J-OIL MILLS, INC.
2613・Prime Market・Foods
Business
J-Oil Mills, Inc. is centered on the oils and fats business (approximately 91% of net sales) — encompassing household-use oils and fats, commercial-use oils and fats, and soybean meal, among others — as well as the Specialty Food business, which develops dairy-based PBF (powdered blended fat), functional starch, and soy sheet food products, all built on a business alliance with the Ajinomoto Group. The company comprises 6 subsidiaries and 6 affiliated companies, with major customers including domestic and overseas food manufacturers, foodservice operators, confectionery and bakery businesses, and mass retailers. Consolidated net sales for FY2026 (ending March 2026) were ¥226,574 million. Sales to Ajinomoto Co., Inc. accounted for approximately 20.6% of net sales, and sales to the National Federation of Agricultural Cooperative Associations (Zen-Noh) accounted for approximately 8.9%. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
A manufacturing and sales business model that procures and crushes plant-based raw materials such as soybeans and rapeseed, selling the output as household and commercial-use oils/fats and processed oil/fat products and food ingredients. Profitability is secured through price revisions that pass raw material market and foreign exchange fluctuations through to selling prices, and through expanded sales of high value-added products such as SUSTEC®, Smart Green Pack®, and Mamenorisan®. Sales of meal, a by-product of oil extraction, are also one source of revenue, but are susceptible to market price fluctuations.
Company Strengths
Based on the business alliance agreement (auto-renewable) concluded with Ajinomoto Co., Inc. in 2004, the company enjoys the use of Ajinomoto's brand rights and access to its sales channels. Sales to Ajinomoto in FY2026 (ending March 2026) totaled ¥46,736 million (20.6% of net sales), making it the largest customer. Including alliances with Fuji Oil Co., Ltd. and Nisshin OilliO Group, Ltd., this industry-wide collaborative framework makes imitation by competitors difficult.
The company holds a differentiated product lineup backed by proprietary technology, including the long-lasting frying oil series "SUSTEC®" for commercial use, the environmentally friendly "Smart Green Pack®" for household use, and the soybean sheet food "Mamenorisan®" being expanded overseas. In the Specialty Food business, following the withdrawal from unprofitable operations, the company shifted focus to functional starches, achieving segment profit of ¥828 million in FY2026 (ending March 2026), up 513.1% year on year.
The company is consolidating and relocating its R&D facilities for oils and fats, processed oil and fat products, texture materials, and health materials to Kawasaki City, Kanagawa Prefecture, with operations scheduled to begin in January 2027. R&D expenses for FY2026 (ending March 2026) totaled ¥1,538 million. The company is building a framework to enhance its "Oishisa Design®" solution proposal capabilities through strengthened cross-departmental collaboration and to accelerate innovation creation.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥260,410 million in FY2023 (ended March 2023) and has declined for three consecutive fiscal years, reaching ¥226,574 million in FY2026 (ending March 2026), down 1.8% year on year. Operating profit plunged 48.6%, from ¥8,572 million in FY2025 (ended March 2025) to ¥4,404 million. The main causes were the progressing yen depreciation (the exchange rate reached the ¥160/US$ range in March), historically low meal values, and a sharp rise in oil and fat costs driven by lower oil content in Canadian canola. Sales of commercial-use oils and fats remained solid, supported by the recovery of the food service market and expanding inbound demand as external tailwinds, but this was not enough to absorb the cost increases. Operating cash flow also fell sharply to ¥2,998 million (from ¥18,294 million in the prior year). Meanwhile, the Specialty Food business has seen a rapid profit recovery driven by the effects of structural reforms, and qualitative improvement of the business portfolio is ongoing.
Growth Strategy
Aiming for a recovery in profitability in the final year of the Medium-Term Management Plan through four pillars: expanded sales of high-value-added products, overseas expansion, DX, and structural reform
Promoting expanded sales of function-enhanced products such as the SUSTEC® series, Smart Green Pack®, seasoning oils, and cooking oils. Strengthening customer-issue-solving proposals in commercial-use fats and oils to improve profitability while avoiding price competition. In FY2026 (ending March 2026), commercial-use fats and oils performed steadily, but this was not sufficient to absorb cost increases.
Completed withdrawal from unprofitable businesses (such as general-purpose starch for corrugated cardboard) and refocused on functional starch, powdered fats and oils, and the soybean sheet food product "Mamenorisan®." In FY2026 (ending March 2026), segment profit recovered sharply, up 513.1% year on year, demonstrating the effects of the structural reform.
Plans to transfer all shares of the Malaysian subsidiary Premium Fats Sdn Bhd (PF) to affiliate PVO within May 2026. Aims to leverage synergies with PVO's product lineup and customer base to grow the processed fats and oils business in overseas markets. Expansion of "Mamenorisan®" into North America, Europe, and the Middle East is being strengthened.
Promoting human capital development and DX (digital transformation) as pillars for strengthening the management foundation. FY2026 (ending March 2026) is positioned as a year for considering and preparing key initiatives for the next Medium-Term Management Plan, aiming to further enhance underlying earning power for sustainable growth.
Continuing a stable dividend policy targeting a consolidated payout ratio of around 40%, while aiming to achieve a dividend on equity (DOE) ratio of 3% over the medium term. For FY2027 (ending March 2027), an annual dividend of ¥80 per share is planned (an increase from ¥70 in the previous period). In FY2026 (ending March 2026), the payout ratio was 48.7%, exceeding the target level, maintaining a stable dividend.
Last updated: July 19, 2026