NATORI CO., LTD.
2922・Prime Market・Foods
Food Manufacturing and Sales Business
Core business manufacturing and selling food products centered on snacks for drinking (otsumami)
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥48,155 million | ¥48,464 million | ↓ |
| Operating profit | ¥1,587 million | ¥1,670 million | ↓ |
| Operating margin | 3.3% | 3.4% | ↓ |
| Depreciation and amortization | ¥1,056 million | ¥1,137 million | ↓ |
| Capital expenditures (increase in tangible and intangible fixed assets) | ¥997 million | ¥1,910 million | ↓ |
| Segment assets | ¥32,691 million | ¥32,495 million | ↑ |
Business Details
This segment manufactures and sells products across seven categories: seafood-based processed products, meat-based processed products, dairy-based processed products, agricultural processed products, pocket-sized confectionery products, chilled products, and other products. Net sales account for approximately 99% of consolidated total sales, making this the core segment. Major customers include wholesalers such as Mitsubishi Shokuhin, Yamaboshiya, Confex, and Takayama. The company is promoting product lineups that address snack (otsumami) demand as well as everyday snacking (oyatsu) needs, aiming to expand its market presence centered on branded products such as Cheese Tara®.
Recent Overview
Seafood products saw lower sales due to the impact of squid product price revisions, while dairy and agricultural products achieved substantial sales growth
In the Food Manufacturing and Sales Business for FY2026 (ending March 2026), net sales were ¥48,155 million (down 0.6% year on year) and operating profit was ¥1,587 million (down 4.9% year on year). Further increases in raw material prices, particularly for squid, along with higher energy, logistics, and labor costs, weighed on profit. On the other hand, dairy-based processed products (+6.7%), agricultural processed products (+11.6%), and pocket-sized confectionery products (+0.4%) achieved increased sales, reflecting ongoing improvement in the product mix.
Key Products
Growth Drivers
- Expanding demand for dairy-based processed products (Cheese Tara®) through continuous introduction of new flavors, collaboration products, and items developed jointly via social media
- Development of new customer segments by addressing not only snack (otsumami) demand but also everyday-snacking (oyatsu) demand
- Improved product mix through higher sales of agricultural processed products (e.g., the JOLLY PACK series) and pocket-sized confectionery products
- Improved product mix and profitability as price revisions for certain products take hold
- Expanded brand awareness for Cheese Tara® through brand experience initiatives such as Cheese Tara Day events and sampling at Ryogoku Kokugikan
Risks
- Rising cost of sales due to higher raw material prices, particularly squid, including the impact of yen depreciation
- Risk of temporary declines in sales volume following price revisions and content-volume changes
- Changing demand structure due to an aging customer base for delicacy (chinmi) products and a declining younger customer base amid Japan's low birthrate and aging population
- Rising selling, general and administrative expenses due to higher logistics costs, energy costs, and labor costs (wage increases)
- Risk of sharp foreign exchange fluctuations due to factors such as U.S. trade policy
Real Estate Leasing Business
A high-margin real estate leasing segment that serves as a stable source of earnings for the Natori Group
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥430 million | ¥428 million | ↑ |
| Operating profit | ¥303 million | ¥299 million | ↑ |
| Operating margin | 70.5% | 69.8% | ↑ |
| Segment assets | ¥4,093 million | ¥4,142 million | ↓ |
| Depreciation and amortization | ¥68 million | ¥70 million | ↓ |
Business Details
This is the business segment that leases real estate held by the Natori Group. It is one of the two reportable segments alongside the Food Manufacturing and Sales Business. Although net sales account for only about 0.9% of consolidated total sales, the operating margin is extremely high at approximately 70.5% (FY2026, ending March 2026), contributing to the stabilization of the Group's overall earnings. Segment assets stood at ¥4,093 million (as of the end of FY2026), with leased real estate accounting for the majority of these assets.
Recent Overview
Both net sales and operating profit increased modestly, with the operating margin improving to above 70%
In the Real Estate Leasing Business for FY2026 (ending March 2026), net sales were ¥430 million (up 0.3% year on year) and operating profit was ¥303 million (up 1.4% year on year), achieving both higher sales and higher profit. The operating margin improved from 69.8% in the prior period to 70.5%. Segment assets stood at ¥4,093 million, down ¥49 million from the end of the prior period. Depreciation and amortization was ¥68 million, down ¥2 million year on year, contributing to the increase in profit. The increase in tangible and intangible fixed assets was ¥19 million, up from ¥1 million in the prior period, indicating that some equipment renewal took place.
Key Products
Growth Drivers
- Continued rental income from the stable operation of existing leased real estate
- Maintenance of a high profit margin through an asset-light model requiring almost no capital expenditure
- Profit-boosting effect from the gradual decline in depreciation and amortization expense
Risks
- Risk of vacancies in leased properties and risk of declining rents
- Possibility of future repair and renewal investment due to the aging of held real estate
- Risk of impairment of fixed assets
- Limited impact on overall Group performance given the segment's small scale (approximately 0.9% of consolidated net sales)
Last updated: July 17, 2026