Showa Sangyo Co., Ltd. (2004) Stock Price

Market cap
¥105.9B
P/E ratio
11x
A Japanese food manufacturer producing wheat flour, vegetable oils, sugar products and animal feed, while also providing grain storage and handling services.

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Business Overview

Showa Sangyo operates through three business segments: food products, animal feed, and other operations. In the food business, the company manufactures and sells wheat flour and premixes, and also handles the production and sale of bread products through affiliated companies. In the oils category, it manufactures and sells vegetable oils and frozen foods.

In the carbohydrates category, the company manufactures and sells sugar products and corn starch, and also handles the production and sale of food enzymes through affiliated companies. In the animal feed business, the company outsources the production of compound feed and handles its sales. Additionally, through affiliated companies, it provides egg washing, sorting, and sales services.

In other operations, the company provides grain handling and storage services, frozen food storage, and building rental services. Through these diverse business operations, Showa Sangyo offers a wide range of services in the food and animal feed sectors.

Management Policy

Showa Industries is guided by the management philosophy of "contributing to healthy and abundant food lives for people." Since its founding in 1936, the company has contributed to society through food processing centered on grains. As the company approaches its 90th anniversary in fiscal 2025, it has established the long-term vision "SHOWA Next Stage for 2025" and is implementing a three-stage medium-term management plan.

In the 1st Stage "Medium-Term Management Plan 17-19," the company strengthened its revenue base. In the 2nd Stage "Medium-Term Management Plan 20-22," it promoted "SHOWA New Value Creation," advancing new value creation and ESG-focused management. In the 3rd Stage "Medium-Term Management Plan 23-25" starting in 2023, the company is building foundations for sustainable growth while responding to a challenging business environment.

"SHOWA Next Stage for 2025" aims for evolution as a "grain solutions company" that delivers satisfaction to all stakeholders. Showa Industries will enhance synergy solutions across business domains and strengthen ESG initiatives to increase corporate value.

The "Medium-Term Management Plan 23-25" is built on five core strategies: strengthening core businesses, expanding business domains, reducing environmental impact, rebuilding platforms, and enhancing stakeholder engagement. Through these efforts, the company aims to realize a sustainable society.

Showa Industries plans to double consolidated ordinary profit to 13 billion yen by fiscal 2025. The company also targets raising ROIC to 4.0% or higher and reducing the cash conversion cycle by 16 days. These measures will strengthen financial soundness and efficiency.

Non-financial targets include reducing CO2 emissions and food waste, decreasing water usage, and reducing plastic consumption. The company is also advancing human capital management through increasing the proportion of female managers and expanding reskilling investments. These efforts will strengthen the foundation supporting sustainable growth.

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