SANKO SANGYO CO.,LTD.

Business Details

The core segment of the Sanko Sangyo Group. Its main business is the planning, manufacturing, and sale of specialty printed products such as adhesive labels, stickers, and panels, and it includes three consolidated subsidiaries: Benriner Co., Ltd. (vegetable slicers), Tom's Creative Co., Ltd. (novelty goods and other sales promotion), and Axistrust Co., Ltd. (Yoitas brand air conditioning appliances). Panel-related products and seal/label products form the pillars of revenue, and the segment is also pursuing the development of new fields such as daily necessities, medical, and food products.

Recent Overview

Net sales up 11.7%; segment profit recovered sharply to more than 2.3 times the prior period. Revenue structure reforms bore fruit.

Full-year net sales in the Japan segment for FY2026 (ending March 2026) were ¥8,764 million (up 11.7% year on year), and segment profit improved substantially to ¥213 million (versus ¥92 million in the prior period). Broad sales development of panel-related products, along with the deepening of relationships with existing customers and expansion into new fields for seal/label products, contributed to this result. On the manufacturing side, the company promoted efficiency improvements such as yield rate improvement and worked to reduce cost of sales and selling, general and administrative expenses. On the other hand, the increase in depreciation expenses (¥339 million, versus ¥248 million in the prior period) associated with the operation of the Benriner Hiroshima plant was a factor pushing up expenses. The effect of withdrawing from unprofitable operations through the closure of the Osaka plant (end of December 2024) also contributed to the improvement in profitability.

Key Products

Growth Drivers

• Emergence of the effects of plant consolidation and cost reduction through the closure of the Osaka plant (end of December 2024)
• Expansion of orders through broad sales development of panel-related products
• Sales development into new fields such as daily necessities, medical, and food products for seal/label products
• Reduction of cost of sales through manufacturing efficiency improvements such as yield rate improvement
• Strengthening of production capacity and response to overseas demand through the operation of Benriner Co., Ltd.'s Hiroshima plant

Risks

• Continued decline in domestic printing demand and downward pressure on order unit prices
• Structural shrinkage of domestic orders due to major electronics manufacturers relocating production bases overseas and shifting to local procurement of components
• Increased manufacturing costs due to rising raw material and other prices, and difficulty in passing on costs through price increases
• Increased expenses such as depreciation associated with the operation of Benriner Co., Ltd.'s Hiroshima plant (substantial increase year on year)
• Changes in the business environment due to the planned delisting on June 25, 2026, following the establishment of an MBO and tender offer by Baron Co., Ltd.