Morinaga Milk Industry Co (2264) Q4 2026 earnings summary

Executive summary

• FY26 net sales rose 1.8% to ¥571.5bn; operating profit reached a record ¥34.479bn (+16.3%), and ordinary profit rose 24.3% to ¥37.121bn.

• Profit attributable to owners of parent increased 313.9% to ¥22.599bn, reflecting strong global business and one-time items.

• Overseas operating income rose ¥9.5bn to ¥17.0bn; domestic operating income fell ¥4.7bn to ¥17.5bn amid weaker volumes and higher costs.

• FY27 guidance forecasts operating income of ¥32.0bn, including a ¥4.0bn estimated Middle East impact through September 2026.

Financial highlights

• FY26 net sales were ¥571,458m; operating profit ¥34,479m; ordinary profit ¥37,121m; and profit attributable to owners of parent ¥22,599m.

• Operating margin improved to 6.0% from 5.3%; price increases and product mix gains offset lower volumes and cost inflation.

• Reported operating income included ~¥1.5bn of one-time costs, mainly asset-acquisition expenses and inventory adjustments; domestic income excluding these items was effectively on plan.

• FY26 annual dividend increased to ¥100 per pre-split share, ¥7 above the prior forecast; FY27 dividend guidance is ¥25 per post-split share.

• Basic EPS was ¥276.02; comprehensive income ¥26,064m.

Outlook and guidance

• FY27 forecasts: net sales ¥580.0bn (+1.5%), operating profit ¥32.0bn (-7.2%), ordinary profit ¥32.7bn (-11.9%) and profit attributable to owners of parent ¥20.0bn (-11.5%).

• Guidance includes a ¥4.0bn Middle East-related impact through September 2026: ¥3.0bn domestic and ¥1.0bn overseas; effects from October onward are excluded.

• Domestic operating income is forecast at ¥16.0bn; price carryover, premium mix and structural savings are expected to offset higher costs and Middle East effects.

• Overseas operating income is forecast at ¥16.0bn; growth outside MILEI is expected to offset lower prior-year inventory shipments and cost effects.

• Annual dividend guidance is ¥25 per post-split share, unchanged YoY, with a 40.3% payout ratio; the forecast reflects the planned 1-for-4 split.