The Nisshin OilliO Group,Ltd.
2602・Prime Market・Foods
Oils and Fats Business
Core group business manufacturing and selling domestic oils, fats, and meal products
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥311,544 million | ¥312,623 million | ↓ |
| Operating profit | ¥6,706 million | ¥8,068 million | ↓ |
| Segment assets | ¥265,959 million | ¥233,606 million | ↑ |
| Depreciation and amortization | ¥5,805 million | ¥5,491 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥22,835 million | ¥7,302 million | ↑ |
| Operating margin | 2.2% | 2.6% | ↓ |
Business Details
This segment manufactures and sells edible oils (for home use, commercial use, and processing use) made from soybeans, rapeseed, and other raw materials, along with processed fats and oils and meal products. Sales channels extend to restaurants, prepared-food retailers, confectionery and bakery makers, and mass retailers, with sales also conducted through consolidated subsidiaries such as Nisshin Shoji Co., Ltd. Seiyu Partners Japan Co., Ltd. handles contracted oil extraction, while Nisshin Logistics Co., Ltd. is responsible for port cargo handling and product logistics. The company holds a leading market share as Japan's largest edible oil manufacturer.
Recent Overview
Lower revenue and profit due to rising costs, difficulty in price revisions, and declining home-use sales volume
In the fiscal year ended March 2026, the Oils and Fats Business posted net sales of ¥311,544 million (99.7% of the prior year) and operating profit of ¥6,706 million (83.1% of the prior year), representing lower revenue and profit. Amid rising manufacturing, logistics, and packaging material costs in addition to higher oil and fat costs, price revisions proved more difficult than expected. Sales volume declined year on year, mainly in home-use products, and unit profit margins also fell. On the other hand, domestic processed fats and oils achieved higher revenue and profit due to increased demand for chocolate-use fats and price revisions. Soybean prices fell below the prior-year level due to yen appreciation and lower market prices, while rapeseed prices rose above the prior-year level due to higher market prices.
Key Products
Growth Drivers
- Continued increase in demand for chocolate-use fats in domestic processed fats and oils, driven by soaring cocoa butter prices, and higher revenue and profit through price revisions
- Maintained sales volume in commercial and processing-use fats and oils through active marketing and proposals for functional products, plus higher revenue through price revisions
- Transformation of the profit structure through continued penetration and expansion of functional, value-added products (functional frying oil, rice-cooking oil, rice oil, etc.)
- Production cost efficiency gains through integration of oil extraction functions via Seiyu Partners Japan Co., Ltd.
- Productivity improvements through smart factory initiatives (utilizing AI and IoT) and construction of next-generation oil extraction plants
Risks
- Risk of fluctuations in prices of key raw materials such as soybeans, rapeseed, and palm oil (driven by U.S. trade policy and geopolitical risk)
- Structural decline in home-use sales volume due to prolonged cost-consciousness and frugality among consumers amid inflation
- Continued rise in logistics costs, energy costs, and packaging material costs, and lower unit profit margins due to difficulty in implementing price revisions
- Decline in meal product unit prices from yen appreciation against the dollar, and impact on imported raw material costs
- Medium- to long-term structural decline in domestic oil and fat consumption due to Japan's declining population
Last updated: June 16, 2026