ENVALITH
亀田製菓株式会社 logo

KAMEDA SEIKA CO., LTD.

2220・Prime Market・Foods

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亀田製菓株式会社 logo
KAMEDA SEIKA CO., LTD.2220

Business

Kameda Seika, founded in 1957, is Japan's largest rice cracker (senbei) maker, with powerful brands such as "Kameda no Kakinotane" and "Happy Turn." While the domestic rice cracker business serves as its earnings base, the company is organized into three segments: overseas business, which manufactures and sells rice crackers in North America (TH Foods, Inc.) and Asia (Vietnam, China, Thailand, etc.); and the food business, which handles long-term preserved foods, plant-based lactic acid bacteria, rice flour bread, and plant-based foods. The group consists of the company itself, 18 subsidiaries, and 2 affiliated companies, with consolidated net sales of ¥138,052 million for FY2026 (ending March 2026). Major customers range widely, from domestic mass retailers and convenience stores in the retail distribution channel, to the North American gluten-free market, and government agencies and corporations for long-term preserved foods.

Business Model

In Japan, the company will enhance profitability and generate stable cash flow by concentrating resources on six key brands and revising prices. Overseas, it will capture the North American gluten-free market centered on the full consolidation of TH FOODS, INC. as a wholly owned subsidiary, while in Asia it will expand by combining its own brands with OEM. In the food business, it will invest in growth areas such as long-term preservation foods and functional materials to cultivate a third pillar of earnings. Over the longer term, the company aims to shift from a fixed-asset-dependent model to an "asset-light" model centered on intangible assets (brands, technology, and know-how).

Company Strengths

Kameda holds six focus brands—"Kameda no Kakinotane," "Happy Turn," "Kameda no Tsumamitane," "Kotsubukko," "Waza no Kodawari," and the "Mugen Series"—and achieved domestic rice cracker business sales of ¥72,309 million in FY2026 (ending March 2026). Even after price revisions, the five core brands maintained year-on-year sales growth, demonstrating strong brand power.

The company has production and sales bases in the United States (TH FOODS, INC. and KAMEDA USA), Thailand, Vietnam, China, Cambodia, and India, building over 30 years of overseas business track record since making a U.S. affiliate in 1993. In FY2026 (ending March 2026), TH FOODS, INC. was made a wholly owned subsidiary, and overseas business sales expanded to ¥49,477 million (up 187.0% year on year).

The company has established the "Rice Research Institute" to advance functional research on plant-derived lactic acid bacteria K-1, K-2, and rice peptide KP-1, as well as the development of rice flour bread and plant-based foods. R&D expenses for FY2026 (ending March 2026) totaled ¥1,559 million. The company's long-accumulated mass-production technology and quality design capabilities for rice crackers are also being transferred to overseas subsidiaries, forming a technological base that is difficult for competitors to replicate in the short term.

ENVALITH's Perspective

The surge in net income attributable to owners of the parent to ¥24,647 million (up 354.9% year on year) was largely due to a gain on step acquisition of ¥20,598 million (extraordinary income) associated with making TH FOODS, INC. a wholly owned subsidiary. On an ordinary income basis, growth was limited to ¥7,501 million (up 8.5% year on year), as the disappearance of equity-method investment gains (from ¥1,524 million in the prior period to zero in the current period) restrained ordinary income growth. Net income is projected to fall sharply to ¥4,300 million (down 82.6% year on year) in FY2027 (ending March 2027), making the assessment of underlying earnings power, excluding one-time gains, a key focus for investment decisions.

In connection with the acquisition of TH FOODS, INC., goodwill of ¥16,380 million, customer relationship assets of ¥19,021 million, and trademark assets of ¥11,277 million were recognized, causing total intangible fixed assets to surge from ¥5,039 million in the prior period to ¥48,318 million. Long-term borrowings also expanded from ¥15,417 million to ¥38,096 million, worsening the cash flow to interest-bearing debt ratio from 2.6 years to 4.2 years, while the interest coverage ratio declined from 73.9x to 30.8x. The equity ratio also fell from 61.0% to 54.7%, making the balancing of goodwill amortization expense (approximately ¥690 million annually) with debt repayment a medium-term financial management challenge.

In overseas operations, full consolidation of North America's TH FOODS, INC. drove a significant improvement in operating income to ¥1,792 million (from ¥135 million in the prior period), but in Asia, profits declined due to reduced export volumes at the Cambodian and Thai subsidiaries and the impact of a stronger Thai baht. The food business saw operating income fall to ¥451 million (down 31.0% year on year) due to the impact of rising raw rice prices at Onisi Foods and continued upfront investment in plant-based foods and rice-flour bread. Tainai Co., Ltd. recorded an impairment loss of ¥858 million, and continued attention is needed regarding the earnings recovery of domestic food subsidiaries. Adjusted operating income for FY2027 (ending March 2027) is projected to improve steadily to ¥10,700 million (up 7.7% from ¥9,934 million in the prior period), but assessing underlying performance excluding the effects of goodwill amortization and similar items remains important.

Growth Strategy

Under the "Medium- to Long-Term Growth Strategy 2030," the company is pursuing both the strengthening of its domestic rice cracker profit base and the expansion of its North America, Asia, and food businesses in parallel.

The company continues to promote anniversary campaigns for "Kameda no Kaki no Tane" (60th anniversary of launch) and "Happy Turn" (50th anniversary of launch), while continuing to improve product mix, enhance promotional expense efficiency, and expand production capacity. In FY2027 (ending March 2027), additional price revisions are planned in response to rising raw material and fuel costs, aiming to establish a pricing structure aligned with appropriate price levels.

At TH FOODS, INC. (acquisition cost ¥63,104 million), which became a wholly owned subsidiary in April 2025, the company is pursuing growth in existing businesses (Crunchmaster, OEM, etc.) alongside the deployment of a new business model, "Lift & Shift," based on Kameda Seika products. Through the transfer of rice cracker manufacturing technology and know-how, the company aims to develop new products and improve productivity, capturing growth in the expanding gluten-free food market.

The OEM business in Cambodia and Thailand is undergoing strategic restructuring and deepening of partnerships. The proprietary brand business in Vietnam and China has been performing steadily, and the company will continue to pursue its expansion. Responding to changes in the external environment, such as a stronger Thai baht and declining export volumes, remains a challenge.

With the new long-term preserved food plant (which began operations in January 2026), the company is expanding production capacity to develop individual consumer demand. For plant-based lactic acid bacteria, in addition to expanding into North America in collaboration with Kerry, the company is also seeking to enter the Asian market. For rice flour bread and plant-based foods, the company continues to expand sales channels for existing products and cultivate new products. Monetization from the current phase of upfront investment is a medium-term focus.

Effective April 1, 2026, the company implemented a stock split at a ratio of three shares for each share of common stock. By lowering the amount per investment unit, the company aims to expand its investor base, including individual investors. The forecasted annual dividend for FY2027 (ending March 2027) is ¥24 on a post-split basis (equivalent to ¥72 on a pre-split basis).

Last updated: July 19, 2026