KATO SANGYO CO., LTD.
9869・Prime Market・Wholesale Trade
Business
The Kato Sangyo Group is a comprehensive food wholesaler founded in 1947, comprising Kato Sangyo Co., Ltd. as its core company, along with 46 subsidiaries and 1 affiliated company. Domestically, the group operates three businesses—ambient-temperature distribution (processed foods), chilled/frozen distribution (items requiring refrigeration), and alcoholic beverage distribution—with supermarkets and drugstores as its main customers. Overseas, the group conducts food wholesale operations in four countries: Malaysia, Vietnam, Singapore, and China, positioning expansion of business in the Asian region as a pillar of its growth strategy. Logistics subsidiaries (Manna Unyu Co., Ltd., Kato Logistics Co., Ltd., etc.) support intra-group logistics, building an integrated food distribution infrastructure. Consolidated operating revenue for FY2025 (ending September 2025) reached ¥1,214,265 million.
Business Model
Its core function is wholesale, purchasing products from food manufacturers and selling them to retailers such as supermarkets and drugstores. The company aims to enhance profitability through proposal-based sales, thorough profitability management, and operational efficiency gains from digital technology utilization. It suppresses logistics costs through collaboration with its logistics subsidiary while also developing and expanding sales of private-brand products. Overseas, it pursues a strategy of expanding scale through the acquisition and consolidation of local wholesale companies, embedding the sales capabilities and management methods cultivated in Japan into local operations.
Company Strengths
With four segments—ambient temperature, low temperature, alcoholic beverages, and overseas—total operating revenue for FY2025 (ending September 2025) reached ¥1,214,265 million. The ambient temperature distribution business alone generated ¥741,260 million, making it the largest ambient-temperature food distribution operation domestically. Overseas operations in Malaysia, Vietnam, Singapore, and China recorded revenue of ¥95,746 million, achieving both risk diversification and growth opportunities through geographic spread.
Operating revenue expanded from ¥1,137,101 million in FY2021 to ¥1,214,265 million in FY2025 (on an increasing revenue trend excluding FY2022). Operating profit rose approximately 57% from ¥11,612 million in FY2021 to ¥18,180 million in FY2025. Thorough profitability management and promotion of proposal-based sales have driven earnings improvement, with the ambient temperature distribution business achieving operating profit of ¥14,353 million in FY2025, up 10.2% year on year.
Three logistics subsidiaries—Manna Unyu Co., Ltd., Kato Logistics Co., Ltd., and Okinawa Logistics Co., Ltd.—handle intra-group logistics, reducing reliance on external providers. Of the total capital expenditure of ¥16,059 million in FY2025 (ending September 2025), ¥15,096 million was invested in the ambient temperature distribution business alone, advancing land acquisition and new construction for logistics centers. In-house logistics capability serves as a differentiating factor.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has been on an expanding trend, growing from ¥1,035,664 million (FY2022) to ¥1,214,265 million (FY2025). Operating revenue for the first half of FY2026 (ending September 2026) was ¥626,921 million (up 2.7% year on year), continuing the revenue growth trend. Operating profit of ¥10,451 million (up 3.0% year on year) and ordinary profit of ¥11,639 million (up 5.4% year on year) also show improvement in the core business. Interim net income attributable to owners of the parent rose sharply to ¥8,915 million (up 22.9% year on year), supported in part by a gain on sale of cross-shareholdings (¥2,331 million). As an external factor, price increases on food products have pushed up unit prices and boosted revenue, while rising personnel expenses and logistics costs have weighed on SG&A expenses (¥35,894 million, up 4.6% year on year). The full-year operating profit forecast of ¥17,500 million represents a 3.7% decrease from the previous fiscal year, reflecting anticipated cost increases in the second half.
Growth Strategy
Pursuing dual pillars of deepening digital capabilities in the domestic wholesale function and transitioning the food distribution business across four Asian countries to a profitable structure
The company is strengthening product and floor-layout proposals to customers and improving operational efficiency by leveraging purchasing data and digital technology. Results are emerging, with operating profit of ¥8,005 million (up 2.4% year on year) in the ambient distribution business and ¥851 million (up 13.9% year on year) in the chilled distribution business for the first half of FY2026 (ending September 2026).
In the food wholesale business in Malaysia, Vietnam, Singapore, and China, the company is promoting the penetration of domestic Japanese sales capabilities and management methods, along with a review of brand portfolios and cost structures. Segment profit of ¥161 million was achieved in the first half of FY2026 (ending September 2026), marking a return to profitability.
While proceeding with the sale of cross-shareholdings (recording a gain on sale of investment securities of ¥2,331 million in the first half of FY2026 (ending September 2026)), the company is enhancing shareholder returns through share buybacks (620,000 shares, ¥3,920 million) and a dividend increase (full-year dividend of ¥160, up 14.3% year on year).
Amid structural headwinds such as a declining drinking population and intensifying cross-industry competition, the company is thoroughly managing profitability, improving operational efficiency, and promoting low-cost operations. It aims to strengthen consultative sales to capture the market expansion effect expected from the unification of beer-type tax rates in October 2026.
Last updated: July 17, 2026