Morinaga Milk Industry Co., Ltd. · TSE:2264
Morinaga Milk Industry — H1 FYE March 2025 Earnings Presentation
24 slides from Morinaga Milk Industry's earnings presentation, November 2024
Slide 1: H1 results overview and outlook
I would like to begin with an overview of H1 results and then explain our outlook for the future. 1
Slide 2: Summary of today's meeting
To begin, I would like to give you a brief summary of today's meeting. The first is the results for H1. Increase in sales and decrease in income, falling short of the plan. The difference from the previous year is a negative JPY3.3 billion, and the difference from the plan is a negative JPY1.4 billi
Slide 3: Financial results for H1
I will now explain the financial results for H1. 3
Slide 4: Difference from the plan for H1
This is the difference from the plan for H1. Sales of so-called high value-added products with high profit margins, such as “Mt. RAINIER CAFFÈ LATTE” and ice cream, were strong. Yogurt sales also increased, especially for “Bifidus.” The expansion exceeded that of the overall yogurt market. On the ot
Slide 5: H1 and Q2 three-month results
The numerical aspects are as stated. The right side of the slide shows Q2, July through September, a three- month result. Operating profit for the past three months was down JPY2.2 billion, a significant decrease from the negative JPY1.1 billion in Q1. As you all know, last summer was extremely hot,
Slide 6: Planned differences by business area
This page reiterates the explanation of planned differences by business area. Nutrition and healthcare foods business was down JPY1.1 billion from the plan. Despite aggressive sales promotion, new products, and functional yogurts, which were originally the most important products to sell, fell far s
Slide 7: Factors in operating profit increase or decrease
This is the reason for the increase or decrease in operating profit. In terms of placing the plan, the red cost increase will be offset by blue business growth and rationalization, but the total profit will decrease because of the reactionary decline of overseas subsidiaries, specifically MILEI of G
Slide 8: Outlook for the full fiscal year
From this point on, I will explain the outlook for the full fiscal year. 8
Slide 9: Annual plan revised
The annual plan has been revised. Operating profit has lowered by JPY1.5 billion to JPY28.5 billion. This is in effect a lowering of only the planned difference that occurred in H1, and for H2, we plan to maintain the initial level. Overall, we continue to plan for an increase in profit. We expect e
Slide 10: Revised full-year and H2 plans
Revised full-year and H2 plans. The numerical aspects are as shown in the slide. The annual dividend amount will remain unchanged at JPY90 per share. 10
Slide 11: Business outlook by segment
This Page shows the business outlook by business segment. As for the difference in the plan for H2, as explained earlier, we raised the forecast for the core dairy foods business, including “Mt. RAINIER CAFFÈ LATTE” and ice cream, and the global business, and lowered the forecast for other domestic
Slide 12: Factors affecting operating profit forecast
The Page is the forecast of factors that may cause operating profit to increase or decrease. We aim to achieve a total of JPY28.5 billion yen, an increase of JPY0.7 billion, by offsetting cost increases through business growth and rationalization, and by having our overseas subsidiaries make up for
Slide 13: Nutrition and healthcare foods business
I will now explain each project from this page. First is the nutrition and healthcare foods business. The biggest point of growth in this business, the business that provides health value and significantly grows our health brand, which is the source of the Group's rapid growth, is still yogurt. It d
Slide 14: Core dairy foods business
This page is the core dairy foods business. Based on the results of H1, we have raised the plan. Our direction of expanding high value-added products such as “Mt. RAINIER CAFFÈ LATTE” and ice cream will remain unchanged, and we will also continue to capture new markets. In the ice cream business, we
Slide 15: B-to-B business
This page is the B-to-B business. Progress has been made in line with the plan, and there will be no major changes in H2. First of all, the highest-margin category for our group, probiotics, continues to struggle in Japan due to the headwind of the external environment in the dietary supplement mark
Slide 16: Global business
Finally, I would like to talk about the global business. The profit plan for the year remains unchanged. Since H1 fell slightly short of the plan, this means that the plan was raised only for H2 in real terms. We have further raised its plan due to the favorable change in market conditions of MILEI
Slide 17: Appendix
Appendix 17
Slide 18: Net Sales & Operating Profit by Business Segment, 1H FYE March 2025
(Reference) Net Sales & Operating Profit by Business Segment in 1H of FYE March 2025 Phe morinaga Net sales FYEMar. FYEMar. Year on 20241H 20251H year = os cant foods 95.4 97.4 #2.1% B-to-B Business 478 49.5 +3.6% Global Business 34.3 35.0 +1.9% Other/Eliminated 45.5 43.8 -3.7% Total 286.6 290.6 +1.
Slide 19: Subsegment Net Sales in 1H of FYE March 2025
(Reference) Subsegment Net Sales in 1H of FYE March 2025 Sha morinaga Nutrition and Healthcare Foods Business Yogurt Commercial milk (Home deliveries, etc.) Nutritional food products CLINICO Core Dairy Foods Business Beverages Ice cream Cheese Milk Chilled desserts FYE Mar. Rate of 2024 1H FYE Mar.
Slide 20: Subsegment Net Sales in 1H: Global Business
(Reference) Subsegment Net Sales in 1H of FYE March 2025 Phe Global Business FYE Mar. 2024 1H FYE Mar. 2025 1H Year on year Year-on- year change | Key points | > Decline in reaction to significant growth in revenue driven by MILE! (Germany) JPY 22.7 billion JPY 24.0 billion -1% — +15% impact of whey
Slide 21: FYE March 2025 Target Sales and Operating Profit by Segment
(Reference) FYE March 2025: Target Sales and Operating Profit for Each Business Segment Forecasts revised FYE Mar. 2025 Net sales T FYE Mar. 2025 full-year target FYE Mar 2025 2H target Variance from initial target Year on Year target Nutrition and Healthcare Foods 65.0 +2.1% -1.8 130.0 Business Gor
Slide 22: Subsegment Net Sales Targets for FYE March 2025 revised
Forecasts (Reference) Subsegment Net Sales Targets for FYE March 2025 revised FYE Mar. 2025 Net sales target Sate Year on year eT eae piteee aon Nutrition and Healthcare Foods Business Yogurt 27.6 +5% -0.2 56.7 +5% -0.3 (ame deleries ete) 8.3 -9% -1.0 16.3 -11% “14 Nutritional food products 6.6 +1%
Slide 23: Dairy Ingredient Market Data
(Reference) Dairy Ingredient Market Data (Last 5 Years) morinaga prices for lactose (US$/ton) 1,700 1,500 -~ 1,500 1,300 x 1,100 = 1,000 Zentrale Milchmarkt Berichterstattung GmbH (ZMB, Central Milk Market Reporting Agency in Germany) Culinary-use whey powder price (€/ton) 900 700 500 QsieQetcwer sd
Slide 24: Cautionary Note Regarding Business Forecasts
morinaga the MORINAGA MILK INDUSTRY CO.,LTD. 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 underst
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