Morinaga Milk Industry Co (2264) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, increased 1.8% year-over-year to ¥430.7 billion, driven by price revisions and high-value-added products, despite higher costs and lower functional yogurt sales.

• Operating profit declined 8.9% year-over-year to ¥25.5 billion due to higher raw material, logistics, and personnel costs, and increased sales promotion expenses.

• Profit attributable to owners of parent dropped 76.5% year-over-year to ¥14.7 billion, mainly due to the absence of extraordinary income from the prior year's asset sales.

• In 3Q (Oct–Dec), operating profit rose 11.5% year-over-year to ¥8.0 billion, reaching a record high for the quarter.

• The company continues to execute its Medium-term Business Plan 2022–2024, focusing on health-oriented products, global expansion, and sustainability initiatives.

Financial highlights

• Net sales for 3Q (Oct–Dec) were ¥140.1 billion, up 2.5% year-over-year.

• Operating profit for 3Q was ¥8.0 billion, up ¥0.8 billion year-over-year.

• Ordinary profit for 3Q was ¥8.8 billion, up 30.5% year-over-year.

• Profit attributable to owners of parent for 3Q was ¥5.0 billion, up 40.6% year-over-year.

• Gross profit for the nine months was ¥104.2 billion, up slightly from ¥103.7 billion a year earlier.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales at ¥560.0 billion (+2.4% YoY), operating profit at ¥28.5 billion (+2.4% YoY), and profit attributable to owners of parent at ¥18.0 billion (-70.6% YoY).

• The company targets an operating profit margin of 5.1%, ROE of 6.6%, and a global business sales ratio of 12.7% for FYE March 2025.

• Continued focus on expanding high-value-added products and implementing additional price revisions in beverages and dairy products.

• Global Business segment forecasted to see profit growth, especially at MILEI, with ongoing strong performance in probiotics.

• Dividend per share forecasted at ¥90, payout ratio 42.3%.