KAGOME CO.,LTD.
2811・Prime Market・Foods
Domestic Processed Foods Business
Kagome's core earnings segment that manufactures and sells vegetable beverages, seasonings, and related products for the domestic market
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (1Q FY2026 cumulative) | ¥33,399 million | ¥33,475 million (1Q FY2025) | ↓ |
| Business profit (1Q FY2026 cumulative) | ¥1,721 million | ¥2,249 million (1Q FY2025) | ↓ |
| Business profit margin (1Q FY2026 cumulative) | 5.2% | 6.7% (1Q FY2025) | ↓ |
| Revenue (full year FY2025 (ending December 2025)) | ¥157,324 million | — | ↑ |
| Business profit (full year FY2025 (ending December 2025)) | ¥15,507 million | — | ↓ |
Business Details
Comprises three categories: Beverage Category (Yasai Seikatsu 100 series, tomato juice, etc.), Mail Order Category (Kenko Chokuso Bin), and Food & Other Category (tomato ketchup, seasonings, frozen Mediterranean vegetables, etc.). The segment's core value proposition is to provide consumers of all generations with opportunities for daily vegetable intake and to contribute to extending healthy life expectancy. From 1Q FY2026, Vegitalia S.p.A. was transferred from the International Business to the Food & Other Category of this segment as part of an organizational restructuring.
Recent Overview
1Q revenue and profit declined due to reduced sales volume following price revisions and higher promotional spending
In 1Q FY2026 (January to March), the Domestic Processed Foods Business posted revenue of ¥33,399 million (down 0.2% year on year) and business profit of ¥1,721 million (down 23.5% year on year), representing a decline in both revenue and profit. Against a backdrop of continued high prices for agricultural raw materials, the company revised shipping prices for household- and commercial-use beverages, but sales volume of the Yasai Seikatsu 100 series and other products declined following the price revision. In addition, increased sales promotion and advertising expenses aimed at stimulating demand weighed on profit. Meanwhile, tomato juice remained strong, supported by expanding habitual consumption driven by blood pressure-related appeals. In the Mail Order Category, business profit improved to 2.0 times the prior-year level due to more efficient advertising expenditure.
Key Products
Growth Drivers
- Acquisition of new users and expansion of habitual consumption of tomato juice through appeals to its functional benefits (blood pressure)
- Improved profitability in the Mail Order Category through more efficient advertising spending (strong soup sales)
- Top-line boost from price revisions for household- and commercial-use beverages (offsetting volume declines)
- Strong sales of frozen vegetables and tomato ketchup in the Food and commercial-use categories
- Category diversification through expansion of new domains such as plant-based milk and vegetable soup
- Strengthened procurement base and cost reduction through the new domestic tomato plant in Hokkaido (scheduled to begin operations in 2028)
Risks
- Profit pressure from continued rises in manufacturing costs, including agricultural raw material costs
- Risk of declining sales volume following price revisions (e.g., Yasai Seikatsu 100 series)
- Market contraction pressure due to Japan's declining and aging population
- Increasing difficulty in stably procuring domestic vegetables and fruits due to the declining number of farmers
- Relative decline in the position of existing domains due to diversification of health-related products and services
- Competitive entry from other industries (innovation in each field)
- Insufficient penetration among younger generations and weak price competitiveness in commoditized markets
Last updated: March 13, 2026