OHMORIYA Co., LTD.

Business Details

A single reporting segment operated by the Company's group (Omoriya itself and its consolidated subsidiary Omoriya (Shanghai) Trading Co., Ltd.). Domestically, the group manufactures and sells Household-use Nori, Gift Products, Furikake, etc., and Commercial-use Nori, while in China it sells Household-use Nori, Furikake, etc., and Commercial-use Nori. Major customers are Mitsubishi Corporation (net sales of ¥3,308 million in FY2025 (ended September 2025), 20.03% of total) and Itochu Corporation (¥3,178 million, 19.25%), with the two companies together accounting for approximately 40% of net sales.

Recent Overview

Through price revisions and a review of sales measures, the interim period turned profitable, reversing the prior-year interim loss

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), net sales declined to ¥8,250 million (down 2.3% year on year); however, price revisions and a review of sales measures reduced cost of sales to ¥7,124 million (from ¥7,452 million in the prior-year period), improving the gross profit margin. Operating profit of ¥122 million, ordinary profit of ¥103 million, and interim net profit of ¥142 million represented a turnaround to profitability from losses recorded in the same period of the prior year. In addition, a gain on sale of fixed assets of ¥125 million was recorded as extraordinary income. While the purchase price of raw nori materials remained below the level of the same period of the prior year, logistics costs, materials prices, and interest expenses (¥42 million, versus ¥13 million in the same period of the prior year) increased. There is no change to the earnings forecast from the figures announced on November 13, 2025.

Key Products

Growth Drivers

• Support for sales from the recovery in demand for Commercial-use Nori (up 3.5% year on year in cumulative Q2, net sales of ¥3,779 million)
• Improvement in gross profit margin through price revisions and a review of sales measures (cost of sales reduced from ¥7,452 million to ¥7,124 million year on year)
• Cost reduction effect from raw nori material purchase prices remaining below the level of the prior-year period
• Growth plan targeting full-year net sales of ¥18,000 million (up 9.0% year on year) and operating profit of ¥371 million
• Continued recovery in demand for commercial use driven by a recovery trend in the prepared-food and dining-out markets
• Maintenance and expansion of overseas sales channels through the Chinese market (Omoriya (Shanghai) Trading Co., Ltd.)

Risks

• Risk of decreased harvest volume and rising purchase prices of raw nori, the main raw material (driven by climate change and a decline in the number of nori-producing fishing households)
• Increase in manufacturing costs due to continued rises in logistics costs and material prices
• Decline in sales volume of Household-use Nori due to continued consumer thrift-oriented and low-price-oriented preferences (down 8.9% year on year in cumulative Q2)
• Customer concentration risk, with Mitsubishi Corporation and Itochu Corporation together accounting for approximately 39% of net sales
• Increased interest expense burden due to rising interest-bearing debt (interest expenses of ¥42 million in cumulative Q2, versus ¥13 million in the same period of the prior year)
• High level of interest-bearing debt, comprising short-term borrowings of ¥4,800 million and long-term borrowings (including current portion) of ¥2,990 million
• Risk of surging raw material and energy prices due to the situation in the Middle East
• Long-term risk of contraction in the domestic food market due to the declining birthrate and aging population