[Company analysis] Kikkoman Corporation (キッコーマン株式会社)

「Kikkoman Corporation (キッコーマン株式会社)」 is a seasoning manufaturer that was established in 1917. This company is the world's largest soy sauce production company, and is well known overseas from Japan. As for the financial stability, it can be comparable to「Comsys Holdings Corporation(コムシスホールディングス)」. The company has approximately 7,100 consolidated employees.

 

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	Kikkoman Corporation
Company name (Japanese)	キッコーマン
Date of establishment	Friday, December 7, 1917
Headquarters location	〒278-8601 千葉県野田市野田250番地
Capital	11,599
Consolidated sales	453,565
Consolidated operating profit	38,417
Consolidated total assets	362,119
Consolidated capital	270,451
Capital adequacy ratio	74.7%
Consolidated number of employees	6,771

 

 

 

2. Summary and Features

 
The Noda region of Chiba Prefecture has long been a suitable area for brewing soy sauce. In 1887, 「the Noda Shoyu Cartel(野田醤油醸造組合)」was formed, and in 1917 eight leading brewers joined together to form「Noda Shoyu Co. Ltd.(野田醤油株式会社)」and this is the predecessor of the current「Kikkoman(キッコーマン)」. Even now, Japanese-style brewed seasonings such as soy sauce, soy sauce-based seasonings, soups, and vinegar are the main products of Kikkoman.

The interesting point is that「Kikkoman」had been actively expanding its business worldwide before the start of World War II. At present, Kikkoman's soy sauce is sold in about 100 countries around the world. Its share in the Japanese market is only about 30%, but its global market share is 50%, therefore its global share is even higher than Japan domestic. It is no exaggeration to say that Kikkoman is dominating the world soy sauce market. Especially in the United States, the market share has reached 55%, and although it is limited to the United States, it is recognized that "Kikkoman = Japanese soy sauce".

However, it is said that the Japanese domestic market itself has been shrinking as the dietary habits of modern Japanese have changed. In fact, soy sauce market in Japan are decreasing slightly every year. In addition, the Japanese soy sauce market is already saturated by many soy sauce brewing companies, so it is the Red Ocean. Meanwhile, the global soy sauce market has been growing at an average annual rate of 7.6% over the past 40 years.

Based on this, Kikkoman's overseas sales have significantly exceeded domestic sales in recent years. In addition, the profit ratio of the overseas food sales business including soy sauce reached 19.9%, which is an extremely high level. In addition to this, the fact that Kikkoman's own equity ratio is 70% can be evaluated as a financially very stable company.

 

 

 

3. Major Business

 

■ Food business
"Kikkoman(キッコーマン)" brand manufactures soy sauce, "Manjo(マンジョウ)" brand offers mirin, "Del Monte(デルモンテ)" brand provides tomato-based seasonings and juices, and "Manzuwine(マンズワイン)" brand produces Japanese domestic wine.

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		402,174	430,602	453,565
Consolidated operating profit		32,842	36,502	38,417
Consolidated total assets		361,248	343,929	362,119
Consolidated net assets		244,437	253,289	270,451
Breakdown of sales	Japan domestic food business	167,337	172,437	174,654
	Japan domestic other business	21,035	21,149	21,427
	Oversea food business	81,783	89,453	93,510
	Oversea food wholesale business	156,868	174,457	192,109
	Adjustments	-24,851	-26,895	-28,136