Komori
Earnings presentation materials2264MORINAGA MILK INDUSTRY CO.,LTD.Food Products

Briefing on financial results for the second quarter (interim period) of the fiscal year ending March 2027

In the first half of the fiscal year ending March 2027, substantial profit growth in the overseas business offset lower profit in the domestic business, resulting in record-high operating profit. The full-year forecast was revised upward due to upside in the overseas business, and the annual dividend was increased from ¥25 to ¥28.

Worth reading
93Important
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
50
¥100 million (difference from the previous full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsFiscal year ending March 2027, second quarter (first half)15 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,008 100 million+2.6%
Operating profit¥211 100 million+1.5%
Ordinary income¥212 100 million-3.4%
Net income¥137 100 million -6.6%interim net income attributable to owners of the parent
Operating profit margin7 %
Results for the three months of the current quarter
Net Sales
¥1,537 100 million+2.7%
Operating profit
¥111 100 million
yoy_change-8
Operating profit margin
7.2 %
Full-year earnings forecast
Net Sales
¥5,900 100 million
Operating profit
¥390 100 million
Ordinary income
¥393 100 million
Net income
¥230 100 million net income attributable to owners of the parent
Annual Dividend
¥28 per share
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit exceeded the plan in the first half. The domestic business was in line with the plan, while the overseas business exceeded the plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Business Growth¥76 100 million
  • Raw-Material Prices¥-74 100 million
  • Manufacturing fixed costs (depreciation)¥-11 100 million
  • Operating costs¥-17 100 million
  • Sales promotion expense efficiency¥-5 100 million
  • Changes in overseas subsidiaries¥34 100 million
  • Unit price variance¥67 100 million
  • Sales volume¥-27 100 million
  • Product mix and other factors¥36 100 million
  • Raw milk¥-9 100 million
  • Raw materials and energy¥-65 100 million
  • Manufacturing expenses¥-1 100 million
  • Logistics Costs¥-17 100 million
  • Administrative expenses and other costs¥1 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • US dollar exchange rate (revised full-year plan)¥160
  • Euro exchange rate (revised full-year plan)¥180
  • MILEI selling priceBased on market conditions and contracted selling prices as of the end of September 2026, prices are assumed to remain substantially above the previous year through fiscal year-end
  • Whey protein market pricesDespite a recent downward trend in some areas, prices are assumed to remain at high levels through the beginning of the next fiscal year
New initiatives
  • Investment in bacterial culture equipment at the Fukui Plant of 森永北陸乳業 (approximately ¥2 billion, scheduled to begin operations in January 2029)
  • Expand the production-site consolidation plan from 20% to 30% by the fiscal year ending March 2033
  • Consolidation of sales offices, including the Chiba and Kyoto offices
  • Reduce fluid milk sales staff by 20% and integrate the dessert R&D organization into the yogurt organization
  • Increase whey raw material procurement after the end of 2027 and raise whey protein production by approximately 30%
  • Expansion of shareholder benefits
Key KPIsA metric the company considers important as a management benchmark.
  • Overseas revenue ratio17.3 %
    Year on year against the same period last year+3.9%
  • Bacterial culture revenue growth rate39 %
    Year on year against the same period last year+39.0%
  • Pakistan first-half revenue growth rate (in local-currency terms)30 %
    Year on year against the same period last year+30.0%
  • Vietnam first-half revenue growth rate (in local-currency terms)11 %
    Year on year against the same period last year+11.0%
  • US TIF market share16.0 (2026)
    Year on year against the same period last yearUp from 10.5% in 2023
  • Number of IR engagements387 contracts
    Year on year against the same period last yearUp from 173
  • Shareholders51,849 People
    Year on year against the same period last yearUp from 28,575 as of the end of March 2026
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Unit price variance¥67 100 million
    Year on year against the same period last yearFactors behind the increase
  • Sales volume variance¥-27 100 million
    Year on year against the same period last yearFactors reducing profit
  • MILEI selling price per unitGainers
    Year on year against the same period last yearSelling prices assumed to be substantially higher than in the previous year
Segment results
Domestic Business
Net Sales¥2,489 100 million
Revenue_yoy_pct¥-2 100 million
Operating profit¥98 100 million
YoY Change in Operating Profit¥-42 100 million
unit_profit¥100 million
Overseas Business
Net Sales¥520 100 million
Revenue_yoy_pct¥31.9 100 million
Operating profit¥113 100 million
YoY Change in Operating Profit¥45 100 million
unit_profit¥100 million
Medium-term management plan targets
  • Bacterial culture revenue
    TargetDouble revenue
    Target fiscal yearPeriod of the Medium-Term Management Plan 2025-28
  • Dividend payout ratio
    Target40
    Target fiscal yearMedium-Term Management Plan 2025-28
  • Production-site consolidation
    TargetConsolidate 30% by the fiscal year ending March 2033
    Target fiscal yearFiscal year ending March 2033
Financial targets
ROE
Actual results8.2 %
ROIC
Actual results6.6 %
Payout ratio
Actual results39.3 %
Target40 %
Target unit%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • ¥-8 100 million
    DetailsForeign exchange loss
  • ¥-50 100 million
    DetailsSpecial losses and other costs associated with domestic structural reforms
  • ¥-5 100 million impact on the difference from the second-half plan
    DetailsAdditional disposal of equipment at 広島森永乳業
Market Size / Share
TIF Sales Share
202310.5 %
202616 %
Number of employees
Fluid Milk Sales StaffDown 20%
Capital expenditures
¥20 100 million planned investment in bacterial culture equipment at the Fukui Plant of 森永北陸乳業
Annual Dividend
Annual¥28 per share
Interim¥12 per share
End of period¥16 per share
Payout ratio
39.3 %
Medium-term management plan targets40
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredFiscal year ending March 2027, second quarter (first half)
Net Sales¥3,008 100 million (YoY +2.6%)
Operating profit¥211 100 million (YoY +1.5%)
Ordinary income¥212 100 million (YoY -3.4%)
Net income¥137 100 million (interim net income attributable to owners of the parent) (YoY -6.6%)
Operating profit margin7 %
Results for the three months of the current quarterNet Sales ¥1,537 100 million (YoY +2.7%) / Operating profit ¥111 100 million / Operating profit margin 7.2 %
Full-year earnings forecastNet Sales ¥5,900 100 million / Operating profit ¥390 100 million / Ordinary income ¥393 100 million / Net income ¥230 100 million (net income attributable to owners of the parent) / Annual Dividend ¥28 per share
Self-assessment against the planOperating profit exceeded the plan in the first half. The domestic business was in line with the plan, while the overseas business exceeded the plan.
Segment resultsDomestic Business Net Sales ¥2,489 100 million / Revenue_yoy_pct ¥-2 100 million / Operating profit ¥98 100 million / YoY Change in Operating Profit ¥-42 100 million / unit_profit ¥100 million / Overseas Business Net Sales ¥520 100 million / Revenue_yoy_pct ¥31.9 100 million / Operating profit ¥113 100 million / YoY Change in Operating Profit ¥45 100 million / unit_profit ¥100 million
Breakdown of Factors Affecting the ChangeFactors Business Growth / Amount ¥76 100 million, Factors Raw-Material Prices / Amount ¥-74 100 million, Factors Manufacturing fixed costs (depreciation) / Amount ¥-11 100 million, Factors Operating costs / Amount ¥-17 100 million, Factors Sales promotion expense efficiency / Amount ¥-5 100 million, Factors Changes in overseas subsidiaries / Amount ¥34 100 million, Factors Unit price variance / Amount ¥67 100 million, Factors Sales volume / Amount ¥-27 100 million, Factors Product mix and other factors / Amount ¥36 100 million, Factors Raw milk / Amount ¥-9 100 million, Factors Raw materials and energy / Amount ¥-65 100 million, Factors Manufacturing expenses / Amount ¥-1 100 million, Factors Logistics Costs / Amount ¥-17 100 million, Factors Administrative expenses and other costs / Amount ¥1 100 million
Key KPIsIndicator name Overseas revenue ratio / Value 17.3 % / Year on year against the same period last year 3.9 %, Indicator name Bacterial culture revenue growth rate / Value 39 % / Year on year against the same period last year 39 %, Indicator name Pakistan first-half revenue growth rate (in local-currency terms) / Value 30 % / Year on year against the same period last year 30 %, Indicator name Vietnam first-half revenue growth rate (in local-currency terms) / Value 11 % / Year on year against the same period last year 11 %, Indicator name US TIF market share / Value 16.0 (2026) / Year on year against the same period last year Up from 10.5% in 2023, Indicator name Number of IR engagements / Value 387 contracts / Year on year against the same period last year Up from 173, Indicator name Shareholders / Value 51,849 People / Year on year against the same period last year Up from 28,575 as of the end of March 2026
Unit price and quantity metricsIndicator name Unit price variance / Value ¥67 100 million / Year on year against the same period last year Factors behind the increase, Indicator name Sales volume variance / Value ¥-27 100 million / Year on year against the same period last year Factors reducing profit, Indicator name MILEI selling price per unit / Value Gainers / Year on year against the same period last year Selling prices assumed to be substantially higher than in the previous year
Number of employeesFluid Milk Sales Staff Down 20%
Assumptions Underlying the Business OutlookItem US dollar exchange rate (revised full-year plan) / Value ¥160, Item Euro exchange rate (revised full-year plan) / Value ¥180, Item MILEI selling price / Value Based on market conditions and contracted selling prices as of the end of September 2026, prices are assumed to remain substantially above the previous year through fiscal year-end, Item Whey protein market prices / Value Despite a recent downward trend in some areas, prices are assumed to remain at high levels through the beginning of the next fiscal year
Risk amount incorporated into the outlookDetails Foreign exchange loss / Amount ¥-8 100 million, Details Special losses and other costs associated with domestic structural reforms / Amount ¥-50 100 million, Details Additional disposal of equipment at 広島森永乳業 / Amount ¥-5 100 million (impact on the difference from the second-half plan)
Medium-term management plan targetsItem Bacterial culture revenue / Target Double revenue / Target fiscal year Period of the Medium-Term Management Plan 2025-28, Item Dividend payout ratio / Target 40 % / Target fiscal year Medium-Term Management Plan 2025-28, Item Production-site consolidation / Target Consolidate 30% by the fiscal year ending March 2033 / Target fiscal year Fiscal year ending March 2033
Financial targetsROE Actual results 8.2 % / ROIC Actual results 6.6 % / Payout ratio Actual results 39.3 % / Target 40 % / Target unit %
Annual DividendAnnual ¥28 per share / Interim ¥12 per share / End of period ¥16 per share
Payout ratio39.3 %
Capital expenditures¥20 100 million (planned investment in bacterial culture equipment at the Fukui Plant of 森永北陸乳業)
Market Size / ShareTIF Sales Share 2023 10.5 % / 2026 16 %
New initiativesInvestment in bacterial culture equipment at the Fukui Plant of 森永北陸乳業 (approximately ¥2 billion, scheduled to begin operations in January 2029), Expand the production-site consolidation plan from 20% to 30% by the fiscal year ending March 2033, Consolidation of sales offices, including the Chiba and Kyoto offices, Reduce fluid milk sales staff by 20% and integrate the dessert R&D organization into the yogurt organization, Increase whey raw material procurement after the end of 2027 and raise whey protein production by approximately 30%, Expansion of shareholder benefits
Items this document does not state (7)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsAcquisition of treasury sharesOrders received and order backlogKey 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 half, factors driving profit growth in the overseas business included MILEI's contribution from sustained high whey protein market prices and price increases, growth in bacterial cultures and infant formula, improvement at the US subsidiary, and the weaker yen. In contrast, factors reducing profit in the domestic business included higher raw material, energy and logistics costs due to the situation in the Middle East, lower sales volumes for products such as ice cream due to poor weather, and lower logistics efficiency. The full-year forecast was revised upward to reflect progress in price revisions in the overseas business, sustained high whey protein market prices, and expanded sales of bacterial cultures.

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