NOMURA CORPORATION

Business Details

Comprises the Packaging Materials Division (planning, design, and sales of food packaging materials centered on rice milling bags) and the Packaging Machinery Division (planning, development, manufacturing, and sales of weighing and packaging machinery centered on automatic weighing and packaging machines for rice). Main customers include rice milling plants such as Zen-Noh-affiliated wholesalers and rice wholesalers, rice retailers, restaurant companies, and producers. A key competitive advantage is the ability to provide integrated solutions to customers by handling both packaging materials and machinery. This segment accounted for approximately 87.8% of consolidated net sales in the first half of FY2026 (ending March 2026).

Recent Overview

Revenue conversion of packaging machinery order backlog from the prior fiscal year contributed to an 82.1% year-on-year increase in first-half segment profit

In the first half of FY2026 (ending October 2026) (November 2025 to April 2026), net sales of the Packaging-Related Business were ¥3,372 million (up 21.1% year on year), and segment profit was ¥508 million (up 82.1% year on year). Packaging machinery-related sales grew substantially to ¥1,505 million, up 66.1% year on year, driven by steady revenue conversion of orders accumulated in the prior fiscal year. On the other hand, packaging materials-related sales remained roughly flat year on year at ¥1,867 million, amid concerns over weakening consumer purchasing sentiment due to persistently high rice prices and supply uncertainty for raw materials stemming from heightened tensions in the Middle East. To maintain stable materials supply, the Company focused on strengthening information sharing with sales destinations and collaboration with suppliers.

Key Products

Growth Drivers

• Continued revenue conversion of packaging machinery orders accumulated in the prior fiscal year into the second half, and strengthened response to labor-saving and automation needs
• Increased inquiries for new projects driven by growing demand for freshness-preserving materials and small-package (downsizing) products
• Rapid response to materials demand associated with the government's release of stockpiled rice
• Resumption of overseas (Thailand, Vietnam) business negotiations and deliveries that had stalled during the COVID-19 pandemic
• Cost control and improved cost ratio through business rationalization and efficiency gains, including DX implementation
• Synergy from handling both packaging materials and packaging machinery, enabling integrated solutions for customers

Risks

• Concentration of major customers in the rice distribution industry poses a risk that persistently high rice prices could dampen consumer demand due to purchase restraint
• Risk of rising procurement costs and supply chain disruption due to raw material supply uncertainty stemming from heightened tensions in the Middle East
• Risk of fluctuations in agricultural product supply and demand due to climate change and natural disasters
• Risk of changes in rice distribution volumes and channels resulting from changes in government agricultural policy (production adjustment, stockpile rice policy, etc.)
• Risk of deteriorating cost ratio due to soaring raw material prices (delays or difficulties in passing costs on to prices)
• Risk of sales concentration if expansion into markets beyond the rice market does not progress
• Risk of profit pressure from rising personnel expenses associated with securing human resources