ROCK FIELD CO.,LTD

Business Details

The Group is a single-segment company engaged in the manufacture and sale of prepared foods. It operates seven brands—"RF1," "Green Gourmet," "Itohan," "Kobe Croquette," "Yugo," "Vegeteria," and "Umi & Yama Kitchen"—in department stores, station buildings, and similar locations. Its strength lies in an integrated production-and-sales model spanning from manufacturing to retail, offering salads, fried foods, Japanese and Western prepared dishes, croquettes, fresh juices, and more. The company also operates wholesale (external sales) and e-commerce channels, and is promoting expansion into the frozen food category through its frozen food brand "RFFF (Rufufu)."

Recent Overview

Despite flat sales, operating profit fell sharply by 37.2% year on year due to rising labor and depreciation costs

For FY2026 (ending April 2026), net sales were ¥51,096 million (down 0.2% year on year), essentially flat, but selling, general and administrative expenses expanded to ¥28,518 million (from ¥28,145 million in the prior year) due to increased part-time personnel costs from rising hourly wages and higher depreciation expenses associated with store point-of-sale register replacements. As a result, operating profit fell sharply to ¥780 million (down 37.2% year on year) and ordinary profit to ¥800 million (down 38.5% year on year). The company recorded extraordinary losses including an impairment loss of ¥249 million and, in connection with the dissolution of its overseas consolidated subsidiary Iwata (Shanghai) Catering Management Co., Ltd., a loss on liquidation of affiliated company of ¥53 million and a provision for allowance for doubtful accounts of ¥5 million, resulting in net income of only ¥98 million (down 69.9% year on year). In October 2025, the company opened the first store of its new brand "Umi & Yama Kitchen" at Grand Front Osaka. For FY2027 (ending April 2027), the company expects net sales of ¥52,160 million (up 2.1% year on year), while forecasting a further decline in operating profit to ¥531 million (down 32.0% year on year).

Key Products

Growth Drivers

• Expansion of the wholesale (external sales) channel: wholesale sales for FY2026 (ending April 2026) reached ¥833 million (up 113.2% year on year), continuing strong growth, driven by an increase in new business partners and the number of stores carrying products
• Rollout of the new brand "Umi & Yama Kitchen": opened its first store at Grand Front Osaka in October 2025, expanding into new market territory under the concept of "traveling through Japan through food"
• Strengthened product development and promotion through a business alliance with Kagome Co., Ltd. (March 2025): rollout of special products for events such as "Vegetable Day" and "Aisai Day"
• Growth in RF1's "other prepared foods" category: sales for FY2026 (ending April 2026) were ¥8,976 million (up 106.0% year on year), continuing to perform well
• Diversification of earnings through EC and wholesale channels via expanded product lineups and increased distribution points for the frozen food brands "RFFF (Rufufu)" and "Kobe Croquette"
• "Improving profitability of existing business formats" under the second phase of the medium-term management plan "Vision 2030": profitability improvement through product design and pricing reviews and manufacturing process improvements
• Introduction of a progressive dividend policy (consolidated payout ratio of 40% or more, with maintenance or increase) to enhance shareholder returns

Risks

• Rising cost of sales ratio due to persistently high raw material prices and yield deterioration in leafy vegetables and similar items caused by weather conditions
• Structural increase in SG&A expenses from rising part-time personnel costs due to minimum wage increases (higher hourly wage rates): expected to remain a major factor reducing profit in FY2026 (ending April 2026) as well
• Increased depreciation expenses associated with store equipment renewal (point-of-sale registers, etc.): depreciation expenses for FY2026 (ending April 2026) expanded to ¥1,924 million (from ¥1,773 million in the prior year)
• Sluggish growth in store visitor numbers due to continued consumer thrift orientation (particularly at stores in regional and suburban areas): sales declined at Green Gourmet (95.7% of prior year) and Vegeteria (92.8% of prior year), among others
• Store closure risk associated with department store closures: closures of department stores have become a factor in declining sales at regional and suburban stores
• Risk of withdrawal from overseas operations: the Board of Directors resolved in May 2026 to dissolve the consolidated subsidiary Iwata (Shanghai) Catering Management Co., Ltd., resulting in complete withdrawal from operations in China
• Further decline in operating profit forecast for FY2027 (ending April 2027) (¥531 million, down 32.0% year on year): absorbing structural cost increases remains a medium-term challenge
• Risk of fluctuations in packaging material, energy prices, and logistics conditions due to geopolitical risks such as U.S. tariff policy and Middle East tensions