ENVALITH
株式会社伊藤園 logo

ITO EN,LTD.

2593・Prime Market・Foods

Official website
株式会社伊藤園 logo
ITO EN,LTD.2593

Business

株式会社伊藤園は、茶葉（リーフ）・飲料（ドリンク）の製造販売を主軸とするリーフ・ドリンク関連事業（売上高の約89%）、タリーズコーヒージャパンを中核とする飲食関連事業（同約9%）、米国サプリメント製造販売のその他事業（同約2%）の3セグメントで構成される。子会社38社・関連会社8社を擁するグループ企業であり、国内では緑茶・麦茶・ウーロン茶等を全国のルートセールスで販売するほか、40以上の国と地域で「お～いお茶（Oi Ocha）」ブランドを展開。

1989年の発売以来、累計販売本数450億本超（500mlペットボトル換算）を誇る日本最大の緑茶飲料メーカーである。2025年4月期の連結売上高は472,716百万円。

Business Model

Beverage products are manufactured using a fabless (outsourced production without owning factories) approach, reducing capital investment risk while achieving rapid nationwide supply through a five-block production system. Backed by procurement capabilities handling approximately one-quarter of domestic crude tea production, the company has built a robust sales base through route sales that directly serve retailers and other outlets. Overseas, the company generates revenue through exports and local sales of the "Oi Ocha" brand via local subsidiaries and distributor networks. In the food and beverage service business, store revenue from directly-operated and franchised Tully's Coffee locations (818 stores) forms the core pillar.

Company Strengths

"O-i Ocha" (Oh! Tea), launched in 1989, has achieved cumulative sales exceeding 45 billion bottles (converted to 500ml PET bottle equivalents, as of end-December 2024). In 2019, it was certified by Guinness World Records as the world's No. 1 natural healthy RTD green tea beverage by latest annual sales. It is sold in more than 40 countries and regions, establishing its position as a global brand.

Based on long-standing trust relationships with growers, the company handles approximately one-quarter of Japan's domestic crude tea production. Through its tea-producing region development business launched in 1976, it has developed tea plantations in five Kyushu prefectures, Shizuoka Prefecture, and Saitama Prefecture via contract cultivation and new production area initiatives, building a stable supply system for high-quality raw materials. The ability to procure beverage raw materials through in-house production is also a key differentiating factor versus competitors.

For beverage products, the company reduces capital investment risk through a fabless (outsourced) production model while achieving rapid supply through a nationwide five-block production system. Its route sales approach, involving direct sales to retailers and other outlets, has established a regionally embedded sales foundation, and it maintains a unique sales-development cycle linked to its proprietary Voice system, which reflects customer needs in product development.

ENVALITH's Perspective

Net income attributable to owners of the parent for FY2026 (ending March 2026) plunged 75.5% year-on-year to ¥3,466 million. The main cause was the recognition of an impairment loss of ¥14,883 million (versus ¥489 million in the prior period) associated with declining sales volume in the Vending Machine Business, of which ¥12,065 million pertained to ITO EN itself and ¥1,807 million to NEOS Corp. The transfer of the vending machine business to NEOS Corp. represents a first step in structural reform, but as cost increases and volume declines continue simultaneously, investors should closely monitor the timeframe required to rebuild the profit base and the risk of additional losses.

Revenue maintained growth at ¥497,877 million (up 5.3% year-on-year), but cost of sales rose substantially to ¥318,459 million (versus ¥293,078 million in the prior period), causing the gross margin to decline to 36.0% (from 38.0% in the prior period). Rising costs for raw materials, logistics, and labor have outpaced the effects of price revisions, and the operating margin deteriorated for the second consecutive period to 4.4% (from 4.9% in the prior period). The company's forecast for FY2027 (ending March 2027) also anticipates a further decline in operating profit to ¥20,000 million (down 7.8% year-on-year), making progress on cost structure reform the key to profit recovery.

Against the backdrop of expanding demand for matcha and Japanese tea centered on the U.S. and ASEAN (a tailwind from the external market environment), overseas sales in the Leaf & Drink-Related Business have trended solidly. Global marketing featuring Shohei Ohtani has also been effective, and this can be assessed as a mid- to long-term growth driver. On the other hand, U.S. policy developments, tariff risk, and foreign exchange fluctuations remain sources of uncertainty for business performance; while the company recorded a foreign exchange gain of ¥1,007 million in FY2026 (ending March 2026), interest expense increased to ¥909 million (from ¥511 million in the prior period), and attention should also be paid to rising financial costs.

Growth Strategy

Toward realizing the vision of becoming "the world's tea company," the company is advancing both global branding and structural reform of the vending machine business as twin pillars of its strategy.

The company continues to roll out domestic and international marketing initiatives featuring Shohei Ohtani, capturing growing demand for matcha and Japanese tea centered on the US and ASEAN. Overseas sales remained solid in the current period, confirming continued progress in globalization.

The vending machine business, which has seen declining sales volumes and profitability, is being transferred to the wholly owned subsidiary Neos Corporation (renamed Ito En Neos in May 2026), with the aim of enabling flexible strategy execution and establishing a stable profit base. An impairment loss of ¥13,872 million (combined for Ito En and Neos) was recorded in the current period to rationalize assets.

In addition to "TULLY'S COFFEE," the company continues to actively expand the "&TEA" and "PRIME FIVE" formats, opening stores in diverse locations such as airports, railway stations, and hospitals. The total number of stores reached 850 as of the end of April 2026 (up 32 stores from the previous fiscal year-end), with sales of ¥46,495 million (up 6.2% year on year) and operating profit of ¥3,555 million (up 1.1% year on year), achieving both revenue and profit growth.

The company has implemented price revisions both domestically and overseas to absorb rising costs of raw materials, logistics, and labor. While improved profitability in the US coffee bean business and expense control have had some positive effect, cost increases have exceeded initial expectations, and as indicated by the forecast for a decline in operating profit in FY2027 (ending April 2027), improvement efforts remain ongoing.

Last updated: July 17, 2026