BASE FOOD, Inc.
2936・Growth Market・Foods
Business
BASE FOOD, Inc. operates under the mission of "Innovating staple foods to make health a given." The company develops and sells a lineup of complete-nutrition staple food products (BASE BREAD, BASE Cookies, BASE PASTA, BASE Pancake Mix, and BASE YAKISOBA), each providing one-third of the 33 essential nutrients required daily in a single meal. Manufacturing is outsourced under a fabless model. The primary customer base consists of health-conscious, time-conscious dual-income households, and the company's business is centered on a subscription model via its own e-commerce platform, complemented by sales through third-party e-commerce channels (Amazon, Rakuten, etc.) and a wholesale distribution channel covering 50,717 stores nationwide. Founded in 2016, the company listed on the TSE Growth Market in November 2022. Cumulative unit sales reached 200 million bags as of June 2024.
Business Model
The core of revenue is subscriptions (regular purchase) on the company's own e-commerce site, accounting for approximately 99% of orders placed through the company's own EC. Regular delivery once every four weeks improves demand forecasting accuracy and secures stable revenue. Wholesale sales (50,717 stores nationwide) and third-party EC (Amazon, Rakuten, etc.) play a role in expanding product awareness and trial experience while driving traffic to the company's own EC, forming a structure in which the three channels complement one another. Manufacturing is fabless, which limits fixed asset investment. The company achieved its first full-year profit in FY2025 (ended February 2025).
Company Strengths
The churn rate for the company's own e-commerce channel declined from 7.9% in Q1 FY2024 (ending February 2024) to 4.2% in Q4 FY2025 (ending February 2025), marking a record low. The price revision (August 2024) and product renewal proved effective, with LTV reaching a record high, up 86.8% year-on-year. Subscription membership stood at 217 thousand at period-end, and the cumulative number of repeat purchasers surpassed 1 million.
In the first half of FY2025 (ending February 2025), the company carried out a full renewal of BASE BREAD, achieving improvements in dough texture and flavor as well as enhanced bacteriostatic properties simultaneously. Cost reduction measures through changes in raw material formulation proved effective, with cost of sales decreasing 8.2% year-on-year to ¥6,861 million, and gross profit improving from ¥7,398 million to ¥8,381 million.
The company suppresses fixed asset investment through a fabless system that outsources manufacturing. Its D2C model for its own e-commerce channel enables direct collection of customer feedback and purchasing data, which is used in product development and improvement. With 42 R&D personnel and R&D expenses of ¥540 million (FY2025, ending February 2025), the company has achieved new product launches and continuous renewals.
ENVALITH's Perspective
Performance Trend
The revenue trend over the past five fiscal years shows decelerating growth: ¥9,858 million in FY2023 → ¥14,874 million in FY2024 → ¥15,241 million in FY2025 → ¥15,192 million in FY2026. Cumulative revenue for the first quarter of FY2027 (ending February 2027) remained subdued at ¥3,976 million (up 0.8% year on year). Operating profit turned positive, reaching ¥137 million in FY2025 and ¥217 million in FY2026, but the first quarter of FY2027 (ending February 2027) saw a deterioration to an operating loss of ¥180 million (versus a loss of ¥79 million in the same period last year) due to increased advertising investment. There has been no change to the full-year earnings forecast (revenue of ¥16,256 million, operating profit of ¥62 million), which remains in line with the initial plan. As an external factor, changes in the advertising market environment are affecting investment efficiency; the company is strengthening investment this fiscal year while working to improve efficiency.
Growth Strategy
Accelerating market penetration of complete nutrition foods through three pillars: product renewals, channel diversification, and overseas expansion
Renewed BASE BREAD Chocolate and four varieties in the BASE YAKISOBA series, and rolled out multifaceted measures including TV commercial broadcasts and in-store promotional materials. Achieved a 7.4% year-on-year increase in May alone, marking a solid start toward the full-year plan.
Implemented reactivation measures targeting past churned customers through outbound calls combined with OMO integration between the company's own e-commerce channel and wholesale sales. Subscription membership expanded from 235 thousand at the end of the previous fiscal year to 256 thousand, with retention rate and LTV remaining at high levels.
Achieved top rankings on third-party e-commerce platforms across each product category, and net sales through third-party e-commerce in the first quarter of FY2027 (ending February 2027) increased significantly by 29.1% year on year. Diversification of revenue sources beyond the company's own e-commerce channel is progressing.
Sales in China are scheduled to launch during the second quarter (June to August 2026), with preparations currently underway. First-quarter overseas business net sales stood at ¥38 million, down 30.2% year on year due to strategic restraint on advertising spending, but a substantial revenue contribution is expected once the China rollout begins in earnest.
As of the end of the first quarter of FY2027 (ending February 2027), the number of stores carrying the products stood at 48,890 (recovering from 47,499 at the end of the previous fiscal year), and monthly sales per store improved to ¥6,772 (from ¥6,712 at the end of the previous fiscal year). Improved weekly sales performance in the convenience store channel since the renewal has been confirmed, and the recovery trend in wholesale sales continues.
Last updated: July 17, 2026