Miyoshi Oil & Fat Co., Ltd.

Business Details

Manufactures and sells processed edible fats and oils such as margarine, shortening, lard, powdered fats and oils, and whipped cream. Main customers include bread makers, confectionery makers, and instant noodle manufacturers, with consolidated subsidiary Miyoshi Shoji Co., Ltd. serving as the agency function. The segment also includes sales to related party Yamazaki Baking Co., Ltd. and the Chocolate Fats and Oils (AAK Miyoshi Japan Co., Ltd.) business. As the core segment, it accounts for approximately 70% of consolidated net sales, and under the Second Medium-Term Management Plan (FY2025–FY2027), the company is promoting market expansion and product portfolio improvement under the keyword "Evolution."

Recent Overview

Q1 FY2026 (ending March 2026) saw net sales up 5.0% and operating income up 264.0%, a substantial improvement

In the first quarter of FY2026 (ending March 2026) (January–March 2026), the Food Business achieved net sales of ¥10,589 million (up 5.0% year on year) and operating income of ¥486 million (up 264.0% year on year). Despite a challenging environment marked by continued increases in raw material prices and energy costs, sales of mainstay products remained solid, supported by profitability-focused sales activities and a product portfolio review that included consolidation of existing products. In addition, expanded sales of products addressing substitute demand arising from cacao shortages, the launch of new products focused on texture differentiation, and the promotion of appropriate pricing all contributed to strengthened profitability.

Key Products

Growth Drivers

• Promotion of expanded sales of mainstay products such as margarine, shortening, and powdered fats and oils
• Strengthened profitability through appropriate pricing
• Expanded sales of products capturing substitute demand arising from cacao shortages
• Development and sales of high-value-added products utilizing the company's proprietary flavor technology
• Response to market needs through the launch of new products focused on texture differentiation
• Improved earnings structure through product portfolio review (consolidation of existing products)
• Development of new markets and new customers through active marketing activities
• Steady demand trends in key customer industries such as bread making and confectionery

Risks

• Fats and oils raw material prices remaining at high levels amid demand expansion driven by biofuel policy, among other factors
• Rising raw material procurement costs due to yen depreciation
• Declining profit margins due to continued increases in energy costs, labor costs, and logistics costs
• Profit pressure from increases in various costs such as packaging material costs
• Demand fluctuation risk from soaring prices of ingredients such as cacao, rice, and eggs
• Uncertain consumption environment due to continued price increases, among other factors