ITOCHU-SHOKUHIN Co.,Ltd.

Business Details

Itochu Shokuhin Kaisha, Ltd. is a food wholesaling specialist company within the ITOCHU Corporation group, purchasing alcoholic beverages and food products from manufacturers and wholesaling them to retail formats such as GMS/SM (52.1% of sales composition), drugstores (11.2%), and convenience stores (11.7%). The company also provides solution functions including product storage and transportation, information provision using digital signage, and product development support. Its reporting segment is the single segment of food wholesaling business. On April 28, 2026, ITOCHU Corporation's demand for share transfer was finalized, and delisting is planned.

Recent Overview

Achieved increased revenue and increased operating profit; full subsidiarization and delisting by ITOCHU Corporation finalized

For FY2026 (ending March 2026), the company achieved net sales of ¥720,217 million (+3.0% year on year) and operating profit of ¥10,562 million (+24.2% year on year), recording increased revenue and substantially increased profit. Growth was driven by convenience store transactions (+12.0%), wholesaler transactions (+15.3%), noodles/dried goods (+12.8%), and frozen/chilled products (+13.3%). Meanwhile, beer-type beverages (△4.2%) and gifts (△6.0%) saw declining sales. As ITOCHU Corporation's demand for share transfer was finalized on April 28, 2026, and delisting is planned, forecasts for financial results and dividends for FY2027 (ending March 2027) are not disclosed. The year-end dividend is ¥80 per share (annual dividend of ¥80), with a dividend payout ratio of 12.3%.

Key Products

Growth Drivers

• Expansion of transactions with convenience stores (+12.0% year on year, net sales of ¥83,950 million) and expansion of transactions with wholesalers (+15.3% year on year, ¥43,565 million)
• Growth of high-growth categories such as confectionery/beverages (+5.9%), noodles/dried goods (+12.8%), and frozen/chilled products (+13.3%)
• Containment of selling, general and administrative expenses through thorough low-cost-structure management (¥32,625 million, roughly flat from ¥32,659 million in the prior period)
• Improved sales promotion effectiveness and strengthened customer proposal capabilities through use of digital signage (approximately 20,000 units) and ID-POS data
• Strengthened product development, including diversification of production areas for the original frozen product 'Tomin Fruit' and high-value-added osechi meals and Christmas cakes
• Increase in interest income through use of the ITOCHU Corporation group's group financing system (¥449 million, up from ¥208 million in the prior period)

Risks

• Continued rise in raw material prices, labor costs, and logistics costs leading to heightened consumer cost-consciousness and progression of selective consumption
• Existence of categories facing structural demand decline, such as beer-type beverages (△4.2%) and gifts (△6.0%)
• Risk of changes in business formats among business partners due to retail industry restructuring and intensifying competition across industry categories
• Uncertainty about the future outlook due to unstable international conditions, including geopolitical risks, and continued price increases
• Risk of fluctuation in non-operating income due to a significant decrease in equity method investment profit (from ¥1,288 million in the prior period to ¥63 million in the current period)
• Risk of changes in relationships with external stakeholders due to reduced information disclosure following delisting
• Risk of declining profitability of fixed assets, as seen in the recording of impairment losses (¥1,120 million in the current period)