NittoBest Corporation

Business Details

The Group is a single-segment company engaged in the manufacture and sale of processed foods such as frozen foods, daily delivered foods (nichihai shokuhin), and canned/retort pouch foods. Domestic sales account for the vast majority of net sales, with the main customer being Mitsubishi Shokuhin Co., Ltd. (12.03% of net sales). Growth has been driven by products for hospitals and nursing care facilities and by the daily delivered foods segment, with price revisions also contributing to sales growth. The Group comprises consolidated subsidiaries (Kansai Best Foods, Kyushu Best Foods, Nitto Ariman, Sokentei Co., Ltd., JAPAN BEST FOODS COMPANY LIMITED, and Sirocco Sagae Co., Ltd.) and equity-method affiliates.

Recent Overview

FY2026 (ending March 2026) achieved higher sales and profits, with a substantial improvement in operating cash flow

For the full year of FY2026 (ending March 2026), net sales were ¥57,492 million (up 2.9% year on year), operating profit was ¥647 million (up 12.7%), ordinary profit was ¥686 million (up 34.4%), and profit attributable to owners of parent was ¥514 million (up 33.7%), with growth across all profit items. Growth in the daily delivered foods segment (up 7.2% year on year) and in products for hospitals and nursing care facilities, along with price revisions, contributed to the results. Operating cash flow improved significantly, from ¥48 million in the prior period to ¥2,735 million. Sirocco Sagae Co., Ltd. was newly consolidated during the period. For FY2027 (ending March 2027), the company forecasts net sales of ¥60,000 million and operating profit of ¥800 million.

Key Products

Growth Drivers

• Continued sales growth in the daily delivered foods segment (up 7.2% year on year in FY2026 (ending March 2026))
• Expanding demand for products for hospitals and nursing care facilities
• Higher per-unit sales prices resulting from price revisions (price increases)
• Recovery across the food industry driven by increasing inbound demand
• Strengthened sales capabilities and product development under the medium-term plan "Reborn & Growing 2028"
• Business expansion through the new consolidation of Sirocco Sagae Co., Ltd.
• Turnaround to profit in equity in earnings of affiliates (from a loss of ¥3 million in the prior period to a profit of ¥55 million in the current period)

Risks

• Cost pressure from soaring raw material prices and persistently high energy costs (operating margin remains low at 1.1%)
• Rising logistics costs (freight expenses increased from ¥2,929 million in the prior period to ¥3,006 million in the current period)
• Risk of demand decline due to growing consumer thrift on food spending
• Risk of supply chain disruption due to uncertainty over US tariff policy and global affairs
• Sales concentration risk with Mitsubishi Shokuhin Co., Ltd. (12.03% of net sales)
• Overseas business risk associated with JAPAN BEST FOODS COMPANY LIMITED
• Rising personnel costs (salaries and allowances increased from ¥2,018 million in the prior period to ¥2,128 million in the current period)
• Profit attributable to owners of parent is forecast to decline to ¥400 million (down 22.3% year on year) for FY2027 (ending March 2027)