YOKOREI CO.,LTD.

Business Details

Operates refrigerated and frozen storage business for marine products, livestock products, etc., and related ancillary businesses. Utilizing a network of logistics centers in Japan and overseas, the segment provides storage and inbound/outbound handling services to shipper companies. It also expands into Asia through consolidated subsidiary Thai Yokorei. As the core segment generating the majority of the Group's operating profit, it continues active investment in new logistics centers against a backdrop of expanding demand for frozen foods.

Recent Overview

Renewed the segment's all-time highest profit for a first half period

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), against a backdrop of strong demand for refrigerated warehousing, handling of frozen foods increased, with inbound volume, outbound volume, and inventory volume all exceeding the previous period. Progress in fee revision negotiations also contributed, resulting in sales of ¥20,359 million (up 10.3% year on year) and operating profit of ¥4,793 million (up 10.7% year on year). This marked a record high segment profit for a first-half consolidated accounting period. Thai Yokorei also achieved increased revenue and profit. On the other hand, the burden of depreciation expenses and increases in personnel costs, etc., related to the five logistics centers in Japan and one in Vietnam that came into operation over the past two fiscal periods, was a factor pushing down profit.

Key Products

Growth Drivers

• Increased handling volume due to expanding demand for frozen foods (inbound volume, outbound volume, and inventory volume all exceeded the previous period)
• Unit price improvement through progress in fee revision negotiations
• Expanded storage capacity from five new logistics centers in Japan and one in Vietnam that came into operation over the past two fiscal periods
• Maintenance of high inventory ratio level and progress in fee revision negotiations at Thai Yokorei
• Strengthened provision of Smart Cold Service based on the medium-term management plan "Tsunagu Chikara" (Connecting Power)

Risks

• Profit pressure from increased depreciation expenses and personnel costs associated with the operation of new logistics centers
• Risk of rising operating costs due to increases in fuel and energy prices amid heightened tensions in the Middle East and yen depreciation
• Risk of shippers' inventory adjustments (sharp decline in inventory volume)
• Risk of decreased inbound and outbound volumes at Thai Yokorei
• Risk of cash flow pressure due to continued expenditure on acquisition of tangible fixed assets (¥10,642 million spent in the first half of FY2026, ending March 2026)
• Risk of future increases in depreciation expenses associated with the significant increase in construction in progress (from ¥3,565 million to ¥13,635 million)