ASAHIMATSU FOODS CO.,LTD.

Business Details

The sole reportable segment of the Asahimatsu Foods Group. Comprised of three divisions: Frozen Tofu (industry-leading market share brand "Shin Asahi Tofu"), Processed Foods (Instant Miso Soup, etc.), and Other Foodstuffs (Medical-use Food Ingredients, etc.). Major sales destinations are Mitsubishi Corporation (53.1% of net sales) and Mitsui & Co. (9.0% of net sales). The business is centered on the domestic market, with the Tenryu Plant and Takamori Plant serving as its main production bases. In FY2026 (ending March 2026), a decline in sales volume due to the impact of price revisions affected all divisions, resulting in a significant year-on-year decrease in both net sales and operating profit.

Recent Overview

All divisions saw declining sales due to the impact of price revisions, with operating profit deteriorating sharply, down 61.1% year on year

In FY2026 (ending March 2026), sales volume declined across all divisions due to the impact of multiple price revisions implemented in prior periods, resulting in net sales of ¥7,686 million (down 4.1% year on year). Amid continued high levels of raw material and energy prices as well as rising logistics and labor costs, the company continued rationalization and cost-reduction efforts, but was unable to fully absorb the increase in manufacturing costs, causing operating profit to fall sharply to ¥87 million (down 61.1% year on year). On the other hand, the company transferred its equity interests in overseas subsidiaries (Qingdao Xusong Kangda Foods Co., Ltd. and one other company) to a joint investor, recording a gain on transfer of investments in affiliates of ¥164 million as extraordinary income, which limited the decline in net income to 3.4%. For FY2027 (ending March 2027), the company forecasts net sales of ¥7,800 million (up 1.5% year on year) and operating profit of ¥120 million (up 36.7% year on year).

Key Products

Growth Drivers

• Stable expansion of demand for medical-use food ingredients (foods for people with dysphagia) from long-term care and medical facilities, along with improved quality and safety through the introduction of the latest manufacturing equipment
• Enhancement of brand value through appeal to the health functionality of frozen tofu (resistant protein, etc.) and market expansion through proposals for new applications (such as karaage)
• Differentiation and improved profitability in the Processed Foods division through thorough per-item profitability management and continuous introduction of new value-oriented products
• Capturing new demand through the development of overseas sales channels (expansion of frozen tofu into Western markets)
• Improved profitability through capital investment aimed at productivity improvement (acquisition of tangible fixed assets of ¥501 million) and containment of raw material procurement and logistics costs
• Enhanced added value and extended shelf life through initiatives aligned with the SDGs (reduction of food loss, use of high-oleic-acid soybeans, etc.)

Risks

• Continued decline in sales volume due to the impact of price revisions implemented in prior periods (all divisions experienced declining sales in FY2026, ending March 2026)
• Increased manufacturing costs due to sustained high levels of imported raw material and energy prices as well as rising logistics and labor costs (operating profit margin fell to 1.1%)
• Risk of demand contraction due to growing consumer thrift consciousness
• Risk of sales concentration in Mitsubishi Corporation (53.1% of net sales) (dependence on a specific customer)
• Long-term downward trend in the frozen tofu market due to diversification of diets and population decline
• Fluctuations in raw material procurement costs due to US trade policy, concerns over the Chinese economic outlook, geopolitical risks (Eastern Europe, the Middle East), and currency fluctuations
• Reduction in sales scale due to the deconsolidation of overseas subsidiaries (Qingdao Xusong Kangda Foods Co., Ltd. and one other company)