NITTO FUJI FLOUR MILLING CO.,LTD. (2003) Stock Price

Market cap
¥68.9B
P/E ratio
5.4x
Produces wheat flour and food products while operating KFC restaurants through its Sawayaka subsidiary and providing transportation services across Japan.

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Business Overview

Nittō Fuji Flour Mills operates three main business segments: milling and food products, food service, and transportation. These operations are conducted through the company, seven consolidated subsidiaries, and its parent company.

In the milling and food products segment, Nittō Fuji Flour Mills and Masuda Flour Mill manufacture wheat flour, flour mixes, and food products. These products are sold through authorized distributors including Mitsubishi Corporation, Sumida Shoji, and Kanzo. The company also operates storage warehouses attached to its factories, providing wheat storage and cargo handling services.

In the food service segment, the consolidated subsidiary Sawayaka operates as the top KFC franchisee, running restaurants in the Kanto and Tokai regions. The company also operates various other restaurant businesses as part of its diversified operations.

In the transportation segment, the consolidated subsidiary Nittō Fuji Transport primarily handles the transportation of raw wheat and finished products for Nittō Fuji Flour Mills, supporting stable product supply.

Management Policy

Nitto Fuji Flour Milling is marking its 110th anniversary in 2024 with a new growth strategy. The company has adopted the purpose of "continuously challenging diverse global needs through the infinite possibilities of wheat," and has formulated a vision and action guidelines to realize this. Based on this framework, the company announced a three-year medium-term management plan covering fiscal years 2024 through 2026 and has entered a new management phase.

The company's vision is to become a sustainably growing enterprise through strengthening its business foundation. It also aims to actively capture detailed market needs and continue pursuing growth in new business areas. As action guidelines, the company commits to contributing to society through developing and providing environmentally conscious products and services, and to conducting business with pride while complying with laws and social norms.

The medium-term management plan "Medium-Term Management Plan 2026" identifies eight priority areas: quantitative expansion and qualitative improvement of existing businesses, enhanced and stabilized profitability, expansion and independence of overseas operations, growth investments in new business domains, promotion of digital transformation, optimization of human capital, capital policy based on improved capital efficiency and financial stability, and promotion of sustainable management. Through these initiatives, the company aims to achieve sustainable growth.

Financial targets include consolidated net profit of 4.5 billion yen and consolidated ROE of 8.0% or higher by fiscal year 2026. Non-financial targets include a 50% reduction in GHG emissions by 2030 and strengthened diversity initiatives. To achieve these goals, Nitto Fuji Flour Milling is mobilizing the entire organization.

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