Morinaga & Co.,Ltd.

Business Details

Comprised of the Confectionery and Foods business (Hi-Chew, Chocoball, Morinaga Biscuits, etc.), the Frozen Desserts business (Vanilla Monaka Jumbo, chocolate-coated ice cream bars, etc.), the in business (in Jelly, in Bar), the mail-order business (Oishii Collagen Drink), operating subsidiaries (Anthelier Co., Ltd., etc.), the U.S. business (HI-CHEW), and China/Taiwan/exports, etc. This is the company's core segment, providing confectionery, food, and health food products to consumers domestically and internationally, and accounts for approximately 95% of consolidated net sales.

Recent Overview

Confectionery and Foods and Frozen Desserts posted substantial profit growth from price revision effects, while the U.S. business saw a sharp profit decline due to intensifying competition and tariff impacts

In the Food Manufacturing segment for FY2026 (ending March 2026), net sales were ¥225,167 million (up 3.5% year on year) and segment profit was ¥22,327 million (up 12.4% year on year). In the Confectionery and Foods business, the effects of price revisions and cost reductions became apparent, and operating profit expanded sharply to ¥8,163 million, up 108.4% year on year. The Frozen Desserts business also posted a 16.5% increase in profit on the strength of core products. On the other hand, the U.S. business deteriorated substantially, with operating profit falling 57.3% to ¥1,310 million, due to a combination of sluggish consumption from inflation, intensifying competition with major confectionery makers, the impact of U.S. tariff policy, and increased promotional expenses. The in business also saw profit decline 19.3% due to weak performance of its core products. As a subsequent event, on April 1, 2026, the company made MyMo Holdco, Inc. (the largest mochi ice cream manufacturer in the United States) a subsidiary at an acquisition cost of ¥20,849 million, aiming to acquire a value chain in the U.S. frozen desserts business.

Key Products

Growth Drivers

• Penetration of the effects of multiple price revisions in the Confectionery and Foods business, and strong sales of core brands (Morinaga Ramune up 126% year on year, Carre de Chocolat up 113%, Chocoball up 111%, Morinaga Biscuits up 101%)
• Continued strong performance of core products in the Frozen Desserts business (The Crepe up 121% year on year, Ice Box up 113%, Jumbo group up 105%, chocolate-coated ice cream bars up 104%) and price revision effects
• Acquisition of MyMo Holdco, Inc. (the largest mochi ice cream manufacturer in the United States) as a subsidiary, gaining a U.S. frozen desserts value chain and expanding the overseas sales ratio (forecast at 17.4% in FY2027 (ending March 2027))
• Expansion of the HI-CHEW global brand in China, Taiwan, exports, etc. (up 15.7% year on year) and accelerated expansion into Southeast Asia and Europe
• Continued strong performance of Carre de Chocolat's "Cacao 70" amid growing demand for high-cacao health products, and growth of Morinaga Cocoa (up 119% year on year) as a health brand
• Improved profitability in the mail-order business through more efficient advertising investment (operating profit up 49.4% year on year)

Risks

• Soaring raw material prices such as cacao and sugar (projected to be a profit-reducing factor of approximately ¥15,900 million from raw material-related costs in the FY2027 (ending March 2027) forecast) and increased logistics costs (a profit-reducing factor of approximately ¥5,600 million)
• Further intensification of the competitive environment in the U.S. business (entry of major confectionery makers into the candy category) and the continued impact of U.S. tariff policy (U.S. business operating profit forecast to decline 69.5% year on year to approximately ¥400 million in the FY2027 (ending March 2027) forecast)
• Uncertainty regarding goodwill and purchase price allocation associated with the acquisition of MyMo Holdco, Inc. (acquisition cost of ¥20,849 million, goodwill amount not yet finalized) and integration risk
• Declining demand in the in business and mail-order business due to consumers' growing frugality amid rising prices (in business down 4.4% year on year, mail-order business down 3.9% year on year)
• Increased financial burden and higher depreciation expenses (forecast at ¥12,186 million in FY2027 (ending March 2027)) from large-scale capital investment, including construction of a second U.S. plant (forecast capital expenditure of ¥27,120 million in FY2027 (ending March 2027))
• Risk of delayed market penetration and declining sales volume following price revisions, and risk of consumer attrition should further price revisions be implemented