YUTAKA FOODS CORPORATION

Business Details

The Liquid segment manufactures and sells Unagi no Tare (Eel Sauce), Tsuyu, Shiro-dashi, Aji-dashi, Liquid Attached Soup, and other products. Built on brewing know-how accumulated since 1952, Unagi no Tare boasts one of the industry's top production volumes. The segment is centered on contract manufacturing for Toyo Suisan Kaisha, Ltd., and in FY2026 (ending March 2026) achieved higher sales due to an increase in contract manufacturing volume, although segment profit declined slightly due to the impact of soaring raw material costs.

Recent Overview

Sales increased on higher contract manufacturing volume, but soaring raw material costs pressured profit, resulting in a slight decline

For the full year of FY2026 (ending March 2026), net sales rose to ¥5,021 million, up ¥290 million (6.1%) year on year, due to an increase in contract manufacturing volume. On the other hand, the impact of soaring raw material costs was significant, and segment profit declined to ¥122 million, down ¥6 million (4.8%) year on year. The share of net sales rose from 32.7% to 33.5%, maintaining the largest sales share among all segments. Net sales to Toyo Suisan Kaisha, Ltd., the company's key customer, expanded to ¥10,075 million company-wide (¥9,689 million in the prior period).

Key Products

Growth Drivers

• Sales expansion driven by an increase in contract manufacturing volume of Liquid Attached Soup and Tare (FY2026 (ending March 2026): net sales up 6.1% year on year)
• Industry-leading production volume and competitive advantage in Unagi no Tare (Eel Sauce), leveraging brewing know-how accumulated since 1952
• Stable contract manufacturing relationship with Toyo Suisan Kaisha, Ltd. (a key customer accounting for 67.2% of company-wide sales; FY2026 (ending March 2026) results of ¥10,075 million)
• Customer acquisition through customization of viscosity, color, and flavor in response to client needs
• Strengthened R&D and product proposals through positioning as a strategic area for in-house developed products

Risks

• Profit pressure from soaring raw material costs (the main reason segment profit declined 4.8% in FY2026 (ending March 2026) despite higher sales)
• High dependence on sales to Toyo Suisan Kaisha, Ltd. (67.2% of company-wide sales), creating a risk that fluctuations in contract manufacturing volume directly affect performance
• Continued risk of rising imported raw material costs due to yen depreciation
• Deterioration of the sales environment due to growing consumer thrift and preference for low prices
• Rising logistics and labor costs due to labor shortages