Ito En (2593.T): Visit to contract farm – commitment to use 100% Japan-grown tea leaves

Research evidence excerpt

Ito En (2593.T): Visit to contract farm – commitment to use 100% Japan-grown tea leaves

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26 Jun 2026 03:04:59 ET │ 10 pages

Ito En (2593.T)

Visit to contract farm – commitment to use 100% Japan-grown tea

leaves

CITI’S TAKE Neutral

We visited a number of Ito En contract tea farms on June 23. We sensed Price (26 Jun 26 15:30) ¥2,898.0

there is a very strong relationship between Ito En, which uses a stable Target price ¥2,900.0

supply of tea leaves as the raw materials for manufacturing its green tea

Expected share price return 0.1% products, and its contract farmers, as Ito En purchases the entire

production volume from these farms. Meanwhile, Ito En’s share price has Expected dividend yield 1.8%

underperformed the TOPIX Food index by c5% over the past three months, Expected total return 1.9%

primarily due to the announcement of guidance calling for OP to decline in Market Cap ¥244,367M

FY4/27. To overcome this, the company will need to demonstrate in US$1,512M

upcoming quarterly results 1) that it is achieving YoY growth in overall

sales volume by offsetting the decline in green tea volume due to price

hikes with barley tea and coffee volumes and 2) that it could benefit from

reduced material costs due to YoY price declines for autumn/winter Hiroki WatanabeAC

bancha tea. +81-3-6776-8296

hiroki.watanabe@citi.com

Ito En’s contract tea cultivation — Ito En sources around half of the ingredients used

in its domestic products from its Tea-Producing Region Development Business,

which forms the foundation of the company’s raw material procurement. This

business has two pillars: contract farming, in which it commissions individual tea

farmers to produce tea leaves of a specific quality and purchases their entire