AP HOLDINGS CO.,LTD.

Business Details

The company produces jidori (native breed) chicken at its own poultry farms in Miyazaki, Kagoshima, and Hokkaido, and also handles direct procurement and distribution of fresh fish and produce. As the upstream core of the "production-sales integration model" that eliminates intermediate distribution, it swiftly reflects cost fluctuations in selling prices while achieving stable supply both within and outside the group. The company is advancing consolidation and efficiency improvements at its Miyazaki Prefecture processing plant, while steadily expanding sales channels outside the group. Major affiliated companies include Jitokko Land Nichinan Co., Ltd., Shintoku Farm Co., Ltd., Kagoshima Banzu Co., Ltd., and Toyosu Gyoshosanchoku Ichiba Co., Ltd. (equity method affiliate).

Recent Overview

Increased revenue and profit achieved through processing plant consolidation, efficiency gains, and price pass-through, with expanding sales outside the group

In FY2026 (ending March 2026), the segment achieved revenue of ¥1,629 million (up 0.7% year on year) and segment profit of ¥174 million (up 19.7% year on year). Despite headwinds from rising feed costs due to continued yen depreciation and persistently high energy prices, profitability improved through consolidation and efficiency measures at the Miyazaki Prefecture processing plant and swift price pass-through enabled by the production-sales integration model. In addition, proper employees who achieved strong results in sales departments were promoted to head primary industry operations, building a system that immediately feeds market needs back to production sites. Expansion of sales channels outside the group is also steadily progressing.

Key Products

Growth Drivers

• Increase in jidori chicken production volume and vegetable distribution volume in line with growth in the restaurant business's sales
• Diversification of the profit base through expanded sales of jidori chicken and food ingredients outside the group
• Continued cost reduction effects from consolidation and efficiency improvements at the Miyazaki Prefecture processing plant
• Rapid responsiveness to cost fluctuations through the "production-sales integration model" that eliminates intermediate distribution
• Stable procurement of key ingredients through reliable contract farmers and in-house production
• Establishment of an integrated optimization system spanning production, distribution, and sales through the promotion of proven personnel to head primary industry operations

Risks

• Rising feed costs due to continued yen depreciation and persistently high energy prices
• Profit pressure from unstable food ingredient and raw material prices
• Time constraints in responding to demand fluctuations, as jidori chicken production requires a considerable period from planning to shipment
• Costs of facility management for poultry farms and processing plants, and of securing and developing specialized personnel
• Potential fluctuations in production volume due to climate change and disease risk