SHIMOJIMA Co.,Ltd.
7482・Prime Market・Wholesale Trade
Business
Shimojima Co., Ltd. is a packaging materials specialty trading company founded in 1920, handling a wide range of products including paper bags, wrapping paper, poly bags, adhesive tape, and store supplies. The company operates through three channels: sales (dealer and direct-to-user sales), store sales (directly-operated stores), and mail order (Shimojima Online Shop), serving a diverse customer base ranging from secondary wholesalers, packaging supply retailers, and franchise members (Package Plaza) to restaurants, retail stores, hospitals, and nursing care facilities. Through its 9 consolidated subsidiaries, the company also covers adjacent areas such as bag manufacturing, resin processing, floral materials, industrial materials, hygiene products, and logistics, and maintains sales and trading bases in China and Taiwan. Consolidated net sales for FY2026 (ending March 2026) reached ¥64,829 million, marking a new record high.
Business Model
Procurement is conducted through the company's own paper bag manufacturing subsidiary, overseas suppliers, and general suppliers, with private-label conversion of Original Brand Paper Bags products enhancing the gross profit margin. Sales adopt an omnichannel strategy combining three channels: sales representative sales, store sales, and mail-order sales. The e-commerce site "Shimojima Online Shop" has reached 1.7 million listed items and 1 million member IDs, with the mail-order channel contributing to margin improvement. Logistics is outsourced to Shimojima Logistics Co., Ltd., which handles nationwide delivery through a two-hub system in eastern and western Japan.
Company Strengths
Founded in 1920, the company has over 100 years of continuous business track record as a wholesale distributor of packaging materials. It operates sales offices, directly-run stores, and franchise stores (Package Plaza) nationwide, and continues to expand its sales area, including the establishment of a new Utsunomiya sales office in April 2026. It maintains a broad customer base ranging from secondary wholesalers to direct sales to major users.
The number of products listed on the company's proprietary e-commerce site "Shimojima Online Shop (Shimojima Mall)" has reached 1.70 million, achieving the medium-term management plan target of 1 million member IDs. The mail-order sales channel continues to perform well and functions as the core of the company's omni-channel strategy. Under the next medium-term management plan, the company has set a target of 3 million SKUs and 1.3 million member IDs.
As of the end of FY2026 (ending March 2026), the equity ratio remained extremely high at 81.4%. The company secured cash and cash equivalents of ¥8,234 million, and its reliance on interest-bearing debt is low. Operating cash flow showed a stable increase of ¥3,849 million, demonstrating steady cash-generating capability. The company has the financial strength to fund the approximately ¥15.0 billion investment in constructing a new distribution center through a combination of internal funds and borrowings.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive periods, from ¥48,063 million in FY2022 (ended March 2022) to ¥64,829 million in FY2026 (ending March 2026). Operating profit, which stood at an extremely low ¥44 million in FY2022, recovered sharply to ¥2,011 million in FY2023, and reached ¥3,456 million in FY2026 (up 15.7% year on year), maintaining an improving trend. Although there was a temporary decline in profit in FY2025 (¥2,986 million), FY2026 marked a record-high profit. While external factors such as yen depreciation and persistently high raw material prices pushed up procurement costs, growth in demand for Environmentally Friendly Products, strong e-commerce performance, and cost containment through diversification of procurement channels contributed to an improvement in the gross profit margin.
Growth Strategy
A 4-year plan under Dream Action 2030 targeting ¥80,000 million in revenue, an operating margin of 6.5%, and ROE of 8.0%
Strengthening the development and sales of specialized products for eight key industries, building a system for receiving custom orders from major retail and restaurant chains, utilizing the Asakusabashi Main Store showroom opened in October 2025, and establishing the new Utsunomiya Sales Office in April 2026. Medium-term plan KPIs set target consolidated sales revenue of ¥59,700 million for wholesale/sales operations, ¥13,000 million for store sales, and ¥7,300 million for mail-order sales.
Expanding the number of products listed on the Shimojima Online Shop from the current 1.7 million items to 3 million SKUs, and increasing membership from 1 million IDs to 1.3 million IDs. The sales target for the mail-order channel is ¥7,300 million.
Constructing a new distribution center in Kasai City, Hyogo Prefecture, as a mother center covering the western Japan region. The planned investment amount is approximately ¥15.0 billion, with a site area of 22,180 square meters. Mother centers and dedicated EC centers will be established in both the eastern and western regions, enabling consolidated shipping and improving nationwide delivery efficiency.
Promoting the development of environmentally friendly products such as PFAS-Free Oil-Resistant Bags and Paper Food Trays, and improving gross profit margin by expanding the ratio of original product sales. Actively investing in the development of new products using paper and wood materials as alternatives to petroleum-derived products.
Implementing a review of the business portfolio through withdrawal from and closure of unprofitable businesses, strengthening IR activities (company briefings and one-on-one meetings), changing the dividend policy (announced May 2025), expanding the restricted stock compensation plan for executive officers, and transitioning to a company with an Audit and Supervisory Committee (planned for June 2026).
Last updated: July 19, 2026