Nippon Shikizai,Inc.
4920・Standard Market・Chemicals
Business
Nippon Shikizai Kogyo Kenkyusho Co., Ltd. was founded in 1930 and incorporated in 1957 as a specialist manufacturer engaged in Cosmetics Manufacturing Outsourcing (OEM/ODM) and quasi-drug manufacturing outsourcing, as well as R&D Outsourcing (ODM). Domestically, the company operates its Zama Plant in Zama City, Kanagawa Prefecture, and its Tsukuba Plant in Tsukuba City, Ibaraki Prefecture (Phase 3 expansion completed) as main production bases, undertaking contract manufacturing of a wide range of products including foundation, lipstick, eyeshadow, and skincare items. Overseas, the company expands into the European market through its French subsidiaries Tepnel (Pharmaceutical Manufacturing Outsourcing (France) and cosmetics) and Nippon Shikizai France (cosmetics). Its major customers include leading domestic and overseas cosmetics manufacturers such as Parfums Christian Dior SA (10.8% of sales) and Ikeda Laboratories, Inc. (10.5% of sales). The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
Without holding its own brands, the company records revenue by providing integrated outsourcing services—covering proposal planning, R&D, and mass production—in response to the product development needs of cosmetics and pharmaceutical manufacturers. It invested ¥824 million in R&D expenses (FY2025, ended February 2025), accumulating proprietary technologies such as dispersion technology, heat-molding technology, and clean beauty-compliant formulations. With a dual structure spanning Japan (Japan segment) and Europe (France segment), the company has the capability to serve global cosmetics manufacturers. The Japan segment accounts for approximately 70% of net sales, while the France segment accounts for approximately 30%.
Company Strengths
The company's strength lies in dispersion and heat-molding technologies for makeup products such as foundation, lipstick, and eyeshadow, and it also possesses regulatory-compliant technologies ahead of the curve, such as talc-free formulations. It invests ¥824 million annually in R&D, continuing to advance the development of clean-beauty-compliant formulations. This has led to order acquisitions from major global players such as Parfums Christian Dior SA.
Through a two-site structure comprising domestic facilities (Zama and Tsukuba plants) and French facilities (Tepnel and Nippon Shikizai France), the company is able to provide products that meet both Japanese and French quality and regulatory standards. Leveraging group synergies through mutual supply of semi-finished products between the two regions, the company has the ability to provide comprehensive support to globally expanding cosmetics manufacturers. Revenue in the France segment for FY2025 (ended February 2025) was ¥5,263 million.
The R&D Department, Technology Development Department, Sales Department, and International Sales Department work together to provide integrated support from new product planning and formulation development through to mass production, filling technology, safety testing, and regulatory information management. Strengthened container-handling capabilities are also driving proposals that combine formulations with container sets. The company's extensive formulation library and technical information capabilities, accumulated over 95 years since its founding in 1930, serve as a key differentiating factor.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded rapidly from ¥8,702 million in FY2022 to ¥17,632 million in FY2025, before turning to a decline in FY2026 at ¥16,643 million. In Q1 FY2027 (ending February 2027) (March–May 2026), the company achieved increased revenue and profit, with revenue of ¥4,517 million (up 13.6% year on year), operating profit of ¥107 million (up 24.3%), ordinary profit of ¥78 million (up 3.8%), and quarterly net profit attributable to owners of the parent of ¥51 million (up 1.1%). This was driven by solid domestic order intake and a recovery in orders in the France segment. On the other hand, accelerating inflation in raw material costs and outsourced processing costs due to the escalating situation in the Middle East is squeezing domestic profits, and the gross profit margin remained flat at 14.7% (versus 14.7% in the same period of the previous year). The full-year forecast (revenue of ¥18,361 million, operating profit of ¥394 million) has been left unchanged, targeting a substantial year-on-year profit increase (up 118.9% versus the previous fiscal year's operating profit of ¥180 million).
Growth Strategy
Under the "Medium-Term Business Strategy Vision (2022-2026)," the company pursues three pillars: expansion of strength products, clean beauty, and transformation into a high-profitability structure
In the first quarter of FY2027 (ending March 2027)*, the company purchased the Komoro Plant (construction in progress up ¥332 million, land up ¥119 million), securing a third domestic production base. This is intended to compensate for labor shortages caused by hiring difficulties and to strengthen the production system to meet solid domestic order demand.
The France segment, which had recorded an operating loss of ¥69 million in the same period of the previous year, turned to an operating profit of ¥2 million in the first quarter of FY2027 (ending March 2027). This was driven by a recovery in European cosmetics and pharmaceutical orders and improved capacity utilization, and the company aims for continued profit contribution.
Amid growing awareness of environmental and safety concerns in the cosmetics market, the company is strengthening clean beauty and SDG-compliant formulations to secure high-value-added orders. This initiative aims to achieve both medium- to long-term profitability improvement and differentiation from competitors.
In response to rising raw material costs, outsourced processing costs, and labor costs under an inflationary environment, the company continues various cost reduction efforts. It aims to achieve its full-year operating profit forecast of ¥394 million for FY2027 (ending March 2027) (up 118.9% year on year) through a combination of sales expansion and cost management.
Last updated: July 17, 2026