Meiji (2269) Q3 2025 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2024 rose 5.0% year-over-year to JPY 875.0bn, with growth in both Food and Pharmaceutical segments.

• Operating profit declined 4.6% to JPY 66.4bn, mainly due to inventory write-downs in the Pharmaceutical segment.

• Profit attributable to owners of parent decreased 2.9% to JPY 43.6bn.

• The operating environment in Japan showed mild recovery, but uncertainties persisted due to raw material costs and consumer trends in China.

• The company is executing its 2026 Medium-Term Business Plan, focusing on value-added products, B2B growth, and profitability improvements, especially in China.

Financial highlights

• Overseas sales increased 19.6% year-over-year to JPY 117.9bn.

• Free cash flow dropped sharply to JPY 1.0bn from JPY 83.3bn in the prior year.

• Capital expenditures increased 44.2% to JPY 77.0bn.

• Gross profit increased 4.1% year-over-year to JPY 257.7bn, but SG&A expenses rose 7.5%.

• Comprehensive income dropped 25.5% year-over-year to JPY 51.0bn.

Outlook and guidance

• FY2024 plan remains unchanged: net sales JPY 1,159.0bn (+4.8%), operating profit JPY 86.0bn (+2.0%), and EPS JPY 181.74.

• Cash dividend per share planned at JPY 100, up JPY 5 year-over-year.

• ROE and ROIC expected to improve to 7.0%.

• No changes to previously announced earnings forecasts; business environment remains uncertain, especially regarding raw materials and overseas markets.