Meiji (2269) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 were JPY 273.5–273.6 billion, down 1.8% year-over-year, with operating profit at JPY 17.7 billion, down 13.4%. Profit attributable to owners fell 27.6% to JPY 10.0–10.1 billion.

• Operating profit and EPS declined due to cost inflation and higher tax expenses.

• The operating environment improved in hiring and wages, but consumer thrift increased due to higher living costs and global uncertainties.

• The company is advancing its Medium-Term Business Plan, focusing on value-added products, B2B expansion, and overseas profitability.

Financial highlights

• Gross profit for Q1 was JPY 80.0 billion, down 2.4% year-over-year; SG&A expenses rose 1.2%.

• EPS for Q1 was JPY 37.27, down from JPY 50.23; operating profit margin declined to 6.5% from 7.4%.

• Comprehensive income dropped 61.9% year-over-year to JPY 7.95 billion.

• Free cash flow was negative at JPY 19.5 billion, a further decline from negative JPY 9.6 billion a year earlier.

• Profit attributable to owners of parent fell 27.6% to JPY 10.0–10.1 billion; EPS decreased to JPY 37.27.

Outlook and guidance

• Full-year net sales forecast at JPY 1,195.0 billion (+3.5% YoY); operating profit projected at JPY 91.0 billion (+7.4% YoY); profit attributable to owners at JPY 54.0 billion (+6.3%).

• EPS for the year expected at JPY 197.80; dividend per share planned at JPY 105.00.

• No revisions to H1 or full-year guidance.