S.ISHIMITSU & CO., LTD.
2750・Standard Market・Wholesale Trade
Business
Ishimitsu Shoji Co., Ltd. is a coffee and food specialty trading company established in 1951 (founded in 1906), operating four business segments: Coffee & Tea, Food, Agricultural Products, and Overseas. Its main customers include coffee roasters, food wholesalers for commercial use, beverage manufacturers, food processing manufacturers, mass retailers, and restaurant chains. The company has five consolidated subsidiaries (US Foods, Ishimitsu Shoji Shanghai, THAI ISHIMITSU, its India joint venture, Allied Coffee Roasters, and its UK holding company), with overseas operations in China, Thailand, India, and the UK. Net sales for FY2026 (ending March 2026) were ¥76,527 million, with the Coffee & Tea business accounting for approximately 55% of the total.
Business Model
The core business model involves importing or domestically sourcing overseas green coffee beans, food products, and agricultural products, then roasting and processing them before selling to commercial-use customers nationwide through a wholesale model. The group owns roasting plants (Allied Coffee Roasters) in both eastern and western Japan, enabling integrated value-added provision from raw materials through to finished products. Revenue is generated through trading margins (gross profit), with the gross profit margin for FY2026 (ending March 2026) at 13.1%. The company is pursuing profitability improvement by reviewing low-margin products and shifting toward higher-margin products.
Company Strengths
Since its founding in 1951, the company has engaged in the import and sale of green coffee beans for over 70 years, accumulating industry-leading expertise in raw materials, processing technology, and quality control, along with personnel holding various qualifications. The group owns Allied Coffee Roasters (two plants in eastern and western Japan, FSSC22000 certified), with roasting volume reaching 17,880 tons in FY2026 (ending March 2026). The company has built a system capable of providing integrated value from raw material procurement through product processing and sales.
The company operates four overseas bases: Ishimitsu Trading (Shanghai), THAI ISHIMITSU, an India joint venture (tea manufacturing and sales), and a UK holding company. In FY2026 (ending March 2026), the company achieved expanded domestic sales of green coffee beans through its Chinese local subsidiary and increased exports to the UK, Thailand, and Australia. Export operations are expanding against the backdrop of growing overseas recognition of Japanese food, with the market environment also being supported by the Ministry of Agriculture, Forestry and Fisheries' announcement that Japan's 2025 agricultural, forestry, and fishery product and food exports reached a record high, up 12.8% year on year.
In FY2026 (ending March 2026), the company reviewed low-margin products in the Food Business and Overseas Business. In the Food Business, gross profit increased 9.0% despite a 2.2% year-on-year decline in revenue, while in the Overseas Business, gross profit increased 5.5% despite a 1.0% decline in revenue. The company's overall operating margin improved substantially to 3.54% (from 2.40% in the previous period), and ROIC improved to 7.62% (from 4.58% in the previous period), surpassing the WACC of 4.05%.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥46,730 million in FY2022 (ended March 2022) to ¥76,527 million in FY2026 (ending March 2026). In FY2026, revenue increased by ¥11,573 million year on year, with the pace of growth accelerating. Externally, surging coffee prices (averaging in the ¥420 range during the period) and yen depreciation (¥159 range at period-end) supported price increases in the Coffee & Tea business, whose revenue reached ¥42,027 million (up 38.7% year on year), driving overall growth. Operating profit reached ¥2,707 million (up 73.8% year on year), the highest level in the past five fiscal years, and the operating profit margin improved to 3.5% (from 2.4% in the previous period). On the other hand, ordinary profit was limited to ¥2,161 million due to an increase in non-operating expenses, including an equity-method investment loss of ¥323 million and interest expenses of ¥207 million. Cash flow improved substantially, with operating cash flow of ¥2,457 million versus a negative figure in the prior period, and cash and cash equivalents at period-end rose to ¥5,204 million. For FY2027 (ending March 2027), the company forecasts revenue of ¥78,072 million (up 2.0% year on year) and operating profit of ¥2,434 million (down 10.1% year on year), indicating revenue growth alongside a profit decline.
Growth Strategy
Under SHINE2027, the company is advancing ROIC-based management, a shift toward high-margin products, overseas expansion, and GHG reduction.
A three-year plan starting with FY2026 (ending March 2026). The policy is to move the business, governance, and engagement foundations built under the previous medium-term management plan into practice, further accelerating growth investments, GHG reduction, development of products that address social issues, and strengthening of internal systems. In the first year, both revenue and profit exceeded plan levels.
The company is reviewing low-margin products with the aim of improving profitability by expanding high-margin products. In FY2026 (ending March 2026), even as revenue in the food business declined 2.2%, gross profit increased 9.0%; similarly, in the overseas business, revenue declined 1.0% while gross profit increased 5.5%, indicating that the effects of product mix improvement are beginning to show in the numbers.
Export expansion is progressing across multiple regions, including progress in business development at the UK joint venture, strong sales through local mass retailers in Thailand, and the transition of spot-order products for Australia to year-round adoption. On the other hand, challenges remain, such as stricter import regulations for Europe and intensifying competition for Taiwan, and continued optimization of the regional portfolio is necessary.
A consolidated subsidiary plans to build a new plant in FY2027 (ending March 2027). While this will be a cost-increasing factor in the short term as a growth investment, it is planned to lead to expanded production capacity and improved profitability over the medium to long term. The company positions this as a "temporary decline in profit," and aims to improve medium- to long-term capital efficiency through the steady advancement of SHINE2027.
The company is focusing on reducing greenhouse gas emissions and developing products that address social issues, promoting ESG-oriented management. This is positioned as a key initiative under SHINE2027, aiming to reduce environmental impact across the entire supply chain and differentiate through new product development.
Last updated: July 19, 2026