Following the recognition of ¥19.9 billion in impairment losses at 4 overseas subsidiaries in the fiscal year ended March 2025, 森永乳業 strengthened its M&A screening framework led by its finance headquarters. It set a ¥30 billion M&A investment budget in its medium-term plan and is actively exploring acquisitions, with overseas operations positioned as a growth pillar. It also indicated a policy of expanding its microbial-cell and infant-formula businesses as growth areas from 2026 onward.
森永乳業 recorded ¥19.9 billion in impairment losses at 4 overseas subsidiaries in the fiscal year ended March 2025 and established a review framework led by its finance headquarters, indicating a policy of rigorously screening investment projects from the perspectives of capital efficiency and risk. Accordingly, its medium-term management plan for the fiscal years ending March 2026 through March 2029 sets an M&A investment budget of ¥30 billion and aims to expand overseas operations by positioning them as a growth pillar.
Based on lessons from past acquisitions, the company is expected to increasingly explore new M&A opportunities, primarily overseas. The impairment losses affected 4 companies in Pakistan, the United States and Vietnam, and net income declined sharply, but the company has identified progress in strengthening its investment screening framework.
The medium-term plan identifies microbial-cell and infant-formula businesses as growth areas and envisions expanding its overseas infant-formula business in addition to yogurt and ice cream. Under its ¥70 billion strategic investment budget, the company plans to allocate ¥30 billion to M&A and ¥40 billion to research and development. Although total investment was reduced to ¥230 billion following a partial review, the company says its overseas sales target of 15% has already been achieved.