Morinaga&Co (2201) Q3 2025 earnings summary

Executive summary

• 9M net sales rose 7.8% YoY to ¥176,584m; operating income fell 1.3% to ¥19,427m and parent-attributable profit fell 2.7% to ¥13,601m.

• Sales growth was led by Confectionery & Foodstuffs and Frozen Desserts; higher raw-material costs, particularly cacao, pressured profitability.

• The 2024 Medium-Term Business Plan focuses on strengthening businesses, growth potential and capital efficiency toward the 2030 Business Plan.

Financial highlights

• Gross profit rose 4.4% to ¥70,876m; gross margin fell 1.4 points to 40.1%, while SG&A rose 6.7% to ¥51,448m.

• Ordinary income declined 1.6% to ¥19,844m; net income was ¥13,717m, down 3.2%, and comprehensive income fell 23.6% to ¥12,654m.

• Domestic sales rose 7.0% to ¥152,781m and overseas sales rose 13.5% to ¥23,802m; overseas sales were 13.5% of consolidated sales, up from 12.8%.

• Sales growth and price revisions added ¥3.00bn and ¥2.35bn to the operating-income bridge; raw materials, energy and forex reduced it by ¥5.22bn.

• EBITDA, defined as operating income plus depreciation and amortization, was ¥26.6bn, down ¥0.1bn YoY.

Outlook and guidance

• FY2025 forecasts remain unchanged: net sales ¥227,000m (+6.4%), operating income ¥21,300m (+5.1%), ordinary income ¥21,700m (+3.1%) and parent-attributable profit ¥16,700m (+10.2%).

• Full-year operating-income bridge includes a ¥7.36bn headwind from raw materials, energy and forex, offset by ¥3.61bn from sales growth and ¥3.35bn from price revisions.

• The full-year dividend forecast remains ¥60 per share; February–March 2025 price increases cover confectionery, selected biscuits and snacks, Chocoball and “in-” protein powders.

• Higher sales, price revisions and Group-company contributions are expected to offset greater-than-previously-forecast raw-material impacts; results remain exposed to input costs and exchange rates.