Announcement • Jun 11
Morinaga Milk Industry Co., Ltd. to Report Q1, 2027 Results on Aug 07, 2026 Morinaga Milk Industry Co., Ltd. announced that they will report Q1, 2027 results on Aug 07, 2026 Price Target Changed • Jun 08
Price target increased by 7.3% to JP¥5,900 Up from JP¥5,500, the current price target is an average from 4 analysts. New target price is 16% above last closing price of JP¥5,077. Stock is up 54% over the past year. The company is forecast to post earnings per share of JP¥297 for next year compared to JP¥276 last year. Reported Earnings • May 14
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥276 (up from JP¥64.59 in FY 2025). Revenue: JP¥571.5b (up 1.8% from FY 2025). Net income: JP¥22.6b (up 314% from FY 2025). Profit margin: 4.0% (up from 1.0% in FY 2025). The increase in margin was primarily driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Announcement • May 13
Morinaga Milk Industry Co., Ltd., Annual General Meeting, Jun 25, 2026 Morinaga Milk Industry Co., Ltd., Annual General Meeting, Jun 25, 2026. Announcement • Apr 23
Morinaga Milk Industry Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Morinaga Milk Industry Co., Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥48.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 59% but the company is paying out more than the cash it is generating. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.0%). Price Target Changed • Feb 26
Price target increased by 17% to JP¥4,550 Up from JP¥3,875, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥4,654. Stock is up 57% over the past year. The company is forecast to post earnings per share of JP¥254 for next year compared to JP¥64.59 last year. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥89.82 (vs JP¥25.44 loss in 3Q 2025) Third quarter 2026 results: EPS: JP¥89.82 (up from JP¥25.44 loss in 3Q 2025). Revenue: JP¥144.5b (up 6.8% from 3Q 2025). Net income: JP¥7.30b (up JP¥9.42b from 3Q 2025). Profit margin: 5.1% (up from net loss in 3Q 2025). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Price Target Changed • Dec 23
Price target increased by 8.4% to JP¥3,867 Up from JP¥3,567, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥3,724. Stock is up 30% over the past year. The company is forecast to post earnings per share of JP¥246 for next year compared to JP¥64.59 last year. Declared Dividend • Dec 06
First half dividend of JP¥48.00 announced Shareholders will receive a dividend of JP¥48.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 2.6%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (72% earnings payout ratio) but not covered by cash flows (389% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 65% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 05
Morinaga Milk Industry Co., Ltd. to Report Q3, 2026 Results on Feb 12, 2026 Morinaga Milk Industry Co., Ltd. announced that they will report Q3, 2026 results on Feb 12, 2026 Reported Earnings • Nov 13
Second quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2026 results: EPS: JP¥121 (up from JP¥51.93 in 2Q 2025). Revenue: JP¥149.7b (flat on 2Q 2025). Net income: JP¥9.94b (up 126% from 2Q 2025). Profit margin: 6.6% (up from 2.9% in 2Q 2025). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates by 36%. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Sep 06
Morinaga Milk Industry Co., Ltd. to Report Q2, 2026 Results on Nov 11, 2025 Morinaga Milk Industry Co., Ltd. announced that they will report Q2, 2026 results on Nov 11, 2025 Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥82.90 (vs JP¥61.53 in 1Q 2025) First quarter 2026 results: EPS: JP¥82.90 (up from JP¥61.53 in 1Q 2025). Revenue: JP¥143.7b (up 2.2% from 1Q 2025). Net income: JP¥6.91b (up 30% from 1Q 2025). Profit margin: 4.8% (up from 3.8% in 1Q 2025). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Board Change • Jul 25
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 6 non-independent directors. Independent External Director Yukiko Takatori was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Declared Dividend • Jul 09
Final dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 2.7%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is not covered by earnings (179% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 98% to bring the payout ratio under control. EPS is expected to grow by 103% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Jul 01
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥64.59 (down from JP¥697 in FY 2024). Revenue: JP¥561.2b (up 2.6% from FY 2024). Net income: JP¥5.46b (down 91% from FY 2024). Profit margin: 1.0% (down from 11% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 60%. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Jun 04
Morinaga Milk Industry Co., Ltd. to Report Q1, 2026 Results on Aug 08, 2025 Morinaga Milk Industry Co., Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 New Risk • May 21
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 139% The company is paying a dividend despite having no free cash flows. Dividend yield: 2.9% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 139% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.0% net profit margin). Announcement • May 14
Morinaga Milk Industry Co., Ltd. (TSE:2264) announces an Equity Buyback for 3,800,000 shares, representing 4.55% for ¥10,000 million. Morinaga Milk Industry Co., Ltd. (TSE:2264) announces a share repurchase program. Under the program, the company will repurchase up to 3,800,000 shares, representing 4.55% of its total shares outstanding (excluding treasury shares), for a total of ¥10,000 million. The purpose of the program is to increase shareholder value over the medium to long term. The repurchased shares will be cancelled. The repurchase program is valid till March 31, 2026. As of April 30, 2025, the company had 83,533,300 shares outstanding (excluding treasury shares) and had 5,511,786 shares in treasury. Reported Earnings • May 14
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥64.59 (down from JP¥697 in FY 2024). Revenue: JP¥561.2b (up 2.6% from FY 2024). Net income: JP¥5.46b (down 91% from FY 2024). Profit margin: 1.0% (down from 11% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 60%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Apr 24
Now 21% undervalued Over the last 90 days, the stock has risen 20% to JP¥3,334. The fair value is estimated to be JP¥4,239, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.3% over the last 3 years. Earnings per share has grown by 4.7%. For the next 3 years, revenue is forecast to grow by 2.2% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Major Estimate Revision • Apr 18
Consensus EPS estimates fall by 25% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥214 to JP¥161. Revenue forecast unchanged from JP¥560.9b at last update. Net income forecast to grow 36% next year vs 6.3% growth forecast for Food industry in Japan. Consensus price target broadly unchanged at JP¥3,335. Share price rose 10% to JP¥3,474 over the past week. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.6%). Announcement • Mar 07
Morinaga Milk Industry Co., Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Morinaga Milk Industry Co., Ltd. announced that they will report fiscal year 2025 results on May 13, 2025 Price Target Changed • Mar 05
Price target decreased by 7.0% to JP¥3,310 Down from JP¥3,560, the current price target is an average from 4 analysts. New target price is 11% above last closing price of JP¥2,975. Stock is down 4.5% over the past year. The company is forecast to post earnings per share of JP¥217 for next year compared to JP¥697 last year. Reported Earnings • Feb 13
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: JP¥60.23 (up from JP¥41.76 in 3Q 2024). Revenue: JP¥140.1b (up 2.5% from 3Q 2024). Net income: JP¥5.03b (up 39% from 3Q 2024). Profit margin: 3.6% (up from 2.7% in 3Q 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 4.7%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 1% per year. Declared Dividend • Dec 06
First half dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 3.1%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (76% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 30
Morinaga Milk Industry Co., Ltd. to Report Q3, 2025 Results on Feb 12, 2025 Morinaga Milk Industry Co., Ltd. announced that they will report Q3, 2025 results on Feb 12, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: JP¥51.93 (down from JP¥70.56 in 2Q 2024). Revenue: JP¥150.0b (up 2.1% from 2Q 2024). Net income: JP¥4.40b (down 30% from 2Q 2024). Profit margin: 2.9% (down from 4.2% in 2Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 39%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Aug 27
Morinaga Milk Industry Co., Ltd. to Report Q2, 2025 Results on Nov 08, 2024 Morinaga Milk Industry Co., Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 12
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: JP¥61.53 (down from JP¥588 in 1Q 2024). Revenue: JP¥140.6b (flat on 1Q 2024). Net income: JP¥5.31b (down 90% from 1Q 2024). Profit margin: 3.8% (down from 38% in 1Q 2024). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 1.6%. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Jun 06
Morinaga Milk Industry Co., Ltd. to Report Q1, 2025 Results on Aug 08, 2024 Morinaga Milk Industry Co., Ltd. announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 18
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥697 (up from JP¥187 in FY 2023). Revenue: JP¥547.1b (up 4.1% from FY 2023). Net income: JP¥61.3b (up 263% from FY 2023). Profit margin: 11% (up from 3.2% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.9%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Morinaga Milk Industry Co., Ltd. (TSE:2264) announces an Equity Buyback for 3,400,000 shares, representing 3.92% for ¥10,000 million. Morinaga Milk Industry Co., Ltd. (TSE:2264) announces a share repurchase program. Under the program, the company will repurchase up to 3,400,000 shares, representing 3.92% of its total shares outstanding (excluding treasury shares), for a total of ¥10,000 million. The purpose of the program is to increase shareholder value over the medium to long term. The repurchased shares will be cancelled. The repurchase program is valid till October 31, 2024. As of April 30, 2024, the company had 86,791,152 shares outstanding (excluding treasury shares) and had 5,186,734 shares in treasury. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 5.9% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.7%). Announcement • Mar 02
Morinaga Milk Industry Co., Ltd. to Report Fiscal Year 2024 Results on May 14, 2024 Morinaga Milk Industry Co., Ltd. announced that they will report fiscal year 2024 results on May 14, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: JP¥41.76. Revenue: JP¥136.7b (up 1.0% from 3Q 2023). Net income: JP¥3.62b (flat on 3Q 2023). Profit margin: 2.7% (in line with 3Q 2023). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Food industry in Japan. Announcement • Nov 26
Morinaga Milk Industry Co., Ltd. to Report Q3, 2024 Results on Feb 09, 2024 Morinaga Milk Industry Co., Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 Announcement • Nov 17
Morinaga Milk Industry Co., Ltd.'s Probiotic Bifidobacterium B-3 Receives Approval of Individual Recognized Registration in South Korea Morinaga Milk Industry Co., Ltd. announced its proprietary probiotic strain Bifidobacterium breve B-3 has received the approval of Individual Recognized Registration in South Korea for its clinically demonstrated efficacy in body fat reduction. On March 7, 2023, the probiotic strain B. breve B-3 received the approval of Individual Recognized Registration (No. 2023-2) by the Minister of Food and Drug Safety of South Korea. The probiotic strain meets the higher standards of safety, functionality, and regulatory compliance and can be used as a functional ingredient for body fat reduction at a dosage of 5 billion CFU/day in South Korea. Bifidobacterium breve B-3 is a unique Human-Residential Bifidobacteria (HRB) probiotic strain developed by focusing on the relationship between gut microbiota and metabolic syndrome. B. breve B-3 possesses an attractive effect in maintaining a healthy body weight and ultimately improving one's lifestyle. Backed by clinical evidence, B. breve B-3 shows great promise in aiding body fat reduction. South Korea has made impressive progress over the years in terms of introducing policies, institutions, and tools to assure high-quality regulation. Functional ingredients or elements need to obtain a notification by the Minister of Food and Drug Safety or an Individual Recognized registration approval before they can be incorporated into Health Functional Foods with a claim that bring useful health effects for the human body. In order to obtain individual recognition as a functional ingredient, the data submitted to the Minister of Food and Drug Safety by the business operator will be reviewed based on the standards and specifications, safety and functionality assessment standards and will be recognized as a functional ingredient under consultation with the 'Health Functional Food Deliberation Committee.' The approval of the probiotic strain B. breve B-3 signifies Morinaga Milk's commitment to developing human-residential bifidobacteria (HRB) probiotic strains backed by solid scientific and clinical research. Morinaga Milk will continue to stay at the forefront of the probiotic revolution, pushing boundaries to create even more solutions to improve the health of people everywhere. The efficacy of B. breve B-3 on body fat reduction and metabolic health has been further confirmed in a recent clinical study conducted in South Korea. The double-blind, randomized clinical trial, published in the peer-reviewed journal Nutrients in December 2022, was conducted with 83 participants (42 participants in the B. breve B-3 group and 41 participants in the placebo group) over 12 weeks. The results showed a significant reduction in body weight, body fat, waist circumference, and hip circumference in the B. breve B-3 group than in the placebo group. B. breve B-3 at a dosage of 5 billion CFU/day was reported to be safe and effective for reducing body fat. The study serves as yet another example of the Morinaga team's commitment to uncovering the potential of probiotics in the battle against obesity. The company will continue to strive on the research front to open up new possibilities for people looking to improve their health. Under the Morinaga Milk Group's 10-Year Vision, the company aims to achieve an overseas sales ratio of 15% or more by the fiscal year ending March 2029. The company will continue its effort in developing and providing effective HRB probiotics with a higher level of safety and quality and aim to strengthen its probiotic sales in the global marketplace to help achieve the goal. Reported Earnings • Nov 10
Second quarter 2024 earnings: EPS exceeds analyst expectations Second quarter 2024 results: EPS: JP¥141 (up from JP¥122 in 2Q 2023). Revenue: JP¥146.8b (up 5.1% from 2Q 2023). Net income: JP¥6.23b (up 13% from 2Q 2023). Profit margin: 4.2% (up from 4.0% in 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 38%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Sep 08
Morinaga Milk Industry Co., Ltd.'s Probiotic Bifidobacterium Longum BB536 Receives ANVISA Approval with Gut Health Functional Claim in Brazil Morinaga Milk Industry Co., Ltd. announced that its proprietary probiotic strain Bifidobacterium longum subsp. longum BB536 (hereafter referred to as Bifidobacteriumlongum BB536) has obtained approval from the Brazilian Health Regulatory Agency (Agencia Nacional de Vigilancia Sanitaria, ANVISA). This approval, granted on July 27, 2023, allows for the utilization of Bifidob bacterium longum BB536 in dietary supplements and conventional food products sold in Brazil. The strain has also been registered in ANVISA's list of approved products. Bifidobacterium Longum BB536, a clinically effective and well-established multifunctional probiotic strain, has a history of over 50 years of human use, supported by more than 240 scientific studies as of March 2023. Bifidobacteria longum BB536 strain has been recognized globally as a leading functional probiotic ingredient, holding Generally Recognized as Safe (GRAS) status in the U.S. for use in conventional foods and infant formula. It has also been approved as a "New Food Ingredient" in China for use in infant and toddler foods under the age of three. This approval aligns with the company's commitment to expanding its presence in international markets, including strengthening partnerships with major infant formula manufacturers and sales for dietary supplements all over the world. The Brazilian probiotic supplement market is growing rapidly, with a compound annual growth rate of approximately 9% from 2013 to 2022, and the market size has more than doubled to approximately USD 200 million. Morinaga Milk anticipates a promising future in the Brazilian market. Announcement • Aug 27
Morinaga Milk Industry Co., Ltd. to Report Q2, 2024 Results on Nov 09, 2023 Morinaga Milk Industry Co., Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 New Risk • Aug 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 229% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 33% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 10
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: JP¥1,177 (up from JP¥65.08 in 1Q 2023). Revenue: JP¥139.7b (up 7.2% from 1Q 2023). Net income: JP¥52.9b (up JP¥50.0b from 1Q 2023). Profit margin: 38% (up from 2.3% in 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.1%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥5,690, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 18x in the Food industry in Japan. Total returns to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥10,255 per share. Announcement • May 28
Morinaga Milk Industry Co., Ltd. to Report Q1, 2024 Results on Aug 09, 2023 Morinaga Milk Industry Co., Ltd. announced that they will report Q1, 2024 results on Aug 09, 2023 Reported Earnings • May 17
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥373 (down from JP¥687 in FY 2022). Revenue: JP¥525.6b (up 4.4% from FY 2022). Net income: JP¥16.9b (down 50% from FY 2022). Profit margin: 3.2% (down from 6.7% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.0%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 6% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥90.00 per share at 1.9% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 15% and the cash payout ratio is 76%. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 12
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: JP¥80.68 (down from JP¥82.76 in 3Q 2022). Revenue: JP¥135.3b (up 6.4% from 3Q 2022). Net income: JP¥3.65b (down 11% from 3Q 2022). Profit margin: 2.7% (down from 3.2% in 3Q 2022). Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Feb 11
Morinaga Milk Industry Co., Ltd. (TSE:2264) entered into an agreement to acquire 20% stake in Morinaga Le May Vietnam Joint Stock Company from Le Van May and Do Thanh Tuan for VND 98 billion. Morinaga Milk Industry Co., Ltd. (TSE:2264) entered into an agreement to acquire 20% stake in Morinaga Le May Vietnam Joint Stock Company from Le Van May and Do Thanh Tuan for VND 98 billion on February 10, 2023. Morinaga Milk Industry will acquire 80,000 shares in Morinaga Le May Vietnam. The board of directors of Morinaga Milk Industry approved the transaction. The transaction is expected to complete by May 31, 2023. Announcement • Jan 20
Morinaga Milk Industry Co., Ltd. (TSE:2264) completed the acquisition of additional 33.27% stake in Nutrico Morinaga (Private) Limited from ICI Pakistan Limited (KASE:ICI) and 11 minority shareholders. Morinaga Milk Industry Co., Ltd. (TSE:2264) agreed to acquire an additional 33.27% stake in Nutrico Morinaga (Private) Limited from ICI Pakistan Limited (KASE:ICI) and 11 minority shareholders for ¥7.69 billion on July 14, 2022. The contract is expected to be signed on July 15, 2022. The date of execution of Share Purchase Agreement is expected to be August 26, 2022.
Morinaga Milk Industry Co., Ltd. (TSE:2264) completed the acquisition of additional 33.27% stake in Nutrico Morinaga (Private) Limited from ICI Pakistan Limited (KASE:ICI) and 11 minority shareholders on January 18, 2023. Announcement • Dec 02
Morinaga Milk Industry Co., Ltd. to Report Q3, 2023 Results on Feb 10, 2023 Morinaga Milk Industry Co., Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: JP¥122 (down from JP¥161 in 2Q 2022). Revenue: JP¥139.7b (up 4.9% from 2Q 2022). Net income: JP¥5.54b (down 31% from 2Q 2022). Profit margin: 4.0% (down from 6.0% in 2Q 2022). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent External Director Hiroshi Nakamura was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 12
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: JP¥122 (down from JP¥161 in 2Q 2022). Revenue: JP¥139.7b (up 4.9% from 2Q 2022). Net income: JP¥5.54b (down 31% from 2Q 2022). Profit margin: 4.0% (down from 6.0% in 2Q 2022). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Food industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Price Target Changed • Sep 20
Price target decreased to JP¥4,798 Down from JP¥5,198, the current price target is an average from 6 analysts. New target price is 16% above last closing price of JP¥4,120. Stock is down 41% over the past year. The company is forecast to post earnings per share of JP¥315 for next year compared to JP¥687 last year. Price Target Changed • Sep 03
Price target decreased to JP¥5,198 Down from JP¥5,708, the current price target is an average from 6 analysts. New target price is 24% above last closing price of JP¥4,180. Stock is down 41% over the past year. The company is forecast to post earnings per share of JP¥338 for next year compared to JP¥687 last year. 
