, the company has been a consolidated subsidiary of Yamazaki Baking Co., Ltd., leveraging business alliances such as joint raw material procurement, mutual OEM production, and logistics collaboration. Cooperation with the parent company has contributed to lower procurement costs, expanded sales channels, and improved financial stability, with the new long-term borrowing agreement of ¥15,000 million also strengthening the financial base.
During the fiscal year under review, the company made capital investments totaling ¥11,617 million. In the confectionery segment, ¥9,513 million was invested primarily in the Fujisusono and Hadano plants, maximizing utilization rates and achieving increased production through effective use of core production lines. In the Western confectionery business as well, labor cost reductions were achieved through labor-saving measures and consolidation of production items, contributing to higher profits.
ENVALITH's Perspective
Performance Trend
Revenue expanded on a generally rising trend for five consecutive periods, from ¥104,751 million in FY2021 to ¥119,558 million in FY2025. In Q1 of FY2026 (ending December 2026), revenue reached ¥29,558 million (up 5.4% year on year), securing revenue growth. On the profit side, however, the company was directly hit by an increase in cost of sales (¥20,211 million) due to the use of cacao beans procured at the peak of the price surge, resulting in a sharp decline in profits: operating profit of ¥414 million (down 59.0% year on year), recurring profit of ¥395 million (down 66.3% year on year), and profit attributable to owners of parent of ¥30 million (down 96.1% year on year). A factor distorting the net profit comparison is that the same period of the previous year included a special gain of ¥282 million from the sale of shares in an affiliated company. The full-year forecast remains unchanged, with the company expecting a recovery in performance from Q2 onward driven by improvement in the cacao bean cost ratio.
Growth Strategy
Aiming for sustainable growth through increased production and overseas expansion of core confectionery brands, and development of new categories such as gummies
The company is stepping up promotional activities for Country Ma'am, Home Pie (launch of the derivative product "Home Sakutto" in the snack/side-dish category), the 75th anniversary multi-category rollout of Milky, and the Heart series. Confectionery sales in Q1 FY2026 (ending December 2026) reached ¥19,969 million (up 8.2% year on year), reflecting results from these efforts.
The company is promoting expanded sales of gummy products to strengthen its earnings base. Natural water, whose production began at the Fuji Susono plant, is planned for expanded sales ahead of the peak summer demand season. The beverage business achieved a substantial increase in revenue, reaching ¥1,235 million in Q1 FY2026 (up 34.1% year on year).
The company is promoting expanded exports of frozen cakes to the North American market and expanded sales through the EC channel of its Chinese subsidiary, Fujiya (Hangzhou) Foods Co., Ltd. In China, despite the impact of the economic slowdown, sales of pop candy and EC sales remained solid, exceeding the results of the same period last year.
The company is implementing labor-saving measures through the introduction of new production equipment and revamping production line layouts. Depreciation expenses reached ¥1,541 million (versus ¥1,282 million in the same period last year), reflecting progress in capital investment. The segment loss in the Western confectionery business narrowed to ¥328 million (versus a loss of ¥394 million in the same period last year).
As consumption progresses of cocoa beans procured during the period of price surges, and as current prices show a stabilizing trend, the cost ratio is expected to gradually improve from the second quarter onward. The full-year operating profit forecast of ¥3,200 million (up 12.6% year on year) remains unchanged.
Last updated: July 17, 2026