Building Resilience Through Medium-Term Management Plan 2025 and Operating Profit and ROE Targets

「We will set KPIs for each of the 7 strategic priorities (1. Strengthening overseas expansion; 2. Growing priority functional products; 3. Expanding alternative foods; 4. Thoroughly expanding cheese; 5. Expanding our presence in white beverages; 6. Initiatives to expand demand for self-supplied feed; and 7. Developing applied businesses) and advance our strategy. (Of the 7 strategic priorities, a KPI for 7. Developing applied businesses is currently under consideration.)」

「Adjusted ROE excluding asset sales was 5.8%. The company will steadily implement the strategies and initiatives of Next Design 2030 to achieve the 9.0% target for fiscal 2030. Against the fiscal 2030 operating profit target of ¥35 billion, actual operating profit in fiscal 2025 was ¥18.2 billion, below the initial plan of ¥19 billion.」

「We will set KPIs for each of the 7 strategic priorities (1. Strengthening overseas expansion; 2. Growing priority functional products; 3. Expanding alternative foods; 4. Thoroughly expanding cheese; 5. Expanding our presence in white beverages; 6. Initiatives to expand demand for self-supplied feed; and 7. Developing applied businesses) and advance our strategy.」

「Under “Next Design 2030,” we have adopted “A Major Transformation of Megmilk Snow Brand Assets” as our theme and will pursue initiatives based on four pillars of our business strategy: “Nurturing and Harvesting the Fruits of Growth,” “Transforming the Structure to Enhance the Industrial Value of Milk,” “Realizing Regenerative Dairy Farming,” and “Evolving Our Connections with Society.”」

「In May 2025, the Group announced a new management plan, Next Design 2030. Fiscal 2025 is the final year of Medium-Term Management Plan 2025, but the Group will transition to Next Design 2030 and pursue significant growth.」

「In fiscal 2024, the second year of the plan, the theme of the Snow Brand Megmilk Group Management Policy 2024 was “MOVE.” The Group identified 5 key initiatives: (1) creating seeds of new growth, (2) expanding volumes by leveraging the business foundation, (3) strengthening and supporting Japan's dairy production base, (4) advancing the foundation strategy, and (5) addressing sustainability issues, and has been actively pursuing these initiatives. As a result, for the six months ended 30 September, net sales were ¥311,653 million, up 2.0% year on year; operating profit was ¥11,819 million, up 5.1%; ordinary profit was ¥12,754 million, up 4.2%; and interim net profit attributable to owners of the parent was ¥9,134 million, up 18.6%.」

「The management targets set operating profit at ¥20 billion for fiscal 2025, with the aim of achieving operating profit approximately at the fiscal 2020 level during the Medium-Term Management Plan 2025 period and ROE of at least 6% in the final year.」

「The Group launched the Snow Brand Megmilk Group Medium-Term Management Plan 2025, built around 3 pillars of business strategy: “creating seeds of new growth,” “expanding volumes by leveraging the business foundation,” and “strengthening and supporting Japan's dairy production base.” As a result, for the nine months ended 31 December, net sales were ¥460,478 million, up 4.6% year on year; operating profit was ¥16,300 million, up 46.9%; ordinary profit was ¥17,774 million, up 61.4%; and net profit attributable to owners of the parent was ¥11,398 million, up 92.9%.」

「Against this backdrop, the Group launched the Snow Brand Megmilk Group Medium-Term Management Plan 2025, built around 3 pillars of business strategy: “creating seeds of new growth,” “expanding volumes by leveraging the business foundation,” and “strengthening and supporting Japan's dairy production base.” In fiscal 2023, the first year of the plan, the Group actively pursued key initiatives including “addressing cost increases” through productivity improvements across the entire value chain, a review of the cost structure and appropriate price formation; “maintaining and expanding the top line” in response to changes in the business environment; and “creating seeds of new growth and launching related initiatives” overseas, particularly in Asia, and in the e-commerce business. As a result, operating profit for the six months ended 30 September was ¥11,242 million, up 53.0% year on year.」

「Against this backdrop, the Group launched the Snow Brand Megmilk Group Medium-Term Management Plan 2025, built around 3 pillars of business strategy: “creating seeds of new growth,” “expanding volumes by leveraging the business foundation,” and “strengthening and supporting Japan's dairy production base.”」

「Under Medium-Term Management Plan 2025, we aim to address the global cost increases resulting from declining demand due to COVID-19 and the conflict in Ukraine, among other factors, and target operating profit of ¥20 billion, approximately the same level as in fiscal 2020. We also aim to achieve ROE of 8% early after the Medium-Term Management Plan 2025 period.」