O'will Corporation

Business Details

The company procures beverage and food manufacturing raw materials (vitamins, food additives, sterilized milk, Processed Agricultural Products, Beverage Products, etc.) and Environment-related Products (wastewater purification plants, large ceiling fans, Commercial Heaters, etc.) both domestically and internationally, and supplies them stably to food manufacturers and others. The main customer is Itoen, Ltd. (sales of ¥6,370 million for the fiscal year under review). This is the core segment, accounting for approximately 84% of the Group's external sales, with Processed Agricultural Products, Food Sub-ingredients, and dairy products as the mainstay categories. The newly consolidated Axeltech Co., Ltd. also contributed to performance.

Recent Overview

Sales increased 1.7% year on year, driven by the contribution of the newly consolidated Axeltech and strong performance in food raw materials and environment-related products

Wholesale Business sales for FY2026 (ending March 2026) were ¥35,368 million (up 1.7% year on year). Sales of Food Sub-ingredients, dairy products, and processed agricultural products all increased year on year, with acai demand remaining strong. In Environment-related Products, shipments of large ceiling fans for logistics facilities grew significantly. The newly consolidated Axeltech Co., Ltd. also contributed to performance. Segment operating profit was ¥1,029 million (up 2.4% year on year), securing an increase in profit. On the other hand, sales to the main customer Itoen decreased to ¥6,370 million from ¥6,819 million in the previous fiscal year.

Key Products

Growth Drivers

• Increased sales of processed agricultural products (acai, fruit juice, tea leaves, etc.): rising health consciousness among consumers boosted demand, resulting in a substantial year-on-year increase in food raw material sales
• Increased sales of Food Sub-ingredients (sugars, flavorings, etc.) and dairy products (fresh cream, butter, etc.): success in deepening relationships with existing business partners and developing/promoting new products
• Expansion of Environment-related Products: shipments of large ceiling fans for logistics facilities grew on the back of demand for more efficient air conditioning amid record heat and rising energy costs
• Performance contribution from the newly consolidated Axeltech Co., Ltd.: added to the scope of consolidation from FY2026 (ending March 2026)
• Maintaining and strengthening a stable supply system: responding to diverse customer needs by expanding the domestic and overseas procurement network
• Acceleration of overseas expansion: full-scale entry into the U.S. food market through the subsidiarization of NIITAKAYA U.S.A. INC. (in coordination with the Manufacturing & Sales Business)

Risks

• Declining shipment volume trend due to rising consumer frugality: demand recovery has been slow even after price increases by manufacturers took hold, and shipment volumes in the food and beverage market decreased year on year
• Rising raw material prices and energy costs: risk of rising procurement costs squeezing gross profit margin
• Foreign exchange risk: yen depreciation raising the price of imported goods affects profitability (the Group as a whole recorded a foreign exchange loss of ¥49 million for the fiscal year under review)
• Risk of sales concentration in a main customer: sales to Itoen, Ltd. remained highly concentrated at ¥6,370 million for the fiscal year under review
• Increasing difficulty in procuring food raw materials: changes in the supply-demand balance of agricultural products due to rising food demand in emerging countries and climate change
• Impact of U.S. trade policy: risk of rising import costs due to changes in tariff policy, etc.