Meiji (2269) Q3 2026 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2025 rose 0.8% year-over-year to ¥882.3bn, with operating profit up 5.4% to ¥70.1bn and ordinary profit up 11.3% to ¥72.4bn, but profit attributable to owners declined 11.0% to ¥38.8bn.

• The business environment improved in hiring and wages, but cost consciousness persisted due to rising living costs and global uncertainties.

• The 2026 Medium-Term Business Plan is underway, focusing on value-added products, B2B expansion, and overseas profitability improvements.

Financial highlights

• Food segment net sales grew 1.3% to ¥711.1bn, with operating profit up 8.4% to ¥53.6bn.

• Pharmaceutical segment net sales declined 1.1% to ¥172.2bn, but operating profit edged up 1.1% to ¥20.5bn.

• Comprehensive income for the nine months was ¥56.2bn, up 10.0% year-over-year.

• EPS decreased from ¥159.38 to ¥143.24 year-over-year.

• Free cash flow was negative at -¥71.4bn due to increased capital expenditures and working capital needs.

Outlook and guidance

• Full-year FY2025 guidance remains unchanged: net sales ¥1,177.0bn, operating profit ¥91.0bn, profit attributable to owners ¥54.0bn, and EPS ¥197.80.

• Annual dividend forecast raised to ¥105 per share, with a projected payout ratio of 53.1%.