NATORI CO., LTD.
2922・Prime Market・Foods
Business
Natori Co., Ltd., founded in 1948 and headquartered in Kita-ku, Tokyo, is a food manufacturer specializing in otsumami (snacks paired with alcoholic drinks). The company develops a wide range of product lines, including dairy processed products led by its flagship brand Cheese Tara®, marine processed products, meat processed products, agricultural processed products, pocket-sized confectionery products, and chilled products, sold nationwide through retail channels such as convenience stores, supermarkets, and drugstores. Consolidated net sales were ¥48,584 million (FY2026, ending March 2026), with the food manufacturing and sales business accounting for 99.1% of sales. Major customers are food wholesalers and distributors, including Confex Co., Ltd. (16.2% of sales), Mitsubishi Shokuhin Co., Ltd. (14.3%), and Sanseiya Co., Ltd. (10.9%). Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Products are manufactured at in-house group factories, including the Saitama Plant, Saitama No. 2 Plant, Hakodate Natori, and Meihoku Foods, and sold to retail stores nationwide through food wholesalers and distributors. The company employs a make-to-forecast production method, with inventory management and inventory turnover improvement serving as key drivers of profitability. The real estate leasing business (sales of ¥430 million, operating margin of 70.5%) functions as a stable, high-margin revenue source, forming a two-pillar structure that offsets fluctuations in the food business's profitability.
Company Strengths
Cheese Tara®, which began production in February 1982, marked its 40th anniversary of launch in 2022, having received the Japan Food Journal's "Long Seller Award" (2015) and a Monde Selection Gold Award. In December 2022, the company registered "Cheese Tara® Day (February 23)" with the Japan Anniversary Association and has since conducted annual events and nationwide in-store promotions. Sales of dairy processed products continued to grow, reaching ¥9,488 million in FY2026 (ending March 2026), up 6.7% year on year, with brand strength underpinning sales volume.
The Saitama Plant and Saitama Plant No. 2 obtained FSSC22000 food safety management system certification in February 2018, with Meihoku Foods, Hakodate Natori, and Zenchin subsequently obtaining certification as well. The Comprehensive Food Laboratory handles three functions—product development, product evaluation, and fundamental research—and collaborates with external institutions such as the Tokyo University of Agriculture's Food Safety Research Center. R&D expenses of ¥697,721 thousand (FY2026, ending March 2026) were invested, achieving both safety/reliability and product development capability.
The equity ratio at the end of FY2026 (ending March 2026) stood at 65.0% (up 1.9 percentage points year on year), with net assets of ¥27,677 million. Progress in repaying borrowings reduced total liabilities to ¥14,907 million. Operating cash flow was ¥1,675 million (a significant improvement from ¥342 million in the previous fiscal year), and free cash flow secured was ¥1,187 million. The company maintains financial soundness through a funding policy centered primarily on internal capital.
ENVALITH's Perspective
Performance Trend
Revenue trended sideways, moving from ¥47,579 million in FY2024 (ended March 2024) to ¥48,893 million in FY2025 (ended March 2025) and to ¥48,585 million in FY2026 (ending March 2026). Operating profit peaked at ¥2,125 million in FY2024 (ended March 2024), then declined for two consecutive periods to ¥1,969 million in FY2025 (ended March 2025) and ¥1,890 million in FY2026 (ending March 2026). External factors such as soaring raw material prices, particularly squid, along with rising energy costs, logistics expenses, and labor costs, weighed on profits. Gross profit margin improved slightly from 21.1% to 21.3%, but the SG&A expense ratio rose from 17.1% to 17.4%, causing the operating margin to decline from 4.0% to 3.9%. Operating cash flow improved significantly year-on-year to ¥1,675 million.
Growth Strategy
Under the 6th Medium-Term Management Plan, 'Next Value up for 80,' the company is promoting the expansion of its snack-with-drinks business and the strengthening of profitability.
By continuously launching limited-edition products, collaboration products, and SNS co-developed products, combined with brand experience initiatives such as the Cheese Tara® Day event and product sampling, the company aims to appeal not only to the snack-with-drinks market but also to the snack/treat demand, thereby developing new customer segments. Dairy processed products showed results with a 6.7% year-on-year increase in FY2026 (ending March 2026).
The company will absorb cost increases by combining a shift in product mix toward higher-margin categories, changes in raw material sourcing regions and use of alternative raw materials, and price revisions for some products. For FY2027 (ending March 2027), operating profit is planned at ¥2,150 million (up 13.7% year on year), with the penetration of price revisions being key to achieving this.
The company is implementing company-wide adoption of 1-on-1 meetings, enhancing mental health consultation services and employee benefit programs, and improving training programs and qualification support for employees up to their ninth year with the company. It will continue forward-looking investments, including wage increases to secure talent, aiming to improve productivity and prevent turnover.
The company is promoting CO2 reduction through continued solar power generation at three plants and expansion of the modal shift area in logistics. Following the conclusion of the previous FY2025 targets, new targets through FY2030 have been established. Factory tours at the Saitama No. 2 Plant had welcomed a cumulative total of over 2,000 visitors by the end of March 2026, becoming an established social contribution activity.
Last updated: July 19, 2026