Morinaga Milk Industry Co (2264) Q4 2026 earnings summary

Executive summary

• Achieved consolidated net sales of ¥571.5 billion (+1.8% YoY), with operating profit up 16.3% and ordinary profit up 24.3%.

• Profit attributable to owners of parent surged 313.9% YoY to ¥22.6 billion, driven by strong global business and one-time items.

• Domestic business faced higher costs and lower sales volume, but global business, especially MILEI GmbH, delivered significant growth.

• Strategic focus on growth areas: yogurt, ice cream, probiotics, and overseas formula milk.

Financial highlights

• Net sales: ¥571,458 million (+1.8% YoY); operating profit: ¥34,479 million (+16.3% YoY); ordinary profit: ¥37,121 million (+24.3% YoY).

• Profit attributable to owners of parent: ¥22,599 million (+313.9% YoY).

• Gross margin improved as gross profit rose to ¥143,260 million.

• Basic EPS: ¥276.02; ROE: 8.4%; operating profit margin: 6.0%.

• Comprehensive income: ¥26,064 million (+185.9% YoY).

Outlook and guidance

• FY2027 forecast: net sales ¥580.0 billion (+1.5% YoY), operating profit ¥32.0 billion (-7.2% YoY), ordinary profit ¥32.7 billion (-11.9% YoY), profit attributable to owners of parent ¥20.0 billion (-11.5% YoY).

• Dividend per share forecast at ¥25 post-stock split; payout ratio targeted at 40.3%.

• Ongoing focus on expanding high value-added products and structural reforms to offset cost pressures.