OSG CORPORATION CO.,LTD.
6757・Standard Market・Electric Appliances
FOOD Business
An exploratory domain aiming to become a "100-year company." Comprises two divisions: bakery and Chinese prepared foods.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Q1 cumulative, FY2027 (ending January 2027)) | ¥624 million | ¥730 million (Q1 cumulative, FY2026 (ended January 2026)) | ↓ |
| Operating income/loss (Q1 cumulative, FY2027 (ending January 2027)) | -¥33 million | ¥4 million (Q1 cumulative, FY2026 (ended January 2026)) | ↓ |
| Sales (full-year results, reference) | ¥2,513 million (FY2026 (ended January 2026), full year) | ― | — |
| Operating income/loss (full-year results, reference) | -¥136 million (FY2026 (ended January 2026), full year) | ― | — |
Business Details
The FOOD Business consists of a bakery division (specialty bread bakeries "Ginza Shikawa" and "SAKImoto Bakery") and a Chinese prepared foods manufacturing and sales division ("Ganso Goban Kagurazaka Main Store"). Positioned as an exploratory domain aiming to build new markets in the food sector centered on domestic and overseas franchise (FC) expansion, the segment is working to optimize its business portfolio with an emphasis on profitability and to build a foundation for sustainable growth.
Recent Overview
Q1 sales declined 15.5% due to the reversal of one-time sales in the prior-year period, resulting in an operating loss.
In the first quarter of FY2027 (ending March 2026) (February to April 2026), sales in the FOOD Business were ¥624 million (down 15.5% year-on-year), with an operating loss of ¥32 million (compared to an operating profit of ¥4 million in the same quarter of the prior year). The main cause was the reversal of one-time sales and profit from equipment exports and similar items recorded in the same quarter of the prior year. The effects of structural reform are steadily emerging, with sales per directly-operated store at "Ginza Shikawa" improving to 106.2% year-on-year, narrowing the loss margin, and "SAKImoto Bakery" progressing ahead of plan.
Key Products
Growth Drivers
- "SAKImoto Bakery" progress exceeding plan and plans to open two new stores within the current fiscal year
- Plan to achieve profitability within the current fiscal year for "Ginza Shikawa" through closure of unprofitable stores and reform of its profit structure
- Significant increase in production capacity from the new Chinese prepared foods plant and expansion of sales channels into the hotel and restaurant market
- Promotion of FC expansion across all of China, starting from the three-store structure in the Shanghai FC expansion model
- Strengthening of brand power and business expansion leveraging the 70th anniversary of "Ganso Goban Kagurazaka Main Store"
- Increased inquiries from municipalities, schools, and public facilities (synergy with water-related businesses)
Risks
- Risk that the pace of profitability improvement will slow due to the initial fixed cost burden associated with construction of the new plant
- Risk of delays in overseas FC expansion (across all of China)
- Risk of rising procurement costs due to surging raw material prices for food ingredients
- Risk that the FOOD Business as a whole remains at the operating loss stage, requiring time to establish a profitable structure
- Risk of earnings volatility due to the reversal of one-time sales recorded in the prior period (such as equipment exports)
- Risk of additional impairment losses (in the prior period, impairment losses of ¥61 million were concentrated in the FOOD Business)
Last updated: April 24, 2026