Ajinomoto (2802) Q4 2026 earnings summary

Executive summary

• Achieved record sales of ¥1,583.7 billion and business profit of ¥181.1 billion in FY2025, with double-digit profit growth year-over-year, driven by Functional Materials, Bio-Pharma Services, Ingredients, and Seasonings and Foods.

• Operating profit surged 75% year-over-year to ¥199.4 billion, aided by a ¥40.6 billion gain from the transfer of head office land.

• FY2026/FY2027 forecasts target new records in sales (¥1,723.0 billion) and business profit (¥197.0 billion), with growth expected across all major segments.

• Proactive risk management for Middle East instability and cost/procurement risks, aiming to achieve the 2030 Roadmap ahead of schedule.

Financial highlights

• FY2025 sales: ¥1,583.7 billion (103% of prior year); business profit: ¥181.1 billion (113% of prior year); profit attributable to owners: ¥134.6 billion, including a ¥40.6 billion gain from asset transfer.

• EBITDA margin improved to 17.1% from 16.1% year-over-year; ROE: 17.7%, ROIC: 11.8%.

• Basic and diluted EPS doubled to ¥138.36 from ¥69.77 year-over-year.

• Operating cash flow FY2025: ¥239.3 billion (record high).

• Annual dividend per share increased to ¥48, with a forecast of ¥50 for the next fiscal year.

Outlook and guidance

• FY2026/FY2027 targets: sales and business profit to reach 108% of FY2025 levels; profit attributable to owners forecast at ¥120.0 billion (excluding prior year’s one-time gain).

• Organic sales growth expected at 9% for FY2026, above the 5% CAGR projected for 2026–2030.

• Dividend planned at ¥50/share for FY2026, up from ¥48/share; ongoing share buyback program up to ¥80 billion.

• Assumes US$1 = ¥150, moderate global economic expansion, and stable raw material prices.

• ROE and ROIC targets for FY2026 are approximately 15% and 11%, aiming for 20% and 17% by FY2030.