Showa Holdings Co., Ltd.

Business Details

A business operated by Asuka Foods Co., Ltd. and its subsidiary group. It has unique strengths in the development, manufacturing, and sale of Japanese confectionery, including Mochi Products (Daifuku Mochi, Warabi Mochi, Sakura Mochi, etc.) and Dango Products. Under the mission of "Bringing a little joy of eating to the world every day," the segment balances a pricing strategy that emphasizes consumers' sense of value with thorough cost management. Sales have grown through SNS branding and expanded sales of strategic products, making this segment the primary source of operating profit for the Group as a whole.

Recent Overview

Full-year FY2026 (ending March 2026) achieved increased revenue and profit, with net sales up 7.3% and profit up 2.5%

Full-year net sales for FY2026 (ending March 2026) were ¥4,770 million (up 7.3% year on year), and segment profit was ¥244 million (up 2.5% year on year). Amid growing consumer thrift-consciousness, the maintenance of measures emphasizing consumer value and the expansion of sales of strategic products proved effective. On the other hand, there were cost-increasing factors such as continued high prices for domestic raw materials including rice, increased costs of imported raw materials and supplies due to the weak yen trend, and rising labor costs due to base pay increases, but thorough cost management and improved production efficiency secured increased profit. Toward the end of the period, concerns emerged over the supply of packaging materials and sanitary goods due to the escalating tensions in the Strait of Hormuz, and the company continues to closely monitor developments.

Key Products

Growth Drivers

• Maintaining and expanding consumer support through a pricing strategy emphasizing a sense of value
• Expanded sales of strategic products through SNS branding (in cooperation with Wedge Holdings Co., Ltd.)
• Advancing the basic policy "Strengthen development and manufacturing capabilities as a mochi specialist, and establish branding" under the medium-term management plan "Deepening and Evolution"
• Expanding awareness through the spread of Asukano brand products such as "Warabi Mochi," "Koshi-jiman," and "Sakura Mochi (Dōmyōji)" on SNS and mass media
• Securing profit through thorough cost management and improved production efficiency
• Securing human resources and maintaining competitiveness through new recruitment activities, including hiring foreign nationals and sports personnel

Risks

• Profit pressure from persistently high food prices and rising raw material (rice, etc.) costs
• Continued sluggish private consumption expenditure and stricter price selection due to strengthening consumer thrift-consciousness
• Increased labor costs due to employee pay raises (base pay increases)
• Impact on profit margins from the inability to fully pass on rising manufacturing costs to sales prices
• Persistently high costs of imported raw materials and materials due to the continued weak yen
• Cost increases and supply concerns for packaging materials such as food packaging film and plastic containers, as well as sanitary goods, due to escalating tensions in the Strait of Hormuz