T.HASEGAWA CO.,LTD.
4958・Prime Market・Chemicals
Business
Hasegawa Co., Ltd. is a company specializing in flavors and fragrances, founded in 1903. It manufactures and sells Flavors (Food Fragrances) used in beverages, confectionery, frozen desserts, instant noodle soups, etc., as well as Fragrances (Cosmetic Fragrances) for cosmetics, toiletries, and household products. Centered on its domestic operations, the company also operates an Asia segment covering China and Southeast Asia and a North America segment, forming a group consisting of 12 subsidiaries and 1 affiliated company. Its main customers include food and beverage manufacturers, cosmetics and daily necessities manufacturers, and others, and it offers a diverse product lineup including essences, oil-based flavors, powdered flavors, seasonings, and natural pigments. Consolidated net sales for FY2025 (ending September 2025) were ¥73,495 million.
Business Model
A B2B business model in which custom flavors and fragrances are researched, developed, manufactured, and sold to food and daily necessities manufacturers in line with their product designs. Centered on the Central Research Laboratories (Flavor Research Laboratory, Fragrance Research Laboratory, and Technical Research Laboratory), the sales, marketing, and research divisions work together to uncover customers' latent needs and propose and secure adoption of high-value-added products, thereby ensuring continuous revenue. Annual R&D expenses amount to ¥5,744 million (approximately 7.8% of net sales), with technological differentiation serving as the source of profitability.
Company Strengths
Founded in 1903 with a corporate history spanning over 120 years, R&D expenses for FY2025 (ended September 2025) amounted to ¥5,744 million (approximately 7.8% of net sales). The company employs 366 researchers (246 in Japan, 91 in Asia, 29 in the United States) and has built a technology development framework centered on its Central Research Laboratory, working in coordination with the research departments of domestic and overseas subsidiaries.
The Asia segment achieved net sales of ¥18,020 million and segment profit of ¥4,892 million in FY2025 (ended September 2025), for a profit margin of 27.1%. Improved cost of sales ratio at the Chinese subsidiary and expanded exports to Southeast Asia by the Malaysian subsidiary contributed to a 21.0% year-on-year increase in profit.
Total net assets at the end of FY2025 (ended September 2025) stood at ¥123,324 million. Operating cash flow generated was ¥11,247 million, and cash and cash equivalents secured amounted to ¥31,267 million. The company maintained sound financial health even while carrying out share buybacks of ¥2,238 million and dividend payments of ¥3,113 million.
ENVALITH's Perspective
Performance Trend
For the first half of FY2026 (ending March 2026) (October 2025 to March 2026), revenue was ¥37,585 million (up 4.9% year on year), operating profit was ¥4,528 million (up 0.2%), ordinary profit was ¥4,936 million (up 0.2%), and net income attributable to owners of the parent for the interim period was ¥3,749 million (up 11.6%). Revenue growth was driven by the U.S. subsidiary (up 5.9% year on year), the Malaysian subsidiary (up 12.9%), and the start of consolidation of the Vietnamese subsidiary. Operating profit was roughly flat, as the increase in SG&A expenses from (one-time) Vietnam acquisition costs was absorbed by the revenue increase and the effect of yen depreciation. The substantial increase in net income was due to the recognition of ¥608 million in gains on sales of investment securities (extraordinary income). As an external factor, yen depreciation (the U.S. dollar depreciated by 2.0% and the Malaysian ringgit by 11.2% year on year against the yen) provided a tailwind to the yen-denominated conversion of overseas revenue and profit. Following the revenue trend over the past five fiscal years (¥55,755 million → ¥62,398 million → ¥64,874 million → ¥71,645 million → ¥73,495 million), the full-year forecast of ¥76,500 million (up 4.1% year on year) points to six consecutive fiscal years of revenue growth.
Growth Strategy
Accelerating global expansion through concentrated allocation of management resources to the United States and Asia, combined with M&A
On December 31, 2025, the company made Hoang Anh Flavors and Food Ingredients Joint Stock Company a wholly-owned subsidiary through a cash acquisition of ¥4,484 million. The move aims to drive further growth in the Vietnamese and Southeast Asian markets, with expected synergies in the flavors business. Results for January to March 2026 began to be reflected from the interim period.
The segment loss in the United States segment narrowed to ¥199 million in the first half of FY2026 (ending September 2026), down from a loss of ¥293 million in the same period of the prior year. Revenue increased 3.9% on a local currency basis, and integration synergies in both manufacturing and sales are gradually materializing. Efforts to achieve profitability continue.
The company is proceeding with plans to construct a new plant in the Enstek Industrial Park in Malaysia. The aim is to expand production capacity for the Southeast Asian halal market and increase exports to Indonesia and other countries. The Malaysian subsidiary continued to post steady growth, with revenue up 12.9% year on year (up 1.6% on a local currency basis) in the first half of FY2026 (ending September 2026).
The annual dividend forecast for FY2026 (ending September 2026) has been set at ¥100 (a 35.1% increase from ¥74 in the previous fiscal year). The second-quarter-end dividend of ¥50 has already been paid. The company also continues to repurchase treasury shares (treasury shares outstanding at period-end totaled 2,115,942 shares, a decrease of 142,886 shares from the previous fiscal year-end), actively enhancing shareholder returns.
Last updated: July 17, 2026