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Earnings presentation materials2270MEGMILK SNOW BRAND Co.,Ltd.Food

Supplementary Explanatory Materials for the Second-Quarter Financial Results for the Fiscal Year Ending March 2027

Cumulative second-quarter sales exceeded the same period of the previous year, while operating profit and ordinary profit declined. The full-year forecasts were revised to sales of ¥630 billion, operating profit of ¥18 billion, ordinary profit of ¥18.8 billion and net income of ¥23.2 billion.

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Supplementary Materials to the Earnings ReportSecond 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 Sales¥3,122 100 million+1.0%
Operating profit¥80 100 million-12.4%
Ordinary income¥87 100 million-17.4%
Net income¥174 100 million+55.0%
Operating profit margin2.6
Selling, general and administrative expenses¥438 100 million
Full-year earnings forecast
Net Sales
¥6,300 100 million
Operating profit
¥180 100 million
Ordinary income
¥188 100 million
Profit attributable to owners of parent
¥232 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Selling price variance¥68 100 million
  • Change in sales volume¥-7 100 million
  • Product mix variance¥11 100 million
  • Change in raw material costs¥-48 100 million
  • Change in operating costs¥-15 100 million
  • Change in advertising and sales promotion expenses¥-3 100 million
  • Change in fixed expenses¥-17 100 million
New initiatives
  • “Totonoworks,” a DX service for manufacturers
    Commercialization start dateOctober 2026
  • Collaboration or restructuring of domestic manufacturing sites
    DetailsProduction ended at the Kobe plant, Okabe plant and Kawagoe plant
Key KPIsA metric the company considers important as a management benchmark.
  • FY2030 Operating Profit KPI¥350 100 million
  • FY2030 Adjusted ROE Target9 %
  • FY2030 ROIC Target6 %
  • FY2030 NOPAT Target¥250 100 million
  • Self-Supplied Feed Cultivation Area KPI100 thousand ha
    Year on year against the same period last year3.0% increase from FY2019
  • Number of employees5,844 people
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales price variance, changes in sales volume and product mix variance are cited as factors driving changes in operating profit
Segment results
Dairy
Net Sales
¥1,309 100 million+1.0%
Operating profit
¥39 100 million-2.5%
Beverages and desserts
Net Sales
¥1,342 100 million+0.1%
Operating profit
¥11 100 million-55.4%
Feed and seed
Net Sales
¥272 100 million+8.2%
Operating profit
¥10 100 million+7.8%
Other
Net Sales
¥197 100 million-2.6%
Operating profit
¥19 100 million+1.7%
Eliminations
Operating profit
¥0 100 million-100.7%
Medium-term management plan targets
Plan nameNext Design 2030
Target fiscal yearFY2030
Target value
Operating profit¥35.0 billion
Adjusted ROE9.0%
ROIC6.0%
NOPAT¥25.0 billion
Invested capital¥410.0 billion
Net debt-to-equity ratio0.5x
Leverage1.5x
Financial targets
Adjusted ROE
Actual resultsFY2025 5.8%
TargetFY2030 9.0%
ROIC
Actual resultsFY2025 4.3%
TargetFY2030 6.0%
Net debt-to-equity ratio
Actual resultsFY2025 0.1x
TargetFY2030 0.5x
Number of stores and locations
23 domestic manufacturing sites (FY2024)
Number of employees
Number of Employees5,844
Capital expenditures
¥121 100 million
Payout ratio
RateFY2025 19.1%
Contents of this document
ItemDetails
Document typeSupplementary Materials to the Earnings Report
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥3,122 100 million (YoY +1.0%)
Operating profit¥80 100 million (YoY -12.4%)
Ordinary income¥87 100 million (YoY -17.4%)
Net income¥174 100 million (YoY +55.0%)
Operating profit margin2.6
Selling, general and administrative expenses¥438 100 million
Full-year earnings forecastNet Sales ¥6,300 100 million / Operating profit ¥180 100 million / Ordinary income ¥188 100 million / Profit attributable to owners of parent ¥232 100 million
Segment resultsDairy Net Sales ¥1,309 100 million (YoY +1.0%) / Operating profit ¥39 100 million (YoY -2.5%) / Beverages and desserts Net Sales ¥1,342 100 million (YoY +0.1%) / Operating profit ¥11 100 million (YoY -55.4%) / Feed and seed Net Sales ¥272 100 million (YoY +8.2%) / Operating profit ¥10 100 million (YoY +7.8%) / Other Net Sales ¥197 100 million (YoY -2.6%) / Operating profit ¥19 100 million (YoY +1.7%) / Eliminations Operating profit ¥0 100 million (YoY -100.7%)
Breakdown of Factors Affecting the ChangeFactors Selling price variance / Amount ¥68 100 million, Factors Change in sales volume / Amount ¥-7 100 million, Factors Product mix variance / Amount ¥11 100 million, Factors Change in raw material costs / Amount ¥-48 100 million, Factors Change in operating costs / Amount ¥-15 100 million, Factors Change in advertising and sales promotion expenses / Amount ¥-3 100 million, Factors Change in fixed expenses / Amount ¥-17 100 million
Key KPIsIndicator name FY2030 Operating Profit KPI / Value ¥350 100 million / Year on year against the same period last year Not disclosed, Indicator name FY2030 Adjusted ROE Target / Value 9 % / Year on year against the same period last year Not disclosed, Indicator name FY2030 ROIC Target / Value 6 % / Year on year against the same period last year Not disclosed, Indicator name FY2030 NOPAT Target / Value ¥250 100 million / Year on year against the same period last year Not disclosed, Indicator name Self-Supplied Feed Cultivation Area KPI / Value 100 thousand ha / Year on year against the same period last year 3.0% increase from FY2019, Indicator name Number of employees / Value 5,844 people / Year on year against the same period last year Not disclosed
Unit price and quantity metricsSales price variance, changes in sales volume and product mix variance are cited as factors driving changes in operating profit
Number of stores and locations23 domestic manufacturing sites (FY2024)
Number of employeesNumber of Employees 5,844 / Change during the period Not disclosed / Hiring plan Not disclosed
Medium-term management plan targetsPlan name Next Design 2030 / Target fiscal year FY2030 / Target value Operating profit ¥35.0 billion / Adjusted ROE 9.0% / ROIC 6.0% / NOPAT ¥25.0 billion / Invested capital ¥410.0 billion / Net debt-to-equity ratio 0.5x / Leverage 1.5x
Financial targetsAdjusted ROE Actual results FY2025 5.8% / Target FY2030 9.0% / ROIC Actual results FY2025 4.3% / Target FY2030 6.0% / Net debt-to-equity ratio Actual results FY2025 0.1x / Target FY2030 0.5x
Payout ratioRate FY2025 19.1% / Target Not disclosed
Capital expenditures¥121 100 million
New initiativesMeasures “Totonoworks,” a DX service for manufacturers / Commercialization start date October 2026, Measures Collaboration or restructuring of domestic manufacturing sites / Details Production ended at the Kobe plant, Okabe plant and Kawagoe plant
Items this document does not state (11)
Gross Profit MarginResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesOrders 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 cumulative second-quarter operating profit, the sales price variance was positive ¥6.8 billion and the product mix variance was positive ¥1.1 billion, while raw material costs were negative ¥4.8 billion, fixed expenses were negative ¥1.7 billion, operating costs were negative ¥1.5 billion and sales volume was negative ¥700 million. No specific explanation was provided for the reasons behind the full-year forecast revisions.

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Supplementary Explanatory Materials for the Second-Quarter Financial Results for the Fiscal Year Ending March 2027 | MEGMILK SNOW BRAND Co.,Ltd. (2270) timely disclosure | Komori