Meiji (2269) Q4 2025 earnings summary

Executive summary

• FY2024 net sales rose 4.4% year-over-year to JPY 1,154.0–1,154.1bn, with both Food and Pharmaceutical segments contributing to growth.

• Operating profit was flat at JPY 84.7bn, slightly below plan due to Nutrition underperformance; ordinary profit up 7.9% to JPY 82.0bn.

• Profit attributable to owners of parent was JPY 50.8bn, nearly unchanged year-over-year.

• Comprehensive income declined 10.6% year-over-year to JPY 56.7bn.

• The company advanced its 2026 Medium-Term Business Plan, focusing on sustainable growth and capital efficiency.

Financial highlights

• Overseas sales increased 13.6% year-over-year to JPY 153.1bn.

• EPS improved to JPY 186.08 from JPY 181.64 year-over-year.

• Operating profit margin declined to 7.3% from 7.6% year-over-year.

• Free cash flow for FY2024 was JPY 28.3bn, down from JPY 83.3bn year-over-year.

• Dividend per share increased to JPY 100.00, with a payout ratio of 53.7%.

Outlook and guidance

• FY2025/2026 guidance: net sales JPY 1,195.0bn (+3.5%), operating profit JPY 91.0bn (+7.4%), profit attributable to owners JPY 54.0bn (+6.3%), EPS JPY 197.80.

• H1 FY2025 profit expected to decrease due to higher R&D expenses in Pharma; full-year profit growth anticipated.

• Dividend per share to increase to JPY 105, with a total payout ratio target of 50% or more.

• Management expects minor direct impact from US tariffs but will monitor raw material and FX volatility.