Fujicco Co., Ltd.

Business Details

The company manufactures and sells six product categories: Prepared Foods Products, Kombu Products, Bean Products, Yogurt Products, Dessert Products, and Other Products. The domestic market accounts for the majority of sales, with supermarkets as the main sales channel. Under the 2025-2027 Medium-Term Management Plan, kombu, beans, and yogurt are positioned as core businesses, with a target of consolidated net sales in the ¥60 billion range and an operating margin of 5% or higher for FY2028 (ending March 2028). The company is also developing its overseas business foundation through expansion into Thailand.

Recent Overview

Despite lower sales, operating profit rose 29.7% through cost control, and overseas expansion began with entry into Thailand

In FY2026 (ending March 2026), net sales decreased to ¥55,534 million (down 2.7% year on year), but through curtailed advertising investment and enhanced cost control, selling, general and administrative expenses were reduced to ¥14,318 million (from ¥15,355 million in the prior period), achieving operating profit of ¥1,466 million (up 29.7% year on year). Net profit rose to ¥1,428 million (up 50.1% year on year), aided by a decrease in corporate taxes due to the deductibility of the valuation loss on shares of affiliated companies associated with the transfer of FP Co., Ltd. shares. The company established FUJICCO FOODS ASIA CO., LTD. in Thailand and made FB Food Service (2017) Co., Ltd. a subsidiary (deemed acquisition date: December 31, 2025); for the current fiscal year, only the balance sheet was consolidated. Portfolio restructuring was also completed through the full transfer of FP Co., Ltd. shares and the absorption-type merger of Fujicco NEW Delica. Due to an increase in inventories (¥2,417 million) and other factors, operating cash flow declined significantly to ¥1,650 million compared to the prior period.

Key Products

Growth Drivers

• Strengthening the Kombu Products brand: stimulating demand through promotional campaigns marking the 55th anniversary of "Fujikko-ni" and the 60th anniversary of salted kombu "Fujikko," along with the introduction of new products for rice ball applications
• Cultivating Yogurt Products as the third growth pillar: strengthening production capacity and quality improvements for "Caspian Sea Yogurt Richmo Plain" and expanding niche market share through the penetration of the unique value of "Caspian Sea Lactobacillus (Lactococcus lactis subsp. cremoris strain FC)"
• Continued improvement in profitability through ongoing advertising and expense control (in FY2026 (ending March 2026), selling, general and administrative expenses were reduced by ¥1,037 million year on year, achieving an operating margin of 2.6%)
• Development of overseas business foundation and transition to a self-sustaining growth phase through the subsidiarization of FB Food Service (2017) Co., Ltd. in Thailand (to be reflected in profit and loss from the next fiscal year onward)
• Responding to market contraction and creating new demand through rebranding of Bean Products from a focus on sweet simmered beans to a comprehensive bean brand, marking the 50th anniversary of "Omame-san"
• As the second year of the 2025-2027 Medium-Term Management Plan, promoting measures to achieve the target of net sales in the ¥60 billion range and an operating margin of 5% or higher for FY2028 (ending March 2028), based on a review of the basic policy reflecting the results and challenges of the first year

Risks

• Continued upward pressure on raw material, labor, and logistics costs poses an ongoing risk of profit compression
• Risk of declining sales volume due to continued consumer frugality amid rising prices (Prepared Foods, Dessert, and Bean Products continued to see declining sales year on year)
• Market contraction due to Japan's declining population and low birthrate (a downward trend has become apparent particularly in the simmered bean market)
• Inventory risk and deterioration of operating cash flow due to a significant increase in inventories (up ¥2,417 million year on year) (operating cash flow declined from ¥4,485 million in the prior period to ¥1,650 million in the current period)
• Uncertain impact on business performance from the two Thai companies (FB Food Service and FUJICCO FOODS ASIA), as their profit and loss will only be reflected from the next fiscal year onward, along with uncertainty regarding the final determination of goodwill (¥321 million)
• Risk of business scale contraction (Prepared Foods Products sales declined ¥1,408 million year on year) and the need to rebuild the profit base following business restructuring associated with the transfer of FP Co., Ltd. shares and the absorption-type merger of Fujicco NEW Delica
• Uncertain management environment due to overseas economic uncertainty and geopolitical risks stemming from U.S. trade policy
• High dividend payout ratio of 91.7%, constraining the ability to maintain dividends in the event of a business downturn