Expanding the Foodservice Food Wholesale Business Through Investments and M&A

「In addition to firm sales to Japan’s foodservice industry, supported by inbound demand and other factors, contributions from a newly added group company (Sankyo Shokucho, added in September of the previous fiscal year) and other factors resulted in 110.2% year-on-year.」

「Overseas, in February we acquired 40% of the issued shares of KOME88 JOINTSTOCK COMPANY, which operates wholesale and retail businesses for fresh fish, beef and other products in Vietnam, making it an equity-method affiliate and marking our first entry into Vietnam. In July, TOHO Singapore Pte. Ltd. opened its first overseas Cash-and-Carry store, "A-PRICE Singapore (Tanjong Pagar, Singapore)," in Singapore.」

「In the current fiscal year, to further strengthen our product offering, we added 株式会社三協食鳥, which produces, processes and sells mainly domestically produced chilled chicken, to the Group in September. As a new overseas expansion, in February 2026 we acquired 40.0% of the issued shares of "KOME88 JOINT STOCK COMPANY," a Vietnamese food wholesaler, making it an equity-method affiliate.」

「Although we had announced on 12 June 2025 the "Notice Regarding the Acquisition of Shares in the Newly Established Merger Company of the Sankyo Distribution Group (Making It a Subsidiary)," on 4 September 2025 we acquired all shares of the newly established merger company, 株式会社三協食鳥, making it a wholly owned subsidiary.」

「As part of this strategy, we have focused on M&A in recent years, bringing 13 companies in the Kanto region and 11 companies across 3 overseas countries into the Group. We will continue strengthening our business platforms in the Kanto region and overseas, while considering entry into new untapped areas through M&A and alliances.」

「Overseas, we conducted M&A for 6 consecutive fiscal years from fiscal 2015 and now have 7 companies across 3 countries—Singapore, Malaysia and Hong Kong. As this is also a growth area, we will continue M&A and steadily strengthen our business platform on the premise that group synergies can be realized.」

「In this business segment, we made Hong Kong's second foodservice wholesaler, Suitfit Company Limited, a consolidated subsidiary in February, while in Japan we steadily strengthened our business platform by merging consolidated subsidiary ㈱プレストサンケー商会 (Kanazawa, Ishikawa) into ㈱トーホーフードサービス in April.」

「In February, we made Suitfit Company Limited, our second Hong Kong foodservice wholesaler of Japanese food ingredients and other products, a consolidated subsidiary. In Japan, we also steadily strengthened our business platform by merging consolidated subsidiary ㈱プレストサンケー商会 (Kanazawa, Ishikawa) into ㈱トーホーフードサービス in April.」

「Having acquired all shares of Suitfit Company Limited in February 2020, we included it in the scope of consolidation from the first quarter of the current fiscal year. Following the change, there are 27 consolidated subsidiaries and 1 equity-method affiliate.」

「Since first entering Singapore in December 2015, our Group's overseas business has conducted M&A and alliance transactions for 5 consecutive fiscal years. We currently operate a foodservice wholesale business serving the foodservice industry through 4 companies in Singapore, 1 in Malaysia and 1 in Hong Kong.」

「To strengthen our domestic business platform, we made 関東食品株式会社 (Takasaki, Gunma), which operates a foodservice wholesale business for institutional catering operators serving schools, hospitals and nursing care facilities in Gunma and Saitama, a consolidated subsidiary in March to further expand our market share in the Kanto region. To strengthen our overseas business platform, we also commenced operations of TOHO FOODS HK CO.,LTD. in Hong Kong in March, our third overseas country, and made Golden Ocean Seafood (S) Pte Ltd, which operates a foodservice wholesale business for live seafood in Singapore, a consolidated subsidiary in August.」

「In addition, to broaden our product range in Singapore, we added Golden Ocean Seafood (S) Pte Ltd, which operates a foodservice wholesale business for seafood products, to the Group in August.」

「To strengthen our domestic business platform, under our M&A strategy we made 関東食品㈱ (Takasaki, Gunma), which operates a foodservice wholesale business for schools, hospitals and nursing care facilities in Gunma and Saitama, a consolidated subsidiary in March, with the aim of further expanding our market share in the Kanto region. In addition, we commenced operations of TOHO FOODS HK CO.,LTD. in Hong Kong in March, marking our entry into our third overseas country.」

「Under our M&A strategy, we added 昭和物産㈱ (Arakawa, Tokyo), which operates a foodservice wholesale business serving the confectionery and bakery industries, to the Group in August to strengthen our core business and expand our market share in the Kanto region. In October, to strengthen our overseas business, we added Fresh Direct Pte Ltd and 3 related companies operating a foodservice fresh produce wholesale business in Singapore. As a result, M&A transactions in Singapore have continued for 4 consecutive fiscal years, creating an operating structure of 4 groups and 7 companies.」

「Under our M&A strategy, we added 昭和物産㈱ (Arakawa, Tokyo), which operates a foodservice wholesale business serving the confectionery and bakery industries, to the Group in August, and Fresh Direct Pte Ltd and 3 other companies operating a foodservice fresh produce wholesale business in Singapore in October. In addition, the joint venture "TOHO FOODS HK CO.,LTD.," established locally in November for our first entry into Hong Kong, is scheduled to commence operations in February 2019.」

「In August, we added 昭和物産株式会社 (Arakawa, Tokyo), which operates a foodservice wholesale business serving the confectionery and bakery industries, to the Group. In the second half, we plan to add Fresh Direct Pte Ltd and 3 other companies operating a foodservice fresh produce wholesale business in Singapore in October.」

「As a result, including contributions from Shimaya Trading Pte.Ltd. (Singapore) and ShimayaTrading Sdn.Bhd. (Malaysia), which joined the Group in November of the previous fiscal year, sales in this business segment rose 1.6% year on year to ¥34.682 billion. Operating profit declined 14.9% to ¥382 million, partly due to higher costs at some subsidiaries related to relocating head offices and opening business locations.」

「To strengthen our overseas business platform, we added Shimaya Trading Pte.Ltd. in November as our third Singapore transaction following Tomo-Ya Japanese Food Trading Pte.Ltd. in the previous fiscal year, and also added Shimaya Trading Sdn.Bhd., marking our first entry into Malaysia. This resulted in a structure of 4 companies in 2 countries.」

「The decision was made because Shimaya would enable further market-share expansion for our Group in Singapore, while Shimaya Malaysia would facilitate entry into the new Malaysian market.」

「As a result, although Tomo-Ya Japanese Food Trading Pte.Ltd. (Singapore), which joined the Group in January of the previous fiscal year, contributed, sales in this business segment declined 0.3% year on year to ¥68.796 billion, while operating profit declined 18.8% to ¥890 million, mainly because the impact of reduced major transactions from the previous fiscal year continued through the first half.」

「During the first quarter of the current fiscal year, although M&A conducted in the previous fiscal year contributed, sales declined to ¥50.720 billion, down 3.5% year on year, due to the continued impact through the first half of reduced major transactions from the previous fiscal year and the reaction to the previous fiscal year's leap year.」

「As a result, although contributions from the M&A transactions conducted in the previous fiscal year (㈱プレストサンケー商会 in April and Marukawa Trading(S)Pte.Ltd. in December) were recorded, sales in this business segment declined due to the impact of the earthquake, reduced transactions with major customers and the elimination of unprofitable transactions. Sales were ¥103.326 billion, down 3.0% year on year, while operating profit was ¥1.658 billion, up 31.6%, reflecting an improved gross profit margin and productivity gains from business process reform.」

「In March, we acquired 33.4% of the shares of 関東食品㈱ (Takasaki, Gunma), which operates a foodservice wholesale business in Gunma and Saitama, primarily serving institutional catering operators. This will strengthen the sales capabilities of both companies and expand their market share.」