SAGAMI RUBBER INDUSTRIES CO., LTD.
5194・Standard Market・Rubber Products
Business
Sagami Rubber Industries is a long-established manufacturer founded in 1934, with a history of producing Japan's first domestically manufactured latex condoms. It currently operates two core segments: the Healthcare Business (medical rubber and polyurethane products centered on condoms, etc.) and the Plastic Products Business (food packaging film, office files and other plastic products, etc.), conducting operations as a group that includes two subsidiaries and two related parties. Its major customer is PIP Co., Ltd. (44.7% of net sales), along with other agents and distributors both in Japan and overseas, and the company is also focusing on sales of high-value-added products to high-income overseas customers through cross-border e-commerce channels. In September 2025, it transferred and closed its care services business, advancing the concentration of management resources on the Healthcare Business.
Business Model
The Group is based on manufacturing at its own factories (in Japan and Malaysia) and adopts a manufacturer-direct sales model, selling products through distributors and cross-border e-commerce channels. In the Healthcare Business, the top 10% of the global population by income serves as the primary target, and high value-added products such as Polyurethane Condoms (Sagami Original) secure high profit margins. The Plastic Products Business is domestic-demand-oriented, with a structure aimed at improving profitability through price pass-through and the elimination of unprofitable product lines.
Company Strengths
The company commercialized Japan's first latex condom in 1934 and launched Japan's first polyurethane condom, "Sagami Original," in 1998. It has led the industry in thin-film technology, successively commercializing ultra-thin products of 0.02mm in 2005 and 0.01mm in 2014. R&D expenses of ¥85 million were invested in FY2026 (ending March 2026), supporting continuous technological innovation.
In 1996, the company established Sagami Manufacturers Sdn. Bhd. in Malaysia, building an integrated production system for polyurethane condoms. Production facilities were expanded in 2002 and 2018, progressively increasing supply capacity. Healthcare Business production in FY2026 (ending March 2026) reached ¥4,516 million (up 9.5% year on year), achieving both quality control and cost competitiveness through in-house manufacturing.
By newly incorporating polyurethane condoms into cross-border e-commerce channels, the Healthcare Business achieved sales of ¥4,675 million in FY2026 (ending March 2026), up 9.5% year on year. The company has also pursued capturing inbound demand and deepening existing overseas markets in parallel, and its high-value-added product strategy targeting the top 10% of the world's population by income has contributed to an improvement in gross profit margin to 26.5% (25.8% in the previous fiscal year).
ENVALITH's Perspective
Performance Trend
Net sales reached ¥5,911 million (up 3.9% year on year), achieving revenue growth for the first time in two periods. The Healthcare Business led the growth with a 9.5% increase, while the Plastic Products Business declined 5.4% and Others fell 71.8% due to withdrawal from the care services business. Operating income turned positive at ¥180 million, recovering from an operating loss of ¥33 million in the previous period, but this was mainly attributable to reductions in SG&A expenses (from ¥1,503 million in the previous period to ¥1,384 million in the current period). As an external factor, the rise in manufacturing costs in Malaysia due to yen depreciation and higher energy prices continues to act as a drag on profit. Operating income over the past five periods has followed a structural downward trend: ¥1,088 million in FY2022, ¥661 million in FY2023, ¥436 million in FY2024, -¥34 million in FY2025, and ¥181 million in FY2026. While the return to profitability represents a certain degree of improvement, it is expected to take considerable time to return to peak levels.
Growth Strategy
Rebuilding the earnings structure through deepening overseas expansion in Healthcare, new product development in Plastic Products, and price optimization across both businesses
Continuing to expand sales of Polyurethane Condoms (Sagami Original) through cross-border e-commerce channels while sustaining the recovery in demand for Latex Condoms both domestically and overseas. In FY2026 (ending March 2026), Healthcare Business achieved net sales of ¥4,675 million and operating profit of ¥762 million (up 24.7% year on year), and the policy for FY2027 (ending March 2027) is to further deepen existing overseas markets.
Through the streamlining and adjustment of unprofitable product lines and a thorough review of manufacturing costs, the operating loss in FY2026 (ending March 2026) was narrowed from ¥84 million to ¥35 million. In FY2027 (ending March 2027), the company will promote the capture of new demand through new product development, aiming to further reduce the loss.
In response to persistently high energy prices and raw material costs, the company continues to promote appropriate pass-through of costs into selling prices across both the Healthcare and Plastic Products businesses. Latex Condoms have recovered from the decline in demand seen after the price revision, confirming the effectiveness of price optimization.
Following the withdrawal from the care services business, net sales in the "Others" segment fell to ¥44 million (down 71.8% year on year), while the operating loss also improved from ¥74 million to ¥43 million. The consolidated subsidiary Sun Claude Co., Ltd. completed liquidation as of October 31, 2025, and was excluded from the scope of consolidation. The reorganization of unprofitable businesses is now nearly complete.
Last updated: July 19, 2026