EAT&HOLDINGS Co.,Ltd

Business Details

The Food Business, operated by EAT&FOODS Co., Ltd. and Nine Block Co., Ltd., manufactures frozen gyoza and dim sum products at the company's own factories in Itakura Town, Gunma Prefecture, and Hirakata City, Osaka Prefecture, and sells them nationwide to consumer co-ops and mass retailers via wholesalers such as Mitsubishi Shokuhin and ITOCHU Corporation, as well as through direct sales on its EC site. The segment's primary objective is to raise brand recognition of "Osaka Ohsho" and leverage it for secondary applications, and it accounts for approximately 57% of the Group's total revenue, making it the core earnings segment. Opus Co., Ltd. was added to the scope of consolidation starting in the current first quarter.

Recent Overview

Q1 revenue up 4.6% YoY and segment profit up 66.4% YoY, marking substantial improvement, with the consolidation of Opus also contributing

In the first quarter of FY2027 (ending February 2027) (March–May 2026), the Food Business achieved revenue of ¥5,940 million (up 4.6% year on year) and segment profit of ¥402 million (up 66.4% year on year), a substantial increase. This was driven by sales expansion through nationwide TV commercials and the "Spring Osaka Ohsho Festival" gift campaign, as well as successful productivity improvement and cost reduction measures at in-house factories (equipment upgrades, optimized staff shift allocation). New products "Charcoal-grilled Fried Rice with Twice-Cooked Pork" and "Charcoal-grilled Fried Rice with Sauce-Topped Pork Shumai" also performed well. Opus Co., Ltd. was added to the scope of consolidation (recording goodwill of ¥325 million). The new Kyushu plant (Miyakonojo City, Miyazaki Prefecture) is progressing smoothly, with completion scheduled for December 2026. A price revision (5%–15%) in the gyoza category is planned for deliveries from September 1, 2026.

Key Products

Growth Drivers

• Enhanced "Osaka Ohsho" brand recognition and expanded frozen Chinese food category share through continued nationwide TV commercials and gift campaigns
• Improved profitability through a price revision (5%–15%) in the gyoza category (pan-fried gyoza, boiled gyoza, etc.) effective for deliveries from September 1, 2026
• Strengthened supply capacity in the western Japan region through the ongoing construction of a new Kyushu plant in Miyakonojo City, Miyazaki Prefecture (scheduled for completion in December 2026)
• Strengthened Chinese food category lineup through the launch of new one-plate series products such as "Charcoal-grilled Fried Rice with Twice-Cooked Pork" and "Charcoal-grilled Fried Rice with Sauce-Topped Pork Shumai"
• Improved productivity, reduced costs, and improved yield through equipment upgrades and optimized staff shift allocation at in-house factories
• Expanded business scale through the consolidation of Opus Co., Ltd.
• Capturing market growth on the back of expanding frozen food shelf space at mass retailers and other retail stores

Risks

• Profit pressure from rising costs of raw materials (cabbage, wheat flour, vegetable oils, etc.), materials, and logistics
• Risk of rising crude oil and naphtha prices and supply constraints due to the Middle East crisis
• Risk of reduced production line capacity due to manufacturing equipment trouble such as factory fires (risk of recurrence of the December 2023 fire at the Kanto No. 1 Plant)
• Risk of economic downturn due to declining inbound consumption amid worsening Japan-China relations and escalating tensions in the Middle East
• Risk of revenue concentration with Mitsubishi Shokuhin and ITOCHU Corporation (the top two companies account for over approximately 50% of total revenue)
• Risk of delays or cost overruns in the construction of the new Kyushu plant
• Impact on the food service industry from a potential government-considered reduction in the consumption tax on food (changes in the competitive environment relative to the Food Business)