Ezaki Glico Co., Ltd.

Business Details

This segment manufactures and sells health-related products (functional beverages such as Almond Milk), retort-pouch food products, and ice cream (Papico, etc.). Manufacturing is handled by Glico Manufacturing Japan Co., Ltd. Under the medium-term management plan, "providing health value and building a customer-centric value chain" is positioned as one of the strategic pillars, with continued focus on the pre-symptomatic/preventive health area. Net sales account for approximately 10% of consolidated total.

Recent Overview

Sales increased driven by Almond Effect, while operating loss remained roughly flat year on year

In Q1 FY2026 (ending December 2026) (January to March), net sales were ¥8,887 million, up 6.1% from the same period of the prior year (¥8,378 million). The health category (¥3,593 million, up 29.0% year on year) posted a significant increase driven by strong sales of Almond Effect and other products, while the ice cream category (¥2,506 million, down 4.5% year on year) and other (¥2,787 million, down 6.1% year on year) fell below the same period of the prior year. On the profit side, despite a rise in the cost-of-sales ratio, a decrease in selling expenses and other factors limited the operating loss to ¥1,290 million, only a ¥3 million improvement from the same period of the prior year (¥1,293 million), with the operating loss continuing.

Key Products

Growth Drivers

• Strong performance in health category products such as Almond Effect (Q1 FY2026, ending December 2026: up 29.0% year on year)
• Focus on providing health value and pre-symptomatic/preventive health areas (a key strategy of the medium-term management plan)
• Continued recovery trend in sales of Almond Effect and other products as a rebound from the chilled product shipment suspension (2024)
• Planned sales expansion in the health category toward FY2026 (ending December 2026) (full-year forecast of ¥51,300 million)

Risks

• Downward pressure on sales due to sluggish demand for ice cream products (Papico, etc.) (Q1 FY2026, ending December 2026: down 4.5% year on year)
• Deterioration in profitability due to a rising cost-of-sales ratio (risk of a third consecutive year of operating losses)
• Risks related to the quality and supply stability of chilled products (concern over recurrence of the prior period's shipment suspension)
• Increased manufacturing costs due to inflation and rising raw material prices
• Profit pressure from increased SG&A expenses such as sales promotion costs and salaries and allowances