Fiscal Year Ending March 2027 Earnings Forecast and Initiatives to Enhance Corporate Value

At its first-half earnings briefing for the fiscal year ending March 2027, Ajinomoto Co., Inc. announced that first-half revenue was ¥831.1 billion, up 12.5% year on year, business profit was ¥108.6 billion, up 25.2%, and profit attributable to owners of the parent was ¥73.3 billion, up 43.1%, with all three reaching record highs. Business profit growth reached 125.2%, and the full-year forecast was also revised upward.

The main factors were steady domestic and overseas sales of seasonings and food products, foreign-exchange effects, and robust ABF demand in the healthcare and other segments. Seasonings and food products generated revenue of ¥481.5 billion and business profit of ¥77.5 billion, while healthcare and other businesses generated revenue of ¥192.7 billion and business profit of ¥47.4 billion, with both posting substantial increases from the previous fiscal year. Frozen foods generated revenue of ¥148.9 billion, but business profit declined.

The full-year forecast was raised to revenue of ¥1.767 trillion, business profit of ¥210 billion and profit attributable to owners of the parent of ¥135 billion. The exchange-rate assumption is ¥159.25 to the dollar. Capital expenditure of approximately ¥130 billion is planned, including an investment of approximately ¥21.5 billion to build a new varnish plant on the site of the Gunma plant to meet expanding ABF demand, with mass production scheduled to begin in 2030.

As a long-term strategy, the company will begin a company-wide growth strategy this fiscal year aimed at achieving the 2030 roadmap ahead of schedule. With 4 growth areas as its core, it will pursue selection and concentration in growth areas from the next fiscal year onward. As part of shareholder returns, it will raise the annual dividend to ¥52 and continue its existing share buyback program.