Morinaga Milk Industry Co (2264) Corporate presentation summary

Financial performance and targets

• FY Mar. 2026 net sales ¥571.5b (+1.8% YoY), operating profit ¥34.5b (+16.3%), operating margin 6.0%; ordinary profit ¥37.1b (+24.3%).

• FY Mar. 2027 forecast: net sales ¥580.0b (+1.5% YoY) and operating profit ¥34.0b (-1.4%).

• FY Mar. 2029 targets: net sales ¥630.0b, operating profit ¥44.0b, operating margin at least 7%, ROE at least 10%, and global business sales ratio at least 15%.

Business portfolio

• FY Mar. 2026 global business generated ¥87.5b in net sales, 15.3% of sales, and ¥17.0b in operating profit, with a 19.4% margin.

• Domestic B-to-C business represented ~50% of sales and domestic B-to-B ~20% as of Mar. 2026; B-to-B sales were ¥85.9b for FY Mar. 2026.

• Global growth centers on probiotics and formula milk; MILEI GmbH contributed ¥56.1b in FY Mar. 2026 sales, including whey protein concentrate, lactose, and lactoferrin.

Medium-term growth and reforms

• The 2025–2028 plan aims to build a differentiated, highly profitable business by concentrating resources in areas of strength, rebuilding product development and sales capabilities, and improving production efficiency.

• Priority growth areas include yogurt, ice cream, and probiotics; combined domestic and global probiotic net sales target is 100% above FY Mar. 2025 by FY Mar. 2029.

• Production reforms include halving paper-pack lines by FY Mar. 2029 and reducing production sites 20% by FY Mar. 2033, alongside expanded yogurt and ice cream capacity.

• ROIC target is 7%; initiatives include prioritizing investment projects, improving cash conversion cycle, and concentrating resources in growth areas.