Morinaga Milk Industry Co., Ltd. · TSE:2264
Morinaga Milk Industry — 1H FYE March 2025 Earnings Presentation
24 slides from Morinaga Milk Industry's earnings presentation, Nov 11, 2024
Slide 1: Financial Results Presentation for the First Half of the Fiscal Year Ending March 31, 2025
Morinaga Milk Industry Co., Ltd. Financial Results Presentation for the First Half of the Fiscal Year Ending March 31, 2025 November 11, 2024 1. Overview of the First Half of the FYE March 2025 Financial Results 2. Outlook of Financial Results for FYE March 2025
Slide 2: Overview of Today's Presentation
Preamble Overview of Today’s Presentation FYE March 2025 1H results Higher net sales and lower profit. Operating profit fell short of forecast. (operating profit: -¥3.3 billion YoY, variance from forecast: -¥1.4 billion) Variance from forecast: High-value-added products such as ”Mt. RAINIER CAFF
Slide 3: 1. Overview of the First Half of the FYE March 2025 Financial Results
1. Overview of the First Half of the FYE March 2025 Financial Results 1. Overview of the First Half of the FYE March 2025 Financial Results 2. Outlook of Financial Results for FYE March 2025 3 Copyright©Morinaga Milk Industry Co.,Ltd.All Rights Reserved.
Slide 4: Summary of Financial Results in 1H of FYE March 2025
Summary of Financial Results in 1H of FYE March 2024 Higher net sales and lower profits. Operating profit fell short of forecast Operating profit fell short of forecast: ¥17.5 billion (-¥3.3 billion YoY, variance from forecast: -¥1.4 billion) In Japan: High-value-added products such as “Mt. RAIN
Slide 5: Financial Results for 1H of FYE March 2025
Financial Results for 1H of FYE March 2025 (Unit: billion yen) FYE Mar. Rate of FYE Mar. FYE Mar. FYE Mar. Year-on- Change Year-on- 2025 1H Year on year change vs 2025 2Q Year on year 2024 1H 2025 1H year change from target year change target target (3 months) Net sales 286.6 293.0 290.6 +4.0 +1.4%
Slide 6: Summary of 1H of FYE March 2025 by Business Segment
Summary of 1H of FYE March 2025 by Business Segment Variance from forecast: Despite committing to sales promotions for yogurt, focus products undershot forecasts, product mix deteriorated, impact of domestic subsidiaries Key points of 1H Operating profit – YoY Operating profit – variance from fore
Slide 7: Factors Attributable to Increases and Decreases in Operating Profit for 1H
Factors Attributable to Increases and Decreases in Operating Profit for 1H of FYE March 2025 <>: Variance from 1H target Change in selling unit prices +5.3<+0.3> Sales volume -0.2<-1.2> Product mix +1.4<-0.1> FYE March 2024 2Q 20.8 Business growth Operation cost ＋0.4<-0.6> ＋6.5<-1.0> Rationalization
Slide 8: 2. Outlook of Financial Results for FYE March 2025
2. Outlook of Financial Results for FYE March 2025 1. Overview of the First Half of the FYE March 2025 Financial Results 2. Outlook of Financial Results for FYE March 2025 8 Copyright©Morinaga Milk Industry Co.,Ltd.All Rights Reserved.
Slide 9: Outlook of Financial Results for FYE March 2025
Outlook of Financial Results for FYE March 2025 Full-year forecast after revision: operating profit of ¥28.5 billion, will maintain increase in profit despite downward revision to reflect first half Operating profit forecast: Full year ¥28.5 billion (+¥0.7 billion YoY, variance from initial foreca
Slide 10: Outlook of Financial Results for FYE March 2025 Forecasts
Forecasts Outlook of Financial Results for FYE March 2025 revised (Unit: billion yen) FYE Mar. 2025 Year-on- Variance FYE Mar. FYE Mar. Year-on- Variance FYE Mar. full-year year Year on year from initial 2024 2025 year Year on year from initial 2024 target target target change 2H 2H target change Ne
Slide 11: Summarized Outlook of Financial Results for Each Business Segment
Summarized Outlook of Financial Results for Each Business Segment for FYE March 2025 Operating profit: Full-year forecasts have been cut by first-half shortfall amount (-¥1.4 billion). In second half we aim to maintain level of initial forecast Key points of 2H Operating profit 2H forecast – YoY O
Slide 12: Forecasts of Fluctuations to Operating Profit in FYE March 2025
Forecasts Forecasts of Fluctuations to Operating Profit in FYE March 2025 revised ( ) : 2H plan <>: Variance from initial full-year target Change in selling unit prices +8.5 (3.2)<+2.0> Sales volume +0.4 (0.6)<-1.7> Product mix +3.5 (2.1)<-1.7> FYE March 2024 27.8 Business growth Operation cost ＋1.9
Slide 13: Initiatives by Business (1): Nutrition and Healthcare Foods Business
Initiatives by Business (1): Nutrition and Healthcare Foods Business Continue with expansion of yogurt and promotion of bifidobacteria, etc. (Unit: billion yen) Key points FYE Mar. YoY Variance Of which, 2025 percentage from initial 2H 1. Continue with expansion of yogurt and promotion of bifidobact
Slide 14: Initiatives by Business (2): Core Dairy Foods Business
Initiatives by Business (2): Core Dairy Foods Business Expansion of high-value-added product, continuation of price revisions (Unit: billion yen) Key points FYE Mar. YoY Variance Of which, 2025 percentage from initial 2H 1. Expansion of high-value-added products and improvement of product mix foreca
Slide 15: Initiatives by Business (3): B-to-B Business
Initiatives by Business (3): B-to-B Business Continuing initiatives to reignite growth of probiotics/expand commercial dairy products Key points (Unit: billion yen) FYE Mar. YoY Variance Of which, 2025 percentage from initial 2H 1. Probiotics and functional ingredients forecast /amount forecast Pr
Slide 16: Initiatives by Business (4): Global Business
Initiatives by Business (4): Global Business Maintaining full-year forecast. Outlook raised at MILEI but cut for other subsidiaries (Unit: billion yen) Key points FYE Mar. YoY Variance Of which, 2025 percentage from initial 2H 1. Operating profit outlook, promotion of five challenges for Global Busi
Slide 17: Appendix
Appendix
Slide 18: (Reference) Net Sales & Operating Profit by Business Segment in 1H
(Reference) Net Sales & Operating Profit by Business Segment in 1H of FYE March 2025 (Unit: billion yen) Operating profit Operating profit Net sales Net sales (operating profit to net (operating profit to net sales) sales) Rate of FYE Mar. FYE Mar. Year-on- FYE Mar. FYE Mar. Year on FYE Mar. FYE Mar
Slide 19: (Reference) Subsegment Net Sales in 1H of FYE March 2025
(Reference) Subsegment Net Sales in 1H of FYE March 2025 (Unit: billion yen) Rate of FYE Mar. FYE Mar. FYE Mar. Year on Year on 2024 1H 2025 1H year change 2025 2Q year Key points vs target (3 months) Nutrition and Healthcare Foods Business Sales increase of “Bifidus” and “Aloe yogurt,” sales decr
Slide 20: (Reference) Subsegment Net Sales in 1H of FYE March 2025
(Reference) Subsegment Net Sales in 1H of FYE March 2025 Year-on- Year on FYE Mar. 2024 1H FYE Mar. 2025 1H year year change Global Business Key points Decline in reaction to significant growth in revenue driven by JPY 22.7 billion JPY 21.0 billion -7% +15% impact of whey prices that continued to
Slide 21: (Reference) Target Sales and Operating Profit for Each Business Segment
(Reference) FYE March 2025: Target Sales and Operating Profit Forecasts revised for Each Business Segment (Unit: billion yen) Net sales Operating profit (Operating profit rate) FYE Mar. 2025 FYE Mar. Variance FYE Mar. 2025 Variance FYE Mar. Year-on- Variance FYE Mar. 2025 Year-on- Variance target 20
Slide 22: (Reference) Subsegment Net Sales Targets for FYE March 2025
Forecasts (Reference) Subsegment Net Sales Targets for FYE March 2025 revised (Unit: billion yen) FYE Mar. 2025 Variance from FYE Mar. 2025 Variance from FYE Mar. 2025 Net sales target 2H target Year on year initial target full-year target Year on year initial target Nutrition and Healthcare Foods B
Slide 23: (Reference) Dairy Ingredient Market Data (Last Years)
(Reference) Dairy Ingredient Market Data (Last 5 Years) Zentrale Milchmarkt Berichterstattung GmbH (ZMB, Central Milk Market Fonterra Global Dairy Trade (GDT) auction Reporting Agency in Germany) Culinary-use whey powder price (€/ton) prices for lactose (US$/ton) 2,000 1,700 1,500 1,500 1,300 1,100
Slide 24: Cautionary Note Regarding Business Forecasts
Cautionary Note Regarding Business Forecasts Figures for plans, policies, and other figures included in this report other than actual past results are forecasts of future business performance, and are calculated based on management’s estimates and understanding of the information available to the Co
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