Axyz

Basic Information

Stock Code
1381
Industry
Fisheries, Agriculture and Forestry
Category Detail
Food Manufacturing
Prefecture
Kagoshima Prefecture
Establishment Year
November 1962
Listing Year
December 2000
Official Website
http://www.axyz-grp.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Akiikawa Bokuen, Hokuryo, Miki Kogyo, Nippon Ham, Fukutome Ham, S Foods, Kakiyasu Honten, Itoham Yonekyu Holdings, Town N, Ifuji Sangyo, Kanare Electric

Overview

Axyz is a major Kagoshima-based company established in 1962, specializing in integrated chicken production and processing. It offers low-priced, high-quality chicken products and operates franchise businesses in the food service industry.

Current Situation

Axyz recorded consolidated net sales of 25.836 billion yen, operating profit of 1.57 billion yen, and net profit of 1.239 billion yen for the fiscal year ending June 2024, maintaining steady growth. It handles everything from chicken breeding to processing and sales in-house, leveraging stable supply to KFC and Pizza Hut to expand into food service franchises. In 2018, it entered a capital and business alliance with Nippon Ham to strengthen product development and market competitiveness. Its integrated production system enables low-cost, thorough quality control, establishing it as a major domestic player. Emphasizing industry sustainability, it manufactures its own feed to reduce environmental impact. Responding to diversifying markets with active new product development, it plans to focus on digitalization and production efficiency improvements. Backed by strong capital and customer base, it continues contributing to the local economy while aiming for long-term brand strengthening and overseas expansion. It employs approximately 1,247 people and focuses on stable talent acquisition.

Trivia

Interesting Facts

  • Established veteran chicken processing manufacturer since 1962
  • Kagoshima-based with community-oriented management
  • Grown into a major domestic player by establishing integrated chicken production
  • Long-term transaction history with KFC
  • Also operates Pizza Hut franchises
  • Strengthened industry ties through capital alliance with Nippon Ham
  • Manages production efficiency and quality via in-house feed manufacturing
  • High reliability as Tokyo Stock Exchange Standard-listed company
  • Actively participates in community contribution activities
  • Regularly holds factory tours and experiential events
  • Working to increase ratio of female managers
  • Early adopter of sous-vide technology among advanced companies
  • Implements health promotion programs for employees
  • Actively invests in new businesses to promote diversification
  • Leads technology standardization in the poultry industry

Hidden Connections

  • Built mutual support system for raw material procurement and sales through capital and business alliance with Nippon Ham
  • Major supplier to KFC with long-term exclusive transaction record
  • Kagoshima Bank as major shareholder supports local economy through strong ties with regional finance
  • Has group companies in feed manufacturing, livestock, services, and other fields
  • Brands chicken products as local specialties at events in Kagoshima City
  • Serves as a model case for local companies listed on Tokyo Stock Exchange Standard Market
  • Achieves vertical integration of food and food service through Pizza Hut franchise
  • Part of a corporate group pioneering food loss reduction and sustainable supply systems in chicken

Future Outlook

Growth Drivers

  • Increasing chicken demand in domestic and international food service industries
  • Strengthened cost competitiveness through integrated production
  • Product enhancement through alliances like with Nippon Ham
  • Improved customer trust via community-oriented management
  • Differentiation through new processing technologies and product development
  • Productivity improvements via digitalization and IoT adoption
  • Growing demand for high-value-added products amid health trends
  • Environmental regulation compliance through sustainable feed development
  • Sales channel expansion and multi-faceted distribution
  • Further growth in franchise business

Strategic Goals

  • Expand share in domestic chicken processing market and maintain top-class position
  • Achieve 40% reduction in environmental impact from feed manufacturing
  • Increase food service franchise stores by 50%
  • Further contribute to regional economy and strengthen local brand
  • Improve production efficiency by 30% using digital technologies
  • Increase sales by over 20% through new product development
  • Strengthen supply chain sustainability
  • Enhance employee diversity and work-life balance
  • Gain industry leadership in food loss reduction initiatives
  • Build foundation for international expansion through cooperation with capital partners

Business Segments

Chicken Supply

Overview
Business stably supplying high-quality chicken and processed products to the food service industry.
Competitiveness
High quality and supply stability due to fully integrated production
Customers
  • Food Service Chains
  • Food Processing Companies
  • Wholesale for Business Use
  • Kentucky Fried Chicken
  • Pizza Hut
  • School Lunch Providers
Products
  • Fresh Chicken
  • Frozen Chicken
  • Chicken Processed Products
  • Ingredients for Fried Chicken

Feed Manufacturing and Sales

Overview
Supplies in-house manufactured feed to poultry farmers, supporting healthy chicken rearing.
Competitiveness
Cost control and quality assurance through self-sourced raw materials
Customers
  • Poultry Farmers
  • Livestock Operators
  • Feed Distributors
Products
  • Complete Chicken Feed
  • Feed Raw Materials
  • Pellet Products

Food Service Franchise Operations

Overview
Operates food service businesses under franchise agreements to promote brand expansion.
Competitiveness
Community-focused operations and strong capital alliance with Nippon Ham
Customers
  • Consumers
  • Local Commercial Facilities
  • Food and Beverage Industry
Products
  • Kentucky Fried Chicken
  • Pizza Hut

Processing Technology Provision

Overview
Provides chicken product processing technology and OEM manufacturing services.
Competitiveness
Advanced processing technology accommodates a wide range of needs
Customers
  • Food Manufacturers
  • Food Service Industry
  • Processed Food Companies
Products
  • Chicken Processing Technology
  • Seasoned Processed Foods
  • OEM Manufacturing

Related Raw Materials Sales

Overview
Sales of poultry-related raw materials and by-products.
Competitiveness
Stable supply network through integrated production
Customers
  • Livestock Operators
  • Compound Feed Manufacturers
  • Agriculture-Related Companies
Products
  • Feed Raw Materials
  • Livestock By-Products

Competitive Advantage

Strengths

  • Supply stability from fully integrated production
  • Provision of low-priced, high-quality chicken products
  • Business foundation strengthened by capital and business alliance with Nippon Ham
  • Expansion of community-focused food service franchise business
  • Diverse lineup of chicken processed products
  • Raw material cost control through in-house feed manufacturing
  • Stable workforce of 1,247 employees
  • Reliability from listing on Tokyo Stock Exchange Standard Market
  • Flexible product development and technological capabilities
  • Proven track record of stable deliveries to food service industry
  • Contributions to and trust from local economy
  • Strong customer base with numerous long-term partners
  • Diversification of franchise business
  • Traceability ensured from breeding to processing
  • Strict quality control in manufacturing processes

Competitive Advantages

  • Established integrated system from in-house chicken breeding to processing, optimizing quality and costs
  • Secures stable revenue from KFC and Pizza Hut franchise businesses
  • Resource and technology collaboration with Nippon Ham enables enhanced products and market expansion
  • High support from local customers through Kagoshima-based community-oriented management
  • Broad customer needs met with diverse product lineup
  • Controls rearing efficiency and quality through in-house feed manufacturing, reducing supply chain risks
  • Superior fundraising and credibility as Tokyo Stock Exchange Standard-listed company
  • Social trust gained through stable workforce and local job creation
  • Differentiation from competitors via proprietary processing technologies
  • Abundant know-how in store operations from years of franchise management
  • Ensures safety with consistent quality control and traceability
  • High price competitiveness through affordable product offerings
  • Promotes local production for local consumption leveraging regional raw material sourcing
  • Risk diversification enabled by multi-channel sales expansion
  • Enhanced corporate image through active participation in sustainability initiatives

Threats

  • Risk of profit margin decline due to intensifying price competition in chicken market
  • Risk of production halt from poultry disease outbreaks
  • Cost increases from international fluctuations in raw feed prices
  • Market contraction from population decline and reduced meat consumption
  • Increased production and processing costs from stricter environmental regulations
  • Intensified competition from competitors' technological innovations
  • Risk of declining production efficiency from labor shortages
  • Damage to production infrastructure from natural disasters
  • Potential decrease in chicken demand from shifting consumer health trends
  • Risk of brand image damage from food safety issues
  • Feed import cost instability from exchange rate fluctuations
  • Impact on overall company from poor performance of franchise stores

Innovations

2022: Promotion of Manufacturing Process Automation

Overview
Introduced automation equipment in chicken processing lines to improve production efficiency.
Impact
20% reduction in processing time, 15% cut in production costs

2023: Development of New Spicy Fried Chicken

Overview
Launched fried chicken product with proprietary spice blend.
Impact
Increased purchase rate among younger demographics, opened new customer segments

2024: Introduction of IoT for Rearing Environment Monitoring

Overview
Installed IoT sensors in chicken houses for real-time rearing environment management.
Impact
Contributes to early disease detection and production stabilization

2021: Development of Low-Environmental-Impact Feed

Overview
Began manufacturing low-environmental-impact feed utilizing by-products.
Impact
Improved sustainability ratings and cost reductions

2023: Digitalization for Franchise Stores

Overview
Introduced digital tools for store management and customer service.
Impact
Improved operational efficiency and customer satisfaction

2020: Construction of Chicken Traceability System

Overview
Implemented tracking system for entire production process to enhance safety.
Impact
Increased consumer trust and market expansion

2022: Introduction of Sous-Vide Technology

Overview
Introduced new sous-vide equipment to strengthen product lineup.
Impact
Achieved product differentiation and health-oriented offerings

2024: Pilot Project for Recycled Feed Technology

Overview
Implemented pilot project for circular feed technology using waste materials.
Impact
Waste reduction and lowered feed costs

Sustainability

  • Development of low-environmental-impact technologies through in-house feed
  • Promotion of waste recycling
  • Improvement of chicken house environments considering animal welfare
  • Support for local environmental education
  • Introduction of energy-saving processing equipment
  • Reduction of carbon footprint across the supply chain
  • Technology investments for sustainable chicken production
  • Efficient utilization and management of water resources
  • Reduction of chemical use in production processes
  • Optimization of manufacturing processes to reduce food loss