Ajinomoto (2802) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 FY2024 revenue of ¥365.5 billion, up 7.7% year-over-year, with business profit rising 0.5% to ¥43.0 billion; profit growth was 7% excluding the Forge acquisition impact.

• Profit attributable to owners declined 12% year-over-year to ¥23.9 billion, mainly due to a transient increase in overseas withholding tax from fund repatriation.

• Strategic investments increased company-wide expenses in Q1 to support the 2030 Roadmap, but full-year expenses are expected to remain within initial forecasts.

• No revision to the full-year forecast announced in May 2024; management remains confident in achieving full-year targets.

Financial highlights

• Sales revenue reached ¥365.5 billion, up ¥25.9 billion or 7.7% year-over-year; excluding currency effects and Forge, revenue was up about 7%.

• Business profit was ¥43.0 billion, up ¥0.2 billion; excluding Forge, up about 7% year-over-year.

• Gross profit improved by ¥9.5 billion year-over-year to ¥133.4 billion, driven by sales growth.

• Basic EPS was ¥46.98, down from ¥51.77 year-over-year.

• Comprehensive income dropped 18.1% year-over-year to ¥71.9 billion.

Outlook and guidance

• Full-year expense control is planned to align with initial forecasts despite higher Q1 spending.

• Price hikes for domestic coffee and seasonings are expected to support profit recovery in subsequent quarters.

• Gradual improvement in CDMO and amino acids segments anticipated from Q2 onward, with no revision to full-year forecasts.

• Dividend forecast for FY2025 is ¥80.00 per share, up from ¥74.00 in FY2024.

• Management remains confident in achieving full-year targets, with upside potential if current trends continue.