Financial Results Briefing for the Fiscal Year Ending March 2026 | MORINAGA MILK INDUSTRY CO.,LTD. (2264) timely disclosure

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

Year-on-year change in operating profit: ¥100 million

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 202612 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales5,715 Hundreds of millions of yen+1.8%

Operating profit345 Hundreds of millions of yen+16.3%

Ordinary income371 Hundreds of millions of yen+24.3%

Net income226 Hundreds of millions of yen+313.9%

Operating profit margin6 %

Results for the three months of the current quarter

Fourth quarter of the fiscal year ended March 2026 (January–March)

Net Sales

1,336 Hundreds of millions of yen+2.4%

Operating profit

38 Hundreds of millions of yen

Ordinary income

43 Hundreds of millions of yen

Profit attributable to owners of the parent

7 Hundreds of millions of yen

Full-year earnings forecast

Fiscal Period CoveredFiscal year ending March 2027

Net Sales

5,800 Hundreds of millions of yen

Operating profit

320 Hundreds of millions of yen

Ordinary income

327 Hundreds of millions of yen

Profit attributable to owners of the parent

200 Hundreds of millions of yen

Annual dividend

¥25

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Operating profit for the fiscal year ended March 2026 exceeded the overall plan. The domestic business was ¥1.5 billion below plan, while the overseas business was ¥3.0 billion above plan.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Business Growth153 Hundreds of millions of yen
Raw Material Prices-92 Hundreds of millions of yen
Manufacturing fixed costs (depreciation)-19 Hundreds of millions of yen
Operating costs-59 Hundreds of millions of yen
Sales promotion expense efficiency-7 Hundreds of millions of yen
Changes in overseas subsidiaries72 Hundreds of millions of yen
Unit price variance185 Hundreds of millions of yen
Sales volume-58 Hundreds of millions of yen
Product mix and other factors26 Hundreds of millions of yen
Raw milk-36 Hundreds of millions of yen
Raw Materials and Energy-56 Hundreds of millions of yen

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Period affected by the situation in the Middle EastThrough September 2026
Impact of the situation in the Middle East¥40 100 million negative impact on profit
Impact on the domestic business¥30 100 million negative impact on profit
Impact on the overseas business¥10 100 million negative impact on profit
MILEI sales plan517 Hundreds of millions of yen
MILEI year-on-year sales-8 %
Whey protein market conditionsExpected to remain stable

New initiatives

A 1-for-4 split of common shares effective 1 July 2026
Increased Parteno production capacity by approximately 50% in the fiscal year ended March 2026, with further capacity expansion planned
New equipment at the Kobe ice cream plant became operational, with production capacity expanded
Accelerating consideration of inorganic growth, including entry into new markets for microbial products
Accelerating consideration of inorganic growth, including entry into new overseas markets for infant formula
Improving productivity through the absorption-type merger of Morinaga Milk Sales Co., Ltd.
Reviewing investment plans outside growth areas and reducing the business investment plan from ¥180.0 billion to ¥160.0 billion
Introducing TSR and engagement scores as evaluation metrics for executive compensation

Key KPIsA metric the company considers important as a management benchmark.

ROE8.4 %
Year on year against the same period last year+6.4 percentage points
ROIC6.3 %
Year on year against the same period last year+0.6 percentage points
Overseas revenue ratio15.3 %
Year on year against the same period last year+2.8 percentage points
Overseas business share of operating profit49 %
Year on year against the same period last yearUp from 25%
Meetings with institutional investors and securities analysts432 Engagements
Year on year against the same period last yearHighest ever
Microbial product sales growth rate25 %
Year on year against the same period last yearYear-on-Year
R&D headcount in growth areas20 % increase
Year on year against the same period last yearCompared with the fiscal year ended March 2025

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Unit price variance185 Hundreds of millions of yen
Sales volume variance-58 Hundreds of millions of yen

Segment results

Growth Areas
Net Sales1,245 Hundreds of millions of yen (YoY +5.2%)
Operating profit126 Hundreds of millions of yen (YoY -8.7%)
Core businesses
Net Sales3,650 Hundreds of millions of yen (YoY +3.4%)
Operating profit200 Hundreds of millions of yen (YoY +46.0%)
Developing and other businesses
Net Sales820 Hundreds of millions of yen (YoY -8.8%)
Operating profit19 Hundreds of millions of yen (YoY -13.6%)
Domestic Business
Net Sales4,840 Hundreds of millions of yen (YoY -1.5%)
Operating profit175 Hundreds of millions of yen (YoY -21.2%)
Overseas Business
Net Sales875 Hundreds of millions of yen (YoY +25.1%)
Operating profit170 Hundreds of millions of yen (YoY +126.7%)

Medium-term management plan targets

Overseas business operating profit
Target value150
Target fiscal yearFiscal year ending March 2029
Comparison with actual resultsActual operating profit of ¥17.0 billion in the fiscal year ended March 2026 exceeded the target in the first year of the medium-term plan
Microbial product sales
Target value+100% versus the fiscal year ended March 2025
Target fiscal yearFiscal year ending March 2029
Comparison with actual resultsUp 25% year on year in the fiscal year ended March 2026
Yogurt in growth areas
Target value+20% versus the fiscal year ended March 2025
Target fiscal yearFiscal year ending March 2029
Comparison with actual resultsUp 2% in the fiscal year ended March 2026
Ice cream in growth areas
Target value+20% versus the fiscal year ended March 2025
Target fiscal yearFiscal year ending March 2029
Comparison with actual resultsUp 3% in the fiscal year ended March 2026
Overseas infant formula
Target value+70% versus the fiscal year ended March 2025
Target fiscal yearFiscal year ending March 2029
Comparison with actual resultsUp 7% in the fiscal year ended March 2026

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

40 Hundreds of millions of yen

DetailsHigher raw material and energy costs and other factors associated with the situation in the Middle East. ¥3.0 billion for Japan and ¥1.0 billion overseas. The impact from October 2026 onward is not included.

Annual Dividend

Annual dividend per share¥100

Forecast for the fiscal year ending March 2027¥25

Payout ratio

Rate36.2 %

Forecast for the fiscal year ending March 202740.3 %

PolicyTarget payout ratio of 40% under Medium-Term Management Plan 2025–28

Acquisition of treasury shares

DetailsAcquired during the fiscal year ended March 2026

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	5,715 Hundreds of millions of yen (YoY +1.8%)
Operating profit	345 Hundreds of millions of yen (YoY +16.3%)
Ordinary income	371 Hundreds of millions of yen (YoY +24.3%)
Net income	226 Hundreds of millions of yen (YoY +313.9%)
Operating profit margin	6 %
Results for the three months of the current quarter	Subject Fourth quarter of the fiscal year ended March 2026 (January–March) / Net Sales 1,336 Hundreds of millions of yen (YoY +2.4%) / Operating profit 38 Hundreds of millions of yen / Ordinary income 43 Hundreds of millions of yen / Profit attributable to owners of the parent 7 Hundreds of millions of yen
Full-year earnings forecast	Fiscal Period Covered Fiscal year ending March 2027 / Net Sales 5,800 Hundreds of millions of yen / Operating profit 320 Hundreds of millions of yen / Ordinary income 327 Hundreds of millions of yen / Profit attributable to owners of the parent 200 Hundreds of millions of yen / Annual dividend ¥25
Self-assessment against the plan	Operating profit for the fiscal year ended March 2026 exceeded the overall plan. The domestic business was ¥1.5 billion below plan, while the overseas business was ¥3.0 billion above plan.
Segment results	Segment Growth Areas / Net Sales 1,245 Hundreds of millions of yen (YoY +5.2%) / Operating profit 126 Hundreds of millions of yen (YoY -8.7%), Segment Core businesses / Net Sales 3,650 Hundreds of millions of yen (YoY +3.4%) / Operating profit 200 Hundreds of millions of yen (YoY +46.0%), Segment Developing and other businesses / Net Sales 820 Hundreds of millions of yen (YoY -8.8%) / Operating profit 19 Hundreds of millions of yen (YoY -13.6%), Segment Domestic Business / Net Sales 4,840 Hundreds of millions of yen (YoY -1.5%) / Operating profit 175 Hundreds of millions of yen (YoY -21.2%), Segment Overseas Business / Net Sales 875 Hundreds of millions of yen (YoY +25.1%) / Operating profit 170 Hundreds of millions of yen (YoY +126.7%)
Breakdown of Factors Affecting the Change	Factors Business Growth / Amount 153 Hundreds of millions of yen, Factors Raw Material Prices / Amount -92 Hundreds of millions of yen, Factors Manufacturing fixed costs (depreciation) / Amount -19 Hundreds of millions of yen, Factors Operating costs / Amount -59 Hundreds of millions of yen, Factors Sales promotion expense efficiency / Amount -7 Hundreds of millions of yen, Factors Changes in overseas subsidiaries / Amount 72 Hundreds of millions of yen, Factors Unit price variance / Amount 185 Hundreds of millions of yen, Factors Sales volume / Amount -58 Hundreds of millions of yen, Factors Product mix and other factors / Amount 26 Hundreds of millions of yen, Factors Raw milk / Amount -36 Hundreds of millions of yen, Factors Raw Materials and Energy / Amount -56 Hundreds of millions of yen
Key KPIs	Indicator name ROE / Value 8.4 % / Year on year against the same period last year +6.4 percentage points, Indicator name ROIC / Value 6.3 % / Year on year against the same period last year +0.6 percentage points, Indicator name Overseas revenue ratio / Value 15.3 % / Year on year against the same period last year +2.8 percentage points, Indicator name Overseas business share of operating profit / Value 49 % / Year on year against the same period last year Up from 25%, Indicator name Meetings with institutional investors and securities analysts / Value 432 Engagements / Year on year against the same period last year Highest ever, Indicator name Microbial product sales growth rate / Value 25 % / Year on year against the same period last year Year-on-Year, Indicator name R&D headcount in growth areas / Value 20 % increase / Year on year against the same period last year Compared with the fiscal year ended March 2025
Unit price and quantity metrics	Indicator name Unit price variance / Value 185 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Sales volume variance / Value -58 Hundreds of millions of yen / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Item Period affected by the situation in the Middle East / Value Through September 2026, Item Impact of the situation in the Middle East / Value ¥40 100 million negative impact on profit, Item Impact on the domestic business / Value ¥30 100 million negative impact on profit, Item Impact on the overseas business / Value ¥10 100 million negative impact on profit, Item MILEI sales plan / Value 517 Hundreds of millions of yen, Item MILEI year-on-year sales / Value -8 %, Item Whey protein market conditions / Value Expected to remain stable
Risk amount incorporated into the outlook	Amount 40 Hundreds of millions of yen / Details Higher raw material and energy costs and other factors associated with the situation in the Middle East. ¥3.0 billion for Japan and ¥1.0 billion overseas. The impact from October 2026 onward is not included.
Medium-term management plan targets	Item Overseas business operating profit / Target value 150 Hundreds of millions of yen / Target fiscal year Fiscal year ending March 2029 / Comparison with actual results Actual operating profit of ¥17.0 billion in the fiscal year ended March 2026 exceeded the target in the first year of the medium-term plan, Item Microbial product sales / Target value +100% versus the fiscal year ended March 2025 / Target fiscal year Fiscal year ending March 2029 / Comparison with actual results Up 25% year on year in the fiscal year ended March 2026, Item Yogurt in growth areas / Target value +20% versus the fiscal year ended March 2025 / Target fiscal year Fiscal year ending March 2029 / Comparison with actual results Up 2% in the fiscal year ended March 2026, Item Ice cream in growth areas / Target value +20% versus the fiscal year ended March 2025 / Target fiscal year Fiscal year ending March 2029 / Comparison with actual results Up 3% in the fiscal year ended March 2026, Item Overseas infant formula / Target value +70% versus the fiscal year ended March 2025 / Target fiscal year Fiscal year ending March 2029 / Comparison with actual results Up 7% in the fiscal year ended March 2026
Annual Dividend	Annual dividend per share ¥100 / Interim Not disclosed / End of period Not disclosed / Forecast for the fiscal year ending March 2027 ¥25
Payout ratio	Rate 36.2 % / Forecast for the fiscal year ending March 2027 40.3 % / Policy Target payout ratio of 40% under Medium-Term Management Plan 2025–28
Acquisition of treasury shares	Details Acquired during the fiscal year ended March 2026 / Amount under the acquisition limit Not disclosed / Number of shares under the acquisition limit Not disclosed / Period Not disclosed
New initiatives	A 1-for-4 split of common shares effective 1 July 2026, Increased Parteno production capacity by approximately 50% in the fiscal year ended March 2026, with further capacity expansion planned, New equipment at the Kobe ice cream plant became operational, with production capacity expanded, Accelerating consideration of inorganic growth, including entry into new markets for microbial products, Accelerating consideration of inorganic growth, including entry into new overseas markets for infant formula, Improving productivity through the absorption-type merger of Morinaga Milk Sales Co., Ltd., Reviewing investment plans outside growth areas and reducing the business investment plan from ¥180.0 billion to ¥160.0 billion, Introducing TSR and engagement scores as evaluation metrics for executive compensation

Items this document does not state (10)

Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesFinancial targetsCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

For the fiscal year ended March 2026, favorable whey protein market conditions at MILEI, higher sales of microbial products and infant formula, the weaker yen, and lower goodwill and other expenses contributed to increased profit in the overseas business. In Japan, price revisions and an improved product mix contributed positively, while lower volumes, higher raw material and operating costs, and one-off expenses reduced profit. For the fiscal year ending March 2027, the company has factored in a ¥4.0 billion impact from higher raw material and energy costs due to the situation in the Middle East, as well as an expected decline in MILEI's shipments from the inventory-driven increase in the previous year and higher costs.

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