Hayashikane Sangyo Co.,Ltd.

Business Details

The segment manufactures and sells functional materials (elastin, water chestnut extract [Hishi Extract], and Ascophyllum HS), processed foods such as fish paste products, and meat products centered on the in-house brand "Kirishima Kurobuta" (Kirishima Black Pork). It has built a vertically integrated supply chain with consolidated subsidiaries Kirishima Dream Farm (fattening), Miyakonojo Wellness Meat (slaughtering), and Hayashikane Foods (processing). Major customers include Umios Corporation (formerly Maruha Nichiro Corporation).

Recent Overview

Segment profit rose 82.7% year on year due to improved farm fattening performance for "Kirishima Kurobuta"

In FY2026 (ending March 2026), net sales of the Food Business were ¥22,417 million (up 0.1% year on year), roughly flat, while segment profit (operating profit) rose substantially to ¥846 million (up 82.7% year on year). The main drivers were improved farm fattening performance for "Kirishima Kurobuta" and increased pork sales volume. Functional materials saw lower sales due to a decline in domestic sales volume of Hishi Extract, and processed foods saw lower sales due to a reduction in retort pouch product handling volume, but the increase in meat sales and profit more than offset these declines.

Key Products

Growth Drivers

• Expansion of meat sales volume and improved profit margins through continued improvement in "Kirishima Kurobuta" farm fattening performance
• Expansion of domestic and overseas sales of functional materials (elastin, Hishi Extract, Ascophyllum HS) and promotion of proposals as foods with function claims
• Increased sales of functional materials through price revisions in response to rising raw material costs
• Enhancement of "Kirishima Kurobuta" brand value and sales through acquisition of international food safety certification (SQF)
• Development of sales channels for processed marine products such as eel and yellowtail, and value enhancement through collaboration with the feed business

Risks

• Risk of disease outbreak at "Kirishima Kurobuta" farms (a material impact on performance from large-scale culling)
• Risk of rising procurement costs for main raw materials such as pork and fish paste due to yen depreciation
• Risk of declining overseas sales volume of fish paste products (demand fluctuations in the Chinese and other overseas markets)
• Risk of reduced domestic consumer demand due to rising prices
• Risk of renewed deterioration in farm fattening performance (having previously caused a 42.3% decline in profit two fiscal years ago)
• Risk of continued sales decline due to sluggish domestic demand for functional materials such as Hishi Extract