Morinaga&Co (2201) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 5.8% to ¥128,902 million, while operating income fell 10.5% to ¥11,952 million and parent-attributable profit fell 22.9% to ¥8,510 million.

• Sales growth reflected Confectionery & Foodstuffs and U.S. strength, including six months of MyMo consolidation; acquisition impacts and higher input, logistics, and U.S. selling costs weighed on earnings.

Financial highlights

• Gross profit rose 6.2% to ¥52,989 million; SG&A increased 12.2% to ¥41,037 million.

• Ordinary income was ¥11,841 million (-11.9%); parent-attributable profit was ¥8,510 million (-22.9%), with EPS of ¥101.35 versus ¥130.82.

• Operating margin was 9.3% versus 11.0% YoY; gross margin was 41.1% versus 41.0%.

Outlook and guidance

• FY2027 net sales guidance remains ¥257,000 million; operating income is ¥21,000 million (-6.2%), ordinary income ¥20,500 million, and parent-attributable profit ¥15,200 million.

• Profit guidance was reduced by ¥1,800 million for operating income, ¥1,700 million for ordinary income, and ¥1,300 million for parent-attributable profit; sales guidance is unchanged.

• H2 forecasts are net sales ¥128,097 million, operating income ¥9,047 million, ordinary income ¥8,658 million, and parent-attributable profit ¥6,689 million.

• FY2027 dividends are forecast at ¥70 per share, including a ¥35 year-end dividend; forecasts assume ¥159 per U.S. dollar.