FUJI OIL CO., LTD.
2607・Prime Market・Foods
Business
Fuji Oil Holdings Inc. is a BtoB-focused food ingredients manufacturer operating four business segments: vegetable oils and fats, industrial chocolate, emulsification and fermentation materials, and processed soy materials. It uses palm, cacao, and soy as core raw materials, with confectionery, bakery, and food processing manufacturers as its primary customers. The company comprises 39 consolidated subsidiaries and 5 equity-method affiliates, and is a global enterprise with overseas operations accounting for approximately 70% of net sales of ¥772,288 million (FY2026, ending March 2026). Its parent company is ITOCHU Corporation, and it is listed on the Prime Market of the Tokyo Stock Exchange. Positioned in the midstream of the food value chain, the company's core business is providing solution-based offerings that address customer challenges.
Business Model
Procures raw materials (palm oil, cacao, soybeans, etc.) and converts them into high-value-added materials using proprietary oil and fat processing, emulsification, fermentation, and soy protein technologies, which are then sold to food manufacturers. The company has a mechanism to pass raw material price fluctuations through to selling prices, and its sources of differentiation are technological capability, application proposal capability, and a sustainable procurement system. It continues to invest ¥7,077 million in R&D expenses and ¥29,225 million in capital expenditures to maintain its technological edge.
Company Strengths
CBE (cocoa butter equivalent) saw expanding substitute demand even amid soaring cocoa bean prices, driving the plant-based oils and fats business to a business profit margin of 12.3% and business profit of ¥33,394 million. The company maintains a top-tier share of key patents in the oils/fats and chocolate-related fields relative to domestic and overseas competitors, resulting in high technical barriers to entry.
The company operates 39 consolidated subsidiaries across Southeast Asia, Europe, the Americas, China, and elsewhere, with approximately 70% of its 5,891 employees working overseas. Through a business alliance with ITOCHU Corporation, it seeks stable raw material procurement and cost reduction. With the newly consolidated PROVENCE HUILES S.A.S. and others added, the company continues to strengthen its global supply system.
The company has set a medium-term target of achieving a palm oil traceability (TTP) ratio of 95% or higher, having built a sustainable raw material procurement system early on through collaboration with plantations and farmers. This procurement framework, which considers environmental and human rights aspects, has helped earn trust from customers and investors, and is positioned as a key element of competitive advantage in the global market.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), net sales were ¥772,288 million (up 15.1% year on year), and business profit was ¥36,048 million (up 171.8% year on year), a substantial improvement. As external factors, rising palm oil prices and continued high cacao bean prices contributed to increased revenue through price pass-through, while solid sales of CBE in the vegetable oils and fats segment and reduced cacao bean-related costs at Blommer pushed up business profit. On the other hand, a goodwill impairment loss of ¥5,516 million related to Blommer and the reversal of deferred tax assets caused a sharp increase in income tax expense, limiting profit attributable to owners of parent to ¥11,142 million. Over the past five fiscal years, operating profit has fluctuated significantly: ¥15,008 million in FY2022 → ¥10,940 million in FY2023 → ¥18,213 million in FY2024 → ¥9,895 million in FY2025 → ¥29,822 million in FY2026, with Blommer's performance amplifying the volatility of consolidated earnings. For FY2027 (ending March 2027), the company forecasts net sales of ¥754,000 million (down 2.4% year on year), business profit of ¥37,500 million (up 4.0% year on year), and profit attributable to owners of parent of ¥19,500 million (up 75.0% year on year).
Growth Strategy
Recovery of profitability through expanded sales of CBE and compound chocolate and Blommer structural reform, advancing the medium-term management plan "United for Growth 2027"
The company continues to enhance profitability by leveraging its competitive advantage in growth areas centered on cocoa butter equivalent (CBE) fats and oils. It aims to build a revenue structure resilient to price competition by strengthening its global supply system, leveraging the new consolidation of PROVENCE HUILES S.A.S. and others, and adding value to raw materials through sustainable sourcing and enhanced functionality.
To restore Blommer's underlying profitability, the company is promoting risk reduction through strengthened governance, along with enhanced sales leveraging the group's strengths in compound chocolate manufacturing technology and application proposal capabilities. It is working to build a compound chocolate supply system, aiming to resolve structural challenges such as sluggish demand and rising fixed costs.
The company is accelerating expansion into regions expected to grow, such as Southeast Asia and China, while optimizing its product lineup to suit the market characteristics of each region. In FY2026 (ending March 2026), business profit declined due to lower sales volume in Asia, making demand recovery and execution of regional strategy key challenges.
Amid a challenging business environment marked by intensifying competition with Chinese products, the company is promoting improvements in profitability by strengthening cost competitiveness, including further productivity improvements. In FY2026 (ending March 2026), the business posted an operating loss of ¥874 million due to lower sales volume of functional materials and other factors, making fundamental strengthening of competitiveness an urgent priority.
The company is promoting stronger management systems through reinforcement of both business and functional axes, as well as centralized management and optimization of management resources. By enhancing group-wide risk management, including strengthening Blommer's governance structure, it aims to secure the growth trajectory set out in the medium-term management plan even under a challenging business environment.
Last updated: July 19, 2026