Morozoff Limited
2217・Prime Market・Foods
Western-Style Confectionery Manufacturing and Sales Business
Morozoff's core segment. Western-style confectionery manufacturing and sales business accounting for approximately 94% of consolidated revenue.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue | ¥34,199 million | ¥34,040 million | ↑ |
| Segment Operating Profit | ¥2,629 million | ¥3,398 million | ↓ |
| Segment Depreciation and Amortization | ¥595 million | ¥701 million | ↓ |
| Impairment Loss (Segment) | ¥57 million | ¥287 million | ↓ |
| Dry Confectionery Group Revenue | ¥25,111 million | ¥24,832 million | ↑ |
Business Details
Manufactures and sells dry confectionery products such as chocolate and cookies, Western-style fresh confectionery products such as cheesecake and pudding, and other confectionery products. Sales are primarily through direct sales, operating 35 directly-managed stores and 141 quasi-directly-managed stores. The segment consists of three categories: the dry confectionery group (¥25,111 million), the Western-style fresh confectionery group (¥8,285 million), and other confectionery group (¥804 million). The medium-term management plan positions "baked confectionery" as a growth engine.
Recent Overview
Profit was significantly squeezed by rising cocoa prices. Revenue rose slightly due to new baked confectionery brand store openings.
Revenue for FY2026 (ending March 2026) was ¥34,199 million (up 0.5% year over year). The dry confectionery group exceeded the prior-year level, driven by the opening of the third "CUSTA" store, a specialty shop for a new custard sweets experience (Nihombashi Mitsukoshi Main Store, April 2025), the opening of the first "Taiyo no Galette" store, a galette specialty shop (Seibu Ikebukuro Main Store, September 2025), the launch of Expo-related products, and strong Valentine's Day sales. On the other hand, the Western-style fresh confectionery group fell below the prior-year level due to a pullback from the cheesecake 55th-anniversary commemorative product and weaker consumer sentiment. The cost of sales ratio rose substantially due to sharp increases in raw material prices, particularly cocoa, and segment operating profit declined significantly to ¥2,629 million (down 22.6% from ¥3,398 million in the prior period). In addition, the fact that Lunar New Year sales at the Hong Kong subsidiary were not recognized in the current period also affected revenue in the dry confectionery group.
Key Products
Growth Drivers
- Increased dry confectionery group revenue driven by expansion of new baked confectionery brands (CUSTA and Taiyo no Galette)
- Strong performance in the Valentine's Day sales season
- Revenue contribution from products launched in connection with the Expo
- Expansion of baked confectionery production capacity through large-scale capital investment (approximately ¥8.3 billion) at the new Shimbashi Plant and the Seishin No. 2 Plant (operations scheduled to begin in FY2026)
- Demand stimulation through the new baked-confectionery-themed event "Bake Full Day"
Risks
- Rising cost of sales ratio due to continued sharp increases in raw material prices, particularly cocoa (the consolidated cost of sales ratio for FY2026 (ending March 2026) rose 2.5 percentage points year over year to 51.7%)
- Sluggish personal consumption of Western-style fresh confectionery and similar items amid intensifying consumer thrift
- Channel contraction due to store closures at regional and suburban department stores
- Shrinking gift markets such as Valentine's Day, Ochugen (mid-year gifts), and Oseibo (year-end gifts)
- Rising labor costs and hiring difficulties due to minimum wage increases and labor shortages
- Increased depreciation expenses associated with the launch of new plants (from FY2027 (ending March 2027) onward)
- Risk of fluctuation in overseas revenue due to the timing of Lunar New Year sales recognition at the Hong Kong subsidiary
Last updated: April 23, 2026