Tokyo, Japan-based Kibun Foods held its initial public offering (IPO) of stock on Tuesday, 13 April.
The company, which was established 83 years ago, had remained privately held, despite being one of the world’s largest makers of surimi products, including kamaboko (fishcake), hanpen (fluffy fishcake), chikuwa (braised tube-shaped fishcake), and chi-chiku (cheese-filled chikuwa).
The company was listed on the First Section of the Tokyo Stock Exchange under code 2933. The company raised about JPY 28.2 billion (USD 258.7 million, EUR 216.6 million), aiming to use the money for faster overseas expansion.
The company has two hit products with further expansion potential: “Kanimi” or surimi fish-paste flavored and shaped to resemble crab meat, and “Healthy Noodle” noodles made from tofu lees powder and konjak flour. The latter has no sugar content. In 2011, it was released as "Salad de Noodle" but the name was changed to "0g sugar noodles" in 2013. It was launched in North America in 2016 as "Healthy Noodle." Due to a trend toward healthier lifestyles and dietary restrictions caused by food allergies, the popularity of sugar-free, fat-free, cholesterol-free, dairy-free, and gluten-free foods has increased in Europe and the United States. The noodles are sold at Costco stores and at Asian markets across the U.S.A.
The company intends to raise the ratio of overseas business from the current 10 percent to 15 percent. Kibun Foods already has several overseas offices. Subsidiary Kibun Foods (U.S.A.), Inc. is located in Seattle, Washington. The office imports Kibun-brand products and other food products for distribution in North America, and exports surimi, soybeans, other food ingredients, and fruits and vegetables to Japan and other countries. The company also maintains a Los Angeles office. Additional overseas offices are located in Hong Kong, South Korea, China, Thailand, Singapore, the Netherlands, and Taiwan.
In its press release on the IPO, the company also laid out its plans and forecast the number for its upcoming FY2021 report, saying, “The business environment is still severe, as distribution costs and labor costs are expected to rise. In such an environment, the group will work to develop attractive products with high added value, secure sales by launching products that meet increasing health-oriented, convenience-oriented, and long-life demands, and raw materials.”
Its consolidated earnings forecast for the fiscal year ending March 2021 was for sales of JPY 100.6 billion (USD 922 million, EUR 771 million), down 1.6 percent from the previous year, operating income of JPY 3.5 billion (USD 31.8 million, EUR 26.6 million), up 26 percent from the previous year, and ordinary income of JPY 3 billion (USD 27.1 million, EUR 22.7 million), up 28.3 percent, net income attributable to owners of the parent company of 2 billion (USD 18.6 million, EUR 15.6 million), a 107.4 percent increase from the previous year.
Photo courtesy of Kibun Foods
