SEIHYO CO.,Ltd.
2872・Standard Market・Foods
Business
Seihyo Co., Ltd. is a Niigata-based food manufacturer founded in 1916, whose principal businesses comprise the manufacture, sale, and purchase/resale of ice cream products and Japanese confections, the purchase and resale of frozen foods, and consignment warehousing services. The company operates three plants—the Niigata Plant (frozen desserts and ice cream products), the Sanjo Plant (frozen Japanese confections), and the Sado Plant (ice)—while the Toyosaka Plant functions as a logistics base. In addition to proprietary brand products such as "Momotaro" and "Sasadango," OEM production for Morinaga Milk Industry (accounting for approximately 24.8% of net sales) serves as a key pillar of earnings. The company maintains sales offices in Niigata, Sado, and Tokyo, serving a wide range of customers from retail channels such as supermarkets and convenience stores to commercial-use clients. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The ice cream segment accounts for approximately 71% of net sales, with retail sales of proprietary brand products (Momotaro, etc.) and large-scale OEM contracts with Morinaga Milk Industry, AEON TOPVALU, and others serving as the primary revenue sources. The procurement and sales segment (approximately 15%) handles wholesale functions for frozen foods and similar products, while the Japanese confectionery segment (approximately 8%) comprises regional specialty products such as sasa dango (bamboo-leaf-wrapped rice cakes) and daifuku OEM production. The logistics and warehousing segment (approximately 5%) secures stable revenue through frozen warehouse storage and transportation services. Funding for raw material procurement and capital expenditure is sourced through operating cash flow as well as borrowings from financial institutions and bond issuance.
Company Strengths
Holds regional specialty confections including the ice confection "Momotaro" (Momo Taro), which enjoys high brand recognition in Niigata Prefecture, as well as sasa dango (bamboo-leaf rice cake) and daifuku (rice cake with sweet filling). Ice cream segment sales for FY2026 (ending February 2026) were strong at ¥3,200 million (up 7.9% year on year), with price revisions on proprietary brand products taking hold. The reintroduced "Viva All" also contributed to sales.
Sales to Morinaga Milk Industry Co., Ltd. totaled ¥1,113 million (24.8% of total sales), sales to Nippon Access were ¥556 million (12.3%), and sales to Aeon TOPVALU were ¥528 million (11.7%), with these three major clients accounting for approximately 49% of total sales. The Niigata plant maintains a high utilization rate through OEM orders, forming a stable order base.
Founded in 1916, the company has over 100 years of operating history, with ISO22000:2005 certification obtained at the Niigata plant (2009) and Sanjo plant (2011). It has established a product development department and launched 11 new products and 4 renewed products in FY2026 (ending February 2026). Cost improvement activities such as reducing manufacturing losses are also continuously implemented.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive periods, rising from ¥3,958 million in FY2022 to ¥4,797 million in FY2026. The revenue growth trend continued into Q1 FY2027 (ending February 2027), with sales of ¥1,456 million (up 8.8% year on year). Profitability, however, peaked in FY2025 (operating profit of ¥96 million) before falling sharply in FY2026 (¥35 million), and Q1 FY2027 recorded an operating loss of ¥19 million, turning negative. External factors—rising raw material and packaging material prices, persistently high energy costs, and increased labor costs—have pushed up manufacturing costs, and an extraordinary loss of ¥30 million was recorded on the retirement of fixed assets associated with the renewal of equipment at the Toyama plant. The full-year forecast remains bullish, projecting revenue of ¥6,000 million (up 25.0% year on year) and operating profit of ¥126 million (up 256.1% year on year), but this assumes securing substantial profits during peak summer demand in the second quarter.
Growth Strategy
A three-pronged strategy based on the Medium-Term Management Plan 2027, comprising expansion of the Toyama plant, introduction of high-value-added products, and improvement of the cost ratio.
Removal of existing equipment at the Toyama plant (recording a loss on retirement of fixed assets of ¥30 million in Q1 of FY2027 (ending February 2027)) has been completed, and renewal to new equipment is underway. Construction in progress increased from ¥41 million to ¥59 million, confirming continued investment. Following completion of the equipment renewal, the company aims to expand OEM order intake and reduce the cost ratio through improved production efficiency.
In Q1 of FY2027 (ending February 2027), sales of shaved ice cups performed well, contributing to an 8.8% year-on-year increase in net sales. By strengthening the product lineup to capitalize on the concentration of demand in summer and building up product inventory in line with the sales plan, the company aims for a substantial increase in revenue in Q2.
Amid continued increases in raw material and packaging material prices, persistently high energy costs, and rising labor costs, the company aims to improve its cost ratio through continued price revisions and manufacturing efficiency gains. In Q1 of FY2027 (ending February 2027), selling, general and administrative expenses rose significantly by 36.5% year on year, making full-year expense control a challenge. Achieving the full-year operating profit forecast of ¥126 million will require fundamental cost management.
Last updated: July 17, 2026