NICHIREI CORPORATION
2871・Prime Market・Foods
Processed Foods
Nichirei Group's core Foods business segment, integrating frozen foods, marine products, and livestock products
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Foods segment total) | ¥426,674 million | ¥433,910 million (restated) | ↓ |
| Operating profit (Foods segment total) | ¥19,852 million | ¥21,262 million (restated) | ↓ |
| Operating margin (Foods segment total) | 4.7% | 4.9% (restated) | ↓ |
| Processed Foods (Domestic) net sales | ¥260,553 million | ¥243,098 million | ↑ |
| Processed Foods (Overseas) net sales | ¥108,770 million | ¥104,056 million | ↑ |
| Depreciation and amortization (Foods segment) | ¥8,225 million | ¥9,209 million | ↓ |
| Increase in tangible and intangible fixed assets (Foods segment) | ¥11,682 million | ¥9,880 million | ↑ |
| Segment assets (Foods) | ¥243,650 million | ¥225,235 million | ↑ |
| Impairment loss (Foods segment) | ¥308 million | ¥389 million | ↓ |
Business Details
Engages in the manufacture, processing, and sale of cooked frozen foods (chicken products, cooked rice items, croquettes, Chinese-style prepared dishes, etc.), processed agricultural products, marine products, livestock products, retort foods, wellness foods, acerola, and packaged ice, as well as the raising and sale of broiler chickens. In addition to domestic household and commercial-use products, the company operates globally through overseas subsidiaries in the US, Thailand, Brazil, and elsewhere. The main sales customer is Mitsubishi Shokuhin Co., Ltd. (net sales of ¥86,742 million in the current fiscal year). Beginning in FY2026 (ending March 2026), the company began functional reorganization toward integration of its food businesses, consolidating the former three segments of Processed Foods, Marine Products, and Livestock Products into a single "Foods" segment.
Recent Overview
In the first year of Foods segment integration, net sales and profit declined due to structural reform impacts in Marine Products and Livestock Products; Processed Foods saw domestic sales growth but profit was squeezed by rising raw material costs
Beginning in FY2026 (ending March 2026), the reportable segment was integrated into "Foods" (consolidating the former Processed Foods, Marine Products, and Livestock Products segments). Net sales for the overall Foods segment were ¥426,674 million (down 1.7% versus the prior-year restated figure), and operating profit was ¥19,852 million (down 6.6%), representing decreases in both sales and profit. The mainstay domestic Processed Foods business saw increased sales due to the spread of price revisions and growth in chicken products, but operating profit declined slightly due to a sharp rise in raw material and procurement costs and increased sales promotion expenses. Overseas, profit declined due to the effect of a weaker US dollar and stronger Thai baht in Thailand. Marine Products and Livestock Products saw substantial declines in sales amid ongoing structural reforms. The change in depreciation method from the declining-balance method to the straight-line method (a profit-boosting effect of ¥1,360 million in the Foods segment) provided some support. As a subsequent event, on April 1, 2026, Nichirei Foods absorbed Nichirei Fresh through a merger, completing the functional integration of the food business.
Key Products
Growth Drivers
- Steady expansion of demand in the frozen food market driven by diversifying lifestyles and labor shortages, which are increasing the need for shorter cooking times
- Increased sales in domestic Processed Foods due to the spread of price revisions and expanded sales of chicken products and value-added products to major users
- Expansion of overseas sales through price revisions and development of new sales channels in the North American Innovasian business
- Realization of group synergies and strengthened earning power across the entire food business through the merger of Nichirei Foods and Nichirei Fresh (effective April 1, 2026)
- Improved profitability and progress in structural reform through reductions in low-margin products in Marine Products and Livestock Products
- Concentration of resources on strategic categories and improved capital efficiency under the new medium-term management plan "Compass×Growth 2027"
- Improved cost structure through unification of the depreciation method to the straight-line method and review of useful lives
Risks
- Continued rise in procurement costs due to soaring raw material and procurement prices and yen depreciation (squeezing profit in both domestic and overseas Processed Foods)
- Foreign exchange fluctuation risk (US dollar, euro, Thai baht, etc.) in the Thai export business, including a weaker dollar and stronger baht
- Impact on sales volume from increased consumer thrift amid rising prices across foods generally
- Risk of prolonged structural reform in the Marine Products and Livestock Products businesses and continued profit decline due to difficulty recovering fixed costs
- Risk of organizational restructuring and integration costs associated with the food business integration (merger of Nichirei Foods and Nichirei Fresh)
- Risk of declining consumption due to deteriorating local economic conditions and inflation at overseas subsidiaries in North America, Thailand, and elsewhere
- Risk of impairment losses (an impairment loss of ¥308 million was recorded in the Foods segment in the current consolidated fiscal year)
Last updated: June 16, 2026