Nippi,Incorporated
7932・Standard Market・Other Products
Business
Nippi, Incorporated is a long-established company founded in 1907. Building on collagen and extracellular matrix technology cultivated through its long-standing leather business, the company operates a wide range of businesses, including edible collagen casing (the only domestic manufacturer and one of the world's four major makers), gelatin and collagen peptide, mail-order sales of cosmetics and health foods, leather-related products, real estate leasing, and imported food and bio-related products (the iMatrix Series). The group consists of 11 consolidated subsidiaries and 1 affiliated company, with domestic and overseas customers in the food, pharmaceutical, cosmetics, and regenerative medicine fields as its main targets. Consolidated net sales for FY2026 (ending March 2026) were ¥47,252 million.
Business Model
Building on core collagen and gelatin manufacturing technology, the company combines B2B manufacturing and sales for food, pharmaceutical, and industrial applications (Gelatin Business, Collagen Casing Business, and bio-related operations) with direct-to-consumer mail-order sales (cosmetics and health foods) through its subsidiary Nippi Collagen Cosmetics Co., Ltd. In addition, a high-margin leasing business (operating margin of roughly 78%) leveraging prime real estate in Tokyo and Osaka underpins stable earnings, forming the overall structure of the company's operations.
Company Strengths
The company is the sole domestic manufacturer of Edible Collagen Casing and ranks among the world's four largest manufacturers. Exports to North America have trended favorably, securing segment sales of ¥9,236 million in FY2026 (ending March 2026). It has built a stable supply system to meat processing manufacturers both domestically and overseas, possessing manufacturing know-how and market positioning that competitors cannot easily replicate in a short period.
In FY2026 (ending March 2026), operating profit in the Gelatin Business rose sharply to ¥2,372 million (up 49.3% year on year). Reviewing the origin of raw materials and the countries supplying them, together with productivity improvements, successfully reduced costs and mitigated the impact of exchange rate fluctuations even amid a weak yen environment. Against sales of ¥12,585 million, the operating margin reached approximately 18.8%, making it the largest profit-contributing segment within the group.
Leveraging prime land in Adachi-ku, Tokyo, Namba Parks South in Naniwa-ku, Osaka, and Shinsaibashi in Chuo-ku, Osaka, the leasing business recorded sales of ¥1,058 million and operating profit of ¥826 million (margin of approximately 78%) in FY2026 (ending March 2026). By leasing to a diverse range of uses including commercial facilities, hotels, and nurseries, the business generates stable cash flow and underpins the group's overall earnings base.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥39,349 million in FY2022 to ¥49,046 million in FY2024, then remained flat at ¥49,141 million in FY2025, before turning to a 3.8% decline to ¥47,252 million in FY2026 (ending March 2026). The main causes were lower sales in the Leather Business (due to the sluggish Chinese automotive market) and the Gelatin Business (due to overseas price competition). Meanwhile, operating profit expanded 2.4-fold over four years, from ¥1,759 million in FY2022 to ¥4,153 million in FY2026, with the operating profit margin reaching a record 8.8% (up from 7.4% in the previous fiscal year). Stabilization of raw material costs and productivity improvements in the Gelatin Business, along with progress in building a loyal customer base in the Cosmetics Business, drove a qualitative improvement in the earnings structure. In the Collagen Casing Business, an impairment loss (¥438 million) was recorded on underperforming equipment, marking a structural reform aimed at reducing future fixed costs.
Growth Strategy
Advancing the new medium-term management plan built on two pillars: focused investment in the health and medical-related fields and strengthening the profitability of existing businesses
In the medium-term management plan announced in May 2025, the company set forth "ensuring achievement of ROE of 7% to realize enhanced corporate value" as its basic policy. ROE for FY2026 (ending March 2026) reached the target level of 7.0%, and the company will continue to pursue productivity improvements, strengthen the earnings base of existing businesses, and make strategic investments in growth areas.
The company withdrew from production of special-specification products for overseas markets, recording an impairment loss of ¥438 million in FY2026 (ending March 2026) related to associated equipment and modification costs. The company continues to build a system for handling diversified, small-lot production and to improve productivity through higher yield rates and manufacturing process reviews, aiming to improve its fixed cost structure and restore profitability.
The company continues to make progress in building a loyal customer base for "Nippi Collagen 100," aiming for stable sales expansion through a direct sales model via mail-order channels. In FY2026 (ending March 2026), the company achieved both higher revenue and profit, with net sales of ¥8,256 million (up 7.2% year on year) and segment profit of ¥1,339 million (up 31.9% year on year). Profit growth was achieved while absorbing increased advertising expenses.
Aiming to capture growing demand from domestic and overseas pharmaceutical companies and private research institutions for bio-related products centered on the iPS Cell Culture Substrate "iMatrix Series," the company made capital investments of ¥380 million in tangible and intangible fixed assets in the Food & Other Business segment in FY2026 (ending March 2026). Against the backdrop of sustained growth in the regenerative medicine field, the company expects this to contribute to earnings over the medium to long term.
Last updated: July 19, 2026