[Company analysis] Nichirei Corporation (ニチレイ)

「Nichirei Corporation (ニチレイ)」is known as Japan's first frozen food company, and has particular strength in the commercial frozen food business. In the frozen food business and the low-temperature logistics business, it is the largest in Japan and the fifth largest in the world. In addition to frozen foods, they also operate a retort food business such as soups. The number of consolidated employees is about 15,787.

 

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	Nichirei Corporation
Company name (Japanese)	ニチレイ
Date of establishment	Thursday, December 24, 1942
Headquarters location	〒104-8402 東京都中央区築地六丁目19番20号
Capital	30,307
Consolidated sales	580,141
Consolidated operating profit	29,511
Consolidated total assets	377,257
Consolidated capital	183,805
Capital adequacy ratio	48.7%
Consolidated number of employees	15,787

 

 

 

2. Summary and Features

 
At present, various companies manufacture frozen foods, but「Nichirei」is the first company to release frozen foods in Japan. It also has the top market share in the frozen food market. They are strong in consumer products, but the strongest is actually the commercial frozen food business. Looking at the breakdown of sales in 2017, frozen foods for home use accounted for 26% of the total sales, while commercial frozen foods accounted for 44%.

However, frozen foods are not the only option in「Nichirei」. In addition to「Nichirei Foods(ニチレイフーズ)」who mainly deal with frozen foods, there are「Nichirei Fresh(ニチレイフレッシュ)」who procures, processes and sells marine and livestock ingredients, 「Nichirei Logistics(ニチレイロジ)」who boasts Japan's largest low-temperature logistics network and「Nichirei Biosciences(ニチレイバイオサイエンス)」who is in charge of the medical field utilizing biotechnology.

Among the beforestated companies, there is special thing in「Nichirei Logistics」. Considering the field of low-temperature logistics, this company has top class market share in Japan and they ranked 5th in world market. In addition, There are approximately 120 business locations in Japan and overseas. Since 2004, it has been expanding into Poland and China, and since 2013 it has started operations in Thailand.

Nichirei's overseas business began in 1955 in the Samoa region of the United States with a tuna base business. They also have four representative offices and 30 overseas affiliates, mainly in Europe, the United States and Asia. Through this, 「Nichirei」procures and processes marine and livestock products on a global level.

 

 

 

3. Major Business

 

■ Food Business
「Nichirei」mainly handle frozen foods for home and business use and retort foods.

■ Livestock business
They procure, process, manufacture and sell marine and livestock products through affiliated companies around the world.

■ Logistics business
Nichirei has one of Japan's largest low-temperature logistics networks, and operates the refrigerated warehouse and low-temperature transportation business.

■ Bioscience business
Utilizing our unique biotechnology, this company manufactures and sell reagents for cell culture and raw materials for cosmetic.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		539,657	568,032	580,141
Consolidated operating profit		29,309	29,897	29,511
Consolidated total assets		346,195	367,268	377,257
Consolidated net assets		164,747	169,680	183,805
Breakdown of sales	Processed food business	204,670	220,273	226,176
	Fisheries business	69,297	71,448	71,138
	Livestock business	86,325	88,316	88,998
	Low temperature logistics business	172,275	180,017	185,385
	Real estate business	3,275	3,356	3,385
	Others	3,812	4,619	5,058