[Company analysis] Nippon Meat Packers, Inc. (日本ハム)

「Nippon Meat Packers, Inc. (日本ハム)」 is a food company that manufactures and sells ham and sausage, and was founded in 1942. They breed cattle, pigs, chickens, etc. on a livestock farm directly managed by a group company to provide a stable supply of safe and high quality meat. So, all meat processing including distribution to sales, is carried out inside their Corporate group. The number of consolidated employees is about 15,700.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nippon Meat Packers, Inc.
Company name (Japanese)	日本ハム
Date of establishment	1942
Headquarters location	〒530-0001 大阪府大阪市北区梅田二丁目4番9号ブリーゼタワー
Capital	24,166
Consolidated sales	1,234,180
Consolidated operating profit	32,265
Consolidated total assets	741,388
Consolidated capital	405,358
Capital adequacy ratio	54.7%
Consolidated number of employees	15,700

 

 

 

2. Summary and Features

 
As a food company,「Nippon Meat Packers」was established in 1943 in Tokushima under the name of 「Tokushima Meat Processing Plant(徳島食肉加工場)」. In 1963, they merged with「Torisei Ham(鳥清ハム)」, then changed its name to current「Nippon Meat Packers」 and moved its office to Osaka. 

Because this company's japanese name includes "Ham", so many japanese think that the main business of「Nippon Meat Packers」is meat processed product. However, about 80% of sales are from the meat business, with a focus on brand meat development. Especially since the launch of "Schau Essen(Schau Essen)" in 1984, this company has become the market leader among Japanese food processors (「Itoham(伊藤ハム)」,「Primaham(プリマハム)」,「Marudai Foods(丸大食品)」) in the ham and sausage field.

The biggest feature of「Nippon Meat Packers」is that they have vertically integrated manufacture system to produce their own products from the raw material procurement process. Other japanese general meat company use outsource production/breeding/processing/processing/distribution/sales, so that each stage is performed by different companies. In that case, it may take a very long time to deliver fresh meat to the final consumer.

In order to overcome this, Nippon Meat Packers decided to conducts all processes from production, breeding, processing, processing, logistics and sales in-house. This is not only for providing a stable supply of meat products but also for conducting Thorough safety management. Actually, 「Nippon Meat Packers」is the first Japanese company who  adopt this system in meat industry.

 

 

 

3. Major Business

 

■ Meat business
This business accounts for about 80% of total sales. 「Nippon Meat Packers」owns 122 directly managed farms in Japan and 27 overseas.

■ Meat processed food business
This company entered ham and sausage market as of 1942 and their products have been manufactured at 33 factories in Japan and 5 factories overseas.

■ Processed Seafood Business
They have a market share of nearly 30% for seafood for sushi ingredients. In addition, 「Nippon Meat Packers」are developing processed food business such as frozen food, retort food, and canned food.

■ Dairy business
This company also sell cheese and yogurt. Especially for commercial cheese, it has a top class market share.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,202,293	1,258,463	1,234,180
Consolidated operating profit		53,802	49,218	32,265
Consolidated total assets		720,276	741,388	741,388
Consolidated net assets		408,356	734,528	405,358
Breakdown of sales	Meat processed food business	334,249	342,040	338,854
	Meat business	642,118	664,914	649,820
	Business by related companies	155,930	159,671	151,781
	Oversea business	91,566	125,877	128,540
	Adjustments	0	-34,039	-34,815