Ajinomoto (2802) Q1 2027 earnings summary

Executive summary

• Achieved record first-quarter sales of ¥412.1 billion (up 13.2% YoY), business profit of ¥60.1 billion (up 27.3% YoY), and profit attributable to owners of ¥36.4 billion (up 13.1% YoY), with all major segments reporting increased sales and profits.

• Upward revisions were made to full-year forecasts for sales, business profit, and profit attributable to owners, reflecting robust demand in Functional Materials and Healthcare and Others.

• The company is proactively addressing cost increases from Middle East tensions and aims to achieve its revised plan and 2030 Roadmap ahead of schedule.

• Announced absorption-type merger of Ajinomoto Fine-Techno Co. into Ajinomoto Inc., effective April 2027, to enhance competitiveness and tax efficiency in Functional Materials.

• Continued investment in human resources, marketing, and R&D to support long-term growth.

Financial highlights

• Q1 FY2026 sales reached ¥412.1 billion (+13.2% YoY), business profit ¥60.1 billion (+27.3% YoY), and profit attributable to owners ¥36.4 billion (+13.1% YoY); basic EPS was ¥38.11 (+16.8% YoY).

• Organic growth rate was 5.7%, business profit growth 27.3%, and EBITDA margin 20.3% for the first quarter.

• Total comprehensive income was ¥48.7 billion (+97.5% YoY).

• Excluding currency translation, sales and business profit were 105% and 119% of the previous year, respectively.

• FY2026 revised forecasts: sales ¥1,732.0 billion (+9.4% YoY), business profit ¥202.0 billion (+11.5% YoY), profit attributable to owners ¥123.5 billion (-8.3% YoY).

Outlook and guidance

• Full-year forecast revised upward: sales by ¥9 billion, business profit by ¥5 billion, and profit attributable to owners by ¥3.5 billion, assuming an exchange rate of ¥150/USD.

• Middle East conflict expected to increase annual costs by ¥25 billion, with offsetting measures planned.

• The company aims to minimize cost impacts through cost reduction and agile pricing.

• Strong demand in Functional Materials and CDMO expected to continue, supporting guidance.

• Forecasts reflect economic conditions, sales trends, and raw material costs.