ITO EN,LTD.
2593・Prime Market・Foods
Leaf and Beverage-Related Business
Ito En Group's core segment, engaged in the manufacture and sale of tea leaves and beverages both domestically and internationally.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥443,443 million | ¥420,328 million | ↑ |
| Segment operating profit | ¥17,500 million | ¥19,025 million | ↓ |
| Segment assets | ¥310,264 million | ¥313,307 million | ↓ |
| Depreciation and amortization | ¥7,216 million | ¥7,537 million | ↓ |
| Increase in property, plant and equipment and intangible assets (capital expenditure) | ¥9,954 million | ¥11,356 million | ↓ |
Business Details
This segment manufactures, procures, and sells leaf products such as green tea, barley tea, and oolong tea, as well as beverage products centered on "Oi Ocha". Domestically, the business is built around a direct sales route model, while overseas sales are conducted in North America, China, Southeast Asia, Australia, and other regions. The segment also includes the vending machine business (Neos Corporation) under its umbrella. As the core segment accounting for approximately 89% of consolidated revenue, it is driving global branding initiatives toward realizing the vision of becoming "the world's tea company".
Recent Overview
Revenue rose 5.5% year on year to ¥443,443 million, but operating profit fell 8.0% to ¥17,500 million due to rising costs.
In the Leaf and Beverage-Related Business for FY2026 (ending March 2026), domestic sales trended roughly in line with the prior year, while overseas sales performed steadily, centered on the U.S. and ASEAN, due to expanding demand for Japanese tea including matcha, resulting in revenue of ¥443,443 million (up 5.5% year on year). On the profit side, although there were improvement effects from better profitability in the U.S. coffee bean business, price revisions domestically and overseas, and expense control, increases in raw material costs and various other costs exceeded expectations, resulting in operating profit of ¥17,500 million (down 8.0% year on year). Additionally, due to declining profitability in the vending machine business from decreased sales volume, impairment losses of ¥12,065 million at Ito En itself and ¥1,807 million at Neos Corporation were recorded, and structural reforms were implemented to transfer the business to Neos Corporation.
Key Products
Growth Drivers
- Accelerated global expansion of the "Oi Ocha" brand (overseas demand expanding mainly in the U.S. and ASEAN)
- Expanding demand for green tea and matcha in North America and ASEAN amid rising health consciousness
- Global marketing effects both domestically and overseas from featuring Shohei Ohtani
- Structural reform of the vending machine business through its transfer to Neos Corporation and establishment of a stable profit base
- Improved profitability through price revisions domestically and overseas
Risks
- Continued risk of soaring raw material prices, primarily green tea leaves (cost increases have continued to exceed expectations)
- Risk of declining profitability in the vending machine business due to decreased sales volume (impairment losses of ¥12,065 million at Ito En itself and ¥1,807 million at Neos Corporation were recorded in the current period)
- Impact on domestic sales from diversifying beverage consumption and increasing consumer thrift orientation
- Impact of foreign exchange fluctuations on overseas business earnings
- Impact on overseas business from geopolitical risks such as trends in U.S. trade policy
- Risk to stable procurement of tea leaf raw materials due to climate change and extreme weather
- Risk of delayed profitability improvement in the U.S. coffee bean business
Last updated: July 21, 2026