ENVALITH
日清オイリオグループ株式会社 logo

The Nisshin OilliO Group,Ltd.

2602・Prime Market・Foods

Official website
日清オイリオグループ株式会社 logo
The Nisshin OilliO Group,Ltd.2602

Business

Nisshin OilliO Group was founded in 1907 as a specialist manufacturer of vegetable oils and fats, with 25 subsidiaries and 11 affiliated companies in Japan and overseas. In its core Oils and Fats business, the company handles a wide range of household, commercial, and processing edible oils, holding one of the top domestic market shares. In the Global Oils and Fats business, centered on Malaysia's ISF, the company supplies specialty fats such as chocolate fats to Europe and Asia. In the Processed Foods and Materials business, it provides MCT, chocolate, and soybean materials, while the Fine Chemicals business supplies cosmetic ingredient oils globally. With net sales of ¥554,251 million (FY2026, ending March 2026), it is a diversified oils and fats solutions corporate group.

Business Model

The company procures, presses, refines, and processes vegetable raw materials such as soybeans, rapeseed, and palm, selling across multiple layers—from household cooking oil (B2C) to commercial and processing-use edible oils (B2B), specialty fats for chocolate (global B2B), and cosmetic raw material oils (global B2B). While absorbing raw material price volatility risk through price revisions and product mix improvements, the company aims to enhance profitability through the shift to high-value-added products and expanded overseas operations.

Company Strengths

Malaysia's ISF Company possesses advanced fractionation and refining technology for palm oil, supplying specialty fats that meet European high-quality standards. In FY2026 (ending March 2026), sales in the global oils and fats/processed oils and fats business reached ¥138,848 million (120.3% year on year), and capacity expansion is also underway through capital expenditure of ¥6,383 million. The company also complies with sustainability certifications such as RSPO, and holds a competitive advantage in responding to Europe's EUDR regulation.

The Basic Research Laboratory, Applied Research Laboratory, Home Use Development Center, User Support Center, and Fine Chemicals Division are consolidated at the R&D facility "Incubation Square," which began operations in May 2024. R&D expenses for FY2026 (ending March 2026) were ¥4,776 million (up from ¥4,079 million in the previous fiscal year). The company is advancing technology development across a wide range of fields, from food to cosmetics and chemicals, in collaboration with domestic and overseas sites (Malaysia, Spain, and Shanghai).

In October 2023, the company established Seiyu Partners Japan Co., Ltd. through joint investment with J-Oil Mills, Inc., and is working to strengthen the international competitiveness of the domestic oil-pressing business and build a stable supply structure. Amid an expected decline in domestic oils and fats consumption due to population decrease, the company is simultaneously pursuing cost efficiency through the integration of oil-pressing functions and productivity improvement through smart factory conversion utilizing AI and IoT.

ENVALITH's Perspective

Profit attributable to owners of parent for FY2026 (ending March 2026) rose sharply to ¥23,988 million (up 86.7% year on year), but this was driven by a one-time extraordinary gain of ¥23,167 million from the sale of fixed assets. Operating profit, which reflects core business profitability, declined for the second consecutive period to ¥17,027 million (down 11.7% year on year). Gross profit was essentially flat at ¥74,788 million, while an increase in SG&A expenses (from ¥55,504 million to ¥57,760 million) weighed on profit. Achieving the medium-term plan's ROE target of 8.0% or higher will require genuine improvement in underlying earnings power.

Operating profit in the oils and fats/oilseed sub-segment fell sharply to ¥6,706 million (down 16.9% year on year). Rising prices led to heightened consumer thrift and cost-conscious behavior, causing sales volumes to decline, particularly in home-use products, while price revisions to offset cost increases proved more difficult than expected. External factors such as rising rapeseed prices and elevated logistics costs continued, and a fundamental strengthening of profitability in the domestic oils and fats business is explicitly identified as an urgent priority under the medium-term plan "Value UpX." ROIC of 4.5% (versus 4.6% in the prior period) remains well below the 6.0% target.

The global oils and fats/processed oils and fats business achieved revenue growth of 20.3%, but operating profit declined to ¥4,766 million (down 8.9% year on year) due to the impact of mark-to-market valuation of palm oil trading. In financing activities, the company raised ¥25,000 million in long-term borrowings and ¥10,000 million in corporate bonds, causing interest expense to surge from ¥1,318 million to ¥3,099 million. External factors such as U.S. tariff policy, Middle East tensions, and palm oil price volatility are increasing earnings uncertainty, and the forecast for FY2027 (ending March 2027) of net profit of ¥12,000 million (down 50.0% year on year) warrants close attention.

Growth Strategy

Under "Value UpX," the company is pursuing both strengthening domestic profitability and global growth to achieve ROE of 8% and ROIC of 6%

The company aims to improve profit margins in the domestic oils and fats business through promoting price revisions commensurate with costs, expanding sales of marketing and functional products, and transforming the profit structure of home-use products (shifting toward higher value-added items such as rice oil and Kakeru Oil). Cost efficiency improvements will also continue through the integration of oil pressing functions via Seiyu Partners Japan.

The company will continue investment to expand production capacity at ISF (Malaysia) (increase in tangible fixed assets of ¥6,383 million in FY2026), strengthening global supply capability for chocolate-use fats and specialty fats. Sales in Asia expanded from ¥75,645 million in the previous fiscal year to ¥94,886 million in the current fiscal year, and expansion into Europe and other regions will also be accelerated.

In FY2026, the company acquired ¥10,006 million of treasury shares and cancelled 5,860,500 shares as of April 30, 2026. A stock split of 1 share into 3 shares was implemented as of April 1, 2026, aiming to improve liquidity and expand the investor base. ROE of 12.1% (7.0% in the previous fiscal year) includes the effect of extraordinary gains, but efforts to improve capital efficiency continue.

In addition to makeup products, the company has expanded technical support for skincare products, achieving an increase in new domestic adoptions. It is promoting revenue expansion in East Asia and ASEAN regions by leveraging the Shanghai Technical Center. Sales in FY2026 reached ¥15,509 million (up 6.6% year on year), continuing steady growth, though a decline in overseas sales volume remains a challenge.

The company is promoting productivity improvement through the use of AI and IoT, as well as the construction of next-generation oil pressing plants. Expenditure on acquisition of tangible fixed assets in FY2026 was ¥29,276 million (a significant increase from ¥15,474 million in the previous fiscal year), reflecting proactive capital investment. This is reflected in increases in land of ¥40,423 million (¥27,475 million in the previous fiscal year) and construction in progress of ¥9,288 million (¥4,911 million in the previous fiscal year).

Last updated: July 19, 2026