Fiscal Year Ending March 2026 Financial Results Briefing

Summary of Financial Results for Fiscal Year Ending March 2026

Operating income reached 34.5 billion yen (up 4.8 billion yen YoY, exceeding plan by 1.5 billion yen), achieving the highest ever profit. The contribution from overseas business was significant, with an increase of 9.5 billion yen YoY and an outperformance of 3.0 billion yen against the plan. Domestic operations saw a decrease due to volume reductions and increases in raw material and operational costs, but price revisions and product mix improvements kept actual results in line with plans. Dividends were increased from the previous forecast of 93 yen to 100 yen.

Outlook for Fiscal Year Ending March 2027

Net sales are projected at 580.0 billion yen (up 1.5% YoY), operating income at 32.0 billion yen (down 7.2%), and dividends at 25 yen (assuming the same dividend after a 4-for-1 stock split). A reduction of 4.0 billion yen in operating income is anticipated due to geopolitical impacts in the Middle East. Domestic operations are expected to grow through expansion of growth areas and structural reforms, though a decline is planned due to Middle East impacts. Overseas business is expected to continue growth but will face a reduction in earnings due to geopolitical factors and decreased inventory sales by MILEI.

Progress on the Mid-term Management Plan 2025-28

Progress includes exceeding targets in overseas business and MILEI, recognizing the company's strategic focus, and advancing growth strategies and structural reforms. Efforts are underway to expand growth areas such as microbes and baby milk while promoting structural reforms in core fields.

Engagement with Capital Markets and Enhancing Corporate Value

Activities include investor relations efforts, shareholder return measures, changes in executive compensation systems, plans for a stock split (1 share to 4 shares), and sustainability initiatives to enhance corporate value.