Medium-Term Management Plan 2026

The NH Foods Group formulated Medium-Term Management Plan 2026 as a step toward the realization of its Vision2030 (“Unleash new potentials for protein”). The theme for the plan, which covers the three years ending March 2025 through March 2027, is “Working together to create value through protein”. Our goal under this plan is to transform the NH Foods Group from Japan’s biggest supplier of protein into a corporate group that co-creates the value of protein.

Overall Concepts and Management Targets

Figure:Overall Concepts and Management Targets

Three-Year Targets under the Medium-Term Management Plan


Medium-Term Management Plan 2026—Management Issues and Innovation Themes

We aim to realize Vision2030 by pursuing further growth through structural reforms, growth strategies, and cultural reforms. Under Medium-Term Management Plan 2026, we will work to achieve business profit of ¥79 billion or higher in FY2029/3 by implementing structural reforms and growth strategies based on backcasting perspectives, and through business recycling leading to the creation of an optimal business mix. At the same time, we will implement reforms designed to foster an organizational culture focused on new challenges.

Figure:Vision2030 Unleash new potentials protein

Business Model Innovation Strategies

We will incorporate structural reforms, growth strategies, and cultural reforms into our business strategies and build a structure to tackle issues under management leadership. These themes are shown in the following diagram.


Business strategy: Restructuring of ROIC management

By the year ending March 2027, the final year of the Medium-Term Management Plan, we aim to achieve benefits of ¥10 billion through structural reforms and ¥6 billion through growth strategies.

The Processed Foods Business Division will exit from low-profit areas and build a strong earnings base by concentrating management resources into high-added-value products. The Fresh Meats Business Division will further increase the sales potential of the Nippon Food companies by strengthening their marketing capabilities. The Overseas Business Division will stabilize its profits by strengthening sales of processed products in North America and deepening co-creation activities in the ASEAN region.


Human resource strategy: Optimize human capital

One of our priorities for structural reform and growth strategies is the fostering of a culture focused on new challenges. We will focus in particular on the development of innovative managers through changes to executive remuneration, the development of systems to discover and train next-generation managers, and the promotion of people who can take on new challenges.


Sustainability strategy: Solve social issues through materiality-based actions

We will work to realize our vision through a sustainability strategy centered on the solution of social issues through business activities. The four pillars of that strategy are to provide the joy of eating, create new value, protect the global environment, and strengthen the resilience of our business base. Through initiatives in these areas, we will work to realize our redefined Materialities.


Financial strategy: Pursue returns in excess of capital costs and implement capital optimization initiatives

We will build an optimal debt-equity structure by integrating our financial strategy with our business strategy and controlling shareholders’ equity. We aim to create a management structure capable of delivering returns in excess of the cost of capital.


Improving capital efficiency

Under Medium-Term Management Plan 2026, we aim to achieve sustainable growth in corporate value by improving profitability and optimizing invested capital. We see strategic cash allocation as a key policy for the achievement of our targets for the year ending March 2027, including ROE of 7-8% and ROIC of 5-6%. Our cash allocation concepts are summarized in the following chart.

We aim to generate cash reliably by measuring ROIC and capital costs for each business, thoroughly managing invested capital through KPIs based on frontline perspectives, and reducing capital costs.

We plan to invest approximately ¥140 billion, of which around ¥94 billion will be allocated to the maintenance, updating, and restructuring of existing businesses. The remaining ¥50 billion will be allocated to growth investment, including brand enhancement, overseas business, R&D, and environment-related initiatives.

Our debt-equity ratio target is 0.5-0.6. We have established a share repurchasing quota of ¥20 billion for FY2025/3, and we recognize the need to implement share buybacks on this level in the next and subsequent fiscal years.

In addition to securing resources for growth investment and R&D investment, we will also enhance shareholder returns and allocate funds strategically.