T.HASEGAWA CO.,LTD.

Business Details

T. Hasegawa's Japan segment consists of the parent company on a standalone basis and its domestic subsidiaries. The Food division manufactures and sells essences, oil-based food flavors, seasonings, and natural colorants for beverages, confectionery, instant noodle soups, and other applications, while the Fragrance division manufactures and sells cosmetic fragrances for cosmetics, toiletries, and household products. In addition to sales to the domestic market, this segment includes intersegment internal sales to overseas subsidiaries. It is the foundational segment accounting for the majority of the group's overall sales and profit.

Recent Overview

Sales increased 2.3% year on year, but profit declined 5.5%, indicating lower profitability.

In H1 FY2026 (ending March 2026) (October 2025 to March 2026), the Japan segment secured an increase in sales, with sales to external customers of ¥19,780 million (up 2.3% year on year). On the other hand, segment profit declined to ¥2,217 million (down 5.5% year on year). This is considered mainly attributable to one-time acquisition-related costs associated with the acquisition of the Vietnamese subsidiary (Hoang Anh), which pushed up SG&A expenses. The Fragrance division increased 11.8% year on year, mainly due to an increase in sales at the parent company on a standalone basis.

Key Products

Growth Drivers

• Steady trend in sales for beverages, confectionery, and other applications in the Food division
• Increase in parent-company standalone sales in the Fragrance division (up 11.8% year on year)
• Strengthened development of health-conscious products (flavors for low-sugar, low-salt, low-fat formulations) and food ingredient substitute flavors
• Differentiation through high-quality, high-value-added products enabled by enhanced R&D and technology development capabilities
• Productivity improvements and cost reductions through renewal and installation of new production equipment
• Strengthened collaboration among sales, marketing, and R&D departments to expand domestic market share

Risks

• Risk of demand plateauing due to maturation of the domestic market and the declining birthrate/aging population
• Risk of price pressure and market share loss due to intensifying competition among industry peers
• Deterioration of cost of sales ratio due to fluctuations in raw material and resource prices
• Profit pressure from continued increases in SG&A expenses, primarily labor costs
• Risk of profit volatility due to recording of one-time costs such as M&A-related expenses
• Rising costs to respond to increasing quality assurance requirements