Morinaga&Co (2201) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net sales rose 2.5% YoY to ¥121.869bn, while operating income fell 3.7% to ¥13.350bn amid higher input and logistics costs and investment spending.

• Confectionery & Foodstuffs and Frozen Desserts led segment growth; the in- and U.S. businesses recorded lower sales and operating income.

• Revised FY2026 guidance targets ¥236.0bn sales and ¥22.3bn operating income, with lower sales guidance but higher profit forecasts.

Financial highlights

• H1 net sales were ¥121,869m, up 2.5% YoY; gross profit was ¥49,916m, up 2.6%, with gross margin unchanged at 41.0%.

• Operating income was ¥13,350m, down 3.7%, and operating margin was 11.0% versus 11.7% YoY; ordinary income fell 4.6% to ¥13,447m.

• Profit attributable to owners of parent rose 3.8% to ¥11,031m; extraordinary income included a ¥1,986m gain on sales of investment securities.

Outlook and guidance

• FY2026 forecast: net sales ¥236.0bn, operating income ¥22.3bn, ordinary income ¥22.5bn and parent-attributable profit ¥18.2bn.

• Sales guidance was reduced by ¥4.0bn from ¥240.0bn; operating income, ordinary income and parent-attributable profit forecasts rose by ¥0.9bn, ¥0.8bn and ¥0.4bn, respectively.

• H2 forecast: sales ¥114.13bn and operating income ¥8.949bn; the operating-income plan assumes ¥4.37bn from higher sales and ¥0.53bn from price revisions, partly offset by costs.

• FY2026 year-end dividend forecast remains ¥32.50 per share; H1 interim dividend was ¥60.00 per share.