NittoBest Corporation
2877・Standard Market・Foods
Business
Nitto Best Corporation was established in 1948 (originally founded in 1937) and is a food manufacturer headquartered in Sagae City, Yamagata Prefecture. Its core business is the manufacture and sale of Frozen Foods, Canned Foods, Retort Pouch Foods & Others, and Daily Delivery Foods, and the group comprises 6 consolidated subsidiaries and 1 equity-method affiliate. The Frozen Foods segment is the largest, accounting for approximately 76% of net sales, while the Daily Delivery Foods segment (approximately 18%) is driving growth. The company focuses on products for hospitals and nursing care facilities, with Mitsubishi Shokuhin Corporation (accounting for approximately 11.65% of net sales) as a major customer. The company is listed on the Standard Market of the Tokyo Stock Exchange. Consolidated net sales for FY2026 (ending March 2026) were ¥57,492 million.
Business Model
The Group adopts a make-to-stock production system, manufacturing Frozen Foods, Daily Delivery Foods, and other products at its own plants and contract manufacturing subsidiaries, and sells them to food wholesalers, mass retailers, hospitals, nursing care facilities, and other customers. Revenue is structured as the product of sales volume and unit selling price, and in phases of rising raw material and fuel costs, the Company implements price revisions (price increases) to secure profit. New product development, backed by R&D expenses of ¥581 million, together with capital expenditure of ¥1,474 million to maintain and expand production capacity, form the sources of the Company's competitiveness.
Company Strengths
From 2020 to 2023, the company obtained FSSC22000 (International Food Safety Management System Standard) certification at all major plants, including the Yamagata Plant, Sagae Plant, Tendo Plant, Otani Plant, Jinmachi Plant, Higashine Plant, Takamatsu Plant, Hondate Plant, Kyushu Best Foods, and Kansai Best Foods. Multiple plants also hold ISO9001 and ISO14001 certifications, giving the company a third-party certification framework for food safety that exceeds industry standards.
Products for hospitals and nursing care facilities recorded an increase year on year in FY2026 (ending March 2026). Against the backdrop of societal structural changes driven by the declining birthrate and aging population, having a product lineup in the highly specialized fields of nursing care food and hospital food serves as a source of stable demand. Unlike the general consumer market, this segment experiences relatively moderate price competition, making it easier to build continuous business relationships.
Under the Development Division, the company has established a two-department structure consisting of the Research Department (basic technology research) and the Design & Development Department (development of new manufacturing and processing technologies), with R&D expenses of ¥581 million in FY2026 (ending March 2026). The company also conducts research on alternative proteins and joint research with universities and research institutions, seeking to address future raw material risks through technology while simultaneously developing high-value-added products.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal periods, rising from ¥49,747 million in FY2022 (ended March 2022) to ¥57,492 million in FY2026 (ending March 2026). Growth was driven by expansion of the daily deli food segment and price revisions. Operating profit bottomed out at ¥381 million in FY2023 (ended March 2023) and has been on a recovery trend since, reaching ¥647 million in FY2026 (ending March 2026), up 12.7% year on year. Net profit improved significantly to ¥514 million, up 33.7% year on year. Amid continued external headwinds such as elevated raw material and energy prices and rising logistics costs, the penetration of price revisions and the swing to a profit in equity in earnings of affiliates (from ¥-3 million in the prior period to ¥55 million in the current period) contributed to the boost in earnings.
Growth Strategy
Under the medium-term plan "Reborn & Growing 2028," the company aims to achieve ordinary income of ¥2,000 million or more in FY2028.
The Daily Delivery Foods segment achieved sales of ¥10,101 million in FY2026 (ending March 2026), up 7.2% year on year. Products for hospitals and nursing care facilities are also trending upward, and the company continues to strengthen sales in this priority area to capture demand from an aging population.
The company implemented price revisions in response to rising raw material, energy, and logistics costs. This was one of the factors behind the sales increase in FY2026 (ending March 2026), and the company will continue to maintain and improve gross margin through appropriate price pass-through.
Shirokko Sagae Co., Ltd. was newly consolidated in FY2026 (ending March 2026). The company is expanding manufacturing and sales capabilities by leveraging group companies. Equity in earnings of affiliates also turned positive, swinging from a loss in the previous period to a profit of ¥55 million.
The company is working to reduce inventory and other assets to increase operating cash flow. Operating cash flow in FY2026 (ending March 2026) recovered significantly to ¥2,735 million from ¥48 million in the previous period. The company will continue to improve cash flow through inventory reduction and other measures in the next fiscal year.
Last updated: July 19, 2026