HOKUTO CORPORATION (1379) Stock Price

Hokto Corporation operates primarily in mushroom production and sales both domestically and internationally. The company operates through four business segments: "Domestic Mushroom Business," "International Mushroom Business," "Processed Foods Business," and "Chemical Products Business."

In the Domestic Mushroom Business, the company began mushroom production and sales in 1972 and operates 33 production centers nationwide. It aims to deliver fresh mushrooms to store shelves the next day and maintains a focus on stable supply. Due to the impact of yen depreciation on rising raw material costs, the company has also begun raw material production in Indonesia.

The International Mushroom Business operates production facilities in the United States, Taiwan, and Malaysia, where it produces and sells mushrooms. The company is expanding overseas sales through market research and sales activities in Asia and Europe.

The Processed Foods Business sells mushroom-based processed products and is focusing on developing new products such as curry and health foods. The subsidiary Arden Corporation manufactures retort pouch foods and conducts business with food manufacturers and supermarkets.

The Chemical Products Business is operated by Hokto Sangyo Corporation, which manufactures and sells agricultural materials and packaging materials. Through the sale of materials and equipment necessary for mushroom production, the company provides comprehensive consulting and guidance. It is also expanding sales into non-food sectors.

Hokto Corporation is committed to delivering health through mushrooms and aims for sustainable growth. The company builds consumer and community trust through research, production, and sales while working to enhance corporate value. In particular, the company is strengthening research on nutrients contained in mushrooms and promoting initiatives targeting health-conscious consumers.

The medium-term management plan starting in fiscal 2025 focuses on "expanding markets and consumption by delivering health through mushrooms as our mission." The company aims to improve profitability through enhanced production efficiency both domestically and internationally, as well as strengthened sales and marketing strategies. In particular, the company is leveraging subsidiaries in the United States, Taiwan, and Malaysia to implement region-specific strategies.

In the domestic mushroom business, the company prioritizes quality improvement and stable cultivation to enhance operating profit margins. The sales division pursues revenue growth and improved profitability through freshness-focused sales and marketing strategies. Additionally, the company is accelerating growth in high-value-added products through health benefit promotion activities and increased brand awareness via social media.

The research and development division focuses on developing new mushroom varieties and improving cultivation techniques. The company is also advancing research into the pharmacological effects and functionality of mushrooms while developing new products beyond mushrooms. This approach aims to continuously provide consumers with new value.

The processed food business seeks to expand operations through sales promotion of business-use and retail processed products and new product development. The chemical products business aims to increase sales by addressing client challenges and capturing new demand. Company-wide, the company is strengthening its management foundation through organizational restructuring, talent recruitment, and digital transformation initiatives.