Meiji (2269) investor relations material

Executive summary

• Consolidated operating profit for FY2025 exceeded plan, driven by strong Pharmaceutical segment performance, while net sales rose 1.7% year-over-year to JPY1,173.7 billion and ordinary profit increased 17.7% to JPY96.6 billion.

• Profit attributable to owners of parent dropped 31.0% to JPY35.1 billion due to impairment losses and restructuring costs, mainly in the China business.

• Comprehensive income increased 15.0% year-over-year to JPY65.2 billion.

• Initial targets of the 2026 Medium-Term Business Plan are unlikely to be met; focus shifts to achieving JPY100.0 billion consolidated operating profit.

• Management is prioritizing agile measures, structural reforms, and new growth initiatives amid rising costs and geopolitical risks.

Financial highlights

• FY2025 net sales rose 1.7% year-over-year to JPY1,173.7 bn; operating profit up 10.2% to JPY93.3 bn, exceeding plan, and operating profit margin improved to 7.9% from 7.3% year-over-year.

• Profit attributable to owners of parent dropped 31.0% to JPY35.1 bn due to impairment losses and restructuring costs.

• EPS fell to JPY129.42 from JPY186.08 year-over-year.

• Overseas sales increased 5.3% to JPY161.3 bn.

• Total assets increased to JPY1,261.8 billion, and equity ratio decreased to 61.2%.

Outlook and guidance

• FY2026 net sales projected at JPY1,212.0 bn (+3.3% YoY); operating profit at JPY100.0 bn (+7.2% YoY); profit attributable to owners of parent expected to rebound 78.2% to JPY62.5 bn.

• Dividend forecast for FY2026 is JPY110.00 per share.

• Both Food and Pharmaceutical segments forecasted to deliver sales and profit growth.

• Medium-term plan targets revised downward due to raw material costs, China slowdown, and COVID-19 vaccine market changes.