Improving Profitability Through Business Structural Reform

「In addition, production at the Kobe Plant ended in March 2026 and was consolidated at the Ikegami Manufacturing Facility of the Kyoto Plant. The consolidation used existing vacant space at the Ikegami Manufacturing Facility, enabling the effective use of existing tangible assets and the appropriate reallocation of assets, including human capital.」

「The company advanced various initiatives based on two priority measures to transform its management platform to support business portfolio reform, Brand-NEW “BASIS”.」

「In FY2024, the second year of the plan, we designated MOVE as the theme of the Snow Brand MeGMILK Group Management Policy 2024 and identified the following five priorities: (1) creating new seeds for growth, (2) expanding volumes by leveraging our foundations, (3) strengthening and supporting Japan's dairy production base, (4) advancing foundational strategies, and (5) addressing sustainability issues. As a result, for the six months ended the current interim period, consolidated net sales were ¥311,653 million, up 2.0% year on year, and operating profit was ¥11,819 million, up 5.1%.」

「In addition to the penetration of price revisions implemented since the previous fiscal year, efforts to strengthen various marketing activities enabled the company to report increases in both net sales and operating income in the fiscal year ended March 2024.」

「In fiscal 2023, the first year of the plan, the company identified as key initiatives improving productivity and reviewing the cost structure across all value chains, addressing higher costs through appropriate price-setting, maintaining and expanding the top line in response to changes in the business environment, and creating new sources of growth and launching related initiatives overseas, particularly in Asia, and in the e-commerce business. The company pursued these initiatives proactively. As a result, for the nine months ended the third quarter of the fiscal year, consolidated net sales were ¥460,478 million, up 4.6% year on year; operating income was ¥16,300 million, up 46.9%; ordinary income was ¥17,774 million, up 61.4%; and profit attributable to owners of the parent for the quarter was ¥11,398 million, up 92.9%.」

「In fiscal 2023, the first year of the plan, the company identified as key initiatives improving productivity and reviewing the cost structure across all value chains, addressing higher costs through appropriate price-setting, maintaining and expanding the top line in response to changes in the business environment, and creating new sources of growth and launching related initiatives overseas, particularly in Asia, and in the e-commerce business. The company pursued these initiatives proactively. As a result, for the six months ended the second quarter of the fiscal year, consolidated net sales were ¥305,669 million, up 5.7% year on year; operating income was ¥11,242 million, up 53.0%; ordinary income was ¥12,240 million, up 77.8%; and profit attributable to owners of the parent for the quarter was ¥7,698 million, up 234.5%.」

「In fiscal 2023, the first year of the plan, the company identified as key initiatives improving productivity and reviewing the cost structure across all value chains, addressing higher costs through appropriate price-setting, maintaining and expanding the top line in response to changes in the business environment, and creating new sources of growth and launching related initiatives overseas, particularly in Asia, and in the e-commerce business. The company pursued these initiatives proactively. As a result, for the three months ended the first quarter of the fiscal year, consolidated net sales were ¥150,185 million, up 6.3% year on year; operating income was ¥5,259 million, up 32.1%; ordinary income was ¥5,887 million, up 26.1%; and profit attributable to owners of the parent for the quarter was ¥3,588 million, up 167.0%.」

「To achieve resilience, Medium-Term Management Plan 2025 was structured around a business strategy comprising three pillars, a platform strategy, and a financial strategy supporting them.」

「These initiatives included the strategic expansion of core products such as yogurt centered on functionality and cheese, together with further product-mix improvements; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the feed and seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and improving value-chain productivity.」

「These initiatives included the strategic expansion of core products such as yogurt centered on functionality and cheese, together with further product-mix improvements; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the feed and seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and improving value-chain productivity.」

「Against this business backdrop, based on Group Medium-Term Management Plan 2022, our Group advanced initiatives to establish an earnings base in four business fields: dairy products, fluid milk, nutrition, and feed and seed businesses. These initiatives included the strategic expansion of core products such as yogurt and cheese centered on functionality and further improvement of the product mix; expanding scale while securing earnings through continued marketing investment in the nutrition business; strategically expanding the feed and seed businesses and establishing their earnings bases; and strengthening the Group's overall capabilities by making greater use of Group management resources and improving value-chain productivity.」

「These initiatives included the strategic expansion of core products such as yogurt centered on functionality and cheese, together with further product-mix improvements; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the feed and seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and improving value-chain productivity.」

「These initiatives included the strategic expansion of core products such as yogurt centered on functionality and cheese, together with further product-mix improvements; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and improving value-chain productivity. As a result, for the six months ended the second quarter of the fiscal year, consolidated net sales were ¥286,904 million (year-on-year comparison unavailable); operating income was ¥12,210 million, up 10.1% year on year; ordinary income was ¥13,277 million, up 10.8%; and profit attributable to owners of the parent for the quarter was ¥8,575 million, up 19.2%.」

「As a result, for the three months ended the first quarter of the fiscal year, consolidated net sales were ¥142,820 million (year-on-year comparison unavailable), operating income was ¥6,523 million, up 29.8% year on year; ordinary income was ¥7,242 million, up 32.3%; and profit attributable to owners of the parent for the quarter was ¥4,800 million, up 51.1%.」

「The company positioned the full-scale launch of the evolution of its production system as one of its three strategic pillars for promoting productivity reform, decisively implementing business structure reform, and accelerating Transformation.」

「Against this backdrop, the Group pursued initiatives under Group Medium-Term Management Plan 2022 to establish an earnings base in four business fields: dairy products, fluid milk, nutrition, and feed and seeds. These initiatives included further improving the product mix through the strategic expansion of core products such as yogurt centered on functionality and cheese; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and improving value-chain productivity. As a result, for the nine months ended the third quarter of the fiscal year, consolidated net sales were ¥470,619 million, up 0.3% year on year; operating income was ¥16,955 million, up 14.7%; ordinary income was ¥18,445 million, up 12.5%; and profit attributable to owners of the parent for the quarter was ¥11,541 million, up 12.8%.」

「These initiatives included further improving the product mix through the strategic expansion of core products such as yogurt centered on functionality and cheese; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and its value chain. As a result, for the six months ended the second quarter of the fiscal year, consolidated net sales were ¥314,035 million, up 0.8% year on year; operating income was ¥11,088 million, up 4.2%; ordinary income was ¥11,980 million, up 2.1%; and profit attributable to owners of the parent for the quarter was ¥7,193 million, down 6.6%.」

「Against this backdrop, the Group has been pursuing initiatives under its newly formulated Group Medium-Term Management Plan 2022 to establish an earnings base in four business fields: dairy products, fluid milk, nutrition, and feed and seeds. These initiatives included further improving the product mix through the strategic expansion of fermented milk products centered on functional yogurt and other core products such as cheese; achieving both scale expansion and earnings generation through continued marketing investment in the nutrition business; strategically expanding the seeds business and establishing its earnings base; and strengthening the Group's overall capabilities by making greater use of Group management resources and its value chain. As a result, for the three months ended the first quarter of the fiscal year, consolidated net sales were ¥156,298 million, up 1.0% year on year; operating income was ¥5,026 million, down 0.8%; ordinary income was ¥5,474 million, down 7.1%; and profit attributable to owners of the parent for the quarter was ¥3,176 million, down 16.9%.」

「To establish an earnings base in four business fields, the Company will pursue productivity reform and decisive business structure reform, with the full-scale launch of the evolution of its production system as a strategic pillar for accelerating Transformation.」

「As a result, for the nine months ended the third quarter of the fiscal year, consolidated net sales were ¥469,118 million, up 2.1% year on year; operating income was ¥14,788 million, up 5.8%; ordinary income was ¥16,400 million, up 7.8%; and profit attributable to owners of the parent for the quarter was ¥10,235 million, up 7.3%.」

「Against this business backdrop, based on Group Medium-Term Management Plan 2019, we worked to diversify our earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by improving the product mix through expanded sales of high-value-added products such as functional yogurt and core products such as cheese, expanding scale through continued marketing investment in the nutrition business, and strengthening the Group's overall capabilities by making maximum use of Group management resources and the value chain. As a result, for the six months ended the second quarter, consolidated net sales were ¥311,625 million, up 2.0% year on year; operating profit was ¥10,637 million, up 10.9%; ordinary profit was ¥11,733 million, up 14.4%; and interim net profit attributable to owners of the parent was ¥7,703 million, up 20.0%.」

「このような経営環境下、当社グループは「グループ中期経営計画2019」に基づき、収益基盤の複数化およびキャッシュ・フローの最大化に取り組み、機能性ヨーグルトなどの高付加価値商品およびチーズなどの主力商品の販売拡大に伴うプロダクトミックスの改善、ニュートリション事業分野におけるマーケティング投資の継続による規模の拡大、ならびにグループ経営資源やバリューチェーンの最大活用によるグループ総合力の強化等に努めました。以上の結果、当第１四半期連結累計期間の連結経営成績につきましては、売上高は154,698百万円（前年同期比2.5％増）、営業利益は5,069百万円（前年同期比6.5％増）、経常利益は5,894百万円（前年同期比16.8％増）、親会社株主に帰属する四半期純利益は3,825百万円（前年同期比13.2％増）となりました。」

「Our Group, based on Group Medium-Term Management Plan 2019, worked to diversify its earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by improving the product mix through expanded sales of high-value-added products such as functional yogurt and core products such as cheese, and by expanding scale through continued marketing investment in the nutrition business.」

「Against this business backdrop, based on Group Medium-Term Management Plan 2019, our Group worked to diversify its earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by improving the product mix through expanded sales of high-value-added products such as functional yogurt and core products such as cheese, and by expanding scale through continued marketing investment in the nutrition business. As a result, for the nine months ended the third quarter, net sales were ¥459,477 million, up 1.1% year on year, while operating profit was ¥13,972 million, down 13.3%.」

「Against this business backdrop, based on Group Medium-Term Management Plan 2019, we worked to diversify our earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by improving the product mix through expanded sales of high-value-added products such as functional yogurt and core products such as cheese, and by expanding scale through continued marketing investment in the nutrition business.」

「Against this business backdrop, based on Group Medium-Term Management Plan 2019, we worked to diversify our earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by improving the product mix through expanded sales of high-value-added products such as functional yogurt and core products such as cheese, and by expanding scale through continued marketing investment in the nutrition business.」

「Against this business backdrop, based on the newly formulated Group Medium-Term Management Plan 2019, our Group worked to diversify its earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by strategically expanding sales of high-value-added products such as functional yogurt, increasing the market share of core products such as cheese, and expanding into new markets in the nutrition business. As a result, for the nine months ended the third quarter, net sales were ¥454,691 million, up 1.1% year on year; operating profit was ¥16,108 million, down 0.5%; ordinary profit was ¥17,556 million, up 2.1%; and quarterly net profit attributable to owners of the parent was ¥11,763 million, up 1.5%.」

「Against this business backdrop, based on the newly formulated Group Medium-Term Management Plan 2019, our Group worked to diversify its earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by strategically expanding sales of high-value-added products such as functional yogurt, increasing the market share of core products such as cheese, and expanding into new markets in the nutrition business. As a result, for the six months ended the second quarter, net sales were ¥303,569 million, up 1.4% year on year; operating profit was ¥11,072 million, up 1.7%; ordinary profit was ¥11,781 million, up 6.0%; and interim net profit attributable to owners of the parent was ¥7,183 million, down 2.9%.」

「Against this business backdrop, based on the newly formulated Group Medium-Term Management Plan 2019, our Group worked to diversify its earnings base and maximize cash flow. We sought to strengthen the earnings base for future growth by strategically expanding sales of high-value-added products such as functional yogurt, increasing the market share of core products such as cheese, and expanding into new markets in the nutrition business. As a result, for the first quarter of the fiscal year, net sales were ¥149,860 million, up 1.5% year on year; operating profit was ¥5,804 million, up 10.8%; ordinary profit was ¥6,127 million, up 17.8%; and quarterly net profit attributable to owners of the parent was ¥3,326 million, down 5.5%.」

「Transformation & Renewal: Toward further transformation and evolution. A. Transformation of the business portfolio = Transformation; B. Evolution of the production system supporting business growth = Renewal; C. Advancing Group management = Group Management」

「Against this business backdrop, during the fiscal year we worked to establish an earnings base that would enhance market competitiveness under the Snow Brand MeGMILK Group Medium-Term Management Plan (FY2014–FY2016). We sought to expand sales of core products such as cheese and yogurt, improve the product mix by increasing sales of high-value-added products, and raise productivity through the effective use of strategically invested production facilities. As a result, for the nine months ended the third quarter, net sales were ¥449,853 million, or 102.3% of the year-earlier period, and operating profit was ¥16,184 million, or 146.3%.」

「Against this business backdrop, during the fiscal year we worked to establish an earnings base that would enhance market competitiveness under the Snow Brand MeGMILK Group Medium-Term Management Plan (FY2014–FY2016). We sought to expand sales of core products such as cheese and yogurt, improve the product mix by increasing sales of high-value-added products, and raise productivity through the effective use of strategically invested production facilities.」

「During the fiscal year, we worked to establish an earnings base that would enhance market competitiveness under the Snow Brand MeGMILK Group Medium-Term Management Plan (FY2014–FY2016). We sought to expand sales of core products such as cheese and yogurt, improve the product mix by increasing sales of high-value-added products, and raise productivity through the effective use of strategically invested production facilities.」

「To secure profits even in a challenging business environment characterized by a weaker yen and tight supply and demand for milk resources, we will improve the product mix, optimize our production and logistics systems, reduce costs through greater operating efficiency, and accelerate measures to absorb cost increases, thereby improving profitability.」