Morinaga&Co (2201) Q4 2025 earnings summary

Executive summary

• FY2025 net sales reached a record for the fourth consecutive year, rising 7.3% to ¥228,957 million; operating income set a new record at ¥21,266 million.

• Profit attributable to owners of parent rose 16.9% to ¥17,710 million, partly reflecting higher extraordinary income from investment-security sales.

• Sales growth in confectionery, frozen desserts and overseas markets was partly offset by cacao inflation and weaker profits in key food manufacturing businesses.

Financial highlights

• Gross profit rose 3.9% to ¥90,046 million, while gross margin fell to 39.3% from 40.6%; operating margin edged down to 9.3% from 9.5%.

• Ordinary income increased 6.0% to ¥22,304 million; income before taxes rose 18.0% to ¥24,284 million.

• Extraordinary income was ¥3,553 million, including a ¥3,306 million gain on investment-security sales; extraordinary losses were ¥1,573 million, including ¥1,003 million in impairment losses.

• Net income was ¥17,846 million and profit attributable to owners of parent was ¥17,710 million; EPS was ¥200.85, with no dilutive shares.

• Domestic sales rose 6.5% to ¥198,567 million and overseas sales rose 12.6% to ¥30,390 million, or 13.3% of consolidated sales.

Outlook and guidance

• FY2026 forecast: net sales ¥240,000 million (+4.8%), operating income ¥21,400 million (+0.6%), ordinary income ¥21,700 million (-2.7%) and parent profit ¥17,800 million (+0.5%).

• Guidance factors in higher raw-material, logistics, depreciation and advertising costs, offset by price revisions and sales growth; selected confectionery price increases were planned for June 2025.

• Forecast assumes ¥147 per U.S. dollar; uncertain U.S. tariff impacts on import costs, demand and domestic procurement costs from FX changes are excluded.

• FY2026 capital investment is forecast at ¥8,757 million, depreciation at ¥10,384 million and R&D expenses at ¥3,301 million.