AFC-HD AMS Life Science Co.,Ltd

Business Details

The core business of AFC-HD, engaged in the manufacturing and sale of health foods and cosmetics as well as OEM supply. The OEM Division mainly handles orders from store-based retailers such as drugstores and mail-order businesses. The In-house Product Sales Division operates through three channels: domestic mail order (functional foods with health claims), domestic store sales, and overseas sales (promoting the switch to Halal-certified products). The group incorporates R&D, information dissemination, and overseas sales functions in-house, building an integrated system from planning through to sales.

Recent Overview

Net sales rose 103.0% YoY, but operating income declined to 86.4% YoY.

For the nine months ended Q3 FY2026 (ending August 2026) (September 2025 to May 2026), the Healthcare Business recorded net sales of ¥14,798 million (103.0% YoY) and operating income of ¥1,700 million (86.4% YoY). While the OEM Division and in-house product mail order performed well, overseas division net sales fell sharply to ¥2,429 million from ¥3,348 million in the prior-year period, pressuring profit. The company is strengthening its structure through the switch to Halal-certified products and an increase of 3 sales staff, and aims for Q4 to stabilize orders for overseas beauty products and increase the number of mail-order subscription members.

Key Products

Growth Drivers

• Continued strong orders from drugstores and EC malls in the OEM Division (cumulative OEM Division sales for the nine months ended Q3 FY2026 were 112.1% YoY)
• Expansion of the subscription customer base for functional foods with health claims in mail order (steady growth in subscription purchase numbers from internet orders)
• Expansion of overseas sales to Islamic regions through Halal certification (structure strengthened with 3 additional sales staff)
• Improved productivity and labor savings through an automatic tablet collection machine (installed November 2025) and a PTP automatic packaging machine (scheduled for installation August 2026)
• Uplift in domestic store sales due to increasing inbound demand

Risks

• Demand volatility risk in overseas sales (Asian region) (cumulative overseas division sales for the nine months ended Q3 FY2026 fell sharply to 72.6% YoY)
• Intensifying new entrants from other industries and price competition in the health food industry
• Difficulty in differentiation due to shared raw material suppliers with competitors
• Risk of domestic market contraction due to Japan's declining population
• Risk of customer concentration and order fluctuation associated with the OEM contract manufacturing model