K.R.S.Corporation
9369・Standard Market・Warehousing & Harbor Transportation Services
Business
Kyusyo Logistics Systems Co., Ltd. was separated and made independent from the warehousing division of Kewpie Corporation in 1966, and is a comprehensive logistics group centered on food storage, cargo handling, and nationwide joint distribution. The group as a whole, including 15 consolidated subsidiaries, operates a nationwide logistics network spanning four temperature zones: frozen, refrigerated, chilled, and ambient. Its main customers are the Kewpie Corporation group and Nippon Access, Inc., and operating revenue for FY2025 (ending November 2025) was ¥202,602 million. In addition to domestic Joint Logistics Business and Dedicated Logistics Business, the company also operates Overseas Logistics (India & Other Asia), centered on Indonesia, and has set the mid-to-long-term goal of building a "logistics network spreading from Japan to Asia."
Business Model
Composed of three segments: the Joint Logistics Business (approximately 68% of operating revenue), which improves transport efficiency through joint distribution of food products for multiple shippers; the Dedicated Logistics Business (approximately 20%), which operates contracted logistics centers for convenience stores and other clients; and Related Businesses (approximately 13%), which handles vehicle and logistics equipment sales as well as overseas logistics in Indonesia and elsewhere. The company's profit structure is secured through unit price improvement via appropriate pricing measures and cost management. Capital expenditures are funded through internal funds and long-term borrowings, with capital expenditure for FY2025 (ending November 2025) amounting to ¥12,513 million.
Company Strengths
Since launching the joint distribution business for refrigerated and frozen foods in 1982, the company has built a nationwide logistics network supporting four temperature zones. Continuous infrastructure expansion has been carried out, including the new Metropolitan Area SLC in 2019 and the launch of low-temperature relay transport in 2021. Temperature control technology specialized for food logistics functions as a barrier to entry.
Kewpie Corporation, an other affiliated company, maintained transactions of ¥12,458 million (6.2% of total operating revenue) in FY2025 (ending November 2025). The long-standing business relationship with the founding parent company since 1966 forms the foundation for stable earnings, and has created a multi-layered customer base spanning food manufacturers and wholesalers both within and outside the group.
Under the 8th Medium-Term Management Plan, the company has continued to promote appropriate pricing measures. In FY2025 (ending November 2025), operating profit in the Joint Logistics Business rose 15.9% year on year to ¥2,964 million, while operating profit in the Dedicated Logistics Business rose 9.4% year on year to ¥1,446 million. Unit price improvements through rate optimization have contributed to improved profit margins.
ENVALITH's Perspective
Performance Trend
Operating revenue grew for five consecutive periods, from ¥175,967 million in FY2021 to ¥202,602 million in FY2025. The full-year forecast for FY2026 (ending November 2026) is ¥205,000 million (up 1.2% year-on-year), maintaining the revenue growth trend. On the other hand, profitability deteriorated in the interim period of FY2026 (ending November 2026), with operating profit of ¥2,960 million (down 3.6% year-on-year) and interim net income attributable to owners of the parent of ¥1,263 million (down 13.9% year-on-year). External factors such as persistently high fuel and electricity costs and rising labor costs due to labor shortages weighed on profits. The full-year net income forecast of ¥2,100 million represents a 20.7% decline from ¥2,648 million in the previous period, indicating a continuing phase of declining profitability. Comprehensive income improved significantly to ¥2,598 million, driven by an improvement in the foreign currency translation adjustment account (from -¥632 million in the same period of the previous year to ¥832 million in the current period).
Growth Strategy
Under the banner of "ensuring the sustainability of logistics and creating new value," the company is advancing domestic infrastructure development and overseas expansion in parallel
Appropriate pricing measures have been continued in both the Joint Logistics Business and Dedicated Logistics Business segments, achieving revenue growth in the first half of FY2026 (ending November 2026) as well. The key challenge is to firmly establish fee revisions that outpace cost increases, with the recovery of profit margins in the Joint Logistics Business being a particularly urgent priority.
Investment in logistics facilities and vehicles continues, centered on acquisitions of tangible fixed assets of ¥5,544 million (first half). Depreciation expense increased to ¥4,008 million (compared with ¥3,627 million in the same period of the previous year), and the realization of investment effects will be key to profit improvement.
In addition to expanding new and existing business in Indonesia, the company has entered the South Asian market through the acquisition of shares in India's Coldrush. Related Businesses showed the highest growth rate, with first-half operating revenue up 12.2% and profit up 23.6%, reflecting progress in building the "logistics network extending from Japan across Asia" envisioned in Group Vision 2036.
In response to labor shortages and rising costs, the company aims to improve productivity through DX promotion and operational efficiency improvements. This is positioned as the third basic policy of the 8th Medium-Term Management Plan, requiring structural reforms to absorb rising labor costs.
Last updated: July 17, 2026