Morinaga&Co (2201) Q1 2025 earnings summary

Executive summary

• Q1 net sales rose 11.4% YoY to ¥56,928 million; operating income increased 16.2% to ¥6,741 million and profit attributable to owners of parent rose 12.9% to ¥4,880 million.

• Sales growth and price revisions supported profit growth despite soaring raw-material costs; domestic businesses and the U.S. business performed well.

• Focus-domain sales increased 11.8% YoY to ¥30.5 billion, representing 53.6% of consolidated sales.

• FY2025 guidance remained unchanged.

Financial highlights

• Gross profit rose 10.7% YoY to ¥23,555 million; SG&A increased 8.7% to ¥16,813 million.

• Ordinary income increased 15.9% to ¥6,938 million; net income was ¥4,928 million and profit attributable to owners of parent was ¥4,880 million.

• EBITDA was ¥9.0 billion, up 12.2% YoY.

• EPS was ¥54.24, calculated as if the January 2024 two-for-one stock split had been effective from the start of the prior fiscal year.

• Domestic sales rose 9.9% YoY to ¥49,149 million; overseas sales grew 21.9% to ¥7,778 million, lifting overseas mix to 13.7%.

Outlook and guidance

• FY2025 guidance remains unchanged: net sales ¥222,000 million, operating income ¥20,500 million, ordinary income ¥20,900 million and parent-attributable profit ¥15,800 million.

• Full-year EPS is forecast at ¥176.34; interim forecasts are sales ¥114,000 million, operating income ¥13,400 million, ordinary income ¥13,600 million and parent-attributable profit ¥10,100 million.

• Chocolate and other Confectionery & Foodstuffs prices, and Frozen Desserts prices, were scheduled to rise from September 2024.

• Raw-material and energy prices, exchange rates and other uncertainties may affect forecasts; revisions will be disclosed if needed.