NH Foods Ltd.
2282・Prime Market・Foods
Processed Foods Business Division
Segment driving structural reform, handling domestic and overseas ham, sausages, processed foods, and dairy products
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Full Year, Consolidated) | ¥530,339 million | ¥533,342 million | ↓ |
| Business Profit (Full Year, Consolidated) | ¥7,183 million | ¥10,060 million | ↓ |
| Business Profit Margin (Full Year, Consolidated) | 1.4% | 1.9% | ↓ |
| Segment Assets (Full Year End, Consolidated) | ¥365,280 million | ¥359,468 million | ↑ |
| Depreciation (Full Year, Consolidated) | ¥14,482 million | ¥14,330 million | ↑ |
| Capital Expenditure (Full Year, Consolidated) | ¥13,245 million | ¥8,775 million | ↑ |
Business Details
Primarily engaged in the manufacture and sale of ham, sausages, processed foods, and dairy products in Japan and overseas. The division includes manufacturing subsidiaries such as Nippon Ham Factory Co., Ltd. and Minami Nippon Ham Co., Ltd., along with a nationwide sales network. Hoko Co., Ltd. (marine products) and Nippon Luna Co., Ltd. (dairy products) also fall under its umbrella. Following the organizational restructuring in April 2025, overseas processed food subsidiaries (North America, ASEAN, etc.) previously under the former Overseas Business Division were also integrated into this segment. In FY2026 (ending March 2026), sales declined only slightly by 0.6% year-on-year, but business profit fell sharply by 28.6% year-on-year.
Recent Overview
Business profit deteriorated sharply, down 28.6% year-on-year, due to persistently high manufacturing costs from lower factory utilization
In FY2026 (ending March 2026), the Processed Foods Business Division recorded sales of ¥530,339 million (down 0.6% year-on-year) and business profit of ¥7,183 million (down 28.6% year-on-year). In the first half, sales volume declined for various items excluding Schau Essen and the Chilled Bakery Group, and persistently high manufacturing costs due to lower factory utilization pressured profits. In the second half, sales volume turned to a recovery trend, but this was insufficient to make up for the shortfall over the full year. For the next fiscal year (FY2027, ending March 2027), the division targets sales of ¥560,000 million (up 5.6% year-on-year) and business profit of ¥12,000 million (up 67.2% year-on-year), aiming to recover profitability through volume growth in flagship products and improvements in the product mix.
Key Products
Growth Drivers
- Implementation of sales measures aimed at increasing volume of flagship products such as Schau Essen and Chuka Meisai
- Further promotion of product mix improvements implemented since FY2024 to achieve continuous profitability improvement
- Growth in the processed foods business through stabilization of production volume at the North American subsidiary (LJD Holdings Group)
- Improved profitability of ham and sausage products through the effects of price revisions
- Stable sales contribution from the dairy products and marine products categories
Risks
- Risk of continued persistently high manufacturing costs due to lower factory utilization
- Risk of recurrence of the decline in sales volume of ham, sausage, and processed food products, primarily in the first half
- Risk that production volume at the North American factory does not stabilize as planned
- Persistently high raw material, fuel, and packaging material costs and delays in passing these on through pricing
- Deterioration of the domestic consumption environment due to continued preference for low prices
- Structural decline in sales volume of ham and sausage products other than Schau Essen
Last updated: June 23, 2026