IWATSUKA CONFECTIONERY CO.,LTD.

Business Details

The Iwatsuka Confectionery Group is a single-segment company centered on the manufacture and sale of rice crackers (beika). The Company manufactures rice crackers, while consolidated subsidiaries (Zuika Co., Ltd., Niigata Ajinoren Honpo Co., Ltd., Satoyama Genki Farm Co., Ltd., etc.) handle sales. The group focuses on its core product lineup, "TOP6+2" (Inaka no Okaki, Iwatsuka no Kuromame Senbei, Ajishirabe, THE Hitotsumami, Oosodefuri Mamemochi, Fuwatto, Kinako Mochi, and Nure Senbei/Nure Okaki), differentiating itself through the use of 100% domestic rice. As the first year of its medium-term management plan "Mai Mirai" (My Future), the Company has adopted the enhancement of brand value and the pursuit of great taste and quality as its basic policy.

Recent Overview

Net sales rose 15.6% with increased revenue and profit, but ordinary income and net profit fell sharply due to a decline in dividends received from WANT WANT

In FY2026 (ending March 2026, full year), net sales reached ¥28,848 million (up 15.6% year on year) and operating income reached ¥867 million (up 6.4% year on year), achieving increased revenue and profit in the core business. However, dividends received from WANT WANT CHINA HOLDINGS LIMITED. declined by approximately ¥1,027 million, from ¥2,816 million to ¥1,789 million, causing ordinary income to fall sharply to ¥2,880 million (down 27.3% year on year) and profit attributable to owners of parent to fall to ¥2,032 million (down 30.1% year on year). In response to the significant surge in raw rice prices, the Company worked to compress costs through product mix reviews and raw material management, resulting in operating income substantially exceeding the plan. For FY2027 (ending March 2027), the Company forecasts net sales of ¥30,600 million, operating income of ¥300 million (down 65.4% year on year), and ordinary income of ¥1,900 million (down 34.0% year on year), reflecting an anticipated squeeze on earnings from continued cost increases.

Key Products

Growth Drivers

• Stable expansion of sales volume through concentrated sales of the core "TOP6+2" product lineup and promotion of these as standard offerings
• Improvement in average selling prices through the penetration of price revisions and proposal activities that carefully communicate product value
• Cost reduction and containment of rising manufacturing costs through concentrated production on main lines
• Enhanced brand recognition leveraging TV commercials (continuing to feature a popular actor as image character)
• Productivity improvements through introduction of automated equipment and DX promotion (including labor savings in the Ajishirabe packaging process)
• Strengthening ties with the local community and establishing the brand through initiatives such as the opening of "Okome to Nakayoshi Park"
• Supply chain efficiency gains through joint delivery and pallet logistics utilization with other companies in the industry

Risks

• Continued elevated raw rice prices and prolonged uncertainty in the procurement environment (a substantial cost increase is also expected in FY2027 (ending March 2027))
• Ongoing increases in labor costs, logistics costs, and energy costs (including those derived from crude oil)
• Risk of fluctuation in dividends received from WANT WANT CHINA HOLDINGS LIMITED. (with a significant impact on ordinary income; ¥1,500 million is projected for FY2027 (ending March 2027))
• Risk of curtailed sales of certain products due to glutinous rice raw material supply conditions
• Risk of demand decline following price revisions amid continued consumer thrift orientation
• Trade environment risks stemming from uncertainty in U.S. trade policy and Japan-China relations
• Risk of earnings deterioration given the forecast for a substantial decline in operating income to ¥300 million (down 65.4% year on year) in FY2027 (ending March 2027)