Morinaga&Co (2201) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 net sales rose 9.2% YoY to ¥51,092 million; operating income increased 25.1% to ¥5,803 million and profit attributable to owners of parent rose 26.8% to ¥4,322 million.

• Sales growth and price revisions offset high raw-material and energy costs; domestic and overseas sales increased, with particularly strong U.S. growth.

Financial highlights

• Gross profit was ¥21,277 million, up 8.6% YoY; SG&A increased 3.5% to ¥15,473 million.

• Ordinary income rose 24.1% to ¥5,985 million; comprehensive income was ¥5,155 million versus ¥3,454 million in Q1 FY2023.

• EBITDA, defined as operating income plus depreciation and amortization, was ¥8.6 billion.

Outlook and guidance

• FY2024 forecasts remained unchanged: net sales ¥204,000 million, operating income ¥17,300 million, ordinary income ¥17,800 million and profit attributable to owners of parent ¥12,200 million.

• Full-year EPS forecast was ¥265.18 and annual dividend forecast was ¥105 per share; no forecast revisions were made.

• Priorities included sustaining U.S. and domestic confectionery momentum, addressing normalized in Jelly demand and expanding frozen-dessert sales into peak season.