Ajinomoto (2802) Q1 2026 earnings summary

Executive summary

• First quarter sales reached ¥364.0 billion, down 0.4% year-over-year due to currency effects, but business profit rose 9.7% to ¥47.2 billion, with profit margin up to 13% and profit attributable to owners up 34.4%.

• Growth was led by Functional Materials, Bio-Pharma Services, and Healthcare and Others, while Japan's frozen foods faced challenges.

• The sale of Althea impacted reported sales and profit, but underlying business growth remained strong.

• Management remains committed to achieving FY2025 and FY2030 targets, with no revision to full-year guidance.

• EPS increased by 38.8% year-over-year, with a 2-for-1 stock split effective April 1, 2025.

Financial highlights

• Sales were ¥364.0 billion, 99.6% of FY2024, or 102.9% excluding currency translation.

• Business profit was ¥47.2 billion, 109.7% of FY2024, or 112.4% excluding currency translation.

• Profit attributable to owners was ¥32.2 billion, 134.4% of FY2024.

• Operating profit increased to ¥49.4 billion, up 21% year-over-year.

• Basic and diluted EPS were ¥32.62, up from ¥23.49 year-over-year.

Outlook and guidance

• Full-year sales forecast is ¥1,618.0 billion, up 5.7% year-over-year, with 22% progress in Q1.

• Business profit forecasted at ¥180.0 billion, up 13.0% year-over-year, with 26% progress in Q1.

• Profit attributable to owners projected at ¥120.0 billion, up 70.7% year-over-year.

• Basic earnings per share forecasted at ¥123.55.

• Initiatives underway to recover growth in Japan's frozen foods, with a strategic review planned.