FUKUTOME MEAT PACKERS, LTD.

Business Details

This segment manufactures, procures, and sells ham, pressed ham, sausage, prepared foods, and similar products. Its main customers are mass retailers, food service operators, and business-use clients, and it aims to improve profitability through expanded sales of high-value-added products and productivity gains. It accounts for approximately 43% of the group's consolidated net sales (FY2026, ending March 2026) and is, together with the Meat Business, one of the group's two major segments. Amid continued increases in raw material prices and logistics costs, the segment is working to restore profitability through expanded sales of the new product line MIRAI (Nitrite/Nitrate-Free Products), price revisions, and yield improvements.

Recent Overview

Net sales increased year on year, but cost increases pushed the segment into a loss

In FY2026 (ending March 2026), net sales in the Processed Foods Business reached ¥10,326 million (up 1.2% year on year), achieving revenue growth. This was driven by the new product MIRAI (Nitrite/Nitrate-Free Products), which was well received by health-conscious consumers and grew beyond plan. On the profit side, however, the segment was unable to fully absorb increases in raw material prices, logistics costs, and labor costs, and fell into a segment loss of ¥13 million (versus a segment profit of ¥128 million in the prior period). The fixed-cost reduction effects from consolidating the head office and R&D center into the Hiroshima plant (completed February 2026) and closing the Kokura plant (end of December 2025) are gradually beginning to appear.

Key Products

Growth Drivers

• Increasing the proportion of high-value-added products through capital investment to expand production and sales of the new product MIRAI (Nitrite/Nitrate-Free Products)
• Expanding cross-selling and OEM manufacturing through the business alliance with Torizen Foods and Sojitz Foods
• Full realization of fixed-cost reduction effects from consolidating the head office and R&D center into the Hiroshima plant and closing the Kokura plant
• Improving profitability through yield improvements, item reduction, and price revisions across manufacturing processes
• Improving efficiency and labor savings in production and sales management through the core system renewal scheduled to launch in October 2026

Risks

• Risk of rising cost ratios due to continued increases in raw material prices (e.g., pork)
• Profit pressure from further increases in logistics and labor costs
• Decline in sales volume of core products for mass retailers due to growing consumer preference for low prices and cost-saving behavior
• Existence of material events raising substantial doubt about the going concern assumption, due to eight consecutive periods of operating losses and four consecutive periods of negative operating cash flow
• Risk of delays or cost overruns in the core system renewal scheduled to launch in October 2026