Suzumo Machinery Co., Ltd.

Business Details

The sole reportable segment of the Suzumo Machinery Group. The company manufactures and sells rice processing machinery including Sushi Robots (approximately 80% domestic market share), the Rice Serving Robot (Fuwarica), and Onigiri Forming Machines, and also handles Sanitary Materials (Alcohol-based Cleaners & Disinfectants) and Store Systems-related products. Domestically, sales are made directly and through agents to the food service and retail industries. Overseas, the company operates through local subsidiaries in North America and ASEAN, and through domestic and overseas trading companies in other regions. Consolidated net sales for FY2026 (ending March 2026) were ¥15,864 million (up 1.9% year on year).

Recent Overview

Net sales rose slightly, but a sharp increase in fixed costs and additional back taxes drove a 46.6% decline in operating profit

In FY2026 (ending March 2026), net sales reached ¥15,864 million (up 1.9% year on year), securing modest growth, but operating profit fell sharply to ¥1,009 million (down 46.6% year on year) due to a combination of increased manufacturing labor costs and depreciation expenses ahead of the new plant coming online, higher SG&A expenses including personnel costs, outsourcing costs, and exhibition costs, and unexpected costs such as legal fees and treasury stock acquisition fees associated with the dissolution of the capital and business alliance. In addition, following administrative guidance based on transfer pricing taxation, the company recorded ¥181,993 thousand in back taxes and other prior-period corporate tax expenses, resulting in net income of ¥602 million (down 58.8% year on year). Furthermore, in August 2025, the company acquired 1,797,500 shares of treasury stock (¥3,228,363 thousand) in connection with the dissolution of the capital and business alliance, causing the equity ratio to decline from 81.8% to 67.6%. For FY2027 (ending March 2027), the company forecasts net sales of ¥17,580 million (up 10.8% year on year) and operating profit of ¥1,000 million (down 0.9% year on year).

Key Products

Growth Drivers

• Continued need for labor-saving and mechanization in the food service and retail industries (worsening domestic labor shortage, expanding inbound demand, rising wages)
• Accelerated expansion of Onigiri Forming Machines to major takeout chains amid growth of the onigiri market in North America
• Strengthened approach to major chains and expanded distributor training activities through changes to the local subsidiary structure, with North America as a priority area
• Growing product demand driven by increased overseas expansion of major Japanese conveyor-belt sushi chains in East Asia
• Recovery in product demand in Europe through demand generation and distributor support activities targeting local operators
• Continued development of new market areas such as hotels, ramen shops, inns, employee cafeterias, and hospitals through the Rice Serving Robot (Fuwarica)
• Expansion of sales per customer through expanded sales of new products such as the Commercial IH Rice Cooker with Sushi Rice Function and problem-solving solution proposals beyond rice processing machinery
• Improved production capacity and cost reduction through introduction of line production methods at the new plant coming online under the medium-term management plan "Next 2028" (targeting net sales of ¥22.0 billion and operating profit of ¥3.0 billion for FY2028, ending March 2028)

Risks

• Risk of postponement or cancellation of capital investment plans by food service and retail businesses due to soaring rice prices (ongoing since the previous fourth quarter)
• Risk of impact on North American business due to trends in U.S. trade policy (tariffs)
• Risk of reduced capital investment demand in East Asia amid China's economic slowdown
• Risk of declining profit margins due to increased manufacturing labor costs and rising fixed costs such as depreciation associated with the new plant coming online (expected to continue in FY2027, ending March 2027)
• Risk of profit pressure from increased SG&A expenses including personnel costs (base pay increases, personnel system revisions), outsourcing costs, and exhibition costs
• Risk of additional tax assessment based on transfer pricing taxation (¥181,993 thousand recorded as prior-period corporate taxes, etc. in FY2026, ending March 2026)
• Risk of sharp decline in cash and cash equivalents (from ¥5,597 million to ¥2,961 million) and reduced financial flexibility due to large-scale treasury stock acquisition (¥3,228,363 thousand) associated with dissolution of the capital and business alliance
• Foreign exchange risk (increased costs at overseas subsidiaries due to yen depreciation, expanded elimination of unrealized profit in inventories)
• Risk of rising energy costs and difficulty procuring naphtha-derived raw materials due to geopolitical risk in the Middle East