S&B FOODS INC.
2805・Standard Market・Foods
Business
S&B Foods was founded in 1923 and is a food manufacturer with over 100 years of history specializing in spices, herbs, and curry. The company manufactures and sells various spices, instant curry, tube products, retort curry, and other products, operating along two axes: domestic business (net sales of ¥115,395 million) and overseas business (net sales of ¥13,631 million). Domestically, the company operates three plants in Ueda, Higashimatsuyama, and Miyagi, and has built a vertically integrated supply chain in cooperation with multiple manufacturing subsidiaries and raw material procurement subsidiaries. Overseas, the company is expanding globally through S&B INTERNATIONAL CORPORATION, S&B FOODS SINGAPORE PTE.LTD., S&B SPICE CANADA INC., and others. Major customers are large food wholesalers such as Mitsubishi Shokuhin, Mitsui & Co., and Kokubu Group Corporation, and the company supplies products for both household and commercial use.
Business Model
The company employs a vertically integrated model that manages everything from raw material procurement (Minesaka Kogyo, S&B Kosan) to manufacturing (group factories and manufacturing subsidiaries) and sales (via major food wholesalers). It aims to improve unit prices and profit margins by strengthening sales of high value-added products such as "Golden Curry," "Aka-can Curry Powder Roux," and "Lee Kum Kee" brand products. By investing ¥1,427 million in R&D expenses, the company continuously advances functional research on spices and herbs and upgrades food processing technologies, maintaining differentiation from competitors.
Company Strengths
Since its founding in 1923, the company has continuously pursued research and development specialized in spices, herbs, and curry, accumulating proprietary technologies in breeding and cultivation, aroma analysis, and functional research. R&D expenses totaled ¥1,427 million in the fiscal year under review, with broad-based research spanning food processing, container packaging, microbial control, and quality management technology domains.
The company has built an integrated management system spanning procurement to manufacturing, comprising multiple subsidiaries including S&B Kosan Co., Ltd. and Minesakae Kogyo Co., Ltd. (made subsidiaries in 2022; consolidated from FY2026 (ending March 2026)), which handle raw material procurement, and S&B Garlic Foods and S&B Spice Industry, among others, which handle manufacturing. Stable supply has been maintained even amid raw material price surges.
Through enhanced sales of high value-added products such as powder roux products (including "Aka-kan Curry Powder Roux"), "Lee Kum Kee" brand products, and chili oil-related products, the operating margin improved significantly from 4.5% in FY2023 (ending March 2023) to 8.0% in FY2026 (ending March 2026). Gross profit reached ¥36,132 million, up ¥2,334 million year on year (up 6.9% year on year).
ENVALITH's Perspective
Performance Trend
Sales for FY2026 (ending March 2026) totaled ¥129,022 million (up 4.5% year on year), marking the first revenue increase in two periods. Both the domestic business (¥115,395 million, up 3.8%) and overseas business (¥13,631 million, up 10.3%) posted revenue growth. Operating profit came to ¥10,318 million (up 9.3%), ordinary profit to ¥10,726 million (up 11.1%), and net income to ¥8,409 million (up 11.2%), with profit increasing across all profit line items. The operating margin of 8.0% was the highest in the past five fiscal periods. Despite external headwinds such as rising raw material prices and the continued trend toward consumer frugality, these were absorbed by stronger sales of high value-added products and expansion of the overseas business. For FY2027 (ending March 2027), sales are forecast at ¥134,500 million (up 4.2%) and operating profit at ¥10,700 million (up 3.7%), but net income is expected to decline to ¥8,100 million (down 3.7%) due to the reversal of extraordinary gains.
Growth Strategy
Aiming for sustainable growth through strengthening high value-added products centered on spices and herbs, overseas expansion, and organizational structure building
A core initiative of the 3rd and 4th Medium-Term Management Plans. Expanding sales of high value-added products such as powder roux products, "Aka-kan Curry Powder Roux," and "Koi Curry" to improve gross profit margin. The gross profit margin for FY2026 (ending March 2026) has steadily improved to 28.0% (from 27.4% in the previous period).
Through product development and enhanced marketing tailored to market characteristics, Overseas Business sales for FY2026 (ending March 2026) reached ¥13,631 million (up 10.3% year on year), achieving a segment profit margin of 28.4%. The overseas sales ratio rose to 10.6%. The company will continue expanding overseas business locations and investing in human capital toward the FY2029 (ending March 2029) target of 14.8% and the long-term target (2043) of over 40%.
Under the theme of "building a structure to continue creating value," the company is promoting four key strategies: "strengthen strengths," "support growth," "improve efficiency," and "solidify the foundation." The FY2029 (ending March 2029) targets are net sales of ¥142,000 million, operating profit of ¥12,000 million, and ROE of over 8.0%. A CxO structure will be introduced from June 2026 to accelerate decision-making.
From FY2026 (ending March 2026), Meiei Kogyo Co., Ltd. was made a consolidated subsidiary (change in scope of consolidation). This resulted in an increase in cash and cash equivalents of ¥1,936 million and a contribution to capital surplus and retained earnings (change in scope of consolidation of ¥2,540 million) due to the change in the scope of consolidation. The company aims to enhance supply chain stability by strengthening vertical integration in raw material procurement.
Last updated: July 19, 2026