Ajinomoto (2802) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 revenue of ¥365.5 billion, up 7.7% year-over-year, with business profit at ¥43.0 billion, up 7% excluding Forge acquisition impact.

• Profit attributable to owners declined to ¥23.9 billion, 88% of prior year, mainly due to a temporary overseas withholding tax increase from fund repatriation.

• Strategic investments increased company-wide expenses in Q1, aligned with the 2030 Roadmap, but full-year expenses are expected to remain within forecast.

• No revision to the full-year forecast announced in May 2024.

Financial highlights

• Sales revenue: ¥365.5 billion, 107.7% of Q1 last year; 102.3% excluding currency impact.

• Business profit: ¥43.0 billion, up 0.5% year-over-year; up 7% excluding Forge.

• Gross profit improved by ¥9.5 billion year-over-year, with gross profit at ¥133.4 billion.

• Operating profit was ¥40.8 billion, up from ¥40.6 billion year-over-year.

• Basic EPS was ¥46.98, down from ¥51.77 year-over-year.

Outlook and guidance

• Full-year profit guidance unchanged; company expects gradual improvement in profit and sales from Q2 onward, especially in CDMO and functional materials.

• Price hikes in domestic seasonings and coffee to support profit recovery in coming quarters.

• Dividend forecast for FY2025 is ¥80.00 per share, up from ¥74.00 in FY2024.