KIKKOMAN CORPORATION
2801・Prime Market・Foods
Business
Kikkoman Corporation, founded in 1917, transitioned to a holding company structure in 2009 and serves as the core company of a food products group. Domestically, it engages in food manufacturing and sales (soy sauce, soy milk, Del Monte products, etc.) and other businesses including pharmaceuticals and chemical products. Overseas, it operates an overseas food manufacturing and sales business that produces and sells soy sauce and Del Monte products across North America, Europe, Asia, and Oceania, as well as an overseas food wholesale business (the JFC Group) that procures and sells Asian food products and other items. The group comprises 54 subsidiaries and 2 affiliated companies, with consolidated revenue of ¥745,539 million for FY2026 (ending March 2026). Its main customers are household and commercial food consumers and food distributors worldwide.
Business Model
The revenue pillars are the overseas food manufacturing and sales business (revenue of ¥173,506 million, business profit margin of 23.6%) and the overseas food wholesale business (revenue of ¥432,941 million). The manufacturing and sales segment produces high-value-added soy sauce and Del Monte products at its own factories, securing high profit margins. The wholesale segment pursues scale by leveraging Toyo Foods' wide-area distribution network. Domestically, value-added products such as "Itsudemo Shinsen" (Always Fresh) and the No. 1 soy milk brand supplement earnings.
Company Strengths
Kikkoman soy sauce has grown sales across North America, Europe, Asia, and Oceania, achieving a 23.6% business profit margin in the overseas food manufacturing and sales business for FY2026 (ending March 2026). In addition, the company holds a perpetual exclusive right to use the Del Monte trademark in Japan and the Asia-Pacific region, acquired in 1990 for US$109,650 thousand, giving it a structural advantage of being able to use the trademark free of charge thereafter.
The JFC Group operates more than 20 bases across North America, Europe, Asia, and Oceania, achieving overseas food wholesale sales revenue of ¥432,941 million (106.2% year on year) in FY2026 (ending March 2026). Europe recorded particularly high growth of 113.5% year on year. Its wide-area distribution network, which combines proprietary procurement capabilities, logistics infrastructure, and private-brand product development capability, is an asset that competitors find difficult to replicate in a short period.
The company invested ¥5,236 million in research and development, conducting wide-ranging R&D in the "food and health" domain, from advanced soy sauce brewing technology to enzymes for clinical diagnostics, hyaluronic acid, and ceramides. Kikkoman Biochemifa launched a new product, the glutamate oxidase "GLOD-E," demonstrating the company's unique technological asset of extending fermentation technology cultivated in its food business into the biochemical field.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) reached ¥745,539 million (up 5.2% year on year), achieving revenue growth for the 5th consecutive period, but the growth rate decelerated from 7.3% in the previous period. Business profit of ¥79,512 million (+2.9%) and operating profit of ¥75,940 million (+3.0%) secured profit growth, but profit attributable to owners of the parent turned to a slight decline of ¥61,615 million (down 0.1%). Excluding foreign exchange effects, revenue grew 5.2% and business profit grew 3.6%, indicating that underlying growth continued. As an external factor, yen depreciation (euro appreciation) pushed up foreign currency translation adjustments, resulting in a substantial increase in comprehensive income to ¥97,326 million (+73.5%). On the other hand, the main causes of the decline in profit margin were an increase in selling, general and administrative expenses, an increase in financial expenses (from ¥2,019 million to ¥4,369 million), and a contraction in free cash flow due to a sharp rise in capital expenditures. For FY2027 (ending March 2027), revenue is forecast at ¥799,100 million (+7.2%) and business profit at ¥82,300 million (+3.5%), but net income is expected to decline further slightly to ¥61,300 million (down 0.5%).
Growth Strategy
Under Global Vision 2030, a three-pronged strategy combining deeper overseas expansion, improved domestic profitability, and DX promotion
The US third plant is scheduled to begin shipments in autumn 2026. North American soy sauce revenue was ¥102,216 million (up 0.8% year on year), showing decelerating growth, and the company aims to resolve supply constraints to sustain stable growth. This is the main driver behind the sharp increase in capital expenditure (overseas: ¥56,790 million), and addressing the resulting rise in depreciation expenses after startup (forecast +17.3% for FY2027 (ending March 2027)) remains a challenge.
European food manufacturing and sales revenue reached ¥35,342 million (up 13.7% year on year), and wholesale reached ¥48,701 million (up 13.5%), both showing strong growth. In Asia and Oceania, sales expanded in Indonesia, the Philippines, China, and other markets, with a target of double-digit growth in ASEAN. New market development is also underway in South America, India, and Africa.
Business profit in domestic food manufacturing and sales improved significantly to ¥9,886 million (up 15.9% year on year), driven by soy milk beverages (¥37,312 million, up 15.5%). Price revisions were implemented in March 2026 for the grated (suriorishi) series, cooking sake, and other products. The company is pursuing higher value-added products and improved productivity through IT and digital utilization, and forecasts business profit of ¥10,560 million (up 6.8%) for FY2027 (ending March 2027).
Against the medium-term management plan target of ROE of 12% or higher, the actual result for FY2026 (ending March 2026) was 11.5%, falling short. The company is pursuing share buybacks (¥20,992 million in the current period, with an additional upper limit of ¥30,000 million resolved as a subsequent event) alongside dividends (annual dividend of ¥25, payout ratio of 37.9%). It is working to improve profit margins, asset efficiency, and capital efficiency to raise ROE.
Overseas food wholesale revenue was ¥432,941 million (up 6.2% year on year), continuing to grow as the largest segment. All regions expanded: North America ¥315,552 million (up 7.3%), Europe ¥48,701 million (up 13.5%), and Asia-Oceania ¥59,883 million (up 8.4%). The company aims to enhance business execution capability by strengthening logistics infrastructure, personnel, procurement capability, and in-house brand product development capability.
Last updated: July 19, 2026