TAKIZAWA HAM CO.,LTD.

Business Details

The Group operates a single segment centered on three main divisions—Processed Meat Products (Ham, Sausage, etc.), Prepared Foods and Other Processed Products (Retort Foods, Prepared Foods for Convenience Stores, etc.), and Meat (Procurement, Processing, and Sale of Domestic and Imported Beef and Pork)—together with restaurant operations (Other segment). Of the total net sales of ¥26,565 million, the Meat division accounted for the largest share at ¥11,106 million, followed by the Processed Meat Products division at ¥10,210 million and the Prepared Foods and Other Processed Products division at ¥5,151 million. There is no single customer accounting for more than 10% of sales, and the business is domestically focused.

Recent Overview

Net sales declined 5.4%, but the loss narrowed, and net loss improved significantly due to gains on sale of investment securities

In FY2026 (ending March 2026), net sales continued to decline, coming in at ¥26,565 million (down 5.4% year on year), but the operating loss narrowed to ¥383 million (from ¥432 million in the prior period) and the ordinary loss narrowed to ¥361 million (from ¥405 million in the prior period). The recognition of a ¥199 million gain on sale of investment securities as extraordinary income led to a significant improvement in net loss attributable to owners of parent, which came in at ¥230 million (from ¥495 million in the prior period). Operating cash flow improved to an inflow of ¥475 million (from ¥3 million in the prior period), and the cash balance increased to ¥1,641 million. For FY2027 (ending March 2027), the company forecasts net sales of ¥27,900 million (up 5.0% year on year) and a return to operating profit of ¥80 million, and plans to resume dividend payments with a year-end dividend of ¥20 (annual dividend of ¥20).

Key Products

Growth Drivers

• Strengthening product development capabilities and thoroughly emphasizing value proposition, targeting a return to operating profit of ¥80 million in FY2027 (ending March 2027)
• Restructuring the cost structure through consolidation of production lines, narrowing of product lineup, and review of production processes for greater efficiency
• Capturing demand and maintaining sales through the introduction of new products in the Prepared Foods and Other Processed Products division
• Reducing raw material procurement risk through flexible procurement strategies, including changes in origin and specifications, and diversification of suppliers
• Improving profitability through stable quality and productivity gains leveraging FSSC and ISO activities
• Securing human resources and containing personnel cost increases by promoting work-style reform, labor savings, and automation

Risks

• Prolonged yen depreciation keeping imported raw material costs (imported beef, imported pork, etc.) and energy costs elevated
• Declining sales volume due to growing consumer frugality and cost-consciousness amid rising prices
• Increased selling, general and administrative expenses due to wage increases, higher personnel costs, and rising logistics costs
• The risk that cost increases cannot be fully absorbed through price pass-through and efficiency gains, with the cost of sales ratio remaining at a high 86.7%
• A fragile financial base with an equity ratio of 27.7%, and continued interest-bearing debt burden including short-term borrowings of ¥2,805 million, long-term borrowings of ¥1,267 million (including the portion due within one year), and bonds payable of ¥200 million (due for redemption within one year)
• Instability in the procurement environment due to expanding geopolitical risks, including US tariff measures, the prolonged situation in Ukraine, and tensions in the Strait of Hormuz
• The risk of failing to meet the plan to return to profitability due to delayed demand recovery, as both the Processed Meat Products and Meat divisions continue to see sales declines of more than 6% year on year