Our Vision for the Future

Medium-to-Long-Term Growth Strategy to 2030 Update

The KAMEDA SEIKA Group’s Purpose is to contribute to a nice lifestyle with the blessings of rice to further refine the value of excellent flavor, health and excitement. To realize the Group Vision to become a Rice Innovation Company, we will create new values and new markets for the society by maximizing the potential of rice.

Through the structural reforms implemented in North America in fiscal year 2025, we have enhanced the clarity of KAMEDA SEIKA Group’s medium- to long-term business strategy. Moving from a single pillar of domestic rice crackers to a two-pillar structure that includes overseas rice crackers, we aim to further strengthen profitability. At the same time, by allocating resources based on a strategy of selection and concentration, we will identify growth opportunities and distribute resources accordingly, while pursuing group synergies among our bases in Japan, North America, and Asia to build a global collaborative framework.

By fiscal year 2027, the first half of our medium- to long-term plan, we will establish a solid foundation for growth for the KAMEDA SEIKA Group. By fiscal year 2030, the second half of the plan, we will accelerate profitability across all businesses and advance globalization.

The KAMEDA SEIKA Group’s Vision

Business Plan

The value creation process of Kameda Seika Group and the direction to realize our Vision of becoming a Rice Innovation Company are described as a large tree. The evolution of the business model is expressed as the trunk growing bigger with the best ideas, technologies, and expertise, while expansion of our business and regions are expressed as branches and leaves growing higher and higher.

Through the structural reforms in North America in fiscal year 2025, we will elevate our business stage to new heights while continuing to expand our business domains, thereby achieving the evolution of our business model under KAMEDA 3.0.

Priority Business Strategies

The KAMEDA SEIKA Group will drive sustainable growth through two key pillars, which are the growth of our North American operations and the strengthening profitability of our domestic rice crackers business, and another pillar which is the establishment of a solid earnings base for our food business.

By leveraging our rice cracker manufacturing expertise, we will maximize synergies across Japan, North America, and Asia. In the domestic rice cracker business, we will shift from an approach focused on individual company optimization to one that creates synergies through company-wide optimization, building a more flexible structure to meet customer needs. In the food business, we will promote to make profits of seed-based initiatives that address social needs such as disaster preparedness, environmental issues, allergies, and food shortages.

Roadmap for Business Scale Growth

In fiscal year 2024, the KAMEDA SEIKA Group achieved record-high level results with net sales of ¥103.2 billion and operating profit of ¥5.5 billion. To realize our Group Vision of becoming a Rice Innovation Company, we initiated structural reforms in North America to elevate our overseas business into a key pillar alongside our domestic rice cracker business and to drive further growth. As a result, the overseas sales ratio is expected to rise from 17% in fiscal year 2024 to 37% in fiscal year 2027, and to approximately 43% by fiscal year 2030.

In addition, we will strengthen profitability centered on our North American operations, aiming to generate cumulative operating cash flow of ¥46 billion over the three years from fiscal 2025 to 2027 (the first half of our medium-term plan), and ¥54 billion over the three years from fiscal 2028 to 2030 (the second half of the plan).

Business Portfolio

While our business model continues to evolve, our business domains remain steadfast as we pursue growth across three core areas: the domestic rice crackers business, overseas business, and the food business. To evolve into a Rice Innovation Company, we will further refine our strengths in rice R&D, processing & mass production technology, and branding to enhance our unique value in each business.

Financial Targets

Starting from this medium-term plan period, we will adopt “Adjusted Operating Profit” as a financial target, which excludes amortization of goodwill for TH FOODS, INC. and other items to operating profit under accounting standards, in order to show the real capabilities of the business more accurately. By setting this indicator as a target, we aim to precisely capture profit improvements driven by management efforts when evaluating business performance and monitoring progress on the medium-term plan.

Based on this approach, the KAMEDA SEIKA Group targets adjusted operating profit of ¥11.5 billion in fiscal year 2027 and ¥14.5 billion in fiscal year 2030. As a measure of capital efficiency, we recognize adjusted ROIC, calculated based on adjusted operating profit, as a key KGI and will work to improve it. ROE (Return on Equity) is and will be disclosed as a reference indicator and continuously monitored as an essential measure of profitability from the perspective of shareholder equity.