Harima-Kyowa Co., LTD.
7444・Standard Market・Wholesale Trade
Business
Harima-Kyowa Co., LTD. operates the wholesale business for soap, detergents, cosmetics, sanitary products, quasi-drugs, daily sundries, paper products, and packaging materials as its core business, while integrally developing contract logistics and road transportation operations. Its major customers are large-scale retailers such as drugstores and mass merchandisers, with Sugi Pharmacy Co., Ltd. (15.6% of net sales) and Don Quijote Co., Ltd. (11.6%) as top customers. The Group consists of the Company, its delivery subsidiary Bloom Co., Ltd., logistics contractor At Staff Co., Ltd., and three equity-method affiliates, providing an integrated combination of commercial distribution, logistics, product development, information, and financial functions. The Group operates multiple distribution centers nationwide and continues to expand its logistics network, including the newly established Chubu Komaki Distribution Center in October 2025.
Business Model
In addition to a wholesale function of purchasing merchandise from manufacturers and selling to large-scale retailers, the company employs a third-party logistics (3PL) model in which contract logistics and delivery functions are completed within its own group. By responding to retailers' needs for distribution efficiency and consolidating transactions, the company secures sales scale, creating a structure in which improved cost efficiency from higher utilization rates at logistics centers directly translates into improved profitability. The company places emphasis on the ordinary income to sales ratio as a key management indicator, and aims to maintain a high profit margin through the synergy between commercial distribution and physical distribution.
Company Strengths
The company operates multiple distribution centers nationwide, both self-owned and leased, and continues to expand its network, including the establishment of the new Chubu Komaki Distribution Center in October 2025. By providing integrated commercial distribution and logistics services, it captures demand from large retailers seeking to consolidate transactions, differentiating itself from competitors.
Sales to Sugi Pharmacy Co., Ltd. amounted to ¥9,320 million (up 12.0% year on year), and sales to Don Quijote Co., Ltd. amounted to ¥6,942 million (up 8.8% year on year). Together, these top two customers accounted for 27.2% of total net sales, both increasing from the previous fiscal year. Deepening relationships with key customers provides steady support for revenue.
As of the end of FY2026 (ending March 2026), the equity ratio stood at a high level of 69.4% (68.3% at the end of the previous fiscal year). Total net assets reached ¥26,254 million, with the financial base steadily strengthened through the accumulation of retained earnings. The company also continued to generate stable operating cash flow (¥2,019 million).
ENVALITH's Perspective
Performance Trend
Revenue expanded gradually from ¥57,781 million in FY2022 (ended March 2022) to ¥61,824 million in FY2025 (ended March 2025), but turned to a 3.2% year-on-year decline to ¥59,843 million in FY2026 (ending March 2026). This was mainly due to a review of transactions with certain customers. Operating profit also fell to ¥1,693 million (down 11.4% year on year), impacted by initial costs and increased depreciation expenses at the Chubu Komaki Logistics Center. On the other hand, the recording of ¥282 million in insurance cancellation refunds resulted in an apparent increase in ordinary profit to ¥2,084 million (up 8.0% year on year) and net profit to ¥1,513 million (up 17.4% year on year). As an external environment factor, heightened consumer thrift orientation and suppressed purchase unit prices due to rising prices have become a headwind for the industry as a whole. For FY2027 (ending March 2027), the company forecasts ordinary profit of ¥1,800 million (down 13.6% year on year) and net profit of ¥1,230 million (down 18.7% year on year), reflecting the disappearance of insurance cancellation income and the full-year recognition of depreciation expenses.
Growth Strategy
Nationwide expansion of the logistics center network and deepening of third-party logistics to expand trading areas and scale
Promoting operational efficiency at the Chubu Komaki Distribution Center, which commenced operations in October 2025, with a plan to absorb initial costs and depreciation burden through revenue growth. In FY2027 (ending March 2026), depreciation expenses will be incurred for a full year, but the company aims to achieve a 0.4% increase in operating income by achieving net sales of ¥64,000 million (up 6.9% year on year).
Transactions with Sugi Pharmacy and Don Quijote each achieved year-on-year growth in FY2026 (ending March 2025). The company will continue proposing integrated trading and logistics services, capturing demand from large-scale retailers to consolidate transactions, thereby offsetting the sales decline resulting from the review of transactions with some clients.
Leveraging the trading, logistics, product development, information, and financial functions held by the wholesale business, the company proposes comprehensive distribution services that respond to changing times. In the distribution industry, where supply chain efficiency needs are increasing, the company aims to acquire new customers by expanding contract logistics services utilizing its distribution center network.
Last updated: July 19, 2026