Pharma Foods International Co., Ltd.

Business Details

Business operated by the Company (Pharma Foods) and Meiji Yakuhin Co., Ltd. In addition to selling functional materials, led by the core material PharmaGABA, to major domestic beverage and food manufacturers as well as supplement and beverage manufacturers in North America and Thailand, the segment also engages in OEM and distribution sales of in-house brand products (NB), and Meiji Yakuhin Co., Ltd. conducts pharmaceutical contract manufacturing (CMO Business) and drugstore channel sales (CHC Business). While overseas sales channel development is progressing against the backdrop of an expanding functionally labeled food market, the CMO Business contracted year on year.

Recent Overview

Revenue declined 4.7% year on year due to CMO contraction, but CHC and Functional Products continued high growth

For the cumulative third quarter of FY2026 (ending July 2026) (August 2025 to April 2026), BtoB Business revenue was ¥5,560 million (down 4.7% year on year), and segment profit was ¥858 million (down 2.7% year on year). While the CMO Business contracted significantly to ¥1,905 million (down 25.1% year on year), the CHC Business grew to ¥1,042 million (up 32.3% year on year) and Functional Products grew to ¥668 million (up 32.1% year on year), both showing high growth. PharmaGABA continued to expand its sales network in North America and Thailand, and preparation for US FDA GRAS certification entered its final stage.

Key Products

Growth Drivers

• Global sales channel expansion of the functional material PharmaGABA through increased exports to North American supplement manufacturers and new adoption by a Thai beverage manufacturer
• Expected sales expansion in the North American functional food and beverage market as preparation for US FDA GRAS certification advances to its final stage
• Domestic and overseas sales channel development of in-house brand products (NB) leveraging the network of ITOCHU Corporation
• Expanded distribution of new drink-type products such as "Neumo D" to general merchandise stores and drugstore chains
• Medium- to long-term expansion of pharmaceutical contract manufacturing (CMO) projects in anticipation of increased production capacity from Meiji Yakuhin Co., Ltd.'s new plant construction
• Rising health consciousness against the backdrop of the continued expansion of the functionally labeled food market

Risks

• Risk of downward pressure on overall BtoB Business revenue if the contraction of CMO Business contract projects continues
• Overseas sales of functional materials are exposed to foreign exchange fluctuation risk and the risk of intensifying competition in the North American market
• Risk to North American market expansion plans if US FDA GRAS certification is delayed or not obtained
• Expansion of distribution channels for in-house brand products carries the risk of increased shelf-securing and inventory management costs
• Risk of rising manufacturing costs due to soaring raw material and energy prices
• Risk of legal and regulatory changes related to functionally labeled foods (such as revisions to the Consumer Affairs Agency's notification system)