FIRST BAKING CO., LTD.
2215・Standard Market・Foods
Business
Daiichi Pan Co., Ltd. is a TSE Standard-listed bakery manufacturer founded in 1947. Together with its three consolidated subsidiaries, the company operates two segments: the "Food Business," which manufactures and sells bread and Japanese and Western confectionery, and the "Real Estate Business," which leases land on the former site of the Yokohama plant. The Food Business comprises the Bread segment (net sales of ¥21,727 million), the Japanese and Western Confectionery segment (net sales of ¥4,558 million), and Others (net sales of ¥2,368 million). In addition to NB (national brand) products for supermarkets and convenience stores, the company also handles commercial-use ingredients for hamburger chains and convenience stores. It has entered into a capital and business alliance with Toyota Tsusho Corporation, through which it procures some raw materials.
Business Model
In the food business, the company manufactures bread and confectionery at its own factories and sells them through retail and commercial-use channels, generating net sales of ¥28,653 million and operating income of ¥1,434 million. Profitability is managed through improved production efficiency via the DPS (Daiichi Pan Production System) and item-by-item cost control. In the real estate business, the former Yokohama factory site, closed in December 2022, is leased out, with full rental income recognition beginning in June 2025; this segment functions as a stable, high-margin income source with net sales of ¥303 million and operating income of ¥275 million.
Company Strengths
The company holds long-selling products that have been supported for many years, such as the "Big Danish Series" and "Hitokuchi Tsutsumi Series," and maintains product competitiveness through periodic renewals via reviews of raw materials and formulations. In FY2025, food business sales achieved ¥28,653 million, up 5.9% year on year.
Commercial-use bread ingredients for hamburger chains and in-store processing ingredients for convenience stores performed well, supported by product proposals tailored to each company's sales promotion plans. Bread division sales results reached ¥21,727 million, up 6.8% year on year, with commercial-use demand driving sales growth.
The site of the former Yokohama plant, closed in December 2022, is being utilized as rental property, with full rent recognition beginning in June 2025. Real estate business sales rose 151.4% year on year to ¥303 million, and operating profit rose 238.1% year on year to ¥275 million, achieving a high profit margin of approximately 90.8%, supplementing the cost pressures in the food business.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥23,864 million in FY2021 and has continued on a recovery trend since, expanding to ¥28,957 million in FY2025. In Q1 of FY2026 (ending December 2026), revenue reached ¥7,448 million (up 10.7% year on year), showing further acceleration. On the profit side, operating losses continued in FY2021 and FY2022, but the company turned profitable from FY2023 onward. Although FY2025 operating profit temporarily declined to ¥466 million, it recovered sharply in Q1 of FY2026 to ¥294 million (up 297.1% year on year). As an external factor, steady demand for home-cooked and ready-to-eat meals has supported revenue, while raw material, logistics, and labor costs continue to rise. Full-year contribution from the real estate business (which began in June 2025) is reinforcing the profit structure. Against the full-year operating profit forecast of ¥370 million, approximately 79.5% has already been achieved as of Q1, suggesting the possibility of an upward revision for the full year.
Growth Strategy
Sustainable growth driven by expansion of high-value-added products, continued DPS activities, and stabilization of real estate income.
Through deepened collaboration between the marketing and product development departments, the company is actively rolling out collaboration products with popular companies and seasonal new products, while promoting regular renewals of core brands. Results are already becoming apparent, with food business net sales of ¥7,334 million (up 9.3% year on year) in the first quarter of FY2026 (ending December 2026).
Through the continued practice of the Daiichi Pan Production System (DPS), the company is promoting more efficient manufacturing processes, curbing sales of low-margin products, and expanding sales of high-margin products. Combined with improved precision in segment profit/loss management and per-item cost management, this aims to improve profit margins amid an environment of rising costs. The gross profit margin for the first quarter of FY2026 (ending December 2026) improved to 27.1% (from 26.1% in the same period of the previous year).
Rental income from the former Yokohama plant site began to be recognized in full following the completion of construction in June 2025, with full-year contribution continuing throughout FY2026. Real estate income, with its high profit margin (approximately over 95%), underpins overall group earnings and has established an earnings structure that mitigates cost volatility risk in the food business.
Last updated: July 17, 2026