WARABEYA NICHIYO HOLDINGS CO.,LTD.
2918・Prime Market・Foods
Business
Warabeya Nichiyo Holdings is a holding company group centered on its food-related business, which primarily manufactures and sells ready-made foods (rice dishes, prepared breads, prepared noodles, deli items, Japanese confections, etc.) for convenience stores. The group also operates a food-material-related business handling the procurement, processing, and sale of food ingredients, and a logistics-related business handling food delivery. Domestically, it maintains production facilities spanning a wide area from Hokkaido to the Kansai and Shikoku regions, and it also has operational bases overseas in the United States (Hawaii, Texas, Virginia, Ohio) and China (Beijing, Tianjin). Its principal customers are franchise and directly operated stores of Seven-Eleven Japan, which accounted for 75.1% of sales in FY2025 (ended February 2025). Since beginning transactions with Seven-Eleven in 1978, the company has deepened its business over roughly half a century as a specialized supplier of prepared foods ("chushoku").
Business Model
The group has a vertically integrated earnings structure that handles ingredient procurement (ingredient-related business), manufacturing (food-related business), and delivery (logistics-related business) consistently within the group. The core food-related business accounts for approximately 90% of net sales, while the ingredient and logistics businesses complement earnings by capturing demand from within the group. The company employs a build-to-order production system in which products are manufactured and shipped on the day of order receipt or the following day, minimizing inventory risk while securing stable sales. Capital expenditures are funded through internal funds and borrowings from financial institutions, and fund efficiency is enhanced through a CMS (cash management system).
Company Strengths
The company has maintained an exclusive supplier relationship with Seven-Eleven Japan for approximately half a century since transactions began in 1978. Sales to Seven-Eleven Japan in FY2025 (ended February 2025) totaled ¥167,037 million, accounting for 75.1% of total sales, forming a stable order base.
Both Warabeya Nichiyo Foods and Warabeya Delica have obtained certification of conformity to the JFS-B standard, a HACCP-based food safety management system, at all domestic plants (with the newly established Iruma Plant currently under application). The company has established Quality Assurance Departments and Quality Control Departments across the group, institutionally organizing its hygiene management system.
The Food Ingredients-Related Business (Nichiyo Co., Ltd. and Nichiyo Fresh) supplies raw materials such as onigiri fillings to the Food-Related Business, while the Logistics-Related Business (Bestrans) handles product delivery, forming a vertically integrated structure. In FY2026 (ending February 2026), the Food-Related Business posted sales of ¥209,984 million and segment profit of ¥7,000 million, with the scale effects of group collaboration contributing to earnings.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive periods, from ¥192,326 million in FY2022 to ¥233,833 million in FY2026. Operating profit fluctuated significantly in line with the factory investment cycle, falling to ¥4,515 million in FY2025 before recovering sharply to ¥7,441 million in FY2026. However, in Q1 of FY2027 (ending February 2027) (March–May 2026), while revenue increased to ¥58,354 million (up 1.5% year on year), maintaining the growth trend, operating profit decelerated sharply to ¥1,653 million (down 26.4% year on year). Amid continued external pressures from rising raw material prices and labor costs, the recording of ¥139 million in costs related to the suspension of operations at the Sapporo plant directly hit profits. The full-year earnings forecast (revenue of ¥241,000 million, operating profit of ¥7,700 million) remains unchanged, based on an assumption of recovery in the second half.
Growth Strategy
Pursuing medium- to long-term growth through both optimization of the domestic production structure and the building of an overseas business foundation
Improvement in profitability at the Isesaki Plant was confirmed in Q1 FY2027 (ending February 2027). Meanwhile, the Sapporo Plant remains suspended, with ¥139 million in operation suspension-related costs recorded. Improving profitability on a plant-by-plant basis and optimizing the production structure remain ongoing challenges.
Reflecting the effect of freight rate revisions in the joint delivery business, operating profit in the logistics-related business for Q1 FY2027 (ending February 2027) was strong at ¥309 million (up 23.7% year on year). Progress has been made in passing through rising labor costs to prices, confirming an improvement in the profitability of the logistics business.
Sales in the U.S. for the food-related business were ¥6,586 million in Q1 FY2027 (ending February 2027), a slight decrease from ¥6,841 million in the same period of the previous year. The U.S. business accounts for approximately 12.6% of food-related business sales, and continued development of the global business foundation is a pillar of the medium-term growth strategy.
Due to an increase in the transaction volume of processed chicken products and other items, sales in the food ingredients-related business for Q1 FY2027 (ending February 2027) rose 3.2% year on year to ¥2,806 million. However, due to rising procurement costs, operating profit fell 53.1% year on year to only ¥57 million, making improvement in profitability a challenge.
Last updated: July 17, 2026