Morinaga Milk Industry Co (2264) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FYE March 2026 reached ¥293.3 billion, up 0.9% year-over-year, with operating profit at ¥20.8 billion, an 18.9% increase year-over-year and ¥2.8 billion above target.

• Profit attributable to owners of parent surged 50.8% to ¥14.6 billion, driven by strong Global Business, especially MILEI, and high value-added overseas products.

• Domestic business faced volume declines but benefited from cost controls and slippage of repair costs to 2H.

Financial highlights

• Ordinary profit rose 27.3% year-over-year to ¥21.9 billion; operating profit margin improved to 7.1% from 6.0% year-over-year.

• Extraordinary income included a ¥2.2 billion gain from abolishing a retirement benefit plan; extraordinary loss of ¥1.0 billion from Toyama Plant cessation.

• Gross profit increased to ¥73,869 million from ¥70,611 million YoY.

• Basic earnings per share rose to ¥176.97 from ¥113.56 YoY.

Outlook and guidance

• Full-year net sales forecast revised down to ¥570.0 billion, but operating profit forecast raised to ¥33.0 billion and ordinary profit to ¥33.9 billion.

• Profit attributable to owners of parent forecast at ¥19.0 billion; EPS forecast at ¥231.26.

• Global Business outlook revised upward, with MILEI expected to continue strong performance; domestic business outlook revised downward due to persistent volume declines and cost slippage.

• Dividend per share forecast at ¥93, maintaining a 40% payout ratio.