Worth reading
86Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
20
¥100 million (difference from the initial full-year operating profit plan)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,471 Hundreds of millions of yen+2.4%
Operating profit100 Hundreds of millions of yen+12.9%
Ordinary income106 Hundreds of millions of yen+11.3%
Net income¥67 100 million -3.4%quarterly net income attributable to owners of the parent
Operating profit margin6.8 %
Results for the three months of the current quarter
Net Sales
1,471 Hundreds of millions of yen
Operating profit
100 Hundreds of millions of yen
Ordinary income
106 Hundreds of millions of yen
Net income
67 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
5,800 Hundreds of millions of yen
Operating profit
340 Hundreds of millions of yen
Ordinary income
350 Hundreds of millions of yen
Profit attributable to owners of the parent
210 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Mixed (the overseas business is expected to exceed the initial plan, while the domestic business has been revised downward)Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Business Growth42 Hundreds of millions of yen
- Unit price variance38 Hundreds of millions of yen
- Sales volume-12 Hundreds of millions of yen
- Product mix and other factors16 Hundreds of millions of yen
- Raw milk-8 Hundreds of millions of yen
- Raw Materials and Energy-26 Hundreds of millions of yen
- Manufacturing fixed costs (depreciation)-5 Hundreds of millions of yen
- Operating costs-8 Hundreds of millions of yen
- Sales promotion expense efficiency-1 Hundreds of millions of yen
- Changes in overseas subsidiaries17 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed exchange rates for the fiscal year ending March 2027 (revised)
US dollars¥160
Euro¥185
Australian dollar¥105
Impact of the situation in the Middle East included in the initial plan
¥-40 100 million included through September in the initial plan
Impact of the situation in the Middle East on the domestic business in the first half
-30 Hundreds of millions of yen
New initiatives
- Cessation of production at 広島森永乳業株式会社 (scheduled for the end of March 2027)
- Transfer of the insurance agency business of 森永乳業ビジネスサービス
- Price revisions across multiple categories in August and September
- Release of new research and publication of clinical research results relating to microbial biomass
Key KPIsA metric the company considers important as a management benchmark.
- Overseas revenue ratio16.7 %Year on year against the same period last year+3.1%
- Microbial product sales38 % increase in revenueYear on year against the same period last year+38.0%
- Revenue from yogurt, a domestic growth category11 % increase in revenueYear on year against the same period last year+11.0%
- Overseas business share of operating profit52 %
- Full-year ROE target7.5 %
- Full-year ROIC target6 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Selling prices and sales volumes are disclosed as factors affecting changes in operating profit. The company explained higher selling prices at MILEI and an overall decline in sales volume. Individual customer and volume data: Not disclosed.Segment results
- Domestic BusinessNet Sales1,226 Hundreds of millions of yen (YoY -1.2%)Operating profit48 Hundreds of millions of yen
- Overseas operationsNet Sales245 Hundreds of millions of yen (YoY +25.4%)Operating profit52 Hundreds of millions of yen
Financial targets
ROE
7.5 % full-year plan
ROIC
6 % full-year plan
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Cost increases due to the situation in the Middle East
¥-40 100 million included through September in the initial plan
Annual Dividend
Annual¥25 per share
Payout ratio
38.4 % full-year plan
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | 1,471 Hundreds of millions of yen (YoY +2.4%) |
| Operating profit | 100 Hundreds of millions of yen (YoY +12.9%) |
| Ordinary income | 106 Hundreds of millions of yen (YoY +11.3%) |
| Net income | ¥67 100 million (quarterly net income attributable to owners of the parent) (YoY -3.4%) |
| Operating profit margin | 6.8 % |
| Results for the three months of the current quarter | Net Sales 1,471 Hundreds of millions of yen / Operating profit 100 Hundreds of millions of yen / Ordinary income 106 Hundreds of millions of yen / Net income 67 Hundreds of millions of yen |
| Full-year earnings forecast | Net Sales 5,800 Hundreds of millions of yen / Operating profit 340 Hundreds of millions of yen / Ordinary income 350 Hundreds of millions of yen / Profit attributable to owners of the parent 210 Hundreds of millions of yen |
| Self-assessment against the plan | Mixed (the overseas business is expected to exceed the initial plan, while the domestic business has been revised downward) |
| Segment results | Segment Domestic Business / Net Sales 1,226 Hundreds of millions of yen (YoY -1.2%) / Operating profit 48 Hundreds of millions of yen, Segment Overseas operations / Net Sales 245 Hundreds of millions of yen (YoY +25.4%) / Operating profit 52 Hundreds of millions of yen |
| Breakdown of Factors Affecting the Change | Factors Business Growth / Amount 42 Hundreds of millions of yen, Factors Unit price variance / Amount 38 Hundreds of millions of yen, Factors Sales volume / Amount -12 Hundreds of millions of yen, Factors Product mix and other factors / Amount 16 Hundreds of millions of yen, Factors Raw milk / Amount -8 Hundreds of millions of yen, Factors Raw Materials and Energy / Amount -26 Hundreds of millions of yen, Factors Manufacturing fixed costs (depreciation) / Amount -5 Hundreds of millions of yen, Factors Operating costs / Amount -8 Hundreds of millions of yen, Factors Sales promotion expense efficiency / Amount -1 Hundreds of millions of yen, Factors Changes in overseas subsidiaries / Amount 17 Hundreds of millions of yen |
| Key KPIs | Indicator name Overseas revenue ratio / Value 16.7 % / Year on year against the same period last year 3.1 %, Indicator name Microbial product sales / Value 38 % increase in revenue / Year on year against the same period last year 38 % increase in revenue, Indicator name Revenue from yogurt, a domestic growth category / Value 11 % increase in revenue / Year on year against the same period last year 11 % increase in revenue, Indicator name Overseas business share of operating profit / Value 52 % / Year on year against the same period last year Not disclosed, Indicator name Full-year ROE target / Value 7.5 % / Year on year against the same period last year Not disclosed, Indicator name Full-year ROIC target / Value 6 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Selling prices and sales volumes are disclosed as factors affecting changes in operating profit. The company explained higher selling prices at MILEI and an overall decline in sales volume. Individual customer and volume data: Not disclosed. |
| Assumptions Underlying the Business Outlook | Assumed exchange rates for the fiscal year ending March 2027 (revised) US dollars ¥160 / Euro ¥185 / Australian dollar ¥105 / Impact of the situation in the Middle East included in the initial plan ¥-40 100 million (included through September in the initial plan) / Impact of the situation in the Middle East on the domestic business in the first half -30 Hundreds of millions of yen |
| Risk amount incorporated into the outlook | Cost increases due to the situation in the Middle East ¥-40 100 million (included through September in the initial plan) |
| Financial targets | ROE 7.5 % (full-year plan) / ROIC 6 % (full-year plan) |
| Annual Dividend | Annual ¥25 per share / Interim Not disclosed / End of period Not disclosed |
| Payout ratio | 38.4 % (full-year plan) |
| New initiatives | Cessation of production at 広島森永乳業株式会社 (scheduled for the end of March 2027), Transfer of the insurance agency business of 森永乳業ビジネスサービス, Price revisions across multiple categories in August and September, Release of new research and publication of clinical research results relating to microbial biomass |
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesMedium-term management plan targetsAcquisition of treasury sharesCapital 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.In the first quarter, higher selling prices at MILEI and other factors in the overseas business, including increased revenue and profit from microbial biomass and infant formula, as well as the weaker yen, contributed to higher operating profit. In the domestic business, lower sales volumes for ice cream and milk, higher costs for packaging materials and other items due to the situation in the Middle East, and increases in raw material, operating and depreciation costs reduced profit. The full-year forecast was revised to reflect an upward revision to the overseas business forecast, based on higher whey protein market prices and strong performance at overseas subsidiaries, and a downward revision to the domestic business forecast, reflecting lower expected sales volumes, higher costs, and weather- and logistics-related disruptions.
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