Meiji (2269) Q2 2026 earnings summary

Executive summary

• Consolidated operating profit for the first half reached JPY 40.9 billion, exceeding plan, driven by strong pharmaceuticals, while food products slightly missed targets.

• Net sales for the first half were JPY 574.9 billion, up 1.0% year-on-year, but operating profit declined 7.8% year-on-year due to higher costs and lower extraordinary income.

• Structural reforms are underway, including production consolidation, factory closures, career transition programs, and adoption of a job-specific HR system.

• Price increases were implemented amid weak domestic consumption, supporting results despite cost pressures.

• The company is executing its 2026 Medium-Term Business Plan, focusing on value-added products, price increases, and overseas profitability improvements.

Financial highlights

• First half net profit was JPY 21.4 billion, down 20.1% year-on-year, mainly due to the absence of extraordinary income from the prior year.

• Food segment net sales were JPY 458.4 billion (+0.7% YoY), with operating profit up 5.0% to JPY 29.0 billion.

• Pharmaceutical segment net sales were JPY 116.9 billion (+2.7% YoY), but operating profit fell 22.8% to JPY 14.3 billion.

• Gross profit increased 2.0% year-on-year, but SG&A expenses rose 5.4%.

• EPS dropped to JPY 79.27 from JPY 97.66 year-on-year.

Outlook and guidance

• Full-year net sales forecast revised down to JPY 1,177.0 billion, but operating profit and net income forecasts remain unchanged at JPY 91.0 billion and JPY 54.0 billion, respectively.

• Second half net sales are planned at JPY 602.1 billion (+2.9% YoY), with operating profit projected at JPY 50.0 billion (+24.2% YoY).

• Focus areas include strengthening product and marketing in food, cost structure optimization, and new product launches.

• Food segment chocolate business expected to outperform, while nutrition business is projected to underperform initial plans.

• Domestic pharmaceuticals expected to recover in H2, but overseas pharmaceuticals and vaccines/veterinary drugs to remain below plan.