OIE SANGYO CO., LTD.

Business Details

Commercial food wholesale business primarily serving restaurant-format customers such as hotels, restaurants, izakaya, and workplace cafeterias; healthcare food-format customers such as hospitals and elderly care facilities; and prepared meal (nakashoku) formats such as takeout and delivery. Frozen foods account for more than half of sales (¥67,912 million in FY2026 (ending March 2026)), with the segment also handling ambient-temperature foods, chilled foods, alcoholic beverages, and non-food items. The segment also engages in logistics and systems support, C&C (Cash & Carry) Stores (Sun Plaza and Momohikoya), EC business via Rakuten Ichiba, and development and sale of private brand (PB) products. Segment disclosure for the warehousing business is omitted due to its lack of materiality.

Recent Overview

Achieved increased sales and profit with net sales up 8.4% and operating income up 7.0%, while net profit declined slightly due to the absence of a prior-period gain

In FY2026 (ending March 2026), the company achieved net sales of ¥129,321 million (up 8.4% year on year), operating income of ¥3,815 million (up 7.0% year on year), and ordinary income of ¥3,871 million (up 7.2% year on year). On the other hand, due to the absence of the ¥249 million gain on sale of investment securities recorded in the prior period, profit attributable to owners of parent declined slightly to ¥2,806 million (down 0.2% year on year). Inbound demand driven by the Osaka-Kansai Expo and a record-high number of foreign visitors to Japan drove the restaurant and lodging formats. FSSC22000 certification was newly obtained at two locations in Nagoya and Fukuoka, expanding the certified network to six locations in total. Sales performance at the Miyazaki sales office (opened February 2025) exceeded the initial-year plan. For FY2027 (ending March 2027), the company forecasts net sales of ¥136,800 million (up 5.8% year on year) and operating income of ¥4,090 million (up 7.2% year on year).

Key Products

Growth Drivers

• Expansion of inbound demand driven by the Osaka-Kansai Expo and a record-high number of foreign visitors to Japan (lodging format up over 110% year on year)
• Continued growth in the healthcare food format (up 109% year on year) and the introduction of new products for the elderly (Mousse Osechi and Rakuchin! Frozen Side Dishes Set B)
• Continued expansion of PB products (14 new products launched in FY2026 (ending March 2026)) and differentiation through "Gentle Menu" logo products
• Acquisition of new customers (approximately 1,000 outlets) through the spring proposal fair (15 venues nationwide, approximately 8,000 visitors, approximately 600 new visiting companies) and individual presentations
• Significant growth in sales performance from a substantial expansion of the product lineup handled in the Rakuten Ichiba EC business
• Demand creation through initiatives such as the start of in-store prepared deli sales at C&C-format stores, achieving sales of 105% year on year
• Steady ramp-up of the Miyazaki sales office and expansion of the sales network
• Increase in average customer spend due to menu price revisions and steady expansion of the restaurant market

Risks

• Risk of rising procurement costs and deteriorating cost of sales ratio due to soaring food, raw material, energy, logistics, and labor costs
• Constraints on supply capacity due to chronic labor shortages and rising logistics costs
• Risk of cooling consumer sentiment and fluctuations in restaurant demand due to inflation
• Rising procurement costs for imported ingredients and market uncertainty due to geopolitical risks such as US tariffs, Japan-China relations, and the situation in the Middle East
• Intensifying price competition with competitors and pressure on market share from expanding direct sales by major distributors and manufacturers
• Risk of delayed collection of accounts receivable and occurrence of bad debts (notes and accounts receivable of ¥15,948 million)
• Risk of downward pressure on net profit if extraordinary gains such as the prior-period gain on sale of investment securities (¥249 million) are absent
• Risk of fluctuations in specific inbound demand, such as a decrease in travelers from China