Research

KENKO Mayonnaise: Revised 2035 plan adds cash, ROIC and leverage targets

KENKO Mayonnaise Co., Ltd. (2915) · Initiated coverage 2026-10-20 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • KENKO Mayonnaise makes mainly business-use food: mayonnaise, dressings and sauces; long-life refrigerated salads and Japanese-style side dishes; and processed egg products such as thick omelets, scrambled eggs and egg salad. It sells to restaurants, bakeries, supermarkets, convenience stores and institutional caterers. The company states that it first developed long-life salads in Japan and still holds the top share in that category.
  • It reports two segments. Seasonings and Processed Foods is the parent company's own manufacturing and sales and is by far the larger segment. Delicatessen-Related makes fresh chilled salads and side dishes for supermarkets and contract-manufactures products for the parent through regional subsidiaries. A small Other category covers the shop business, including the Salad Cafe outlets.
  • The group comprises the parent, nine wholly owned consolidated subsidiaries and an equity-method Indonesian affiliate. Overseas sales and overseas fixed assets are each below the threshold that requires geographic disclosure, and no single customer reaches the threshold that requires naming it.
  • The company handles raw-material procurement, product development, production, quality control and sales in-house, with around 40 development staff in the core segment. Logistics are fully outsourced to outside specialist companies.

Investment case

  1. The annual securities report for the year to March 2026 states that the company revised KENKO Vision 2035 to emphasize management conscious of the cost of capital and the share price. The revision moves the company to cash-based management and adds an EBITDA margin target, an ROIC target and a long-term net debt-to-equity ceiling for each of three four-year phases running to 2035.
  2. The balance sheet at March 2026 shows cash and deposits well above long-term borrowings and a high equity ratio (see Performance & Balance). The company states that it funds working capital internally, had no drawings on its overdraft facility at year-end, and borrows at fixed rates for capital spending while working to reduce interest-bearing debt.
  3. Shareholder returns are increasing. The company bought back its own shares in the year to March 2026, and the first-quarter earnings release for the year to March 2027 forecasts a higher annual dividend than the prior year, split equally between interim and year-end. The articles let the board decide dividends and buybacks without a shareholder vote.
  4. In the first quarter of the year to March 2027, sales of mayonnaise and dressings rose, including sales for export, and profit in the Seasonings and Processed Foods segment increased. The company attributes the sales growth partly to price revisions carried out in the previous year.

Bear case

  1. Profits are falling. For the year to March 2026, operating and net profit declined. The company cited elevated egg prices after the avian influenza outbreak in the second half of fiscal 2024, price revisions that lagged cost increases, higher selling and administrative costs, and head-office relocation expenses. The full-year forecast for the year to March 2027 calls for higher sales but lower profit.
  2. The Delicatessen-Related segment is shrinking. Its sales declined in the year to March 2026 and again in the first quarter of the year to March 2027, which the company attributes to customers bringing production in-house. The segment recorded an impairment loss in the year to March 2026, and its first-quarter profit fell on higher packaging costs linked to the Middle East situation.
  3. The plan calls for a large increase in the overseas share of sales by fiscal 2035, and the company lists M&A as a means to expand overseas. Today nearly all sales are in Japan, and the only overseas operation listed among group companies is an Indonesian equity-method affiliate, so the target depends largely on businesses the company does not yet own.
  4. The company holds investment securities, and the board reviews each year whether to keep its strategic shareholdings. Several business partners also appear among the major shareholders, including Kikkoman, Toyo Seikan Group Holdings and Mitsui & Co. (see Shareholders).

Catalysts

  • Second-quarter and full-year results for the year to March 2027, including progress against the forecast of higher sales and lower profit and payment of the forecast interim dividend.
  • Fiscal 2027 is the final year of Phase 1 (business structure reform) of KENKO Vision 2035, which carries stated targets for consolidated sales, EBITDA margin and ROIC.
  • Any announcement of an overseas acquisition or a further buyback under the stated policies of raising the overseas share of sales and moving to cash-based management. Construction in progress rose in the first quarter, which points to capital projects underway.

Key risks

  • Raw-material costs: the main inputs are edible oils (soybean, rapeseed), eggs and vegetables, whose prices follow commodity markets and exchange rates. The company names North and South American weather, US tariffs and biofuel policy as drivers of oil prices, and says egg prices have stayed high since the avian influenza outbreak.
  • Domestic concentration: most sales are in Japan. The company identifies risks from a weaker domestic economy, a shrinking market, changes in major customers' product policies, and natural disasters affecting production.
  • Food safety and operations: a quality problem or foreign-matter contamination could affect results. The company also flags its full reliance on outsourced logistics, the risk of system failures or cyberattacks, and possible changes to labor laws that would raise costs for its large part-time workforce.
  • Plan and governance execution: the company warns that targets may be missed if conditions change from the plan's assumptions, and that fixed assets could be impaired. The board has six executive directors and three outside directors under an audit and supervisory board structure, with a voluntary nomination and compensation committee chaired by an outside director. The first-quarter release lists the representative director as chairman and president, so both roles are held by one person.

Trading liquidity

Median daily trading value US$0.39mn
Average daily volume 34,582 shares

2025-10-02 to 2026-10-19 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The annual securities report dates the KENKO Vision 2035 revision to February 2026, while the first-quarter earnings release dates it to March 2026; both describe the same revised targets.
  • The governance description in the annual securities report shows the chairman and the president as separate representative directors, whereas the later first-quarter release names a single chairman-and-president. Board composition may therefore have changed after the annual report was prepared.
  • Qualitative statements are taken from the annual securities report for the year to March 2026 and the first-quarter earnings release for the year to March 2027.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Overview
Foods

KENKO Mayonnaise Co.,Ltd.

Kenko Mayonnaise is a leading Japanese food manufacturer specializing in mayonnaise, dressings, processed egg products, and prepared foods (delicatessen salads and side dishes) primarily for the foodservice and retail markets. The company operates through two core segments: the Seasoning & Processed Foods segment (mayonnaise, dressings, egg products, and culinary processed foods) and the Delicatessen-Related segment (fresh daily salads and side dishes sold to supermarkets and mass retailers). With a strong B2B focus built since 1970 as a dedicated commercial-use mayonnaise specialist, the company leverages a nationwide manufacturing and distribution network across Japan.

Market Cap
¥29.9B
US$190M
EV
¥14.7B
US$93.5M
Stock¥2,074▼-0.14%
US$1 = ¥157.05 (2026-10-22)
LTM EV/EBITDA
2.1
x
LTM EV/EBIT
3.6
x
LTM PER
10.2
x
LTM PBR
0.7
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-13.2%pt
1001
Oct 22, 25 – Oct 22, 26StockTOPIX
1Feb 16, 26Strong Q3 FY2025 earnings results
MC → EV Bridge
29.9BUS$190MMarket Cap3.18BUS$20.3M+ Debt12.5BUS$79.5M− Cash5.88BUS$37.4M− Inv. Sec.14.7BUS$93.5MEV
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Performance & Balance
Revenue 5Y (¥B)
75.6US$482M'22/382.4US$524M'23/388.7US$565M'24/391.7US$584M'25/392.4US$588M'26/3
EBITDA 5Y (¥B)
4.41US$28.1M'22/32.88US$18.3M'23/35.65US$36.0M'24/37.25US$46.1M'25/36.91US$44.0M'26/3
Net Income 5Y (¥B)
1.21US$7.71M'22/30.49US$3.09M'23/32.74US$17.4M'24/33.50US$22.3M'25/32.93US$18.6M'26/3
Capital Structure
93%
EquityD/E 0.08xDebt
Liquidity vs Debt 5Y (¥B)▲ Net Cash
CashInv. Sec.Debt
17.8US$113M6.92US$44.0M'22/317.9US$114M5.47US$34.8M'23/321.2US$135M4.32US$27.5M'24/321.4US$136M3.84US$24.5M'25/319.3US$123M3.31US$21.1M'26/3
Shareholders
Top 10 hold 42.7%
1
T&A Co., Ltd.
10.12%
2
The Master Trust Bank of Japan, Ltd. (Trust Account)
10.12%
3
Suzuyo Construction Holdings Co., Ltd.
4.33%
4
Nippon Life Insurance Company (Standing Proxy: The Master Trust Bank of Japan, Ltd.)
4.01%
5
KIKKOMAN CORPORATION
3.41%
6
Kikaekai General Incorporated Foundation
3.13%
7
Toyo Seikan Group Holdings,Ltd.
2.17%
8
MITSUI & CO.,LTD. (Standing Proxy: Custody Bank of Japan, Ltd.)
2.03%
9
Minako NAKAJIMA
1.77%
10
CACEIS BK ES IICS CLIENTS (Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch)
1.65%
Management
14 officers
Takashi SUMII
Representative Director, Chairman and President
Jun 1978 Joined the Company Jun 2000 Jun 2023 Representative Director, President of the Company Jun 2026 Representative Director, Chairman of the Company Jun 2026 Representative Director, Chairman and President of the Company (current)
1953-08-07
Yoichi TERASHIMA
Representative Director, Vice President
Apr 1983 Joined the Company Jun 2019 Jun 2021 Director, Managing Executive Officer of the Company Jun 2026 Director, Vice President of the Company Jun 2026 Representative Director, Vice President of the Company (current)
1961-01-15
Manabu KAWAKAMI
Managing Director
Nov 1992 Joined the Company Apr 2021 Jun 2021 Executive Officer, General Manager of Salad Café and Prepared Foods Division of the Company; Director of the Company Jun 2025 Managing Director of the Company (current)
1967-03-29
Kenji TACHIBANA
Managing Director
Apr 1990 Joined the Company Jul 2020 Jun 2021 General Manager of Gotemba Plant of the Company; Director of the Company Jun 2026 Managing Director of the Company (current)
1966-05-09
Nobuyoshi FUJIWARA
Director
Apr 1991 Joined the Company Apr 2011 Apr 2024 Deputy General Manager, International Business Promotion Division of the Company; Executive Officer, General Manager of Sustainability Promotion Office of the Company Jun 2025 Director of the Company (current)
1967-09-25
Senji KOMACHI
Director
Jun 2015 Outside Director, Cemedine Co., Ltd. Jun 2023 Outside Director of the Company (current) Feb 2025 Outside Director, Accea Co., Ltd. (current)
1957-04-22
Atsushi KYOGOKU
Full-time Statutory Auditor
Apr 1987 Joined the Company Apr 2018 Apr 2022 Jun 2024 Managing Executive Officer, General Manager of Corporate Planning Division of the Company; Executive Officer, General Manager of Sustainability Promotion Office of the Company; Statutory Auditor of the Company (current)
1963-09-11
Shunichi MIYAZAKI
Full-time Statutory Auditor
Apr 1987 Joined the Company Apr 2015 Apr 2022 Executive Officer, General Manager of Operations Division of the Company Executive Officer, General Manager of Administration Division of the Company Jun 2026 Statutory Auditor of the Company (current)
1965-03-22
Kiyoharu SATO
Statutory Auditor
Apr 1975 Jul 2016 Aug 2017 Joined National Tax Agency Tokyo Regional Taxation Bureau; Director, Yokohama Naka Tax Office Opened Kiyoharu Sato Certified Tax Accountant Office (current) Jun 2023 Statutory Auditor of the Company (current)
1957-03-28
Akitoshi YAMASHITA
Statutory Auditor
Oct 2000 Mar 2010 Registered as Attorney-at-Law; joined Yamazaki Law Office Opened Yamashita Law Office (current) Feb 2016 Jun 2024 Outside Statutory Auditor, United & Collective Inc. (current); Statutory Auditor of the Company (current)
1963-05-17
Daisuke USUI
Director
Apr 2016 Chief Staff, Innovation Promotion Office, Planning Division, Meiji Yasuda Life Insurance Company Jan 2021 Aug 2025 General Manager of Finance Division, Lester Co., Ltd. Jun 2026 Senior Executive Officer of the Company; Director of the Company (current)
1974-10-22
Akiko NARIAI
Director
Apr 1986 Joined National Tax Agency Tokyo Regional Taxation Bureau Jul 2022 Sep 2023 Director, Shinjuku Tax Office Opened Akiko Nariai Certified Tax Accountant Office (current) Jun 2025 Outside Director of the Company (current)
1963-03-29
Mugie HORI
Director
Oct 2003 Registered as Attorney-at-Law (Tokyo Bar Association); joined Nakamura Law Office Oct 2013 Jan 2018 Opened Kichijoji Minami Law Office (current) Outside Director, nex Inc. (current) Jun 2025 Outside Director of the Company (current)
1962-12-14
Hisashi FUKUI
Statutory Auditor
Oct 2018 Feb 2020 Nov 2022 General Manager, Strategic Sales Promotion Office, Corporate Planning Division, Nakajima Tocho Shoten Co., Ltd. Statutory Auditor, Aohata Corporation Executive Director, Kikaekai General Incorporated Foundation (current) Jun 2024 Statutory Auditor of the Company (current)
1959-10-26
Large Shareholding Reports
No filings
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-08-07
Q1 Earnings Flash
FY ending Mar 2027
EDINET
2026-06-25
Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2026-02-13
Q3 Earnings Flash
FY ending Mar 2026
EDINET
2025-11-14
Semi-Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2025-08-08
Q1 Earnings Flash
FY ending Mar 2026
EDINET
2025-06-24
Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2025-02-14
Q3 Earnings Flash
FY ending Mar 2025
EDINET
2024-11-12
Semi-Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2024-08-05
Q1 Earnings Flash
FY ending Mar 2025
EDINET
2024-06-25
Annual Securities Report
Period: Apr 2023 – Mar 2024
EDINET
2024-02-14
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINET
2023-11-14
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-10
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-06-28
Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-02-14
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-11-14
Quarterly Securities Report
EDINET
2022-08-10
Quarterly Securities Report
EDINET
2022-06-28
Annual Securities Report
EDINET
2022-02-14
Quarterly Securities Report
EDINET
2021-11-12
Quarterly Securities Report
EDINET
2021-08-11
Quarterly Securities Report
EDINET
2021-06-24
Annual Securities Report
EDINET
2021-02-12
Quarterly Securities Report
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