Meiji (2269) Q2 2026 earnings summary

Executive summary

• Consolidated operating profit for the first half reached JPY 40.9 billion, exceeding plan, driven by strong pharmaceuticals, while food slightly underperformed.

• Net sales for the first six months rose 1.0% year-over-year to JPY 574.8–574.9 billion, but profit attributable to owners dropped 20.1% to JPY 21.4–21.5 billion due to cost pressures.

• Price increases were implemented for many products amid weak domestic consumption, with minimal volume decline for major items.

• Structural reforms included factory closures, a career support program, and a job-specific HR system, aiming to accelerate decision-making and leverage synergies.

• The Wellness Science Lab and CEO-led initiatives target JPY 100 billion in global sales and a 30% profit margin.

Financial highlights

• First half consolidated net sales were JPY 574.8–574.9 billion (+1.0% YoY); operating profit was JPY 40.9 billion (−7.8% YoY), exceeding plan.

• Net profit was JPY 21.4–21.5 billion, a 20.1–21.1% decrease YoY, mainly due to lower extraordinary income.

• Price revisions contributed JPY 22.2 billion positively, offsetting raw material cost increases.

• EPS dropped to JPY 79.27 from JPY 97.66 YoY.

• Gross profit increased 2.0% YoY, but SG&A expenses rose 5.4%.

Outlook and guidance

• Full-year net sales forecast revised down to JPY 1,177.0 billion, but operating profit and net income forecasts remain at JPY 91.0 billion and JPY 54.0 billion.

• Operating profit guidance maintained at JPY 91.0 billion, up 7.4% YoY.

• Focus on cost management, new product launches, and structural reforms to achieve full-year targets.

• Food segment chocolate business expected to outperform, while nutrition business is projected to underperform.

• Domestic pharmaceuticals expected to recover in H2, but overseas pharmaceuticals and vaccines/veterinary drugs to remain below plan.