Cheese grows, beverages squeezed
Megmilk Snow Brand Co., Ltd. (TSE: 2270) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 10, 2026. Dairy Products sales rose 1.0% to ¥130,987 million and operating profit fell 2.5% to ¥3,921 million: butter held its volume and cheese grew, led by promotions for its Sakeru Cheese string cheese, while fats and oils declined. Beverages & Desserts sales edged up 0.1% to ¥134,248 million but operating profit fell 55.4% to ¥1,112 million; the MBP Drink line grew strongly and family-size yogurts sold well, but some fruit drinks were discontinued and poor weather cut volumes. Feedstuffs & Seeds sales rose 8.2% to ¥27,237 million and profit 7.8% to ¥1,063 million.
Ordinary profit fell 17.4% to ¥8,753 million. Net profit rose mainly because of a ¥17,597 million gain on sales of fixed assets, recorded in connection with the relocation of the head office. The company is in the second year of its Next Design 2030 management plan. The equity ratio rose to 57.6%.
Forecast lowered, dividend held
Citing continued cost increases from the Middle East situation and a weaker domestic market that will keep volumes below plan, Megmilk Snow Brand cut its FY3/2027 forecast to net sales of ¥630,000 million (+2.3%), operating profit of ¥18,000 million (-1.5%), ordinary profit of ¥18,800 million (-8.2%) and net profit attributable to owners of ¥23,200 million (-29.5%), from ¥645,000 million, ¥21,000 million, ¥21,800 million and ¥24,500 million in May. The year-end dividend forecast of ¥100 is unchanged.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 312,203 | 309,229 | +1.0% |
| Operating profit (¥ million) | 8,037 | 9,172 | -12.4% |
| Ordinary profit (¥ million) | 8,753 | 10,592 | -17.4% |
| Net profit attrib. to owners of parent (¥ million) | 17,497 | 11,285 | +55.0% |
| Comprehensive income (¥ million) | 17,792 | 7,805 | +127.9% |
| EPS (¥) | 291.20 | 176.19 | +65.3% |
| Dairy Products — revenue (¥ million) | 130,987 | — | +1.0% |
| Dairy Products — segment profit (¥ million) | 3,921 | — | -2.5% |
| Beverages & Desserts — revenue (¥ million) | 134,248 | — | +0.1% |
| Beverages & Desserts — segment profit (¥ million) | 1,112 | — | -55.4% |
| Feedstuffs & Seeds — revenue (¥ million) | 27,237 | — | +8.2% |
| Feedstuffs & Seeds — segment profit (¥ million) | 1,063 | — | +7.8% |
| Total assets (¥ million) | 425,320 | 426,820 | -0.4% |
| Net assets (¥ million) | 248,037 | 240,741 | +3.0% |
| Equity ratio | 57.6% | 55.7% | +1.9 pt |
| FY3/2027 guidance — revenue (¥ million) | 630,000 | — | +2.3% |
| FY3/2027 guidance — operating profit (¥ million) | 18,000 | — | -1.5% |
| FY3/2027 guidance — ordinary profit (¥ million) | 18,800 | — | -8.2% |
| FY3/2027 guidance — net profit (¥ million) | 23,200 | — | -29.5% |
| Annual dividend per share (¥) | 100.00 | 100.00 | unchanged |
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.