MEIJI Holdings Co.,Ltd.
2269・Prime Market・Foods
Business
Meiji Holdings Co., Ltd. is a pure holding company overseeing 67 consolidated subsidiaries and 7 affiliated companies as a "Food and Health" corporate group. In the Food segment, centered on Meiji Co., Ltd., the group offers a wide range of products both domestically and internationally, including yogurt, milk, chocolate, gummies, infant formula, sports nutrition, and commercial-use dairy products. In the Pharmaceuticals segment, centered on Meiji Seika Pharma Co., Ltd. and KM Biologics Co., Ltd., the group handles infectious disease treatments, generic drugs, vaccines, and veterinary medicines. Net sales were ¥1,173,688 million (FY2026, ending March 2026), with Food accounting for approximately 80% and Pharmaceuticals approximately 20%. The group serves a broad customer base ranging from domestic general consumers to B2B business partners and medical institutions.
Business Model
In the Foods segment, the company is vertically integrated from manufacturing at its own plants through to sales via retail, home-delivery, and food-service channels, securing profitability through price revisions and the introduction of value-added products. In the Pharmaceuticals segment, in addition to domestic sales of infectious disease treatments, vaccines, and generic drugs, the company builds up overseas revenue through CMO/CDMO operations in India, Thailand, and elsewhere, as well as royalty income. Across both segments, the company invests ¥37,042 million in research and development, maintaining a long-term competitive advantage by continuously creating functional foods and new drug pipelines.
Company Strengths
The company holds multiple category-leading brands including "Meiji Probio Yogurt R-1," "Meiji Bulgaria Yogurt," "Meiji Oishii Gyunyu" (Meiji Delicious Milk), "Kinoko no Yama," and "Kaju Gummy." These form a stable domestic customer base supporting food segment sales of ¥942,879 million in FY2026 (ending March 2026), maintaining sales volumes of key products even while implementing price revisions.
Meiji Seika Pharma has developed and launched the selective ROCK2 inhibitor "Rezurock Tablets" (sales up 214.5% year-on-year in FY2026, ending March 2026), the next-generation mRNA vaccine "CostaiVe," and the new drug-resistance countermeasure "OP0595 (nacubactam)." In December 2025, the company began domestic production of antibacterial active pharmaceutical ingredients at its Gifu plant, establishing a manufacturing base that addresses economic security considerations.
The company has a structure in which two segments with different business cycles complement each other's earnings: food segment operating profit of ¥68,746 million and pharmaceutical segment operating profit of ¥30,463 million (FY2026, ending March 2026). The pharmaceutical segment's operating margin of 13.1% exceeds that of the food segment, and the return to profitability in the vaccine and animal health businesses along with a significant profit increase in overseas operations contributed to a 10.2% increase in consolidated operating profit.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), net sales reached ¥1,173,688 million (up 1.7% year on year) and operating profit was ¥93,307 million (up 10.2%), achieving higher sales and profit. However, extraordinary losses surged to ¥42,688 million (versus ¥6,600 million in the prior period), including impairment losses of ¥24,488 million (mainly related to the China food business), causing profit attributable to owners of parent to decline sharply to ¥35,076 million (down 31.0%). As an external factor, higher raw material costs for cacao and domestic raw milk, among others, weighed on results (food segment: approx. -¥23.0 billion), while this was partially absorbed by the effect of price revisions (+¥29.0 billion). ROE fell to 4.6% (from 6.8% in the prior period), a substantial shortfall versus the 2026 medium-term plan target of 9.5% or higher. For FY2027 (ending March 2027), operating profit is forecast at ¥100,000 million (up 7.2% year on year) and net profit at ¥62,500 million (up 78.2%).
Growth Strategy
The company aims to restore profitability through price revisions, value-addition, overseas expansion, and pharmaceutical pipeline enhancement.
Agile price revisions have been implemented while closely monitoring geopolitical risks and foreign exchange fluctuations both domestically and internationally. The effects of price revisions have become evident across the Dairy, Cacao, and Food Solutions businesses, resulting in food segment operating profit of ¥68,746 million (up 6.4% year on year) for FY2026 (ending March 2026). For FY2027 (ending March 2027), the company plans ¥74,000 million (up 7.6% year on year).
In the US, the company is leveraging expanded production lines to broaden the sales channels for chocolate snacks such as "Hello Panda." In Asia, chocolate business expansion is being strengthened, including exports outside the region. Overseas food sales reached ¥96,500 million (up 8.0% year on year) in FY2026 (ending March 2026), and the plan for FY2027 (ending March 2027) is ¥108,700 million (up 12.6% year on year).
In the China food business, an impairment loss of ¥22,522 million was recorded in FY2026 (ending March 2026); nevertheless, cost improvements under the revival plan have reduced the losses at Dairy and overseas Food Solutions operations. While focusing on the confectionery business, the company continues measures aimed at achieving overall profitability in the China business, targeting a return to profit during FY2027 (ending March 2027).
The company is promoting value maximization of Rezurock Tablets (a selective ROCK2 inhibitor), expanding adoption of plasma-derived products, and strengthening domestic production capacity for antibacterial drug active pharmaceutical ingredients. Southeast Asian expansion is being accelerated through Meiji Pharma Asia, based in Singapore. Pharmaceuticals segment operating profit reached ¥30,463 million (up 23.1% year on year) in FY2026 (ending March 2026), and the plan for FY2027 (ending March 2027) is ¥33,000 million (up 8.4% year on year).
The company is advancing construction of dairy production plants, including a new plant in the Konsen area of Hokkaido and a new plant in Kanagawa. Capital expenditure surged to ¥103,700 million in FY2026 (ending March 2026) (up from ¥56,600 million in the prior year). A high level of investment—¥129,000 million—is also planned for FY2027 (ending March 2027). While this will pressure free cash flow in the short term, it aims to strengthen the supply structure and enhance competitiveness over the medium to long term.
Under "Meiji ROESG," the top-priority goal of the 2026 mid-term management plan, the company is working to improve capital efficiency using ROIC. ROIC improved to 7.8% in FY2026 (ending March 2026) (up from 6.8% in the prior year), but ROE stood at 4.6%, well below the target of 9.5% or higher. For FY2027 (ending March 2027), the company plans ROE of 8.0% and ROIC of 8.0%, anticipating improvement driven by a sharp recovery in net income (¥62,500 million).
Last updated: July 19, 2026