Lacto Japan Co., Ltd. · TSE:3139
Lacto Japan — H1 FY2025 Earnings Presentation
33 slides from Lacto Japan's earnings presentation, Jul 18, 2025
Slide 1: Financial Results Briefing for First Half FY11/2025
Financial Results Briefing for First Half FY11/2025 Lacto Japan Co., Ltd. July 18, 2025
Slide 2: INDEX
Consolidated Financial Results for H1 and 01 Full-year Earnings Forecasts for FY11/2025 INDEX 02 Overview of Operations for FY11/2025 Initiatives to Increase Profit in the Dairy Ingredients and Cheese 03 Business Division © Lacto Japan Co., Ltd. 2
Slide 3: Consolidated Financial Results for H1 and Full-year Earnings Forecasts for FY11/2025
01 Consolidated Financial Results for H1 and Full-year Earnings Forecasts for FY11/2025 © Lacto Japan Co., Ltd. 3
Slide 4: Overview of Consolidated Financial Results for H1 FY11/2025
Overview of Consolidated Financial Results for H1 FY11/2025 ⚫ For the first half of the fiscal year, net sales, ordinary profit, and profit attributable to owners of parent all reached record highs. All business divisions exceeded the prior-year results, demonstrating strong progress. Even excluding
Slide 5: H1 FY11/2025 Net Sales and Sales Volume by Business Division
H1 FY11/2025 Net Sales and Sales Volume by Business Division (YoY Changes) ◼Dairy Ingredients and Dairy Ingredients and Cheese Business Division Cheese Business ◼Others 1.8% 65.8% Net sales Sales volume 62,686 million yen 86,799 tons YoY Change YoY Change +6.4% - 4.7% ◼Asia (Cheese Manufacturing and
Slide 6: Factors Contributing to YoY Changes in Net Sales and Ordinary Profit
Factors Contributing to YoY Changes in Net Sales and Ordinary Profit ⚫ Net sales: Sales volume increased in all divisions except the Dairy Ingredients and Cheese Business Division, exceeding the previous year’s results. Higher raw material prices led to elevated selling prices, contributing to incre
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets End-November End-May Difference (Million yen) 2024 2025 Main points for increase/decrease Total current assets 75,826 86,900 11,073 Cash and deposits 9,076 10,359 1,282 Increase in notes and accounts POINT receivable/inventories Notes and accounts receivable 24,028 28,523
Slide 8: Consolidated Statements of Cash Flow
Consolidated Statements of Cash Flow (Million yen) H1 FY11/2025 Main points for increase/decrease POINT Cash flows from operating activities -7,846 ❶ Operating CF POINT ❶ Increase in working capital (accounts Cash flows from investing activities -546 ❷ receivable and inventories) due to increased tr
Slide 9: Revised FY11/2025 Consolidated Earnings Forecasts
2. Revised FY11/2025 Consolidated Earnings Forecasts ⚫ In light of the first-half results and recent order trends, the full-year earnings forecast and year-end dividend forecast were revised upward on July 9. Aiming to achieve record full-year profit. FY11/2025 FY11/2024 Initial Revised YoY Earnings
Slide 10: Progress on NEXT-LJ 2025
Progress on “NEXT-LJ 2025” ⚫ Taking into account the progress in first-half performance and recent order trends, the full-year earnings forecast has been revised upward. ⚫ An increase in profit is expected, and the dividend forecast has also been revised. The year-end dividend is planned to increase
Slide 11: Net Sales by Business
3. Net Sales by Business ⚫ In addition to revising the full-year earnings forecast, the underlying sales and sales volume forecasts for each division have also been revised. （Million yen） FY11/2024 FY11/2025 Forecast Q1 Q2 Q3 Q4 Q1 Q2 (FY) Dairy Ingredients and 28,124 30,807 28,577 26,672 30,653 32,
Slide 12: Sales Volume by Business
4. Sales Volume by Business (tons) FY11/2024 FY11/2025 Forecast* Q1 Q2 Q3 Q4 Q1 Q2 (FY) Dairy Ingredients and 45,583 45,515 43,043 42,259 43,972 42,827 166,800 Cheese Business YoY 12.3% 1.7% 9.1% -0.9% -3.5% -5.9% -5.4% Meat and Ingredients 7,766 8,076 8,302 7,685 6,993 9,187 35,100 YoY 29.3% 2.6% 1
Slide 13: (Reference) Global Market Prices for Dairy Products
(Reference) Global Market Prices for Dairy Products ⚫ Global market prices for dairy products remain generally high. （USD／MT） Global Market Prices for Dairy Products 9,000 May 2025 Jun.2024 7,907 8,000 Mar.2022 7,107 7,022 Jun.2025 Butter 7,000 Mar.2022 7,851 6,403 Jul.2021 Jan.2023 4,439 4,464 6,00
Slide 14: Overview of Operations for FY11/2025
02 Overview of Operations for FY11/2025 © Lacto Japan Co., Ltd. 14
Slide 15: Dairy Ingredients and Cheese Business Division
Sales Volume by Business Dairy Ingredients and Cheese Business Division Business Overview for the First Half Net sales ◼ Global dairy markets remained at elevated levels. (Million yen) 120,700 ◼ Sales to growing markets were strengthened, with increased sales of 114,182 Forecast high value-added fat
Slide 16: Business Environment for the Domestic Dairy Industry
Business Environment for the Domestic Dairy Industry ⚫ With the recent increase in raw milk production, skim milk powder inventories reached 60,000 tons in May. ⚫ The planned price increase for drinking milk in August may dampen dairy product consumption, so trends will be closely monitored. Estimat
Slide 17: Meat and Ingredients Division
Sales Volume by Business Business Overview for the First Half Meat and Ingredients Division ◼ Sales exceeded both the previous year’s results and the initial plan. Net sales ◼ Conditions improved in Q2, leading to a recovery in sales of North (Million yen) American pork. 25,200 21,788 ◼ Sales of pro
Slide 18: Functional Food Ingredients Division
Sales Volume by Business Functional Food Ingredients Division Business Overview for the First Half Net sales ◼ Amid strong global demand for high-protein products, raw material (Million yen) 8,100 prices remained high. Forecast 5,141 ◼ Domestic demand for protein continued to be strong, with solid
Slide 19: Asian Business (Dairy Ingredients Sales Division)
Sales Volume by Business Asian Business (Dairy Ingredients Sales Division) Business Overview for the First Half Net sales ◼ Increased business with local companies in the Philippines, Thailand, (Million yen) 24,000 and Malaysia. 21,584 Forecast ◼ Expanded transactions with new suppliers in Indonesi
Slide 20: Asian Business (Cheese Manufacturing & Sales Division)
Sales Volume by Business Asian Business (Cheese Manufacturing & Sales Division) Business Overview for the First Half Net sales ◼ Developed high value-added products tailored to customer needs, 6,500 (Million yen) resulting in increased sales volume. 5,594 Forecast ◼ Business expanded mainly for bak
Slide 21: Initiatives to Increase Profit in the Dairy Ingredients and Cheese Business Division
03 Initiatives to Increase Profit in the Dairy Ingredients and Cheese Business Division © Lacto Japan Co., Ltd. 21
Slide 22: Trends in Ordinary Profit Levels
Trends in Ordinary Profit Levels ⚫ While overall sales volume has stagnated, the level of consolidated ordinary profit has improved. 350000 70 Ordinary profit Trends in consolidated ordinary profit and Group sales volume Sales volume 6060 300000 300,000 (tons) (¥100mn) 250000 5050 250,000 Sales volu
Slide 23: Performance Trends in the Dairy Ingredients and Cheese Business Division
Performance Trends in the Dairy Ingredients and Cheese Business Division ⚫ Although sales volume in the Dairy Ingredients and Cheese Business Division has not yet returned to pre-COVID levels, divisional profit has increased significantly since the pandemic. ⚫ The improvement in profitability is bac
Slide 24: Background of Profit Growth in the Dairy Ingredients and Cheese Business Division
Background of Profit Growth in the Dairy Ingredients and Cheese Business Division High value- added products × Front- runner Many dairy ingredients are not Proposing and selling new produced domestically in Japan ingredients faster than anyone else e.g., specially processed ingredients such as whey
Slide 25: High Value-Added Products Are Primarily Imported
High Value-Added Products Are Primarily Imported ⚫ Low raw milk production In Japan, it is difficult to develop and mass- ⚫ High milk prices produce high value-added products ⚫ Tariffs Raw milk production in major countries (2023 / 2024 Forecast) Milk prices in major producing countries (as of June
Slide 26: Toward Further Growth in the Dairy Ingredients and Cheese Business Division
Toward Further Growth in the Dairy Ingredients and Cheese Business Division ⚫ For the medium- to long-term growth of the Dairy Ingredients and Cheese Business Division, in addition to expanding sales of high value-added products, strengthening procurement capabilities and growing the Asian business
Slide 27: Global Production and Export Trends for Milk and Dairy Products
Global Production and Export Trends for Milk and Dairy Products ⚫ While global production of milk and dairy products continues to increase, the export ratio is Strengthening Growth of the showing a declining trend. procurement Asian capabilities business Global Production and Export Ratios for Milk
Slide 28: Raw Milk Production in Major Exporting Countries
Raw Milk Production in Major Exporting Countries ⚫ Sluggish growth in raw milk production among major exporting countries is one of the underlying factors. Strengthening Growth of the procurement Asian capabilities business (million tons) Europe (million tons) United States 200 200 Expanding 154.2 1
Slide 29: Relationship Between Strengthening Procurement Capabilities and Growth of the Asian Business
Relationship Between Strengthening Procurement Capabilities and Growth of the Asian Business ⚫ Expansion of the Asian cheese manufacturing and sales business also contributes to strengthening Strengthening Growth of procurement capabilities. procurement the Asian capabilities business Expanding sale
Slide 30: Expansion of Cheese Production Capacity in Asia
Expansion of Cheese Production Capacity in Asia ⚫ A new plant is under construction to increase cheese production in line with market growth. Strengthening Growth of the procurement Asian capabilities business Overview of the plant Expanding sales of high Location Senoko, Sembawang value-added produ
Slide 31: Projected Schedule for Launch of New Plant in Singapore
Projected Schedule for Launch of New Plant in Singapore ⚫ Preparations for the launch of the new plant are progressing smoothly. Q1 FY11/2026 Q2 FY11/2026 Q3 FY11/2026 Q4 FY11/2026 FY11/2027 Completion of Transfer construction complete Start installation of Start production of Expand production Expa
Slide 32: Caution
Caution This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections as a result of changes in the economic environment and other risks a
Slide 33: © Lacto Japan Co., Ltd.
33 © Lacto Japan Co., Ltd.