KADOYA SESAME MILLS INCORPORATED
2612・Standard Market・Foods
Business
Kadoya Sesame Mills Inc. is a food manufacturer founded in 1858 on Shodoshima Island, Kagawa Prefecture, whose core business is the manufacture and sale of sesame oil and edible sesame seeds (roasted sesame and sesame paste). Together with its consolidated subsidiary Katagi Foods Co., Ltd., the company offers products through a wide range of channels for household, commercial, and export use. Its main customers are general consumers (household use), restaurant chains and food service operators (commercial use), and processed food manufacturers (processing users), and it is expanding into overseas markets, mainly North America, in addition to the domestic market. Consolidated net sales for FY2026 (ending March 2026) were ¥40,030 million, with the sesame oil business accounting for approximately 78% of net sales. Under the purpose statement "Contributing to the world by maximizing the value of sesame," the company is promoting fan-base management.
Business Model
The company adopts a vertically integrated model in which it procures, refines, and processes raw sesame seeds to manufacture sesame oil and food-grade sesame products, selling through household, commercial, and export channels. Since raw sesame accounts for the majority of cost of sales, fluctuations in raw material prices directly affect profitability. On the other hand, by moving away from reliance on price-based appeal—leveraging its brand strength—and cultivating higher value-added products, the gross profit margin improved to 28.3% in FY2026 (ending March 2026). The company is also developing new revenue sources, such as a protein business that upcycles manufacturing byproducts (defatted sesame).
Company Strengths
With a long history dating back to its founding in 1858, the "Kadoya" brand enjoys high brand recognition in the household sesame oil market. The company has run TV commercials and web video advertisements highlighting the difference between pure sesame oil and blended sesame oil, along with experiential promotions using kitchen cars (mobile food trucks), building brand-driven purchase demand that does not rely on price appeals. Brand-driven purchase demand for the company's products has also been confirmed in export markets.
The company operates multiple sales channels, including household retail, commercial use for restaurant chains and school lunch providers, processing use for processed food manufacturers, and exports, diversifying its dependence on specific customers and applications. In FY2026 (ending March 2026), sales volume increased year on year across all channels—household, commercial, and export—resulting in a 3.0% year-on-year increase in sales volume for the sesame oil business as a whole.
At the end of FY2026 (ending March 2026), net assets reached ¥37,440 million and cash and cash equivalents reached ¥11,983 million, with the company maintaining a virtually debt-free management structure with almost no interest-bearing liabilities. Operating cash flow was robust at ¥5,688 million, and while covering capital expenditures (¥590 million) and dividends (¥920 million) with internal funds, the company increased its cash balance by ¥4,101 million. The company has also secured overdraft and commitment line agreements (totaling ¥12,000 million) with three of its transaction banks.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, from ¥32,185 million in FY2022 (ended March 2022) to ¥40,030 million in FY2026 (ending March 2026). Operating profit fell to ¥2,638 million in FY2023 (ended March 2023) before recovering to ¥3,818 million in FY2026 (ending March 2026), marking the highest level in the past five fiscal periods. The improvement in FY2026 (ending March 2026) resulted from a combination of lower cost of sales due to a decline in the price of the main raw material (sesame) (a decrease of ¥591 million year on year) and a 2.9% year-on-year increase in sales volume. It should be noted that the decline in the main raw material price, an external factor, contributed significantly to the earnings improvement. For FY2027 (ending March 2027), the company forecasts operating profit of ¥2,900 million (down 24.0% year on year), anticipating a return to declining profit, and raw material cost trends will continue to be key to future performance.
Growth Strategy
Aiming to achieve the FY2028 medium-term management plan targets through North American expansion, the upcycling business, and fan-base management
In FY2026 (ending March 2026), the company established its U.S. local subsidiary, Kadoya America Inc., and built out its sales and marketing structure. North America is positioned as a medium- to long-term growth driver, with future supply chain arrangements also under consideration. The company is monitoring the impact of U.S. tariff policy while working to capture local demand.
The company is promoting an upcycling business that utilizes defatted sesame, a byproduct of sesame oil pressing. As the protein business required additional time for allergen response and application development, the company revised its policy toward a phased launch with reduced initial investment, working to build a medium-term foundation through application development and higher value addition.
The company is promoting table-top placement initiatives at restaurants to spread the food culture of "pouring and using" sesame oil, thereby creating new demand in the dining table segment. It is also advancing the launch of individually packaged sesame oil and working toward the early launch of new products, aiming to build a demand base that does not rely on price appeal.
The company implemented a 1-for-3 stock split in April 2026 to lower the investment unit price. It introduced a dividend policy based on DOE (Dividend on Equity), raising the FY2026 (ending March 2026) dividend to ¥137 (up from ¥100 in the previous fiscal year), with a payout ratio of 46.3% and a dividend-on-equity ratio of 3.5%. This is part of the company's fan-base management approach aimed at expanding its individual investor base.
Under the newly established SCM Division, the company is strengthening its supply chain management structure spanning raw material procurement through manufacturing and logistics, enhancing its flexibility to respond to external environmental changes such as raw material price fluctuations, geopolitical risks, and tariff policies.
Last updated: July 19, 2026