Ajinomoto (2802) Q4 2026 earnings summary

Executive summary

• FY2025 achieved record sales of ¥1,583.7 billion and business profit of ¥181.1 billion, with double-digit profit growth year-over-year, driven by Functional Materials, Bio-Pharma Services, Ingredients, and Seasonings and Foods.

• Operating profit surged 75% year-over-year to ¥199.4 billion, aided by a ¥40.6 billion gain from the transfer of head office land.

• FY2026 (and FY2027) forecasts target new records in sales (¥1,723.0 billion) and business profit (¥197.0 billion), with growth expected across all major segments.

• The company is proactively addressing risks from Middle East instability and aims to achieve its 2030 Roadmap ahead of schedule.

• Flexible measures are planned for potential cost and procurement impacts from global tensions.

Financial highlights

• FY2025 sales: ¥1,583.7 billion (103% of previous year); business profit: ¥181.1 billion (113% of previous year); profit attributable to owners: ¥134.6 billion, including a ¥40.6 billion gain from asset transfer.

• EBITDA margin improved to 17.1% from 16.1% year-over-year; ROE: 17.7%, ROIC: 11.8%.

• Basic and diluted EPS doubled to ¥138.36 from ¥69.77 year-over-year.

• Operating cash flow FY2025: ¥239.3 billion (record high); FY2026 forecast: ~¥230 billion.

• Annual dividend per share increased to ¥48, with a forecast of ¥50 for the next fiscal year.

Outlook and guidance

• FY2026/2027 targets: sales and business profit to reach 108% of FY2025 levels; profit attributable to owners forecast at ¥120.0 billion (reflecting normalization after one-time gains).

• Organic sales growth expected at 9% for FY2026, above the 5% CAGR projected for 2026–2030.

• Dividend to increase to ¥50 per share in FY2026; ongoing share buybacks up to ¥80 billion.

• Assumes US$1 = ¥150, moderate global economic expansion, and stable raw material prices.

• ROE and ROIC targets for FY2026 are approximately 15% and 11%, aiming for 20% and 17% by FY2030.