KEWPIE CORPORATION Overview
Kewpie Corporation is Japan's dominant mayonnaise and salad-dressing franchise and, through its egg-processing operations, the country's largest industrial user and processor of eggs. Founded in 1919 and maker of Japan's first domestically produced mayonnaise (1925), the group has evolved into a vertically integrated "salads and eggs" company spanning retail condiments, chilled delicatessen and packaged salads, food-service sauces and liquid/frozen/dried egg products, jams (Aohata), fine chemicals (hyaluronic acid, egg yolk lecithin) and food machinery. Roughly 80% of revenue is domestic and mature, but the Overseas segment (19.5% of FY2025 sales, 13.6% operating margin) generates over 30% of segment profit and is the designated growth engine, with new capacity in the U.S. (Tennessee), China and Southeast Asia. Under the FY2025–FY2028 "Change & Challenge" plan, management targets JPY 600bn sales, JPY 45bn operating income and ROE of at least 8.5% by FY2028, pursued through domestic structural reform, price discipline and global brand expansion.
What the company does — company's own description
In its FY2025 consolidated financial statements, Kewpie organises its operations into six reporting segments according to market. The company's own segment descriptions (FY2025 Kessan Tanshin, segment note) are:
Retail Market: manufactures and sells mayonnaise, dressings, pasta sauces, salads, delicatessen foods, packaged salads, baby foods and nursing-care foods for the retail market.
Food Service: manufactures and sells mayonnaise, dressings, vinegar, liquid egg, frozen egg, dried egg and egg-processed foods for the food-service market.
Overseas: manufactures and sells mayonnaise and dressings in overseas markets including China, Southeast Asia and North America.
Fruit Solutions: manufactures and sells jams and frozen processed fruit for household use and fruit-processed foods for industrial use.
Fine Chemicals: manufactures and sells hyaluronic acid and egg yolk lecithin used as ingredients for pharmaceuticals, cosmetics and food products.
Common Business: sale of food products and food-production equipment.
The group's stated ideal is to contribute to "the food culture and health of the world through great taste, empathy, and uniqueness", and its 2030 Vision (as restated in the Medium-Term Plan, Nov 2024) has three pillars: "Leading Company for Salads and Eggs", "Food Partner for Every Person" and "Supporter for Bringing Smiles to Children".
Business model and revenue model
| Revenue engine | Nature | FY2025 scale (JPY Bn) | Comment |
|---|---|---|---|
| Branded retail condiments (mayonnaise, dressings, sauces) | Branded consumer packaged goods | 77.5 | Highest-margin domestic franchise; FY2025 segment OI 8.5 |
| Delicatessen / chilled salads | Branded and customer-specified chilled foods | 65.4 | Low-to-mid single-digit margin |
| Cut vegetables / packaged salads | Fresh produce processing (Salad Club) | 30.0 | Volatile; weather-driven |
| Food-service condiments | B2B branded and custom sauces | 53.2 | Restaurant, delicatessen, CVS channels |
| Egg products | B2B liquid/frozen/dried egg and processed egg | 115.8 | Largest single sub-business; egg-price pass-through |
| Overseas | Branded KEWPIE mayonnaise and dressings, plus contract manufacturing | 100.3 | Highest-margin segment (13.6%) |
| Fruit Solutions (Aohata) | Jams, spreads, industrial fruit | 17.6 | Wholly owned from Nov 2025 |
| Fine Chemicals | B2B ingredients plus direct mail-order supplements | 11.8 | Hyaluronic acid, lecithin, acetic acid bacteria supplements |
| Common Business | Machinery and raw-material sales | 8.3 | External machinery sales |
Kewpie is overwhelmingly a product business. Revenue is generated from the manufacture and sale of branded and private-specification food products and ingredients; there is no material subscription or licensing revenue disclosed. Within the product mix, the main economic engines are:
Source: Supplementary Data for 1H FY2026 (FY2025 columns), FY2025 Kessan Tanshin.
A small but growing direct-to-consumer element exists through Fine Chemicals' mail-order supplement sales (cited as a driver of segment growth in FY2025 and 1H FY2026). No customer accounted for 10% or more of consolidated net sales in FY2024 or FY2025 (FY2025 Kessan Tanshin, "Information by major customer").
Value-chain position
Kewpie occupies the processing and branded-manufacturing stage of the food value chain, sitting between agricultural/commodity inputs (eggs, edible oils, vinegar, vegetables, fruit) and distribution (supermarkets, convenience stores, restaurants, delicatessen operators, e-commerce). Its integration is unusually deep for a condiment maker:
Upstream: Kewpie Egg Corporation (egg breaking/processing; production and purchasing company for egg products), Kewpie Jozo (vinegar), and in-house use of by-products (egg shells, egg yolk → lecithin; egg membranes; unused vegetable portions — 88.0% effective utilisation rate in 1H FY2026).
Midstream: mayonnaise/dressing plants (Japan, U.S., China, Southeast Asia, Poland), chilled delicatessen (Deria Foods, Shunsai Deli), cut vegetables (Salad Club), fruit processing (Aohata), packaging (Kepack), machinery (Shiba Seisakusho).
Logistics: historically in-house; K.R.S. Corporation (Kewsoe) was partly sold in January 2021 and is now an equity-method affiliate (Kewpie holds 43.29%).
Downstream: own sales force for retail and food-service; KEWPIE brand marketing overseas.
Customer types and end-markets
| Customer type | Segment(s) | Examples of channel |
|---|---|---|
| Households (via retailers) | Retail Market, Overseas, Fruit Solutions | Supermarkets, drugstores, CVS, e-commerce |
| Restaurants and food-service operators | Food Service, Overseas | Chains, delicatessen counters, bakeries, CVS food makers |
| Food manufacturers / industrial | Food Service (egg), Fruit Solutions (industrial fruit), Fine Chemicals | Bakeries, confectioners, prepared-food makers |
| Pharmaceutical and cosmetics makers | Fine Chemicals | Hyaluronic acid, egg yolk lecithin |
| Consumers direct | Fine Chemicals (mail order) | Supplements |
| Third-party brand owners | Overseas (U.S. contract manufacturing) | Q&B Foods co-packing |
Independent characterisation
Kewpie is best understood as a mature, high-share domestic franchise funding an international brand build. The Japanese condiment business is price-led rather than volume-led — 1H FY2026 household salad-condiment volume was flat at 62 thousand tonnes while unit price rose 6% to JPY 655/kg (Supplementary Data 1H FY2026). Earnings volatility is dominated by two commodity inputs: edible oil (soybean/rapeseed) and eggs, the latter exposed to highly pathogenic avian influenza (HPAI) cycles. The FY2023 earnings trough (operating income JPY 19.7bn, margin 4.3%) and the FY2024 rebound (JPY 34.3bn, 7.1%) illustrate the lag between input-cost shocks and price pass-through. The structural thesis rests on (a) restored domestic pricing power, (b) value-added mix shift (e.g., egg products, "Kewpie Half"), and (c) the KEWPIE brand's growing recognition abroad, particularly in the Americas and Asia-Pacific.
Strategy
Stated strategy — themes from the latest plan and reports
Long-term vision (2030 Vision): "Leading Company for Salads and Eggs"; "Food Partner for Every Person" (connecting with each customer and enhancing quality of life through products, expertise and services); "Supporter for Bringing Smiles to Children". The 2030 Vision page adds the aim of spreading the salad culture cultivated in Japan globally and using DX, including AI, to evolve the value chain.
Medium-Term Business Plan FY2025–FY2028: "—Change & Challenge— Improving management efficiency in mature markets and accelerating investment in growth areas."
Economic-value pillars: "Structural reform of domestic business" (profitability) and "Acceleration of global expansion" (growth), underpinned by portfolio transformation and SCM productivity, DX-driven value creation, business-area expansion and brand value, and a foundation for global management.
Social-value pillars: "Contributing to food culture and health", "Consideration for the environment", "Enhancing the value of human capital".
Capital policy: "Management with an awareness of the cost of capital and stock price."
FY2026 positioning (FY2025 Kessan Tanshin): an "important year for further accelerating measures for growth" — proactive demand creation overseas to translate FY2025 plant investments into results; domestically, reasonable price revisions, automation and digitalisation, and fundamental business-structure reforms involving reorganisation.
2026 marketing theme: "CROSS" — crossing retail and food-service know-how to create food trends that move from restaurants to the home (new product strategy briefing, 27 Jan 2026).
Medium-term financial targets (FY2028)
| Target | FY2024 actual | FY2025 actual | FY2026 forecast | FY2028 target |
|---|---|---|---|---|
| Net sales (JPY bn) | 484.0 | 513.4 | 530.0 | 600.0 |
| Operating income (JPY bn) | 34.3 | 34.6 | 38.0 | 45.0 |
| Operating margin (%) | 7.1 | 6.7 | 7.2 | 7.5 |
| ROE (%) | 7.3 | 9.7 | 8.0 | ≥8.5 |
| ROIC (%) | 6.8 | 6.6 | 7.1 | ≥8.5 |
| Domestic business profit margin (%) | 7.2 | 6.6 | 7.3 | ≥8.0 |
| Overseas sales growth, local currency (%) | 11 | 8 | 9 | ≥10 CAGR |
| Overseas net sales (JPY bn) | 93.1 | 100.3 | 116.5 | 180.0 |
| Segment | FY2024 sales | FY2028 sales target | Sales CAGR | FY2024 OI | FY2028 OI target |
|---|---|---|---|---|---|
| Retail Market | 186.3 | 196.0 | 1% | 13.7 | 15.6 |
| Food Service | 171.5 | 179.0 | 1% | 12.6 | 14.1 |
| Overseas | 93.1 | 180.0 | 18% | 12.2 | 18.0 |
| Other | 35.1 | 45.0 | 6% | 1.8 | 4.3 |
| Company-wide | — | — | — | -6.3 | -7.0 |
| Total | 486.0 | 600.0 | 5% | 34.0 | 45.0 |
Sources: MTP briefing (26 Nov 2024); Supplementary Data 1H FY2026; FY2025 results briefing (Japanese).
FY2028 targets by segment (JPY bn, MTP reference page)
FY2024 figures here are the MTP-time forecasts, not final actuals.
Investment and capital-allocation framework (FY2025–FY2028)
| Item | Amount (JPY Bn) |
|---|---|
| Capital investment total | 100.0 (1.8x previous plan's 70.0) |
| – Aggressive investment (growth, value-add, automation, location optimisation, DX, new development, sustainability) | 75.0 |
| – Business continuity investment | 25.0 |
| – Of which overseas growth investment | 30.0 |
| Proactive future investment (expensed: human capital, brand, DX, R&D, sustainability) | 20.0 |
| Operating cash flow (4-year) | c.170.0 |
| Shareholder returns | c.50.0 |
| Policy | Total return ratio ≥50% over 4 years; minimum DPS JPY 54 raised gradually; flexible buybacks (JPY 10bn indicated); M&A and alliances considered |
| Financial discipline | Equity ratio target 60%; interest-bearing debt/EBITDA <2x; cost of equity recognised at 4–6% |
Strategic initiatives announced in the last 24 months
| Date | Initiative | Description / target |
|---|---|---|
| Oct 2024 | Marketing organisation integration | Retail and food-service marketing merged to create trends in food service and roll out to retail |
| Nov 2024 | MTP FY2025–FY2028 | See above |
| FY2025 | Overseas brand programme | Overseas branding under unified concept for mayonnaise 100th anniversary; advertising up to JPY 13.2bn |
| Feb 2025 | Restricted stock compensation | Aligns directors with shareholders |
| May 2025 | Tennessee plant | Second U.S. base; long-term hub for the Americas |
| Jun 2025 | Baby-food exit | 72 items discontinued by end Aug 2026 citing difficulty maintaining satisfactory quality amid declining volumes and rising raw-material/energy costs |
| Jul 2025 | Aohata full ownership | Faster decision-making and resource sharing |
| FY2025 | Domestic automation | Robot introduction for production; "smart factory" concept |
| Jan 2026 | JPY 10bn buyback | Up to 4m shares (2.87%) through 30 Nov 2026 |
| Jan 2026 | "CROSS" product strategy | Retail × food service |
| Jan–Feb 2026 | Product renewals/launches | Thousand Island renewal; Gutappuri Sauce negi-shio; Lemon Tartar |
| Apr & Nov 2026 | Price revisions | April 2026 (up to c.24%), November 2026 (household 3–25%; commercial 2–38%) |
| Jul 2026 | Egg-products sales integration | Kewpie to take over Kewpie Egg's egg-processed-products sales business (c.JPY 7.8bn, effective 1 Dec 2026); Kewpie Egg to become a production/purchasing company |
Sustainability commitments (domestic targets)
CO2 reduction ≥46% by FY2028 and ≥50% by FY2030 vs FY2013; plastic reduction ≥25% (FY2028) and ≥30% (FY2030) vs FY2018; food-waste reduction ≥63%/65% vs FY2015; water intensity ≥8%/10% vs FY2020; 100% sustainable paper; engagement score ≥75 points.
Products & Services
Kewpie does not publish SKU-level revenue or pricing beyond reference retail prices for certain items. Where a launch date or price is not disclosed in reviewed sources it is marked n/d.
Retail Market segment
| Product / brand | Description & capabilities | Target customer | Launch / latest version | Pricing (disclosed) |
|---|---|---|---|---|
| Kewpie Mayonnaise | Egg-yolk mayonnaise; flagship of the group | Households | Launched Mar 1925 | 450g reference retail price JPY 559, rising to JPY 611 from 1 Nov 2026 shipments (Kyodo, 1 Sep 2026) |
| Kewpie Half (calorie-cut mayonnaise type) | Reduced-calorie mayonnaise-type dressing; targeted with strengthened sales promotion in FY2025 | Health-conscious households | — | — |
| Kewpie Deep-Roasted Sesame Dressing | Creamy roasted-sesame dressing; designated "global strategic product" | Households (Japan and overseas) | — | — |
| Kewpie Thousand Island Dressing | Creamy dressing with pickle notes; No.1 sales-composition flavour in the red-cap series; renewed with improved sweet-sour balance and egg-yolk richness | Households | Launched 1963; renewed 19 Feb 2026 | — |
| French Dressing (red/white) | Kewpie's first dressings | Households | Pre-1963 | — |
| Kewpie Non-oil dressings | Oil-free dressing range (featured in the 2024 "Dressing & Non-oil General Election" consumer campaign) | Health-conscious households | — | — |
| Pasta sauces | Ready-to-use pasta sauces | Households | — | — |
| Delicatessen (Deria brand, Deria Foods / Shunsai Deli) | Chilled salads and side dishes; MTP strategy is a shift to "strong products" and robot automation | Supermarkets, CVS, households | Ongoing | — |
| Packaged salads / cut vegetables (Salad Club) | Pre-cut, washed vegetables and salad kits; value-added development and new materials | Supermarkets, CVS | Ongoing | — |
| Nursing-care foods | Texture-modified meals for the elderly | Elderly and carers | — | — |
| Baby food / infant food (72 items incl. jars, "Nikoniko Box" cup meals, "Happy Recipe" pouches, baby desserts, egg boro snacks, "Yasai to Nakayoshi" sauces and spreads) | Infant weaning foods | Parents | Launched 1960; production ended end Aug 2026 | — |
Food Service segment
| Product / brand | Description & capabilities | Target customer | Launch / latest | Pricing |
|---|---|---|---|---|
| Food-service mayonnaise and dressings | Bulk and portion formats | Restaurants, delis, CVS food makers | Ongoing | 601 commercial items raised c.2–38% from 1 Nov 2026 |
| "Gutappuri Sauce" (具たっぷりソース) series | Proprietary process so chunky sauce "sits on" food without soaking in; yuzu soy and garlic onion (Feb 2024), yakiniku (Feb 2025), negi-shio (Feb 2026) — 5 items in total | Restaurants, multiple formats | First launched Feb 2024; negi-shio 6 Feb 2026 | — |
| "Kewpie Gutakusan Sauce Lemon Tartar" | Lemon-juice and peel tartar sauce for summer menus | Restaurants, delis | 6 Feb 2026 | — |
| Vinegar (Kewpie Jozo) | Brewed vinegars | Food makers, restaurants | Ongoing | — |
| Liquid egg, frozen egg, dried egg | Industrial egg ingredients from Kewpie Egg | Bakeries, confectioners, food processors | Ongoing | Pass-through of egg market prices |
| Egg-processed foods | Value-added egg products (e.g., cooked egg items) — grew in volume in 1H FY2026 | CVS, restaurants, delis | Ongoing | — |
Overseas segment
| Product / brand | Description | Markets | Notes |
|---|---|---|---|
| KEWPIE Mayonnaise | Japanese-style egg-yolk mayonnaise; global strategic product | China ("丘比"), Southeast Asia, Asia-Pacific, Americas, Europe | Overseas branding under unified concept from 100th anniversary |
| KEWPIE Deep-Roasted Sesame Dressing | Global strategic product; one of the top sellers in the U.S. | U.S., Asia | Produced at Irwindale and Clarksville |
| Local-recipe dressings and sauces | Products tailored to local cuisines ("proposal-based promotions in tune with local cuisine") | China, Southeast Asia | — |
| Contract manufacturing | Mayonnaise, dressings and sauces for other companies | U.S. (Q&B Foods) | Tennessee plant licensed for contract work |
Fruit Solutions segment (AOHATA Corporation)
| Product | Description | Target | Notes |
|---|---|---|---|
| Household jams and spreads (Aohata brand, including the low-sugar "Aohata 55" line) | Jams, fruit spreads | Households | Strong sales cited in FY2025 and 1H FY2026 |
| Frozen processed fruit | Household frozen fruit | Households | — |
| Industrial fruit-processed foods | Fruit preparations for food makers | Food manufacturers | Strong in FY2025 |
Fine Chemicals segment
| Product | Description | Target | Notes |
|---|---|---|---|
| Hyaluronic acid (ingredient) | Produced from egg-derived/fermentation processes for pharma, cosmetics, food | Pharma, cosmetics, supplements | B2B |
| Hyaluronic acid supplements (mail order) | Direct-to-consumer supplements | Consumers | Mail order strong in FY2025 and 1H FY2026 |
| Acetic acid bacteria supplements | Functional supplement | Consumers | Cited as driver in 1H FY2026 |
| Egg yolk lecithin | Phospholipid ingredient for pharmaceuticals (e.g., emulsions), cosmetics, food | Pharma | Pharmaceutical-ingredient volumes declined in FY2025 |
Common Business
| Product / service | Description | Customer |
|---|---|---|
| Food-production machinery (Shiba Seisakusho) | Machinery for food and pharma production; external sales grew in FY2025 | Food manufacturers |
| Raw material and food product sales | Trading of materials | Group and third parties |
Media and services
| Asset | Description |
|---|---|
| "Kewpie 3-Minute Cooking" | Long-running TV cooking programme; recipes now integrated into a LINE-based menu-suggestion service ("Recipe Talk", June 2025 coverage) |
| Shareholder benefit programme | Group products worth JPY 1,000–5,000 depending on holding size and tenure (Integrated Report 2026) |
Financial Narrative
Basis: Japanese GAAP, JPY millions unless stated. FY2021–FY2023 income statement data from company filings as compiled by Envalith/StockAnalysis (S&P Global) and cross-checked against company Supplementary Data; FY2024–FY2025 from the FY2025 Kessan Tanshin. FY2021 net sales are not comparable to FY2020 (JPY 531.1bn) because of the new revenue-recognition standard and the deconsolidation of K.R.S. in FY2021.
Income statement
Note: company Supplementary Data reports D&A of JPY 16.9bn for FY2023 (vs 17.1bn per S&P compilation); EBITDA for FY2024–FY2025 here uses filing D&A (JPY 17,536m and 18,291m), whereas some aggregators show JPY 52,047m and 52,927m.
FY2021 EPS derived (net income / c.140.6m average shares implied by S&P per-share data) — not taken from a filing. No dilutive securities exist, so diluted EPS equals basic. FY2025 DPS of JPY 64 includes JPY 10 commemorating the 100th anniversary of Kewpie Mayonnaise (JPY 5 interim + JPY 5 year-end). Sources: Supplementary Data FY2024 (FY2022–FY2024), FY2025 Kessan Tanshin, MTP briefing (FY2021–FY2024 DPS).
Revenue CAGR FY2021–FY2025: 6.0% per annum (JPY 407.0bn → JPY 513.4bn). Operating income CAGR over the same period: 5.5%. Net income CAGR: 14.1% (flattered by the FY2025 property gain).
Commentary — income statement. The five-year arc is a V-shape in profitability around an uninterrupted top-line climb. Sales grew every year (5.7%, 5.8%, 6.4%, 6.1%), but almost entirely through price rather than volume: domestic household salad-condiment volume moved from 124k tonnes (FY2022) to 120k (FY2023) and 123k (FY2024) while value rose from JPY 68.1bn to JPY 76.5bn (Supplementary Data FY2024). Gross margin compressed from 30.5% (FY2021) to 26.9% (FY2023) as edible-oil prices peaked (institutional oil averaging JPY 437/kg in 4Q FY2022) and HPAI drove the Tokyo medium-egg benchmark to JPY 348/kg in 2Q FY2023. FY2024 marked the inflection: gross margin rebounded to 30.5% and operating income rose 74.3% as raw-material relief (+JPY 11.5bn tailwind from main raw materials per company bridge) combined with earlier price revisions. FY2025 was a "run to stand still" year at the operating line (+0.9%): the company's bridge shows JPY 13.7bn of self-generated "earning power" (price revisions +8.8bn, overseas and other sales growth +3.9bn, value-added +1.8bn, production efficiency +0.3bn) offset by JPY 11.9bn of "intensifying headwinds" — chiefly eggs (benchmark JPY 287–334/kg) and logistics (FY2025 results briefing script, Japanese version). Net income jumped 42.4% because of a JPY 12.1bn gain on the sale of a former factory site. SG&A has grown faster than sales (FY2021–FY2025 CAGR 4.8% vs sales 6.0% — actually slower; SG&A ratio fell from 23.6% to 22.7%), with advertising rising from JPY 10.3bn (FY2023) to JPY 13.2bn (FY2025) to support overseas brand building.
Balance sheet
Sources: FY2024–FY2025 FY2025 Kessan Tanshin; FY2021–FY2023 S&P Global via StockAnalysis, cross-checked with company Supplementary Data (net assets, equity, equity ratio). Company-defined "interest-bearing debt" (which includes all interest-bearing liabilities incl. current leases) was JPY 33,042m (FY2022), 32,550m (FY2023), 22,422m (FY2024) and 29,745m at 31 May 2026; the S&P-compiled totals above differ slightly. Net debt uses cash and deposits plus short-term securities.
Commentary — balance sheet. Kewpie runs a deliberately conservative balance sheet: a 67.4% equity ratio and a net cash position of roughly JPY 60bn at FY2025. Under the MTP the company explicitly states that its cost of equity is 4–6% and that it will "utilize interest-bearing debt within the scope of financial discipline" (target equity ratio 60%, interest-bearing debt/EBITDA below 2x). The FY2025 decline in cash (JPY 78.1bn → 65.6bn) reflects JPY 16.3bn of buybacks, JPY 8.8bn of dividends, JPY 3.4bn of dividends to minorities, and JPY 19.4bn placed into time deposits (reclassified into "other investments", i.e., cash was redeployed rather than consumed). Two structural changes stand out in FY2025: (1) non-controlling interests fell JPY 5.8bn as Aohata became wholly owned via treasury shares, with capital surplus reduced by JPY 10.8bn; and (2) assets for retirement benefits rose JPY 11.85bn to JPY 46.4bn on pension-plan overfunding. Investment securities (JPY 55.6bn) include cross-shareholdings that the MTP flags for sale. Goodwill is negligible; the group has grown organically.
Cash flow
Sources: FY2025 Kessan Tanshin; Supplementary Data FY2024 (company FCF FY2022–FY2024, capital investments FY2023–FY2024); S&P Global via StockAnalysis (FY2021–FY2023 detail). FY2021 company-definition FCF derived. FY2025 company-definition FCF: 31,802 − 16,905.
Commentary — cash flow. Operating cash flow is lumpy because working capital swings with commodity prices: FY2024 OCF of JPY 63.1bn was inflated by a JPY 11.5bn increase in trade payables and a JPY 4.2bn release of inventories, which then partly reversed in FY2025 (payables −0.4bn, inventories −2.0bn, receivables −2.2bn) while cash taxes doubled to JPY 10.5bn on higher profits. Normalising across FY2024–FY2025, OCF averages roughly JPY 47bn, consistent with the MTP's four-year OCF assumption of about JPY 170bn (c.JPY 42.5bn per year). Capex peaked in FY2024 (JPY 18.1bn tangible, 5.8bn intangible incl. core IT systems) as the Tennessee, Thailand, Indonesia and China plants were built; FY2026 capital investment is guided to JPY 26.2bn, implying a step-up as the MTP's JPY 100bn four-year envelope is executed. FY2025 investing cash flow was flattered by JPY 11.2bn of proceeds from the former factory site sale.
Ratios
Sources: ROE, company ROA, ROIC, interest coverage (company), payout — company Supplementary Data FY2024 and FY2025 Kessan Tanshin (company ROIC = OI × (1 − effective tax rate) / (net assets + interest-bearing debt)). Net-income ROA from Envalith compilation. All other ratios derived from the tables above (year-end balances; DIO and DPO on cost of sales).
Commentary — ratios and returns. ROE reached 9.7% in FY2025, already above the FY2028 MTP target of 8.5%, but this was assisted by the one-off property gain; the company's own FY2026 forecast is ROE 8.0% and ROIC 7.1% (Supplementary Data 1H FY2026), implying that the underlying ROE is still converging on target. The ROIC target of at least 8.5% by FY2028 is the more demanding hurdle. Working-capital efficiency improved markedly in FY2024 (CCC 48 days vs 63 days in FY2023) as inventories normalised after the egg crisis and payables lengthened. Leverage metrics are not a constraint on any plausible strategy: the group could add c.JPY 100bn of debt before approaching its own 2x debt/EBITDA ceiling.
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Segment net sales (JPY Bn)
| Segment net sales (JPY Bn) | FY2023 | FY2024 | FY2025 | FY2026F |
|---|---|---|---|---|
Retail Market | 177.4 | 186.7 | 189.8 | 191.0 |
Food Service | 165.3 | 170.1 | 185.6 | 186.0 |
Overseas | 78.3 | 92.2 | 100.3 | 116.5 |
Fruit Solutions | 17.0 | 17.0 | 17.6 | 18.5 |
Fine Chemicals | 11.2 | 11.4 | 11.8 | 12.5 |
Common Business | 6.0 | 6.6 | 8.3 | 5.5 |
Total | 455.1 | 484.0 | 513.4 | 530.0 |
Segment growth (%)
| Segment growth (%) | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Retail Market | 5.3 | 1.6 | 0.6 |
Food Service | 2.9 | 9.1 | 0.2 |
Overseas | 17.8 | 8.7 | 16.2 |
Fruit Solutions | 0.0 | 3.4 | 5.3 |
Fine Chemicals | 1.8 | 4.0 | 5.6 |
Common Business | 10.0 | 26.9 | -33.7 |
Total | 6.4 | 6.1 | 3.2 |
Segment share of sales (%)
| Segment share of sales (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Retail Market | 39.0 | 38.6 | 37.0 |
Food Service | 36.3 | 35.1 | 36.1 |
Overseas | 17.2 | 19.0 | 19.5 |
Fruit Solutions | 3.7 | 3.5 | 3.4 |
Fine Chemicals | 2.5 | 2.4 | 2.3 |
Common Business | 1.3 | 1.4 | 1.6 |
Revenue by Segment
| Segment OI, old allocation basis (JPY Bn) | FY2023 | FY2024 |
|---|---|---|
Retail Market | 10.0 | 14.3 |
Food Service | 4.2 | 12.0 |
Overseas | 10.3 | 14.4 |
Fruit Solutions | 0.3 | 0.2 |
Fine Chemicals | 1.1 | 0.6 |
Common Business | 1.3 | 1.4 |
Company-wide expenses | -7.3 | -8.4 |
Total | 19.7 | 34.3 |
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View Subscription PlansRevenue by Segment (FY2024–FY2026F)
| Segment OI, new allocation basis (JPY Bn) | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Retail Market | 14.3 | 12.6 | 13.9 |
Food Service | 12.0 | 11.9 | 13.2 |
Overseas | 12.5 | 13.6 | 14.8 |
Fruit Solutions | 0.2 | 0.7 | 0.7 |
Fine Chemicals | 0.6 | 0.7 | 1.0 |
Common Business | 1.4 | 1.4 | 1.2 |
Company-wide expenses | -6.5 | -6.1 | -6.8 |
Total | 34.3 | 34.6 | 38.0 |
Segment operating margin (%)
| Segment operating margin (%) | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Retail Market | 7.6 | 6.6 | 7.3 |
Food Service | 7.0 | 6.4 | 7.1 |
Overseas | 13.5 | 13.6 | 12.7 |
Fruit Solutions | 1.2 | 3.9 | 3.8 |
Fine Chemicals | 5.0 | 6.0 | 8.0 |
Common Business | 21.2 | 16.3 | 21.8 |
Consolidated | 7.1 | 6.7 | 7.2 |
Sub-segment net sales (JPY Bn)
| Sub-segment net sales (JPY Bn) | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Retail – Condiments | 77.5 | 77.5 | 79.8 |
Retail – Delicatessen | 65.3 | 65.4 | 66.6 |
Retail – Cut vegetables | 28.6 | 30.0 | 30.0 |
Retail – Other | 15.3 | 16.9 | 14.6 |
Food Service – Condiments | 52.0 | 53.2 | 54.3 |
Food Service – Egg | 101.6 | 115.8 | 115.5 |
Food Service – Other | 16.5 | 16.7 | 16.2 |
Sub-segment operating income (JPY Bn)
| Sub-segment operating income (JPY Bn) | FY2024 | FY2025 | FY2026F |
|---|---|---|---|
Retail – Condiments | 10.2 | 8.5 | 8.7 |
Retail – Delicatessen | 3.1 | 2.8 | 3.2 |
Retail – Cut vegetables | 0.9 | 0.8 | 1.6 |
Retail – Other | 0.2 | 0.5 | 0.4 |
Food Service – Condiments | 3.7 | 4.4 | 4.4 |
Food Service – Egg | 7.6 | 6.2 | 7.7 |
Food Service – Other | 0.6 | 1.2 | 1.1 |
Segment Overview
| Segment | Segment assets | D&A | Increase in fixed assets |
|---|---|---|---|
Retail Market | 118,908 | 5,447 | 4,248 |
Food Service | 132,067 | 6,410 | 4,691 |
Overseas | 104,656 | 3,834 | 6,455 |
Fruit Solutions | 18,017 | 865 | 384 |
Fine Chemicals | 10,916 | 458 | 643 |
Common Business | 41,682 | 986 | 406 |
Segment Revenue
| Segment | 1H FY2025 sales | 1H FY2026 sales | 1H FY2025 OI | 1H FY2026 OI |
|---|---|---|---|---|
Retail Market | 94.6 | 95.6 | 5.7 | 8.4 |
Food Service | 89.1 | 93.8 | 4.4 | 6.9 |
Overseas | 49.4 | 53.6 | 7.9 | 6.9 |
Fruit Solutions | 8.6 | 8.8 | 0.3 | 0.4 |
Fine Chemicals | 6.2 | 6.6 | -0.2 | 0.0 |
Common Business | 4.0 | 3.2 | 0.7 | 0.5 |
Company-wide | — | — | -2.6 | -3.0 |
Total | 251.9 | 261.6 | 16.2 | 20.0 |
Income Statement
| Metric (JPY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales | 407,039 | 430,304 | 455,086 | 483,985 | 513,417 |
Cost of sales | 282,807 | 306,114 | 332,755 | 336,217 | 362,490 |
Gross profit | 124,232 | 124,189 | 122,330 | 147,767 | 150,927 |
SG&A | 96,260 | 98,755 | 102,636 | 113,437 | 116,298 |
Operating income | 27,972 | 25,433 | 19,694 | 34,329 | 34,628 |
Ordinary income | 29,698 | 27,249 | 20,490 | 36,874 | 37,389 |
Extraordinary gains | 1,486 | 1,585 | 4,178 | 453 | 12,589 |
Extraordinary losses | 2,323 | 2,203 | 2,593 | 3,689 | 2,461 |
Pre-tax income | 28,860 | 26,630 | 22,075 | 33,638 | 47,517 |
Income taxes | 8,590 | 8,264 | 6,550 | 9,228 | 13,627 |
Net income attributable to owners | 18,014 | 16,033 | 13,174 | 21,419 | 30,506 |
Depreciation and amortisation | 15,534 | 16,249 | 17,117 | 17,536 | 18,291 |
EBITDA (OI + D&A) | 43,506 | 41,682 | 36,811 | 51,865 | 52,919 |
Per-share data (JPY)
| Per-share data (JPY) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
EPS basic | 128.2 | 115.34 | 94.78 | 154.10 | 220.63 |
EPS diluted | 128.2 | 115.34 | 94.78 | 154.10 | 220.63 |
Dividends per share | 47 | 47 | 50 | 54 | 64 |
Book value per share | 1,767.13 | 1,925.54 | 2,027.90 | 2,174.74 | 2,328.49 |
Margins (%)
| Margins (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin | 30.5 | 28.9 | 26.9 | 30.5 | 29.4 |
Operating margin | 6.9 | 5.9 | 4.3 | 7.1 | 6.7 |
EBITDA margin | 10.7 | 9.7 | 8.1 | 10.7 | 10.3 |
Net margin | 4.4 | 3.7 | 2.9 | 4.4 | 5.9 |
Balance Sheet and Margin Analysis (%)
| Metric (JPY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets | 381,003 | 403,384 | 426,006 | 462,372 | 480,531 |
Cash and deposits | 58,343 | 57,825 | 66,610 | 78,139 | 65,598 |
Securities (short-term) | 10,000 | 10,000 | 2,000 | 10,000 | 15,000 |
Cash & equivalents (cash flow basis) | 66,702 | 65,335 | 62,433 | 80,512 | 65,849 |
Receivables | 56,738 | 59,299 | 64,145 | 71,194 | 74,380 |
Inventories | 30,065 | 37,077 | 43,993 | 39,861 | 42,262 |
Total current assets | 157,451 | 167,726 | 182,080 | 203,727 | 203,365 |
Total current liabilities | 71,199 | 65,252 | 81,372 | 91,239 | 104,979 |
Working capital | 86,252 | 102,474 | 100,708 | 112,488 | 98,386 |
Short-term debt incl. current portion of bonds | 11,591 | 3,058 | 17,200 | 2,271 | 17,202 |
Long-term debt incl. bonds | 26,356 | 26,070 | 10,784 | 15,500 | 0 |
Lease obligations (long-term) | 3,780 | 3,337 | 3,807 | 3,785 | 3,592 |
Total debt | 41,727 | 32,465 | 31,791 | 21,556 | 20,794 |
Net debt (negative = net cash) | -26,616 | -35,360 | -36,819 | -66,583 | -59,804 |
Goodwill | 552 | 364 | 182 | 0 | 73 |
Other intangibles | 12,751 | 15,275 | 15,625 | 19,003 | 17,599 |
Shareholders' equity (owners) | 245,640 | 267,657 | 281,884 | 302,292 | 324,064 |
Non-controlling interests | 23,660 | 26,965 | 29,419 | 29,346 | 23,536 |
Total net assets | 269,301 | 294,623 | 311,303 | 331,638 | 347,600 |
Equity ratio (%) | 64.5 | 66.4 | 66.2 | 65.4 | 67.4 |
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View Subscription PlansCash Flow
| Metric (JPY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow | 38,533 | 27,199 | 23,725 | 63,126 | 31,802 |
Purchase of tangible fixed assets | 7,743 | 12,482 | 15,164 | 18,124 | 15,594 |
Purchase of intangible fixed assets | 3,842 | 4,323 | 2,281 | 5,803 | 936 |
Investing cash flow | -20,277 | -15,947 | -17,721 | -23,893 | -16,905 |
Financing cash flow | -18,701 | -16,812 | -9,514 | -21,126 | -30,102 |
Free cash flow (OCF minus capex incl. intangibles) | 26,948 | 10,394 | 6,280 | 39,199 | 15,272 |
Free cash flow (company definition: OCF + ICF) | 18,256 | 11,252 | 6,004 | 39,233 | 14,897 |
Dividends paid (owners) | 5,665 | 6,533 | 6,950 | 6,950 | 8,757 |
Dividends paid to non-controlling interests | — | — | — | 2,623 | 3,420 |
Share buybacks | 10,004 | 1 | 2 | 4 | 16,288 |
Capital investments (company accrual basis) | — | — | 17,800 | 20,600 | 16,900 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | 7.4 | 6.2 | 4.8 | 7.3 | 9.7 |
ROA – net income / avg assets (%) | 4.7 | 4.0 | 3.1 | 4.6 | 6.3 |
ROA – ordinary income / assets, company definition (%) | — | 6.9 | 4.9 | 8.3 | 7.9 |
ROIC – company definition (%) | — | 5.5 | 4.1 | 6.8 | 6.6 |
Current ratio (x) | 2.21 | 2.57 | 2.24 | 2.23 | 1.94 |
Debt / equity – total debt / net assets (x) | 0.15 | 0.11 | 0.10 | 0.06 | 0.06 |
Net debt / EBITDA (x) | -0.61 | -0.85 | -1.00 | -1.28 | -1.13 |
Interest coverage – EBIT / interest expense (x) | 116.1 | 99.7 | 50.1 | 116.4 | 130.7 |
Interest coverage – OCF / interest paid, company (x) | 159.0 | 110.6 | 61.1 | 202.5 | 113.0 |
Asset turnover – sales / year-end assets (x) | 1.07 | 1.07 | 1.07 | 1.05 | 1.07 |
DSO (days) | 50.9 | 50.3 | 51.4 | 53.7 | 52.9 |
DIO (days) | 38.8 | 44.2 | 48.3 | 43.3 | 42.6 |
DPO (days) | 36.2 | 39.4 | 36.7 | 48.6 | 45.0 |
Cash conversion cycle (days) | 53.5 | 55.1 | 63.0 | 48.4 | 50.5 |
Dividend payout (%) | — | 40.7 | 52.8 | 35.0 | 29.0 |
Region net sales (JPY Mn)
| Region net sales (JPY Mn) | FY2024 | FY2025 |
|---|---|---|
Japan | 391,785 | 413,107 |
China | 36,008 | 36,945 |
Southeast Asia | 25,884 | 29,398 |
North America | 20,822 | 23,835 |
Other | 9,484 | 10,129 |
Total | 483,985 | 513,417 |
Region growth (%) | FY2025 | — |
Japan | 5.4 | — |
China | 2.6 | — |
Southeast Asia | 13.6 | — |
North America | 14.5 | — |
Other | 6.8 | — |
Overseas sales by region (JPY Bn)
| Overseas sales by region (JPY Bn) | FY2023 | FY2024 | FY2025 | FY2026F |
|---|---|---|---|---|
China | 31.5 | 36.0 | 36.9 | 40.9 |
Southeast Asia / Asia-Pacific | 21.3 | 25.9 | 29.4 | 37.1 |
North America / the Americas | 18.0 | 20.8 | 23.8 | 26.4 |
Other | 7.5 | 9.5 | 10.1 | 12.1 |
Total Overseas | 78.3 | 92.2 | 100.3 | 116.5 |
Revenue by Region
| Overseas OI by region (JPY Bn) | FY2025 | FY2026F | 1H FY2025 | 1H FY2026 |
|---|---|---|---|---|
China | 5.5 | 6.1 | 3.1 | 2.7 |
Asia-Pacific | 3.9 | 5.1 | 2.3 | 2.6 |
the Americas | 3.2 | 2.6 | 1.8 | 1.0 |
Other | 1.0 | 1.0 | 0.6 | 0.5 |
Total Overseas | 13.6 | 14.8 | 7.9 | 6.9 |
Revenue by Region (FY2024–FY2025)
| Region PP&E (JPY Mn) | FY2024 | FY2025 |
|---|---|---|
Japan | 117,705 | 115,191 |
China | 9,141 | 9,115 |
Southeast Asia | 10,480 | 11,494 |
North America | 9,012 | 11,038 |
Other | 1,058 | 1,114 |
Share price (JPY)
| Share price (JPY) | Nov 2021 | Nov 2022 | Nov 2023 | Nov 2024 | Nov 2025 |
|---|---|---|---|---|---|
Fiscal year-end close | 2,308 | 2,447 | 2,580 | 3,440 | 4,406 |
Recent Price Points Details
| Recent price points | Value |
|---|---|
31 May 2026 close | JPY 4,027 (company) |
10 Jul 2026 close (day after 1H results) | JPY 4,380 (−2.45%) |
17 Aug 2026 close | JPY 4,652 |
7 Sep 2026 close | JPY 4,647 |
18 Sep 2026 close | JPY 4,440 |
52-week range (to Aug 2026) | JPY 3,850 – 4,888 |
Performance to 18 Sep 2026 (approx.) | Change (%) |
Since FY2024 end (Nov 2024, c.22 months) | 29 |
Since FY2023 end (Nov 2023, c.3 years) | 72 |
Since FY2021 end (Nov 2021, c.5 years) | 92 |
Valuation Multiples
| Multiple | Kewpie | Basis / source |
|---|---|---|
P/E (forecast FY2026) | 24.0x | Kabuyoho, 18 Sep 2026 (EPS forecast JPY 184.95) |
P/E (trailing, TTM EPS JPY 181) | c.24.5x | Investing.com TTM EPS; derived |
P/B (actual) | 1.86x | Kabuyoho, 18 Sep 2026 |
EV/EBITDA (TTM to May 2026) | c.10.1x | Derived: market cap ex-treasury c.JPY 605bn + NCI 25.0bn − net cash 52.7bn = EV c.577.7bn; TTM EBITDA c.57.2bn (TTM OI 38.4bn + D&A 18.8bn) |
EV/Sales (TTM) | c.1.10x | Derived (TTM sales JPY 523.2bn); MarketScreener 2026E 1.11x |
Dividend yield (forecast) | 1.46% | Kabuyoho |
Capital Markets
| Item | Value | Source / date |
|---|---|---|
Coverage | c.12–15 analysts (sources vary) | Simply Wall St; Eulerpool |
Consensus rating | Buy (e.g., 9 of 12 Buy per Eulerpool; 5 Buy / 0 Sell per Investing.com) | Aug 2026 |
Average 12-month target | JPY 4,894 (high 5,500, low 4,300) | Investing.com, Aug 2026 |
Consensus target (QUICK/IFIS-type) | JPY 4,986 | Kabuyoho, 18 Sep 2026 |
Consensus FY2026 ordinary profit | JPY 41.08bn (vs company guidance JPY 40.0bn) | Kabuyoho |
Recent broker actions | Hold, target JPY 4,400 (30 Jul 2026); Buy, target JPY 5,200 (2 Jun 2026) | Investing.com |
Dividend per share (JPY)
| Dividend per share (JPY) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026F |
|---|---|---|---|---|---|---|
Interim | — | — | — | 23 | 32 | 32 |
Year-end | — | — | — | 31 | 32 | 33 |
Annual | 47 | 47 | 50 | 54 | 64 | 65 |
Payout ratio (%) | — | 40.7 | 52.8 | 35.0 | 29.0 | 35.1 |
Capital Programmes
| Programme | Size | Status |
|---|---|---|
FY2021 | JPY 10.0bn | Completed |
Jul 2025 authorisation (offset Aohata share exchange) | FY2025 purchases JPY 16.3bn | Completed |
14 Jan 2026 authorisation | Up to 4,000,000 shares (2.87%) / JPY 10.0bn; 15 Jan–30 Nov 2026; market purchases | In progress — treasury stock rose JPY 11.9bn in 1H FY2026 (to 5.15m shares at 31 May 2026); monthly progress notices through Aug 2026 |
Capital Instruments
| Instrument | Amount (JPY Bn) | Maturity / status |
|---|---|---|
3rd unsecured straight bonds | 10.0 | Classified as current at 30 Nov 2025; to be redeemed using 4th bond proceeds |
4th unsecured straight bonds (resolved 25 Dec 2025) | ≤10.0 | Issuance window Feb 2026; 7-year bullet; coupon ≤3.0%; pari passu |
Short-term loans | 7.2 (30 Nov 2025) | Decreased by JPY 7.0bn in 1H FY2026 |
Long-term loans | 0 (30 Nov 2025) | Increased by JPY 15.0bn in 1H FY2026 |
Lease obligations | c.3.6 | Various |
Company-defined interest-bearing debt | 29.7 (31 May 2026) | vs 22.6 at 31 May 2025 |
Analyst Conclusions
Management guidance (FY2026, unchanged since 14 Jan 2026; reaffirmed 9 Jul 2026)
| Metric | FY2025 actual | FY2026 guidance | Change |
|---|---|---|---|
| Net sales (JPY bn) | 513.4 | 530.0 | +3.2% |
| Operating income (JPY bn) | 34.6 | 38.0 | +9.7% |
| Ordinary income (JPY bn) | 37.4 | 40.0 | +7.0% |
| Net income attributable (JPY bn) | 30.5 | 25.5 | −16.4% |
| EPS (JPY) | 220.63 | 184.95 | −16.2% |
| DPS (JPY) | 64 | 65 | +1.6% |
| ROE (%) | 9.7 | 8.0 | −1.7pt |
| ROIC (%) | 6.6 | 7.1 | +0.5pt |
| Capital investment (JPY bn) | 16.9 | 26.2 | +55% |
| Assumptions | USD JPY 149; RMB JPY 21; oil JPY 376/kg; eggs JPY 319/kg | USD JPY 157; RMB JPY 23; oil JPY 427/kg; eggs JPY 305/kg | — |
Progress: 1H FY2026 OI of JPY 20.0bn equals 52.7% of the full-year target (vs 47% in 1H FY2025); ordinary income progress 53.8%. Management absorbed a c.JPY 4.5bn Middle East headwind while maintaining guidance, relying on price revisions (incl. 1 Nov 2026), value-add, and an overseas acceleration in 2H led by Indonesia and KEWPIE-brand products in the Americas.
Consensus expectations
Consensus ordinary profit for FY2026 of JPY 41.1bn sits c.2–3% above company guidance (Kabuyoho, Sep 2026), implying the market expects a modest beat.
Bull case
-
Structural domestic margin reset: domestic business profit margin rose from 5.4% to 7.7% in 1H FY2026; with the Nov 2026 price round followed by Ajinomoto, the ≥8.0% FY2028 target looks achievable early.
-
Overseas operating leverage: FY2025 plant investments ("supply capacity through 2030") mean incremental Americas and Asia-Pacific volume carries high drop-through once depreciation is absorbed; FY2026F Overseas sales +16% to JPY 116.5bn.
-
Capital efficiency upside: net cash c.JPY 53bn, debt/EBITDA ceiling of 2x, cross-shareholding sales and continued buybacks provide multiple ROE levers beyond operations.
Bear case
-
Price elasticity: cumulative double-digit price increases (Apr and Nov 2026) in a frugal Japanese market risk volume erosion, especially in commercial channels where volume has been flat at 47k t.
-
Overseas growth below plan: local-currency growth of 8% (FY2025) and 3% (1H FY2026) is below the ≥10% CAGR target; reaching JPY 180bn by FY2028 requires c.16% annual growth from FY2025.
-
Valuation: at c.24x forward earnings, 1.9x book and a 1.5% yield, the shares price in successful execution; another commodity shock (oil to JPY 427/kg is already assumed) or HPAI wave could cause a de-rating.
Catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| c.8 Oct 2026 | Q3 FY2026 results — 2H overseas acceleration; Middle East cost absorption |
| Nov 2026 | Volume response to 1 Nov price increases; completion of JPY 10bn buyback (deadline 30 Nov 2026) |
| 1 Dec 2026 | Egg-products sales integration from Kewpie Egg |
| Jan 2027 | FY2026 results; FY2027 guidance; possible new buyback and DPS step-up |
| Feb 2027 | 114th AGM |
| Ongoing | Tennessee line additions (3 of 6 lines at opening); Indonesia growth; China profitability |
| Ongoing | Egg benchmark and edible-oil prices; HPAI season (winter 2026–27) |
| Ongoing | Any M&A under the MTP's growth-investment provision |
Concluding analyst verdict
Kewpie has moved decisively out of the 2022–2023 commodity crisis and into what management calls a "profit expansion phase". The evidence is persuasive at the operating line: three consecutive years of record operating income, a domestic margin rebuilt from 5.4% to 7.7% within a year, and full-year guidance held despite a c.JPY 4.5bn Middle East shock. The company's ability to lead industry price rounds — with Ajinomoto following within days in September 2026 — confirms that its brand franchise in Japanese mayonnaise and dressings retains genuine pricing power, and the egg business is shifting from commodity exposure towards value-added products.
The investment debate therefore centres less on domestic resilience than on two medium-term questions. First, can the Overseas segment convert heavy recent capex (Tennessee, China, Thailand, Indonesia) into the double-digit local-currency growth the plan requires? 1H FY2026 growth of 3% and a 13% profit decline argue for patience rather than conviction, though management attributes the slowdown to temporary factors and depreciation timing. Second, can capital efficiency reach the 8.5% ROIC target when the balance sheet remains under-levered and R&D intensity is low? Recent actions — Aohata's full ownership, a JPY 10bn buyback, unwinding cross-shareholdings, and the Kewpie Egg sales integration — show a management team willing to restructure, but the underlying ROE (excluding property gains) is still around 8%.
At roughly 24x forward earnings and 1.9x book, the shares already discount a good part of the domestic recovery. The risk-reward is balanced to modestly positive: upside requires visible overseas acceleration in 2H FY2026 and FY2027 plus a clearer plan to deploy surplus capital, while downside is cushioned by balance-sheet strength and dividend support. We would characterise Kewpie as a high-quality, execution-dependent compounder — attractive on weakness, with Q3 FY2026 results and post-price-increase volume trends as the key near-term tests.
Derived figures (FY2021 EPS, FY2021 and FY2025 share prices, EV/EBITDA, CCC, segment FY2023 splits) are labelled as such. Where aggregator data conflict with filings (e.g., D&A, EBITDA, total debt definitions), filing figures are preferred and discrepancies noted.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Independence | Tenure / career highlights | Age |
|---|---|---|---|---|
Amane Nakashima | Director, Chairman; Chair of the Board; in charge of Brand | Non-independent (Representative Director & President of Nakashimato Co., Ltd., a major shareholder and trading counterparty) | Industrial Bank of Japan (1983); Nakashimato (1993); Kewpie Director (Feb 1997); Head of CSR Promotion (Oct 2009); Nakashimato President (Feb 2010); Kewpie Senior Managing Director (Feb 2014); Chairman (Feb 2016–); Nakashimato Rep. Director & President (Feb 2021–). Holds c.250,519 Kewpie shares (0.18%). Board attendance FY2025: 11/11 | 67 (born 26 Sep 1959) |
Mitsuru Takamiya | Representative Director, President & Chief Executive Corporate Officer | Executive | Joined Kewpie Apr 1987 (R&D background); Corporate Officer (Feb 2013); Senior Corporate Officer (Feb 2019); senior role at Kewpie Egg; Representative Director & President (Feb 2022–). 11/11 | c.65 |
Ryuta Watanabe | Director, Managing Executive Officer; Supply Chain Management | Executive | Director since Feb 2021. 11/11 | c.62 |
Shinichiro Yamamoto | Director, Managing Executive Officer; Corporate (finance/IR — presents results) | Executive | Previously Director, Senior Corporate Officer; MTP contact person. 11/11 | — |
Shinya Hamasaki | Director, Managing Executive Officer; Group Sales and Retail Market | Executive | Former Senior Corporate Officer and CEO of Q&B Foods (2022). 11/11 | — |
Hitoshi Kashiwaki | Outside Director | Independent; Chair of Nomination & Compensation Committee | Former President & CEO of Recruit (per public biographies). 11/11 | — |
Atsuko Fukushima | Outside Director | Independent | Journalist/broadcaster (per public biographies) | — |
Kuniko Nishikawa | Outside Director | Independent | Outside director since 2024 AGM (9/10 meetings after appointment in FY2024) | — |
Harold George Meij | Outside Director | Independent | Former consumer-company chief executive (incl. Takara Tomy and New Japan Pro-Wrestling, per public biographies). 10/10 after appointment in FY2024 | — |
Executive Leadership Team
| Name | Title | Source |
|---|---|---|
Takumi Tomita | Corporate Officer, Accounting & Finance (CFO-equivalent; filings contact) | Kessan Tanshin |
Motoki Tanaka | Corporate Officer, Head of Management Promotion Division | Extraordinary Report (Jul 2026) |
Ken Nakajima | Corporate Officer, Head of Marketing Division | AdverTimes (Jan 2026) |
Hiroaki Ogita (扇田博昭) | Representative Director & President, Kewpie Egg Corporation | Extraordinary Report (Jul 2026) |
Toshiya Ueda | Representative Director & President, AOHATA Corporation (from Feb 2025; ex-Kewpie Production Division head) | Aohata Annual Securities Report |
Jerry Shepherd | President, Q&B Foods | Clarksville Now (2025) |
Governance Overview
| Item | Detail |
|---|---|
Board size | 9 directors |
Independent outside directors | 4 of 9 (44%) |
Women on board | 2 of 9 (22%) |
Non-Japanese directors | 1 (Harold George Meij) |
Chair / CEO separation | Yes — Chairman Nakashima chairs the Board; Takamiya is CEO |
Committees | Voluntary Nomination & Compensation Committee chaired by outside director Kashiwaki; Audit & Supervisory Board (statutory) |
Board meetings FY2025 | 11 (all directors standing for re-election attended 11/11) |
Governance report | Corporate Governance Report last updated 27 Feb 2026 |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
Feb 2022 | Mitsuru Takamiya appointed President & CEO | Leadership transition during the commodity crisis |
Feb 2025 | Toshiya Ueda (Kewpie production head) became Aohata President | Group integration ahead of full ownership |
Feb 2026 | Corporate auditors Isono and Unemoto appointed; Oda and Terawaki retired | Routine rotation |
Feb 2026 | All nine directors re-elected | Board continuity |
Major Shareholders
| Rank | Shareholder | Shares (thousand) | Stake (%) |
|---|---|---|---|
| 1 | The Master Trust Bank of Japan (trust account) | 16,893 | 12.14 |
| 2 | Nakashimato Co., Ltd. | 11,452 | 8.23 |
| 3 | Toka Co., Ltd. (株式会社董花) | 11,122 | 7.99 |
| 4 | Custody Bank of Japan (trust account) | 8,236 | 5.92 |
| 5 | Kieikai Foundation (一般財団法人旗影会) | 4,251 | 3.06 |
| 6 | Dai-ichi Life Insurance | 3,074 | 2.21 |
| 7 | Nippon Life Insurance | 3,049 | 2.19 |
| 8 | Nakato Scholarship Foundation (公益財団法人中董奨学会) | 2,494 | 1.79 |
| 9 | Kewpie Employee Shareholding Association | 2,129 | 1.53 |
| 10 | T&A Co., Ltd. | 2,049 | 1.47 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Listing | Relative positioning |
|---|---|---|---|
Mayonnaise (Japan retail/food service) | Ajinomoto Co. ("Pure Select" mayonnaise) | TSE 2802 | Clear No.2 in Japanese mayonnaise; much larger diversified group |
Mayonnaise/dressings/delis (food service) | Kenko Mayonnaise | TSE 2915 | Food-service specialist; mayonnaise, salads, egg products |
Dressings (Japan) | Riken Vitamin (non-oil dressings) | TSE 4526 | Strong in non-oil dressings |
Dressings / oils (Japan) | Nisshin OilliO Group | TSE 2602 | Oils and dressings; also an input supplier |
Vinegar / condiments | Mizkan Holdings | Private | Vinegar and condiment leader; competes with Kewpie Jozo |
Soy-based condiments / global Japanese seasonings | Kikkoman | TSE 2801 | Benchmark for global Japanese condiment expansion |
Sauces / curry / packaged foods | House Foods Group | TSE 2810 | Competes in retail sauces; formerly baby/infant foods |
Egg products (Japan) | Ise Foods and other egg processors | Private | Shell-egg and egg-product competition |
Mayonnaise (U.S./global) | Unilever (Hellmann's/Best Foods) | LSE/NYSE | Global leader in mayonnaise |
Condiments (U.S./global) | Kraft Heinz | Nasdaq | Mayonnaise, dressings, sauces |
Condiments (U.S./global) | McCormick | NYSE | Mayonnaise (Asia/Europe brands), sauces |
Jams (Japan) | — | — | Aohata is a leading domestic jam brand |
Hyaluronic acid | Various chemical/biotech firms (not specified in sources) | — | Kewpie is a niche B2B supplier |
Peer Comparison FY2011
| Metric | Kewpie (FY11/2025) | Ajinomoto (FY3/2026) | Kikkoman (FY3/2026) | Kenko Mayonnaise (FY3/2026) |
|---|---|---|---|---|
Revenue (JPY Bn) | 513.4 | 1,583.7 | 745.5 | 92.4 |
Revenue growth (%) | 6.1 | 3.5 | 5.2 | 0.7 |
Operating margin (%) | 6.7 | 10.1 | 10.2 | 4.5 |
Business profit margin (%) | — | 11.4 | 10.7 | — |
R&D intensity (%) | 0.74 | 2.0 | — | — |
ROE (%) | 9.7 | — | 11.5 | 7.2 |
Accounting standard | J-GAAP | IFRS | IFRS | J-GAAP |
