Morinaga & Co.,Ltd.
2201・Prime Market・Foods
Business
The Morinaga & Co. Group is a comprehensive food group comprising Morinaga & Co., Ltd. and 15 consolidated subsidiaries. The group operates confectionery and food products (Hi-Chew, Chocoball, Carré de Chocolat, etc.), frozen desserts (Chocomonaka Jumbo, The Crepe, etc.), jelly drinks (in jelly), and mail-order products (Oishii Collagen Drink) domestically, while also cultivating the HI-CHEW brand in the United States and accelerating global expansion into China, Taiwan, Southeast Asia, and Europe. In April 2026, the company made MyMo Holdco, Inc., the largest mochi ice cream manufacturer in the United States, a subsidiary, thereby entering the U.S. frozen dessert market. The company is a TSE Prime-listed company with net sales of ¥236,672 million (FY2026, ending March 2026).
Business Model
In Japan, the company manufactures and sells its products in-house across four businesses—confectionery/foods, frozen desserts, the in business, and mail order—managing profitability through price revisions and cost reductions. Overseas, it expands the HI-CHEW brand primarily in the US, China, and Taiwan, building a value chain through local production (Morinaga America Foods, Inc.). In the mail order business, the company cultivates regular customers through 1-to-1 marketing that leverages customer data. Complementary segments such as food wholesale and real estate provide a stable stream of cash.
Company Strengths
In FY2026 (ending March 2026), the company implemented multiple price revisions in the confectionery and food business, achieving operating profit of ¥8,163 million, up 108.4% year on year. The frozen dessert business also maintained solid sales even after the September price revision, with operating profit up 16.5% year on year to ¥4,963 million. Even amid a cost-inflation environment, the company has steadily improved profitability through a combination of revenue growth, price revisions, and cost reductions.
Several core brands achieved double-digit year-on-year growth, including Morinaga Ramune (126%), Carré de Chocolat (113%), Choco Ball (111%), The Crepe (121%), and Ice Box (113%). Brand recognition built up since the company's founding in 1899, together with proprietary manufacturing technologies (its three core technologies in soft candy, frozen confections, and jelly drinks), make it difficult for competitors to imitate.
In FY2026 (ending March 2026), the equity ratio stood at 62.8% and ROE at 13.0% (exceeding the estimated cost of equity of 7-8%). The interest coverage ratio was a high 203.8x, indicating strong financial safety, and the company maintains a JCR long-term rating of
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), net sales reached ¥236,672 million (up 3.4% year on year), operating profit came to ¥22,394 million (up 5.3%), and profit attributable to owners of parent was ¥17,765 million (up 0.3%), marking the fifth consecutive year of sales growth and a record-high top line. Gross margin improved to 40.1% (from 39.3% in the previous fiscal year), as price revision effects absorbed raw material cost increases (an external factor). Meanwhile, the U.S. business deteriorated sharply, with operating profit down 57.3% year on year to ¥1,310 million due to tariff policy, intensifying competition, and higher promotional expenses. For FY2027 (ending March 2027), net sales are forecast at ¥257,000 million (up 8.6%), but profit attributable to owners of parent is projected to decline 7.1% to ¥16,500 million, reflecting MyMo integration costs, goodwill amortization, and increased investment in DX and human capital.
Growth Strategy
Aiming for transformation into a global company by 2030 through ROIC management, concentrated investment in priority areas, and M&A
Effective April 1, 2026, the company acquired the largest U.S. mochi ice cream manufacturer as a subsidiary at an acquisition cost of ¥20,849 million. The plan is to internalize the U.S. frozen confectionery manufacturing and sales value chain, expanding U.S. business sales to ¥32,800 million (up 62.3% year on year) in FY2027 (ending March 2027). Borrowed ¥23,937 million from MUFG Bank (scheduled for repayment within one year).
A second U.S. plant is under construction to meet growing U.S. demand for products such as HI-CHEW. Capital expenditure for FY2027 (ending March 2027) is planned at ¥27,120 million (a substantial increase from ¥5,936 million in the previous fiscal year), with depreciation expenses related to this plant already incorporated into the FY2027 (ending March 2027) forecast. Construction in progress surged to ¥18,790 million at the end of FY2026 (ending March 2026) (from ¥3,957 million in the previous fiscal year).
The frozen confectionery business is planned to achieve sales of ¥56,200 million (up 5.0% year on year) and operating profit of ¥5,400 million (up 10.7% year on year) in FY2027 (ending March 2027). The in business aims for a recovery to ¥32,400 million (up 8.2% year on year). The mail-order sales business aims to expand its customer base while continuing to improve advertising investment efficiency. The plan is to absorb cost increases through the effect of price revisions (+¥4.69 billion).
The policy is to halve cross-held shares by the end of the 2024 Medium-Term Management Plan period compared to the end of fiscal 2024. Gains on sales of investment securities of ¥2,923 million were recorded in FY2026 (ending March 2026). The company is concurrently pursuing WACC reduction through the use of financial leverage and optimization of the business portfolio through ROIC management.
Last updated: July 19, 2026