ASMO CORPORATION
2654・Standard Market・Retail Trade
Business
ASMO Co., Ltd. is a holding-company-type group listed on the Standard Market of the Tokyo Stock Exchange. The group's core operations comprise four businesses: meat import and sales (ASMO Trading), catering services contracted to elderly care facilities (ASMO Food Service), home-visit care, in-home support, and paid nursing home operation (ASMO Kaigo Service), and Japanese food dining and food processing wholesale in Hong Kong (ASMO CATERING HK). Its main customers are care facility operators (with the Best Life Group accounting for approximately 34.6% of net sales), food wholesale clients, and users of care services. Consolidated net sales for FY2026 (ending March 2026) were ¥21,236 million. Against the backdrop of a super-aging society, care-related businesses form the core pillar of revenue and profit.
Business Model
The group's largest segment, the ASMO Food Service business (net sales of ¥9,181 million), secures stable revenue through continuous contracted meal service agreements with nursing care facilities. The ASMO Care Service business (net sales of ¥5,341 million) operates home-visit care services and paid nursing homes, with nursing care fees as its main source of income. The ASMO Trading business (net sales of ¥4,097 million) earns trading margins from meat import and wholesale operations. The ASMO CATERING HK business (net sales of ¥2,611 million) runs a dual operation of restaurant outlets and food processing wholesale. Working capital and capital expenditure across the group are funded from internal resources, and with interest-bearing debt of only ¥96 million, financial soundness is high.
Company Strengths
The total of the Asmo Food Service business (net sales of ¥9,181 million) and the Asmo Care Service business (net sales of ¥5,341 million) is ¥14,522 million, accounting for approximately 68% of consolidated net sales. Outsourced meal services for nursing care facilities are based on continuous contracts, and a stable revenue base has been formed through a track record of 7 paid nursing homes, 408 residents, and 2,013 home-care service users.
The equity ratio at the end of FY2026 (ending March 2026) was 70.0%, with cash and cash equivalents of ¥5,104 million. Interest-bearing debt remained limited to a total of ¥96 million, comprising ¥74 million in short-term borrowings and ¥21 million in lease obligations, with most working capital and capital expenditure funded from internal resources. The company itself describes its liquidity as being at a level that could support small-scale M&A or expansion into adjacent businesses.
Total sales to the 7 companies of the Best Life Group amounted to ¥7,349 million (FY2026, ending March 2026), accounting for 34.6% of consolidated net sales. This represents an increase in both amount and ratio from the previous period (¥6,823 million, 33.2%), reflecting continued deepening of transactions with major customers. The ongoing outsourced meal service relationship with the nursing care facility operator supports the stability of sales.
ENVALITH's Perspective
Performance Trend
Revenue maintained a gradual expansion trend from ¥18,841 million in FY2022 (ended March 2022) to ¥21,236 million in FY2026 (ending March 2026). Operating profit plunged to ¥297 million in FY2025 (ended March 2025) before rebounding sharply to ¥651 million in FY2026 (ending March 2026), with the operating margin improving from 1.4% to 3.1%. The main drivers of the recovery were revenue growth in the food service business (up 8.4% year on year), an improved profit margin in the nursing care service business (segment profit up 34.8% year on year), and the Hong Kong business turning profitable. As external factors, the weak yen and rising food material prices have continued, but purchasing negotiation efforts, procurement optimization, and the establishment of a cross-departmental structure proved effective. For FY2027 (ending March 2027), revenue is projected at ¥24,768 million (up 16.6% year on year), while operating profit is forecast to decline to ¥574 million (down 11.9% year on year), as TrustGrowth integration costs and rising labor costs are expected to weigh on profit.
Growth Strategy
Pursuing growth through four pillars: staffing M&A, expansion of nursing care facility contracts, EC channel development, and restructuring of the Hong Kong business
As of April 1, 2026, the Company acquired TrustGrowth Co., Ltd. (staffing dispatch/placement, IT outsourcing) as a subsidiary at an acquisition cost of ¥1,200 million. Through staffing dispatch for the elderly welfare industry and utilization of the foreign technical intern training program, the Company aims to resolve the Group's chronic labor shortage issues and realize synergies in staffing supply for the nursing care and welfare industries.
By deploying sales-specialized personnel at each location, the Company is accelerating the acquisition of new catering contracts from nursing care facilities. Through the establishment of a cross-departmental new operational structure, it efficiently utilizes existing personnel to maintain and expand contract capacity even amid labor shortages. In FY2026 (ending March 2026), net sales reached ¥9,181 million (up 8.4% year on year), with segment profit of ¥361 million (up 55.4% year on year).
The Company is diversifying sales channels, including the web sales business and offering products as furusato nozei (hometown tax) return gifts, while also addressing inbound demand alongside new customer development through exhibition participation. It maintains competitiveness amid rising prices by proposing alternative sourcing options such as Mexican beef. In FY2026 (ending March 2026), net sales reached ¥4,097 million (up 4.4% year on year).
The Company is reducing fixed costs through rent reduction negotiations for existing stores with large losses and by reviewing contract terms upon renewal. It is exploring new store formats such as prepared food shops to restructure the restaurant business. The wholesale business continues to expand in scale by strengthening its response to the individual needs of Japanese restaurant operators. In FY2026 (ending March 2026), the segment achieved a profit of ¥36 million, turning profitable.
Last updated: July 19, 2026