Morinaga Milk Industry Co (2264) Q4 2025 earnings summary

Executive summary

• Net sales for FYE March 2025 reached ¥561.2 billion (+2.6% YoY), with operating profit at ¥29.7 billion (+6.5% YoY), and ordinary profit at ¥29.9 billion (+6.3% YoY).

• Profit growth was driven by Global Business and efficient sales promotion, with 4Q profits continuing the positive trend from 3Q.

• Profit attributable to owners of parent dropped 91.1% YoY to ¥5,459 million, and comprehensive income fell 86.6% YoY to ¥9,116 million.

• FYE March 2026 forecast: net sales ¥580.0 billion (+3.4% YoY), operating profit ¥32.0 billion (+7.9% YoY), profit attributable to owners of parent ¥19.0 billion (+248% YoY).

• The new Medium-Term Business Plan (MTBP) 2025–2028 targets expansion in growth areas and higher profitability.

Financial highlights

• Operating profit margin for FYE March 2025 was 5.3%, with ROE at 2.0%.

• Basic earnings per share decreased to ¥64.53 from ¥696.09 YoY, reflecting the significant drop in net profit.

• Dividend per share increased to 90 yen (payout ratio 42.3%), with FY2026 forecast at 93 yen per share.

• Extraordinary income included ¥6.7 billion from sale of cross-shareholdings and ¥4.6 billion from non-current assets; extraordinary losses of ¥20.1 billion from impairment losses on overseas subsidiaries.

• Shareholders' equity ratio improved to 51.2% from 49.0% YoY.

Outlook and guidance

• FYE March 2026 targets: net sales ¥580.0 billion (+3.4% YoY), operating profit ¥32.0 billion (+7.9% YoY), ROE 7.1%, ROIC 6.0%.

• Dividend forecast for FYE March 2026 is 93 yen per share, with a 40% payout ratio.

• Profit increases expected from growth in yogurt, ice cream, probiotics, and overseas formula milk.