KENKO Mayonnaise Co.,Ltd.
2915・Prime Market・Foods
Seasonings & Processed Foods Business
The core business of Kewpie Mayonnaise, accounting for approximately 80% of consolidated net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (external customers, full year) | ¥73,434 million | ¥71,887 million | ↑ |
| Segment profit (full year) | ¥3,094 million | ¥3,894 million | ↓ |
| Segment profit margin | 4.2% | 5.4% | ↓ |
| Depreciation and amortization (full year) | ¥2,026 million | ¥1,696 million | ↑ |
| Increase in property, plant and equipment and intangible assets (full year) | ¥2,232 million | ¥681 million | ↑ |
Business Details
This segment manufactures and sells processed cooked foods (Salads & Prepared Foods), Mayonnaise & Dressings, and Processed Egg Products. Its main customers are commercial channels such as restaurants, mass retailers, and convenience stores, and the business is operated solely by Kewpie Mayonnaise Co., Ltd. Leveraging the technological strength cultivated through the industry's first refrigerated long-life salad, the segment focuses on commercial-use demand centered on bakeries and food service. In FY2026 (ending March 2026), external customer net sales reached ¥73,434 million, a 2.2% increase year on year, while segment profit declined 20.6% year on year due to sustained high egg prices and increased SG&A expenses, among other factors.
Recent Overview
Sales increased, but segment profit fell 20.6% year on year due to sustained high egg prices, increased SG&A expenses, and head office relocation costs.
In FY2026 (ending March 2026), external customer net sales grew to ¥73,434 million (up ¥1,546 million, or 2.2%, year on year), driven by growth in potato salad and Mayonnaise & Dressings for bakeries and food service. On the other hand, segment profit declined significantly to ¥3,094 million (down ¥800 million, or 20.6%, year on year), reflecting a combination of factors including the timing gap in price revisions, increased raw material costs from sustained high egg prices, higher SG&A expenses, and forward-looking investments including head office relocation costs. Capital expenditures rose substantially year on year to ¥2,232 million, maintaining an aggressive investment stance.
Key Products
Growth Drivers
- Increased sales volume of potato salad (1kg and small formats) driven by expanding demand from food service, mass retail, and convenience store channels
- Continued expansion of commercial-use demand for Mayonnaise & Dressings from bakeries and food service
- Strengthening of the profit base through price revision effects (profit margin recovery expected once timing gaps are resolved)
- Expansion of sales in existing businesses through a "Customer-IN" approach based on the revised medium- to long-term management plan
- Acceleration of overseas business development toward raising the overseas sales ratio (FY2035 target: 30%)
- Productivity improvement and overall optimization through promotion of BX (Business Process Transformation)
Risks
- Increased raw material costs due to sustained high egg prices (continuing as a major factor behind lower profit in FY2026 as well)
- Risk of rising raw material procurement costs due to international commodity market conditions for edible oils (soybean and rapeseed) and the continuing weak yen trend
- Risk of delayed cost pass-through due to timing gaps in price revisions
- Risk of supply constraints and sharp increases in raw material costs for Processed Egg Products due to renewed spread of highly pathogenic avian influenza
- Risk of increased SG&A expenses due to continued rises in labor and logistics costs and one-time costs such as head office relocation
- Risk of declining demand due to progress in in-house production by business partners (a precedent already seen in the Prepared Foods-Related Business, etc.)
Last updated: June 25, 2026