MATSUDA SANGYO Co.,Ltd.

Business Details

This segment engages in Precious Metals Recycling & Smelting, sales of Precious Metal Bullion & Chemical Products and electronic materials, and Industrial Waste Collection, Transport & Treatment. Its main customers are in the electronics industry (electronic devices field). The segment develops and expands production sites both domestically and overseas, and pursues differentiation through comprehensive resource recycling capabilities and the development of High-Performance Electronic Materials. Supported by an increase in the volume of precious metals recycling handled, including the jewelry field, and an overall rise in precious metal prices, the segment achieved substantial increases in both revenue and profit in FY2026 (ending March 2026).

Recent Overview

Rising precious metal prices and increased recycling volume drove 57.7% revenue growth and 90.0% operating profit growth

In FY2026 (ending March 2026), an increase in the volume of precious metals recycling handled, including the jewelry field, combined with a general rise in precious metal prices, provided a tailwind, resulting in revenue of ¥570,422 million (up 57.7% year on year) and operating profit of ¥19,342 million (up 90.0% year on year). In the electronics industry's electronic devices field, demand for automotive applications remained sluggish, but expanding demand for AI data centers drove overall production of semiconductors and electronic components on a moderately recovering trend.

Key Products

Growth Drivers

• Boost to revenue and profit from a general rise in precious metal prices (particularly gold and silver)
• Moderate recovery in semiconductor and electronic component production driven by robust demand for AI servers and data centers
• Increase in the volume of precious metals recycling handled, including the jewelry field
• Enhanced ability to secure raw materials and processing capacity through development and expansion of domestic and overseas production sites
• Differentiation and increased added value through the development and promotion of sales of High-Performance Electronic Materials
• Securing and expanding contracted industrial waste treatment in response to circular economy needs

Risks

• Risk of significant fluctuations in revenue and profit due to a sharp decline in precious metal prices (high dependency of revenue on market prices)
• Decrease in recycling raw material supply volume due to continued stagnation in EV-related electronic device production
• Supply chain disruption due to prolonged U.S. trade policy and geopolitical risks
• Increased working capital needs due to a sharp rise in precious metal procurement costs (inventory assets significantly increased year on year)
• Delayed demand recovery due to continued weakness in the automotive electronic devices field
• Profit pressure from price declines in platinum group products and other items

Business Details

This segment handles the sale of food processing raw materials such as Marine Products, Agricultural Products, and Livestock Products, as well as Logistics Services. Its main customers are in the food manufacturing industry. The segment's value proposition is to develop products that meet diversifying customer needs and to provide stable supply of safe, reliable products by maximizing the use of a global procurement network. Amid a market environment of cautious consumer sentiment due to price increases driven by soaring raw material costs and yen depreciation, the segment is promoting sales volume expansion and price pass-through through agile product proposals and strengthened stable supply systems.

Recent Overview

Increased sales volume and progress in price pass-through led to year-on-year growth in both revenue and operating profit

In FY2026 (ending March 2026), the Food-Related Business achieved revenue of ¥117,466 million (up 9.6% year on year) and operating profit of ¥3,095 million (up 23.9% year on year). Amid a challenging market environment where cautious, thrift-oriented consumer sentiment persisted due to price increases driven by soaring raw material costs and yen depreciation, the segment worked to strengthen agile product proposals and stable supply systems responsive to changing customer needs, resulting in increased sales volume of marine, livestock, and agricultural products. In addition, progress in price pass-through in response to soaring raw material costs contributed to the increase in revenue and profit.

Key Products

Growth Drivers

• Responding to diverse customer needs and expanding the product lineup through use of a global procurement network
• Increased sales volume of marine, livestock, and agricultural products and progress in price pass-through in response to soaring raw material costs
• Further strengthening of global procurement capabilities, including through the use of overseas sites
• Acceleration of global expansion through overseas subsidiaries in Asia, India, Indonesia, and elsewhere
• Growing demand for stable procurement of food processing raw materials amid heightened social needs for stable food supply

Risks

• Risk of rising procurement costs due to soaring raw material prices and persistently high logistics costs
• Suppressed purchasing by the food manufacturing industry due to strengthened thrift-oriented consumer sentiment amid price increases
• Risk of declining sales volume for specific items such as marine products (due to changes in market environment and consumption trends)
• Foreign exchange risk (impact on foreign-currency-denominated procurement costs associated with global procurement)
• Supply chain instability due to prolonged geopolitical risks and losing out in competitive purchasing