President's Message
I would like to take this opportunity to express my sincere gratitude and appreciation to our investors for your support.
We at the Oenon Group are guided by our Corporate Group Philosophy in conducting our biotechnology-based business, which focuses on fermentation technology. We place topmost importance on delivering safe and secure products to our customers, maintaining a combined customer- and profit-oriented focus throughout our operations. We are also promoting initiatives that contribute to the “co-creation of future value.” Specifically, we believe it is essential to fulfill our social responsibilities as a company that supports the infrastructure that underpins society and livelihoods. By doing so, we aim to ensure sound and sustainable growth over the medium to long term. Accordingly, we promote ESG management, which takes environmental, social and governance factors into consideration.
In fiscal 2025, sales and income increased across all three business segments—alcoholic beverages, enzymes and pharmaceuticals, and real estate, and operating income and ordinary income both reached historic highs. We believe sales will increase in all segments in fiscal 2026, but we expect rises in ingredient, personnel, and logistics costs, as well as higher depreciation and amortization accompanying a substantial increase in capital expenditures, causing income to plateau. In addition, the business environment is expected to remain challenging due to ongoing instability in the international situation and other factors; however, we remain committed to moving forward as a unified Group.
We established a long-term vision, “NEXT100,” to mark our 100th anniversary of establishment in October 2024. Under this vision, which calls for us to achieve sustainable growth, we have defined our 10-year goal of becoming, by 2034, “a company that helps solve the issues facing society while maintaining sound management and steadily generating reasonable profits.” To achieve this vision, we are addressing three key challenges: “strengthening the competitiveness and profitability of core businesses,” “taking on challenges in new fields,” and “promoting ESG management.” Furthermore, as outlined in our Medium-Term Management Plan 2028, we have designated the five years from 2024 as “a period for consolidating our foundations for new growth.” We have established four pillars that we will promote to achieve our goals for this period, namely to “reinforce our presence as a comprehensive shochu manufacturer,” “expand sales routes and increase the scale of alcoholic beverage exports,” “ensure steady earnings from brewing and industrial alcohol for sale,” and “enhance the lineup of enzymes and expand the contract manufacturing business.” Underpinning our working styles as we move into a “new normal” era is our sangen shugi principle (genba, genjitsu, genbutsu). This idea, the “three reals philosophy,” is sometimes expressed in English as “the actual place, the actual situation and the actual goods.” Our actions will follow a cycle based on three principles: decide swiftly, act nimbly and engage in honest reflection. As a result, we aim to manage the Group with a sense of speed, responding flexibly to changes in our environment.
We ask for your ongoing support and encouragement of these endeavors.
March 2025
Yuji Nishinaga
President and CEO
Oenon Holdings, Inc.
