Bridge Report:（2884）Yoshimura Food the First Half of the Fiscal Year ending February 2026

Representative director and CEO Motohisa Yoshimura	Yoshimura Food Holdings K.K. (2884)

Corporate Information

Stock Information

*The share price is the closing price on October 29. Each value is taken from the brief report on results of the second quarter of the fiscal year ending February 2026. ROE and BPS are actual results for the previous fiscal year.

Earnings Trends

*Unit: Million yen. The estimated values were provided by the company.

This Bridge Report presents Yoshimura Food Holdings K.K.’s earnings results for the first half of the Fiscal Year ending February 2026.

Table of Contents

Key Points
1. Company Overview
2. First Half of the Fiscal Year ending February 2026 Earnings Results
3. Fiscal Year ending February 2026 Earnings Estimates
4. Conclusions
<Reference 1: Medium-term Management Plan>
<Reference 2: Regarding Corporate Governance>

Key Points

• In the first half of the fiscal year ending February 2026, sales and profit declined. Sales decreased 3.4% year on year to 27.7 billion yen. The domestic business was healthy, but the sales of the overseas business dropped due to the economic slowdown of Singapore, etc. Operating income decreased 52.3% year on year to 900 million yen. As the sales quantity of scallop meat, which has a high profit margin, in the domestic business declined, gross profit decreased 14.4% year on year, and gross profit margin dropped 2.6 points year on year, while SG&A expenses increased 1.6% year on year.

   

• In Japan, the non-scallop-related business (business not related to scallop outside MARUKICHI and the YS Foods Group) was healthy, so sales and profit grew. On the other hand, the scallop-related business saw the decreases in sales and profit, due to the decline in sales of products (frozen scallop meat ), etc. In particular, they sold inventory assets while decreasing their book values in response to China’s banning of import of Japanese seafood in the first half of the previous fiscal year, and there was no such sale in the first half of the current fiscal year, decreasing sales significantly. Outside Japan, the sale to retailers, such as supermarkets, and restaurants was sluggish due to the economic slowdown of Singapore caused by the soaring commodity prices and the decrease of sightseers from China, and the export of scallops with shells (ingredients) from Singapore dropped significantly. Sales and profit dropped, as costs increased due to the rise in commodity prices.

   

• They have downwardly revised the full-year earnings forecast for the fiscal year ending February 2026, after reviewing the results in the first half of the fiscal year, including the economic slowdown of Singapore, the downturn of demand for eating out, the decline in sales of scallop meat (products) in the domestic business, etc. Sales are projected to decrease 2.9% from the previous fiscal year to 56.4 billion yen, and operating income is forecast to drop 51.9% from the previous fiscal year to 2 billion yen. Regarding the overseas business, sales and profit are expected to recover gently, as they will expand sales channels by strengthening the marketing structure and secure profitable products by cementing the cooperation with suppliers, although the business environment will remain harsh. Regarding the domestic scallop-related business, the selling price of scallops is expected to rise because global demand is strong, but the decline in sales quantity of scallop meat (products) due to the decrease in the catch of scallops caused by the rise in water temperature will be a short-term risk factor.

   

• Due to the U.S. tariff policy, the sales of scallops to the U.S., where the consumption of scallops is the largest, are low, but the price of scallops is rising, indicating that the global demand for scallops is extremely high. On the other hand, we would like to pay attention to “China,” a huge consumption area. In June 2025, the General Administration of Customs of the People's Republic of China announced “the resumption of conditional import of seafood from some regions of Japan,” so it became possible to export the scallops harvested in Japan to China, but in order to actually export them, Japanese enterprises need to apply for the registration of Japanese factories and obtain approval from Chinese authorities. The company is waiting for such approval. Due to the 2-year banning of import, there remains no inventory of scallops in China, so if import is actually resumed, there will be significant upward pricing pressure. We don’t know when China will approve the import, but the company is preparing for the expansion of revenue in the current and next fiscal years, by stockpiling scallops as the catch of scallops is forecast to decline. We would like to pay attention to the news release of the resumption of export to China.

   

1. Company Overview

Yoshimura Food Holdings conducts M&A of food-related small and medium-sized enterprises that, regardless of their quality products or unique manufacturing techniques, are facing various issues such as the difficulty in finding successors. It also facilitates the growth of the entire corporate group by solving problems with their core service, which is to build “a platform for supporting small and medium-sized enterprises (SME Support Platform).” and energizing each group company. Its strengths lie in the overwhelming advantage it has towards investment funds or large companies and the high barrier to entry. The company aims to accelerate its growth through further alliances. As of the end of August 2025, there are 38 consolidated subsidiaries.

[1-1 Corporate History]

One day, a food company that was facing financial difficulties and could not find a buyer was introduced to Mr. Yoshimura, who was managing the listed companies’ fundraising and M&A in the corporate business division at Daiwa Securities Co. Ltd. and Morgan Stanley Securities Co., Ltd.
Mr. Yoshimura took on this food company and established L Partners Co., Ltd.-- the predecessor of Yoshimura Food Holdings K.K.--on his own in March 2008 because he strongly felt that Japan could be more appreciated through its food since his MBA days in the United States while working for Daiwa Securities. Through his efforts to revitalize the company using his experience and network, he successfully turned a profit.
Many food SMEs started seeking help from Mr. Yoshimura upon learning of his work. He thought that it was possible to efficiently achieve results if the companies complemented each other in various functions, such as product development, production, and sales under a holding company system, instead of working on each company individually. Hence, he named the corporate Yoshimura Food Holdings K.K. in August 2009.

Since then, the company has continued acquiring companies facing problems with business succession or failing to handle management on their own. They are praised for their unique position of not competing with major food companies or investment funds as well as their policy of not selling off the companies. They received financing from INCJ, Ltd. (Innovation Network Corporation of Japan) and Japan Tobacco Inc. (JT) and expanded their business. In March 2016, it was listed on the Mothers of Tokyo Stock Exchange, and in March 2017, it was listed in the first section of Tokyo Stock Exchange. In April 2022, it was transited to the Prime Market of Tokyo Stock Exchange.
The company is pursuing further growth by acquiring not only Japanese companies, but also overseas companies in Singapore, Malaysia, and more.

[1-2 Target Social Image]

For the social responsibility of the enterprise, the company decided to pursue the mission: "A society where we can enjoy this 'delicious taste' forever 〜Achieving affluence that allows consumers to enjoy diverse food cultures〜," and set its vision (roles to be fulfilled) and values (values they cherish) as such.

[1-3 Market Environment and the Background of the Company’s Establishment]

As a company aiming for supporting and revitalizing SMEs throughout Japan, Yoshimura Food Holdings views the conditions of the food SMEs as follows:
(Investment Bridge extracted, summarized, and edited the information from Yoshimura Food Holdings’ annual securities reports and reference material)

(The Conditions of the Food SMEs)
*Japanese cuisine has been highly appreciated worldwide and is attracting increasing attention. On a national scale, the food manufacturing industry has also been one of Japan’s largest and proudest largest industries based on its number of business establishments, number of employees and GDP since the 1990s.
*99% of the companies are SMEs where each one of them has strong products and technical skills.
*However, the domestic market is shrinking and some of the food SMEs find it hard to survive on their own as the business environment remains stringent due to falling birthrates and an aging population.
*Therefore, many companies give up on continuing their businesses and end up shutting down or suspending their business.

(Conditions of the SMEs’ Business Succession)
*As of 2024, the majority of business owners in small and medium-sized enterprises are aged 60 or older, with the average age reaching a record high of 63.59 years. Notably, the proportion of owners aged 70 and above has also reached a record high of 34.47%, indicating that many owners are expected to reach retirement age in the coming years.
*However, 62.15% of domestic small and medium-sized enterprises currently lack a successor, and preparations for business succession remain insufficient. In particular, among companies whose representatives are in their 50s, 71.82% have no successor, while in those with representatives in their 60s, the figure is 47.88%. Although the absence rate decreases with increasing age, it remains at a high level. Amid this situation, only 31.8% of companies across all industries are currently considering business succession, showing that preparations are still lagging.
(Information from SME Agency “White Paper on Small and Medium Enterprises” (2025 Edition), TOKYO SHOKO RESEARCH, LTD. “Analysis of the age of company presidents in Japan (2024),” TOKYO SHOKO RESEARCH, LTD. “Survey of Trends on ‘Successor Absence Rate’ in Japan” (2024), SME Agency “Basic Survey on the Actual Situation of SMEs” (Report in fiscal year 2023 [Financial results in fiscal year 2022])

(Conditions of Business Succession of Food SMEs through Acquisition)
*Although there are increasing needs for business succession from food SMEs, the number of companies and organizations that would acquire them is small.
*The scale of many food SMEs is too small for major companies to acquire, and for investment funds’ whose primary aim is to rapidly grow independent companies and sell them off within a few years, the mature market of food SMEs tends not to be one of their investment targets.
*Under these conditions, there is a tremendous shortage in the bearers of the responsibility of taking on the business of the SMEs.

[1-4 Business Description]

Having Yoshimura Food Holdings as its holding company, the corporate group consists of 38 consolidated subsidiaries, two companies accounted for using the equity method, and one non-consolidated subsidiary as of the end of August 2025.
Yoshimura Food Holdings aims to support and revitalize SMEs that manufacture and sell food products by creating a corporate group, composed of the food SMEs that are facing problems in securing a successor, through M&A. Yoshimura Food Holdings is responsible for business strategies’ design and implementation, as well as the business management of each company in the group. It also supports and supervises their sales and marketing, production management, procurement and manufacturing, distribution, product development, quality control, and business management.

① Business Model
The company develops a unique business model in the food industry and is pursuing growth based on two engines.

One of them is the increase in the number of group companies through M&A.
Since its establishment in 2008, the company prevented food SMEs that had business succession and financial problems from shutting down or facing business suspension by acquiring them. Thus, it has managed to solve their problems.
It is recently focusing on adding not only Japanese companies to the group, but also overseas ones.
Projects sourcing have been so far found (discovered) mainly with an "indirect approach" through introductions from M&A brokerage firms, regional financial institutions (mainly local banks), lawyers, and accountants. In order to speed up the process, the company intends to strengthen its “direct approach” to build relationship for future M&A and to more proactively and aggressively seek out new projects. This will be done by creating a target list and approaching the companies independently as well as by utilizing the network of KOKUBU GROUP CORP.

The other goal is the expansion of business for existing group companies.
Yoshimura Food Holdings supports the expansion of business operations of each company and solves problems by supervising each of the company’s functions. The “SME Support Platform” is applied to these companies which have excellent products and technologies but could not achieve growth for reasons such as the lack of sales channels, labor shortage or poor business management.

(Taken from the reference material of the company)

What is the SME Support Platform?
The core of this unique business model is the “SME Support Platform,” a product of the company’s accumulation of skill, knowledge, and achievements through its specializing in food manufacturing and sales.

As a holding company, Yoshimura Food Holdings is responsible for business strategies’ design and implementation, as well as the business management of each subsidiary in the group. It also aims to strengthen the business foundation of each subsidiary through the company supervisor’s horizontal supervision of its functions (sales and marketing, production management, procurement and distribution, product development, quality control, business management, and securing personnel) in a manner that goes beyond the company barriers and by building organic relations between subsidiary companies.

For example, Company A which has an excellent product but is worried about sales growth can use the sales channels and skills of Company B that has a nationwide sales network. Also, it can achieve a stable financial position by using the creditworthiness of Yoshimura Food Holdings which is listed in the stock market to raise funds.
This cooperation is made to be more effective through appointing the personnel in the group with the highest levels of expertise as supervisors.
Hence, the “SME Support Platform” is a system in which each company’s “strengths” such as strong products and technologies, sales channels, and manufacturing skills are shared across the group and their “weaknesses” such as a shortage in personnel, funds, or sales channels are supplemented.

The “SME Support Platform” is functioning effectively under the current structure, but as subsidiaries will increase further, their s skills will be added as a new strength, and the managerial resources of the corporate group will be accumulated, bringing out a new synergy so that existing subsidiaries will be able to seize opportunities to grow their business and acquire the skills necessary to streamlining their production processes.
Such scalability of the platform will fortify the business foundation of Yoshimura Food Holdings.

(Taken from the reference material of the company)

② Segments
The company has two main segments: the “manufacturing business segment” and “sales business segment.” “Other businesses” are composed of the rental and management of real estate, event media marketing, etc.

◎ Manufacturing Business Segment
Each company develops and manufactures their own unique products. Domestic enterprises sell these products mainly to supermarkets, convenience stores, drugstores, restaurants, etc. throughout Japan through wholesalers, while marine products, predominantly scallops, are sold mainly to exporting companies. Overseas enterprises sell products to hotels, restaurants, supermarkets, etc. in Singapore and Malaysia and also manufacture kitchen instruments and other products. As of the end of August 2025, there are 28 main group companies as tabulated below.

(Group Companies within the Manufacturing Business Segment)

◎ Sales Business Segment
Companies whose strengths are sales capability and planning skills. Domestic enterprises sell products to mainly industrial catering companies, consumer cooperatives, etc., while overseas enterprises sell products to mainly supermarkets, hotels, restaurants, etc. As of the end of August 2025, group companies are the following four.

(Group Companies within the Manufacturing Business Segment)

◎ Other segments
As of the end of August 2025, the group companies are the following two companies.

(Other Segment Group Companies)

[1-5 Characteristics and Strengths]

① The Advantage in Business Succession through Acquisition
There are leading strong buyers in M&A in the food industry, such as major food companies and investment funds; however, this company has three main points that form strong competitive advantages, which are explained below.

*Ability to Acquire Companies of Various Scales
The company does not aim to sell the companies it acquired. It aims to not only achieve short term business recovery, but also sustainable growth from a medium to long term perspective. Therefore, the company can acquire a variety of SMEs, including those with a small business scale that would take time to achieve growth and those that lack management resources for growth.
This point creates a huge difference between the company and other major food companies and investment funds that need the companies they will acquire to be of a certain scale. Moreover, it is not easy for investment funds aiming to generate capital gains from selling companies to gain the trust of owners and managers of food SMEs. Regarding this point, this company operating company groups with the aim of achieving sustainable growth from a medium-term perspective also has a huge advantage.

*Advanced Capability of M&A
Since its establishment, the company has worked on creating many company groups out of food-related SMEs and later has achieved re-growth of these companies. Thus, it has thorough knowledge of the market environment of the food industry, business practices and risks that are peculiar to food SMEs, and strong assessment abilities, which enable the company to choose companies that have strengths from a large number of SMEs.
Also, the company has an extremely high capability of M&A since it has great expertise and accumulated knowledge in due diligence and negotiations.

*Rich and High-Quality M&A Data through its Wide Network
The company can gather plenty of M&A data on the food SMEs since it has a wide network of financial institutions, such as city banks, regional banks, credit associations, securities companies and companies that provide M&A advisory services.
Furthermore, the company’s specialization in the food industry and the reassurance that the company is not aiming to sell are the two factors allowing the company to access not only to a huge amount of data, but also high-quality data that meets its needs.

② Core Skill: SME Support Platform
The company revitalizes the group companies through the “SME Support Platform” in which each group company’s “strengths” such as strong products and technologies, sales channels, and manufacturing know-how are shared across the group and their “weaknesses” such as a shortage in personnel, funds or sales channels are supplemented. These achievements are highly evaluated.

③ Contribution to regional vitalization
The company has actively implemented the business succession, etc. of local food SMEs, including Sakuragao Shuzo K. K. (Iwate Prefecture), Shiroishi Kosan Co., Ltd. (Miyagi Prefecture), and Ohbun Co., Ltd. (Ehime Prefecture), which are subsidiaries.
By utilizing the SME Support Platform, it is possible to distribute attractive products that have been available only in some regions to all around Japan (and overseas) and invest in new equipment by using the funds of the corporate group. Through this, the company contributes to the regrowth of local small and medium-sized food enterprises and the vitalization of local economies.

[1-6 Dividend Policy and Shareholders’ Benefit System]

(Dividend Policy)
Although payout to shareholders is one of the important business challenges, it is thought that allocating the cash to M&A and investment in the facilities to actively expand the business and to strengthen the business foundation by expanding the platform is what would lead to the highest payout to the shareholders because the company is within the growth process.
Therefore, the company has not provided dividend payout to its shareholders since its establishment and as of the time being, it plans to continue using the cash to invest in business expansion and as necessary operating capital for the existing companies. The company is planning to look into providing dividend payouts to its shareholders while considering the operating performance and financial conditions for each business year.

(Shareholders’ Benefit System)
To enhance shareholder satisfaction, the company offers benefits to shareholders based on the number of shares held and the duration of the holding period.

(Outline of the benefit system for shareholders)

The Premium Hokkaido set includes rare products unavailable in the market, which are specially manufactured or handled mainly by the group companies MARUKICHI and YS Foods.

[1-7 ESG Management]

The company is working on its ESG management based on the goal mentioned above, "A society where we can enjoy this 'delicious taste' forever 〜Achieving affluence that allows consumers to enjoy diverse food cultures〜."

The company recognizes that taking over companies that have no successors and revitalizing it as their group companies is ESG management itself.
Also, the company believes that contributing to local communities and providing value to consumers by promoting ESG management, as well as increasing the number of good companies that sympathize with the group and want to participate, and the companies and consumers that sympathize with the group and support them as shareholders, will lead to the realization of sustainable growth.

(Taken from the reference material of the company)

2. First Half of the Fiscal Year ending February 2026 Earnings Results

[2-1 Consolidated results]

*Unit: Million yen. Interim net income is interim net income attributable to owners of the parent. EBITDA is calculated by adding amortization (depreciation, goodwill), COVID-19-related subsidy income and acquisition costs associated with M&A to operating income.

Both sales and profit decreased.
Sales decreased 3.4% year on year to 27.7 billion yen. The domestic business was healthy, but the sales of the overseas business dropped due to the economic slowdown of Singapore, etc.
Operating income decreased 52.3% year on year to 900 million yen. As the sales quantity of scallop meat, which has a high profit margin, in the domestic business declined and the sales of the overseas business, too, dropped, gross profit decreased 14.4% year on year, and gross profit margin dropped 2.6 points year on year, while SG&A expenses increased 1.6% year on year.

[2-2 Results of each segment]

*Unit: Million yen. Sales are sales to external clients. The composition ratio of operating income means the ratio of operating income to sales.

*Manufacturing business segment
Sales and profit dropped.
In Japan, the non-scallop-related business (business not related to scallops outside MARUKICHI and the YS Foods Group) was healthy, so sales and profit grew. On the other hand, the scallop-related business saw the decreases in sales and profit, due to the decline in sales of products (frozen meat), etc. In particular, they sold inventory assets while decreasing their book values in response to China’s banning of import of Japanese seafood in the first half of the previous fiscal year, and there was no such sale in the first half of the current fiscal year, decreasing sales significantly.
Outside Japan, the sale to retailers, such as supermarkets, and restaurants was sluggish due to the economic slowdown of Singapore caused by the soaring commodity prices and the decrease of sightseers from China, and the export of scallops with shells (ingredients) from Singapore dropped significantly. Sales and profit dropped, as costs increased due to the rise in commodity prices.

*Sales business segment
Sales and profit declined.
In Japan, sales decreased slightly as the business environment remained harsh, but profit was unchanged year on year.
Outside Japan, sales and profit decreased as the sale to retailers, such as supermarkets, and restaurants was sluggish and there was no longer the sale of scallops as ingredients, which was conducted in the previous fiscal year.

[2-3 Financial conditions and cash flow]

◎ Main balance sheet

*Unit: Million yen

Total assets grew 4.4 billion yen from the previous fiscal year to 60.4 billion yen, as inventory assets increased because they enhanced the procurement of scallops as ingredients while expecting that the catch of scallops will decline.
Total liabilities increased 3.2 billion yen from the previous fiscal year to 42.7 billion yen, due to the rise in short-term interest-bearing liabilities for enhancing procurement.
Total net assets grew 1.1 billion yen from the previous fiscal year to 17.6 billion yen, due to an increase in retained earnings.
Equity ratio decreased 0.7 points from the previous fiscal year to 19.0%.

◎ Cash flows

*Unit: Million yen

Operating CF and free CF turned negative, due to the decrease in net income before taxes and other adjustments, the increase in inventory assets, etc. Financing CF turned positive thanks to the increase in short-term debt.
The cash position was almost unchanged.

[2-4　Topics]

(1) About the market price of scallops
The global demand for scallops remains strong, and the selling price of scallops is still on the rise. While the amount of scallop meat (products) sold is falling in reaction to a decline in the catch of scallops, the company will consider sales strategies with its eye kept on China’s resumption of import of Japanese marine products.

(Taken from the reference material of the company)

(2) Acquisition of the shares in two companies that engage in the import, sale, and maintenance of kitchen equipment for professional use in Malaysia and Singapore
In July 2025, YOSHIMURA FOOD HOLDINGS ASIA PTE. LTD., a subsidiary that is in charge of the overseas business, acquired 70% of the shares in EXAMAS JAYA SDN. BHD. (EXAMAS) and EQUIPMAX PTE. LTD. (EQUIPMAX), which engage in the import, sale, and maintenance of kitchen equipment for professional use in Malaysia and Singapore, and they became subsidiaries indirectly owned by YOSHIMURA FOOD HOLDINGS K.K.

(Overview of EXAMAS and EQUIPMAX)
EXAMAS and EQUIPMAX are engaged in the import, sale, and maintenance of kitchen equipment for professional use in Malaysia and Singapore. They sell high-quality kitchen equipment for professional use, which they import mainly from Europe and the United States, to fast-food chains, restaurants, café chains, or other food service operators in Malaysia and Singapore, and offer after-sales maintenance services.
The companies have established secure positions and formed stable business foundations in the respective countries on the basis of the following strengths:

① Maintenance service network throughout Malaysia
EXAMAS has seven bases in Malaysia and EQUIPMAX has a base in Singapore, and they not only sell kitchen equipment for professional use, but also offer regular after-sales maintenance services and other services for swiftly dealing with sudden malfunctions. The customer support know-how that they have cultivated over the years and their maintenance service systems that cover a wide range of areas and swiftly provide solutions to trouble enable them to earn great customer trust and secure their own positions that discourage competitors from entering the market.

② Exclusive distribution rights granted by major European and American manufacturers
One of the most important factors in the business of selling kitchen equipment for professional use is to hold the distribution rights granted by the kitchen equipment manufacturers designated by leading fast-food chains. With their business achievements delivered for many years and wide-ranging service systems, EXAMAS and EQUIPMAX have obtained the exclusive distribution rights of major manufacturers of kitchen equipment for professional use based in Europe and the United States and built systems for exclusively selling the equipment of such manufacturers in Malaysia and Singapore.

③ Trading with major fast-food chains
Using the aforementioned maintenance service systems and exclusive distribution rights of leading manufacturers, EXAMAS and EQUIPMAX have continuously conducted transactions with fast-food chains that operate globally and local leading café chains. In Malaysia, where the economy is booming significantly, in particular, improvement in business performance can be expected on a continuous basis because fast-food chains are opening stores proactively there.

(Reasons behind the share acquisition)
YOSHIMURA FOOD HOLDINGS ASIA PTE. LTD. has acquired 70% of the outstanding shares in the subject companies and the current managers of the subject companies continue to hold the remaining 30% of the shares. The two newly acquired subsidiaries will strive for further growth in the Asian region through initiatives to bring about synergetic effects while continuing to maintain their independent business administration structures under the management that remains unchanged.

(Overview of the shares acquired)
The total amount of the acquired shares in the new subsidiaries is about 1.6 billion yen. The shares were transferred to the company in July 2025.

(3) Each company’s progress with initiatives
Each of the group companies implements initiatives to expand the scope of the business and boost the profitability on a continuous basis. In addition, YOSHIMURA FOOD HOLGINDS K.K. takes the lead in accelerating the growth of the corporate group as a whole by utilizing the SME Support Platform, offering the group companies support for business administration and synergy generation, and promoting cooperation across the corporate group.

(4) Progress with consideration regarding M&A
With the growing needs for business succession being a tailwind, a significantly increasing number of companies are introduced for M&A deals to the company, which completed the development of a system for accepting other companies after many years’ efforts and is now capable of taking over the businesses of companies that are large in scale and have tremendous growth potential and high profit margins. The number of companies introduced to YOSHIMURA FOOD HOLDINGS K.K. for M&A deals, which was about 540 in the fiscal year ended February 2025, stood at about 370 as of the first half of the fiscal year ending February 2026. The company is considering merging and acquiring promising companies that are in line with its roll-up strategy and niche market strategy.

(Taken from the reference material of the company)

3. Fiscal Year ending February 2026 Earnings Estimates

[Earnings estimates]

*Unit: Million yen. Net income is net income attributable to owners of the parent. EBITDA is calculated by adding amortization (depreciation, goodwill) and acquisition costs associated with M&A to operating income. Revision rate means the one with respect to the upper limit of the previously announced forecast range.

Earnings forecast revised downwardly. Expected to decrease in sales and profit.
They have downwardly revised the full-year earnings forecast, after reviewing the results in the first half of the fiscal year, including the economic slowdown of Singapore, the downturn of demand for eating out, the decline in sales of scallop meat (products) in the domestic business, etc. Sales are projected to decrease 2.9% from the previous fiscal year to 56.4 billion yen, and operating income is forecast to drop 51.9% from the previous fiscal year to 2 billion yen.
Regarding the overseas business, sales and profit are expected to recover gently, as they will expand sales channels by strengthening the marketing structure and secure profitable products by cementing the cooperation with suppliers, although the business environment will remain harsh. Regarding the domestic scallop-related business, the selling price of scallops is expected to rise because global demand is strong, but the decline in sales quantity of scallop meat (products) due to the decrease in the catch of scallops caused by the rise in water temperature will be a short-term risk factor.

4. Conclusions

Due to the U.S. tariff policy, the sales of scallops to the U.S., where the consumption of scallops is the largest, are low, but the price of scallops is rising, indicating that the global demand for scallops is extremely high.
On the other hand, we would like to pay attention to “China,” a huge consumption area. In June 2025, the General Administration of Customs of the People's Republic of China announced “the resumption of conditional import of seafood from some regions of Japan,” so it became possible to export the scallops harvested in Japan to China, but in order to actually export them, Japanese enterprises need to apply for the registration of Japanese factories and obtain approval from Chinese authorities. The company is waiting for such approval. Due to the 2-year banning of import, there remains no inventory of scallops in China, so if import is actually resumed, there will be significant upward pricing pressure. We don’t know when China will approve the import, but the company is preparing for the expansion of revenue in the current and next fiscal years, by stockpiling scallops as the catch of scallops is forecast to decline. We would like to pay attention to the news release of the resumption of export to China.

<Reference 1: Medium-term Management Plan>

A medium-term management plan toward the fiscal year ending February 2030 was announced.

[1　Future Vision]
They aim to become a “global producer of small and medium-sized food enterprises.”
They will provide aid to small and medium-sized enterprises that support the “delicious taste” of Japan and thus contribute to continuous regional development and the richness of global food culture. Moreover, by taking advantage of the popularity of Japanese food overseas, they will aim for global business growth.

[2　Quantitative Targets]
They will accelerate growth through organic growth and new M&A, aiming for “sales of 115 billion yen, an operating income of 8 billion yen and an EBITDA of 12 billion yen” by the fiscal year ending February 2030.
Quantitative targets in the medium-term management plan include new M&A based on past achievements.

(Taken from the reference material of the company)

[3　Growth Strategy]
They have stated three growth strategies – “M&A (roll-up strategy and niche strategy),” “organic growth” and “overseas expansion.” At the same time, they will enhance and promote the system for complying with laws and regulations at each group company through the Compliance Department set up at Yoshimura Food Holdings, with the aim of reinforcing their management foundation.

(Taken from the reference material of the company)

(1) M&A Strategy
① Roll-up strategy
By involving industry peers, mainly core companies, they will generate synergetic effects such as “stabilization of performance,” “cost reduction” and “production streamlining,” while expanding their market share.
The integration of fishery processing business in Hokkaido can be given as a concrete example.
In the scallop processing industry in Hokkaido, where many small and medium-sized companies compete, they forged ahead with a roll-up strategy centered on the representative companies of MARUKICHI and YS Foods, acquiring a high market share in the scallop processing field. They will strive for a further expansion of revenues by inducing synergy.

<Major synergetic effects>
・Standardization of the production volume through cooperation within the group to improve production efficiency
・Group-wide utilization of raw materials, facilities and human resources
・Elevation of profitability through economics of scale
・Sharing of growth opportunities through the integration of procurement and sales channels

② Niche strategy
Acquire companies with a high share on niche markets or companies that have established a competitive advantage based on high value-added products as subsidiaries, and pursue growth through synergy within the group.

(Taken from the reference material of the company)

“Mori Yougyojou” and “Fukyo Food” can be given as concrete examples.
* Mori Yougyojou
A pioneer in land-based aquaculture of ayu (sweetfish), handling the whole process from the hatching of fry to shipment within the company. Mori Yougyojou has established a competitive advantage by acquiring a high share on a niche market and boasts a high profit margin.
After joining the corporate group, their sales grew about 1.6 times and operating income about 1.8 times in approximately 6 years.

*Fukyo Food
This company has maintained the largest share on the niche market of spring roll wrappers for business use over many years. They achieve high quality, which cannot be reproduced by other companies, through original recipes and production methods that have been passed on since the establishment, and their products are used at many high-end Chinese cuisine restaurants.

③ M&A Targets
The company will promote M&A, defining the following targets based on respective strategies.

(Taken from the reference material of the company)

(2) Organic growth
Utilize the SME Support Platform to elevate performance by providing support for management and creation of synergy to group companies.

Representative examples of concrete cases are as follows.

(3) Overseas expansion
The number of Japanese cuisine restaurants has been rising in recent years, especially in Asia. As Japanese cuisine becomes widely recognized all over the world, the export value of food products also shows an increasing trend year by year.
Amid such environment, they will supply products offered by their group companies to the entire Asia, mainly Singapore.

(Taken from the reference material of the company)

[4　Financial Strategy]
The target ROE in 2030 is 20% or higher. They will promote M&A utilizing financial leverage while maintaining financial soundness.
ROE currently shows a rising trend owing to M&A of companies with high profit margins.
In the medium-term management plan, they will strive for further elevation of profit by streamlining management and inducing synergy effects within the group in addition to utilizing the favorable procurement environment and continuing M&A based mainly on loans.
They will work toward maintaining and elevating profit margin, withdrawing from unprofitable projects and revising the business portfolio as necessary.

[5　Shareholder Return]
Their basic policy for the five years until the fiscal year ending February 2030 lies in “increasing profit through M&A and organic growth and providing return on profit to shareholders by raising stock value.”
Concretely, while they continue to allocate the cash generated by their business to investment in growth, primarily M&A, they will create fans among their shareholders by utilizing shareholder benefits. They will consider share buybacks and dividends depending on their growth stage.

*Gift system for shareholders
With the intention to express gratitude toward shareholders who hold shares in the medium/long term, they decided to enrich the gift system for shareholders, raising the benefit yield in addition to defining requirements for continuous shareholding in the fiscal year ending February 2026.
They will express their everyday gratitude by presenting gifts to shareholders who have kept holding 300 or more shares for a year or longer.

(Taken from the reference material of the company)

<Reference 2: Regarding Corporate Governance>

◎ Organization type, and the composition of directors and auditors

◎ Corporate Governance Report
The latest update: May 30, 2025

<Basic Policy>
Our company believes that our sustainable growth and creation of mid/long-term corporate value can be achieved especially through the trusting relationships and cooperation with our stakeholders, including shareholders, clients, business partners, employees, and local communities.
Accordingly, we consider that the most important mission in management is to keep tightening corporate governance as a base for securing the soundness, transparency, and efficiency of business administration. We will strive to secure the transparency and fairness of our company and timely disclose information to all stakeholders by streamlining the decision-making process, improving the supervisory function for business execution, strengthening the function to oversee directors, and developing an internal control system.

<Reason for not implementing the principles of the Corporate Governance Code (excerpt)>

<Disclosure based on the principles of the Corporate Governance Code (excerpt)>

The back number of Bridge Reports and contents of Bridge Salon (IR seminars) can be seen at www.bridge-salon.jp/