ITOCHU Corporation
8001・Prime Market・Wholesale Trade
Business
Itochu Corporation traces its origins to its founding in 1858 and was re-established as its current corporate entity in 1949, making it one of Japan's leading general trading companies (sogo shosha). Through eight Division Companies—Textile, Machinery, Metals, Energy & Chemicals, Food, Housing & Daily Life, Information & Finance, and the 8th Company—it conducts diversified business activities across the consumer lifestyle, basic industries, and resources fields. The company has particular strength in downstream businesses centered on FamilyMart (approximately 16,400 stores), and also holds strategic investments such as CITIC Limited and an Australian iron ore business. Consolidated revenue has reached ¥14,823,087 million, and the company has a global network of over 265 affiliated companies.
Business Model
In addition to gross profit from commodity trading, income from subsidiaries and equity-method affiliates, dividends received, and equity in earnings of affiliates form the pillars of earnings. Under the management policy of "profit lies downstream," the company has deepened investments in downstream businesses such as FamilyMart and Nippon Access, expanding stable earnings derived from consumer touchpoints. In addition, gains and losses on securities from asset sales and restructuring also contribute to earnings, forming a multi-layered earnings structure.
Company Strengths
The company holds numerous downstream businesses with direct consumer touchpoints, including FamilyMart (approx. 16,400 stores), Nippon Access, Itochu Shokuhin, and Hoken no Madoguchi (Insurance Shop, over 700 stores nationwide). In FY2025, total revenue in the Food segment reached ¥5,134,191 million, and gross profit in the 8th segment reached ¥450,531 million, with the consumer/lifestyle domain serving as the core of company-wide profitability.
In FY2025, 247 of 265 consolidated companies were profitable (profitable-company ratio of 93.2%), up 1.6 percentage points year on year. Losses at loss-making companies also improved by ¥2.5 billion year on year to a loss of ¥17.6 billion. Thorough profit and loss management of subsidiaries and equity-method affiliates underpins a stable profit generation base.
The company maintains high credit ratings of JCR AA+ (Stable), R&I AA (Stable), Moody's A2 (Stable), and S&P A (Stable). NET DER (net interest-bearing debt to shareholders' equity ratio) improved to 0.46x (from 0.51x in the previous fiscal year), the shareholders' equity ratio rose to 39.4% (from 38.0% in the previous fiscal year), and free cash flow reached ¥743.0 billion, achieving both financial soundness and capacity for growth investment.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥14,823,087 million (up 0.7% year on year), and profit attributable to owners of the parent was ¥900,283 million (up 2.3% year on year), both marking record highs. Gross profit was ¥2,480,532 million (up 4.4% year on year), reflecting improved profitability. Gains on securities of ¥175,214 million (from the sale of C.P. Pokphand, restructuring of the pulp business, etc.) boosted profit, while selling, general and administrative expenses increased to ¥1,763,184 million (up 5.1% year on year). Share of profit of investments accounted for using the equity method decreased to ¥323,514 million year on year due to external factors such as a decline in the No. 8 and resource-related segments. Operating cash flow was ¥1,131,837 million, an increase of ¥134,559 million year on year, indicating steady improvement in cash-generating capacity. For FY2027 (ending March 2027), net profit is forecast at ¥950,000 million (up 5.5% year on year).
Growth Strategy
Under "The Brand-new Deal," the company is accelerating downstream-oriented investment and pursuing cross-Division Company synergies to continuously enhance corporate value.
In addition to the continued increase in existing-store daily sales driven by strengthened product capabilities and sales promotion at FamilyMart, the company is promoting revenue diversification through the expansion of transactions in the advertising and media business. In FY2026 (ending March 2026), gross profit in the Eighth Segment reached ¥450,531 million, up ¥14,968 million year on year, and segment assets expanded to ¥2,197,297 million following the new acquisitions of Kawasaki Motors and Seven Bank.
The company has executed the consolidation of Descente as a subsidiary (Textile), the full subsidiarization of Takiron Ci (Energy & Chemicals), and the acquisitions of Kawasaki Motors and Seven Bank (Eighth Segment / Machinery), among others. In FY2026 (ending March 2026), gross profit in the Textile segment reached ¥204,277 million, up ¥35,311 million year on year, reflecting the effects of subsidiarization. The company will continue to pursue maximum synergy through deeper management involvement.
The company continues to improve capital efficiency through strategic asset sales, such as the sale of C.P. Pokphand (which contributed to gains/losses on securities). In FY2026 (ending March 2026), the company repurchased 101,362,300 shares of treasury stock while paying dividends of ¥294,692 million (payout ratio of 32.8%). For FY2027 (ending March 2026), the company has clarified its plan to expand shareholder returns, targeting a dividend per share of ¥44 or more (progressive dividend) and share buybacks of ¥300.0 billion or more.
The balance of investments accounted for under the equity method expanded to ¥4,104,790 million (up ¥544,213 million year on year). While incorporating the solid performance of CITIC Limited's comprehensive financial business, equity-method gains in the Machinery segment expanded significantly to ¥104,786 million (up ¥29,310 million year on year), reflecting ongoing diversification of the investment portfolio.
The company is promoting growth in next-generation energy fields such as renewable energy, hydrogen, and ammonia, the Low-Carbon Reduced Iron Supply Chain Development (in collaboration with EMSTEEL), and the IT infrastructure business (CTC) supported by growing demand for cloud and data centers. Gross profit in the Information & Finance segment reached ¥367,869 million, up ¥35,021 million year on year, reflecting the expanding profit contribution from the digital field.
Last updated: July 19, 2026