ENVALITH
モロゾフ株式会社 logo

Morozoff Limited

2217・Prime Market・Foods

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モロゾフ株式会社 logo
Morozoff Limited2217

Business

Morozoff Ltd. is a confectionery maker founded in 1931 in Kobe, primarily manufacturing and selling dry confections such as chocolates and cookies, as well as Western-style fresh confections such as cheesecakes and puddings. The company operates a sales network of 35 directly-managed stores and 141 quasi-directly-managed stores, with department stores as its main sales channel. Its subsidiaries include Kamakura New German Co., Ltd. (domestic) and VISUAL HONG KONG LIMITED (Hong Kong). Of consolidated net sales of ¥36,273 million, the confectionery manufacturing and sales business accounts for approximately 94%, with the remainder generated by the café and restaurant business operated through 28 directly-managed stores. The company's core customer base centers on gift demand for occasions such as Valentine's Day and Christmas, and it is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company manufactures Western-style confectionery at its own factories (Seishin Plant, Funabashi Plant, etc.) and sells directly to consumers through directly operated and quasi-directly operated stores inside department stores, following an SPA (manufacturing retail) type revenue structure. While gift demand (Valentine's Day, Ochugen, Oseibo) creates seasonal fluctuations in sales, the company is shifting its strategy toward capturing baked confectionery demand for "omiyage (gifts for others) and self-reward purchases" on a year-round basis. The café and restaurant business (28 stores) also functions as a venue for brand experience.

Company Strengths

Holds brand recognition and manufacturing know-how cultivated over more than 90 years since its founding in 1931. In addition to long-established staple products such as cheesecake and custard pudding, the company also operates new brands including Galette au Beurre (brand launched in 2020). It invested ¥392 million in R&D expenses (FY2026, ending January 2026), maintaining year-round new product development capability.

Operates a total of 176 stores—35 directly-operated stores and 141 quasi-directly-operated stores—in high-traffic channels such as department stores. New brand specialty stores, including CUSTA (3 stores including Nihombashi Mitsukoshi Main Store) and Taiyo no Galette (Seibu Ikebukuro Main Store), are being progressively opened in major department stores, giving the company sales strength in premium locations.

The equity ratio remained at a high level of 70.6% at the end of FY2026 (ending January 2026). Against net assets of ¥19,873 million, interest-bearing debt is limited, and the company has maintained financial soundness even while funding a large-scale capital investment of approximately ¥8.3 billion (new Funabashi plant and Seishin No. 2 plant) through a syndicated loan and internal funds.

ENVALITH's Perspective

Due to soaring raw material prices, primarily cacao, the cost of sales ratio for FY2026 (ending January 2026) rose to 51.7% (up 2.5pt year-on-year), and operating profit fell to ¥1,265 million (down 38.6% year-on-year). Although price revisions and product design reviews were implemented, their effects were limited, and improving the raw material cost structure remains a prerequisite for earnings recovery.

Capital investment of approximately ¥8.3 billion in the new Funabashi plant and the Seishin No. 2 plant is scheduled to begin operations in FY2026, and is expected to boost sales through increased production capacity for baked confectionery. The medium-term management plan sets an interim target of ¥1,900 million in operating profit (operating margin of 5.0%) for FY2029 (ending January 2029), but there is a risk that the achievement timing could be delayed depending on raw material price trends.

Net sales increased for four consecutive periods, from ¥32,506 million in FY2023 to ¥36,273 million in FY2026, but operating profit fell to less than half, from ¥2,424 million in FY2023 to ¥1,265 million in FY2026. Top-line growth has not translated into profit, and it should be noted that without a fundamental improvement in the cost structure, the benefits of sales growth are unlikely to be returned to shareholders.

Growth Strategy

Positioning baked confectionery as a growth engine, the company aims to achieve net sales of ¥41,000 million and operating profit of ¥3,000 million in FY2032 (ending January 2032) through large-scale capital investment and new brand development.

Invested approximately ¥8.3 billion in the construction of the new Funabashi Plant and the renovation of the Nishikobe No. 2 Plant to enhance baked confectionery production capacity. Operations are scheduled to commence in FY2026, forming the foundation for top-line growth from Step 2 onward.

Rolling out multiple specialty brands including CUSTA (a custard sweets specialty store, with locations opened up to the 3rd store), Taiyo no Galette (Sun Galette; 1st store opened at Seibu Ikebukuro Main Store in September 2025), and Galette au Beurre, aiming to expand sales share in the baked confectionery category.

Promoting entry into new markets through private brand development leveraging theme park and corporate partnerships, including the launch of the limited-edition product 'Myaku-Myaku Nuts Cookie' for EXPO 2025 Osaka-Kansai, and the development of collaboration products with Kobe Suma Sea World and Kobe Port Tower.

Promoting automation and labor-saving in newly introduced and existing equipment, while implementing low-cost operations through efficient store design and management. The SG&A ratio for FY2026 stood at 44.8% (down 0.2pt year-on-year), demonstrating certain results.

Implementing HR system reform based on four pillars: establishing HR philosophy, and revising the grading system, wage system, and evaluation system. Aims to strengthen organizational capabilities and build a foundation for sustainable growth by improving employee satisfaction and engagement and securing future core talent.

Last updated: April 23, 2026