NIHON SHOKUHIN KAKO CO., LTD.
2892・Standard Market・Foods
Business
Nippon Food Chemical Co., Ltd. was founded in 1948 and is a long-established specialist manufacturer that was the first in Japan to handle the wet processing of corn. The company operates four business segments: starch (for food and paper applications), saccharified products (for soft drinks, food, and seasonings), fine chemicals (high-value-added products such as cyclodextrin), and by-products (corn oil, etc.). Production is carried out at two sites, the Fuji Plant (Shizuoka) and the Mizushima Plant (Okayama), with Mitsubishi Corporation serving as both parent company and primary sales agent. The company also expands overseas through its Thai affiliate AMSCO, supplying materials to a broad customer base ranging from food and beverage manufacturers to the paper, cosmetics, and pharmaceutical industries.
Business Model
Corn is processed via wet milling to achieve integrated production of starch, saccharified products, fine chemicals, and by-products, enabling highly efficient use of raw materials. Sales are centered on the distributorship agreement with Mitsubishi Corporation in place since 1961, with sales through the company accounting for approximately 15.6% of total sales. The company aims for a structure that balances stable earnings with room for growth by operating high-value-added Solutions businesses (functional saccharides, environmentally friendly materials, etc.) alongside the Primary business for general-purpose materials.
Company Strengths
As the pioneer that first launched a corn wet-milling business in Japan, the company has accumulated over 70 years of manufacturing know-how. With a two-plant system in Fuji and Mizushima and technological assets such as the practical development of proprietary enzymes, it possesses a technical foundation enabling proposal-based sales to customers across diverse fields including food, paper manufacturing, cosmetics, and pharmaceuticals.
Since 1961, the company has maintained a product sales agency agreement with Mitsubishi Corporation for over 60 years. In FY2026 (ending March 2026), sales to Mitsubishi Corporation reached ¥9,827 million (15.6% of total sales), securing access to a broad customer network both domestically and overseas. This long-term contractual relationship represents a structural advantage that is difficult for competitors to replicate in a short period.
At the end of FY2026 (ending March 2026), the equity ratio stood at 59.6%, up 2.9 percentage points year on year, with total net assets of ¥30,180 million. Short-term borrowings were reduced by ¥2,730 million, compressing the outstanding borrowings balance to ¥8,000 million. The company has also implemented stable dividends targeting a DOE of 2.5% or more, along with the retirement (1,457,132 shares) and acquisition of treasury shares, achieving a balance between financial discipline and shareholder returns.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥64,612 million in FY2023, then moved sideways: ¥66,676 million in FY2024 → ¥62,697 million in FY2025 → ¥62,993 million in FY2026. Operating profit fell sharply from ¥3,540 million in FY2023 to ¥2,563 million in FY2024 and ¥1,200 million in FY2025, before turning to a slight increase to ¥1,251 million in FY2026. However, ordinary profit declined from ¥1,914 million to ¥1,568 million, due to equity-method investment income being nearly halved (from ¥698 million to ¥374 million) and an increase in interest expenses (from ¥44 million to ¥97 million). As external factors, the Chicago corn market averaged around 431 cents for the full year, while the yen continued to depreciate, averaging around ¥150 for the full year, pushing up raw material costs. On the other hand, recovering demand from the food service industry and increasing inbound tourism supported the Starch Products segment (up 2.0% year on year). For FY2027 (ending March 2027), the company forecasts revenue of ¥65,500 million (up 4.0%) and ordinary profit of ¥2,000 million (up 27.5%), citing an increase in equity-method income driven by the recovery in performance of overseas affiliates as the main factor.
Growth Strategy
Under the Medium-Term Management Plan 2027, the company aims to improve profitability through three pillars: expanding sales in the solutions field, overseas expansion, and improving capital efficiency
The company is promoting market development for the functional saccharide 'Megalorink' (slowly digestible saccharide) and the decarbonization material 'StarCross 70PPi' (containing 70% starch). New application development is progressing in food, cosmetics packaging, and automotive interiors, with product development and customer evaluation advancing steadily. This is positioned as a key revenue growth driver for FY2027 (ending March 2027).
The company aims to achieve earnings recovery through cost improvements at AMSCO in Thailand, targeting a recovery in equity-method investment income, which fell to ¥374 million in FY2026 (ended March 2026). This is explicitly cited as a major factor behind the projected ordinary income of ¥2,000 million for FY2027 (ending March 2027).
The company is advancing a review of its earnings structure and optimization of facilities under the Medium-Term Management Plan 2027. Capital expenditure for property, plant and equipment acquisition in FY2026 (ended March 2026) was significantly reduced to ¥2,570 million from ¥5,515 million in the previous fiscal year. Construction in progress has accumulated to ¥1,110 million, with investment underway aimed at improving production efficiency from the following fiscal year onward.
Under the Medium-Term Management Plan 2025-2027, the company has set a dividend policy targeting a DOE (dividend on equity ratio) of 2.5% or higher, and in FY2026 (ended March 2026) achieved a DOE of 2.4% with an annual dividend of ¥145. The company also retired 1,457,132 treasury shares and acquired 77,500 shares, aiming to improve capital efficiency. For FY2027 (ending March 2027), an annual dividend of ¥150 (DOE of 2.5%) is forecast.
Last updated: July 19, 2026