Meiji Holdings Co., Ltd. (TSE: 2269), Japan's largest dairy and confectionery group and the parent of Meiji Seika Pharma, reported consolidated results for the first quarter of the fiscal year ending March 2027 — the three months from April 1 to June 30, 2026 — under Japanese GAAP. Net sales rose 5.8% to ¥289,401 million, operating profit climbed 27.7% to ¥22,673 million, ordinary profit advanced 37.8% to ¥24,790 million, and net profit attributable to owners of the parent jumped 51.3% to ¥15,271 million. Basic earnings per share were ¥56.33, up from ¥37.27. Comprehensive income nearly doubled, rising 87.3% to ¥14,894 million. The quarter marks a clean reversal of the prior-year period, when sales fell 1.8% and every profit line contracted by double digits.
Pharmaceuticals do the heavy lifting
The pharmaceutical segment was the standout. Net sales rose 13.6% to ¥55.6 billion and operating profit surged 76.3% to ¥8.4 billion — a swing that on its own accounts for most of the group's operating-profit growth. Domestic pharmaceutical sales rose 15.3% to ¥31.7 billion with operating profit up 38.3% to ¥6.0 billion, helped by stable supply of injectable antibacterials and vaccines and by expanded sales of plasma-derived products after manufacturing and marketing for that line were unified within the group. Overseas sales rose 11.7% to ¥17.0 billion, with operating profit up 26.6% to ¥2.8 billion. The vaccines and animal-health business grew sales 10.6% to ¥6.8 billion and narrowed its operating loss sharply, to ¥0.4 billion from ¥1.8 billion a year earlier. Meiji Seika Pharma is also working to maximise the value of Rezurock, a recently launched selective ROCK2 inhibitor, and to build the insomnia treatment Vorzy, which it co-markets with Taisho Pharmaceutical.
Food: nutrition and food solutions offset a cacao squeeze
The food segment lifted net sales 4.1% to ¥233.9 billion and operating profit 10.9% to ¥15.1 billion, but the composition was uneven. Nutrition was the strongest performer, with sales up 6.3% to ¥30.9 billion and operating profit up 20.9% to ¥3.7 billion; food solutions grew sales 2.6% to ¥49.9 billion and operating profit 15.4% to ¥2.0 billion. The daily business — probiotics, yogurt, milk and overseas operations — edged sales up 0.8% to ¥67.5 billion with operating profit 6.2% higher at ¥6.4 billion, while the other category grew sales 1.4% to ¥41.7 billion and swung to a ¥0.8 billion operating profit from a ¥0.4 billion loss.
Cacao was the exception. The chocolate business grew sales 12.7% to ¥43.6 billion — the fastest top-line growth of any unit in the group — yet operating profit fell 34.2% to ¥2.0 billion as raw-material cost inflation outran the benefit of higher volumes and pricing. Management said it continued to strengthen the value proposition of existing domestic products and push new-product sales while absorbing input-cost pressure through cost reductions and production efficiency. Overseas, the group expanded exposure to the Meiji brand in the United States and pursued fundamental structural reform in China to restore profitability there.
Below the operating line
Non-operating income nearly doubled, to ¥2.9 billion from ¥1.5 billion, on ¥0.8 billion more in equity-method investment gains and ¥0.2 billion more in foreign-exchange gains, while non-operating expenses fell to ¥0.8 billion from ¥1.3 billion. That combination is why ordinary profit grew faster (+37.8%) than operating profit (+27.7%). Extraordinary items moved the other way: gains slipped to ¥1.3 billion from ¥1.9 billion as fixed-asset sale gains fell ¥1.2 billion — partly offset by ¥0.3 billion more subsidy income — while extraordinary losses rose to ¥2.1 billion from ¥0.7 billion on ¥1.1 billion of additional impairment and ¥0.3 billion of fixed-asset reduction losses. A lighter tax charge of ¥7.7 billion, against ¥8.3 billion a year earlier, more than absorbed the difference and pushed the net-profit gain past 50%.
Balance sheet and dividend
Total assets stood at ¥1,285,794 million at the end of June, up from ¥1,261,759 million at the fiscal year-end, while net assets were essentially flat at ¥817,530 million and shareholders' equity was ¥772,330 million. The equity ratio eased to 60.1% from 61.2% on the larger asset base, and book value per share was ¥2,848.90. Meiji paid ¥105.00 per share for FY3/2026 (¥52.50 interim plus ¥52.50 year-end) and continues to forecast ¥110.00 for FY3/2027, split evenly between a ¥55.00 interim and a ¥55.00 year-end payment — unchanged from the previous announcement.
Guidance left unchanged
Meiji, which is operating under the 2026 Medium-Term Business Plan launched in April 2024, made no revision to its outlook despite the strong start. For the first half it still guides net sales of ¥594,500 million (+3.4%), operating profit of ¥45,000 million (+9.9%), ordinary profit of ¥46,000 million (+10.5%) and net profit of ¥27,500 million (+28.0%), for EPS of ¥101.46. For the full year it maintains net sales of ¥1,212,000 million (+3.3%), operating profit of ¥100,000 million (+7.2%), ordinary profit of ¥101,000 million (+4.6%) and net profit of ¥62,500 million (+78.2%), with EPS of ¥230.61. The company flagged an unsettled external backdrop — trade policy, currency swings and Middle East geopolitical risk — and a domestic market where improving employment and incomes are being offset by price inflation that keeps consumers thrift-minded.
| Metric | Q1 FY3/27 | Q1 FY3/26 | YoY |
|---|---|---|---|
| Net sales (¥ billion) | 289.40 | 273.57 | +5.8% |
| Operating profit (¥ billion) | 22.67 | 17.75 | +27.7% |
| Ordinary profit (¥ billion) | 24.79 | 17.98 | +37.8% |
| Net profit attrib. to owners (¥ billion) | 15.27 | 10.10 | +51.3% |
| Basic EPS (¥) | 56.33 | 37.27 | +51.1% |
| Food segment — net sales (¥ billion) | 233.9 | 224.8 | +4.1% |
| Food segment — operating profit (¥ billion) | 15.1 | 13.6 | +10.9% |
| Cacao — operating profit (¥ billion) | 2.0 | 3.1 | -34.2% |
| Pharmaceutical segment — net sales (¥ billion) | 55.6 | 49.0 | +13.6% |
| Pharmaceutical segment — operating profit (¥ billion) | 8.4 | 4.7 | +76.3% |
| FY3/27 net sales guidance (¥ billion) | 1,212.0 | 1,173.3 | +3.3% |
| FY3/27 operating profit guidance (¥ billion) | 100.0 | 93.3 | +7.2% |
| FY3/27 net profit guidance (¥ billion) | 62.5 | 35.1 | +78.2% |
| Annual dividend (¥) | 110.00 | 105.00 | +4.8% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.