Morinaga Milk Industry Co (2264) Q3 2026 earnings summary

Executive summary

• Nine-month sales reached ¥437,822 million (+1.6% YoY); operating profit rose 20.4% to ¥30,681 million, a record for the cumulative period.

• Strong Global Business, led by MILEI, and overseas probiotics and formula milk drove growth; domestic results faced lower volumes and higher costs, partly offset by price revisions and high-value products.

Financial highlights

• Nine-month ordinary profit was ¥32,775 million (+25.8% YoY) and profit attributable to owners of parent was ¥21,936 million (+48.8%); basic EPS rose to ¥266.78 from ¥173.74.

• Operating margin increased to 7.0% from 5.9%; 3Q sales were ¥144.5bn, up ¥4.4bn YoY, and operating profit was ¥9.9bn, up ¥1.9bn.

• Operating profit benefited from ¥13.5bn in price/mix gains and ¥6.3bn from overseas subsidiaries, partly offset by ¥6.7bn in raw-material costs and ¥4.7bn from lower sales volume.

• Comprehensive income was ¥21,675 million (+26.0% YoY).

Outlook and guidance

• FY26 guidance unchanged: sales ¥570,000 million (+1.6% YoY), operating profit ¥33,000 million (+11.3%), ordinary profit ¥33,900 million (+13.5%), net income ¥19,000 million (+248.0%), and EPS ¥231.96.

• Guidance assumes continued overseas progress; domestic sales weakness, cost increases, growth investment, and one-time inventory and asset-related costs weigh on earnings.

• Annual dividend forecast is ¥93 per share; the 40% payout ratio target was raised from 30% and aligns with the 2025–28 plan.

• FY March 2029 medium-term targets: sales ¥630,000 million, operating margin 7%, ROE 10%, and Global Business sales ratio 15%.