Lacto Japan Co., Ltd.
3139・Prime Market・Wholesale Trade
Business
Lacto Japan Co., Ltd. is an independent food specialty trading company established in 1998. The company imports and wholesales dairy raw materials (dairy ingredients and cheese), meat and processed meat products, and functional food ingredients (such as high-protein raw materials) to domestic food manufacturers. It also manufactures and sells cheese and sells dairy raw materials locally through its network of subsidiaries and affiliates spanning 10 countries and regions in Asia, centered on Singapore. Its main customers span a wide range of sectors, including domestic dairy, ham and sausage manufacturers, restaurant companies, food supermarkets, and the sports nutrition and beauty/health industries. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Purchase contracts and sales contracts are concluded during the same period, and forward foreign exchange contracts are utilized for foreign-currency-denominated trade payables, thereby securing margins while avoiding commodity price and exchange rate risks. Domestic wholesale operations are fundamentally based on a trading company model centered on working capital turnover, but the Asian subsidiaries also engage in the manufacture and sale of process cheese under the "FOODTECH" and "CHOOSY" brands, incorporating manufacturing-type value-added earnings as well. The company has secured a commitment line of ¥36.0 billion in total with 7 main partner financial institutions, enabling it to respond flexibly to working capital needs arising from business expansion.
Company Strengths
As an independent specialized trading company, it is not constrained by affiliation with major group keiretsu on either the supplier or customer side, giving it the flexibility to transact with any company. Leveraging this strength, the Dairy Ingredients and Cheese segment alone recorded net sales of ¥118,679 million in FY2025 (ended November 2025), and the company maintains a high share of domestic cheese imports.
The Functional Food Ingredients segment (now the Life Science segment), launched in April 2020 as the Business Development Division, achieved sales volume of 7,073 tons (up 68.4% year on year) and net sales of ¥9,594 million (up 86.6% year on year) in FY2025 (ended November 2025). In Q1 of FY2026 (ending November 2026), sales volume continued to expand rapidly, up 73.5% year on year.
The company operates subsidiaries and affiliates in Singapore, Malaysia, Thailand, Indonesia, the Philippines, China, and elsewhere. Its Singapore plant has continuously received the top
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, rising from ¥110,884 million in FY2021 to ¥182,816 million in FY2025. In the interim period of FY2026 (ending November 2026), revenue remained on a growth trend at ¥97,866 million (up 2.7% year on year), but the growth rate decelerated. On the profit side, after recording record-high operating profit of ¥5,947 million and net profit of ¥4,317 million in FY2025, the current interim period saw a sharp slowdown, with operating profit of ¥2,781 million (down 22.1% year on year) and net profit of ¥1,748 million (down 37.5% year on year). External factors included sluggish demand for imported dairy raw materials due to an increase in domestic skim milk powder inventories, and a decline in cheese demand due to rising dairy product prices. On the other hand, the continued weak yen has pushed up selling prices per unit, supporting revenue.
Growth Strategy
Advancing the medium-term management plan "NEXT-LJ 2028," which aims to evolve the company into a "diversified food company."
In addition to milk-derived high-protein raw materials, the company has expanded its product lineup to include soy protein and other functional ingredients. It is deepening its business model of providing integrated support from raw material procurement to contract manufacturing and packaging materials, thereby expanding its customer base. In the current interim period, the company achieved strong growth, with sales volume up 40.4% year-on-year and revenue up 67.1% year-on-year.
The company plans to build a new plant in Singapore to strengthen production capacity for cheese manufacturing and sales for the Asian market. In the current interim period, the start of operations has been pushed back from the initial plan for the start of the fiscal year, and the recognition of related expenses has also been carried over to the second half. Once operational, the plant is expected to strengthen the company's competitiveness in the Southeast Asian market.
By updating the head office's core systems, the company aims to streamline business processes and develop a data utilization infrastructure. In the current interim period, the launch timing has been pushed back, and related expenses are expected to be concentrated in the second half. Head office relocation costs also contributed to the increase in SG&A expenses during the current interim period.
Despite the headwind of the suspension of pork imports from Spain, the company secured alternative procurement from suppliers in other countries, increasing sales volume of frozen pork. It is simultaneously pursuing expansion of its product lineup beyond pork—such as processed chicken products and spices—and the acquisition of new customers. In the current interim period, the company achieved sales volume growth of 3.3% year-on-year and revenue growth of 2.9% year-on-year.
Last updated: July 17, 2026