MEIJI Holdings Co.,Ltd.
2269・Prime Market・Foods
Food
Meiji Holdings' core segment. Dairy products, confectionery, and nutritional foods deployed domestically and internationally
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (FY2026 full year, including intersegment) | ¥942,879 million | ¥925,554 million | ↑ |
| External customer net sales (FY2026 full year) | ¥941,470 million | ¥924,444 million | ↑ |
| Operating profit (FY2026 full year) | ¥68,746 million | ¥64,629 million | ↑ |
| Operating margin (FY2026 full year) | 7.3% | 7.0% | ↑ |
| Segment assets (as of March 2026) | ¥870,537 million | ¥835,322 million | ↑ |
| Capital expenditures (FY2026 full year) | ¥52,900 million | ¥40,600 million | ↑ |
| Depreciation (FY2026 full year) | ¥44,000 million | ¥45,200 million | ↓ |
| Impairment loss (FY2026 full year) | ¥22,522 million | No material impairment loss | ↓ |
| Overseas net sales (Food segment, FY2026 full year) | ¥96,500 million | ¥89,300 million | ↑ |
| Full-year planned net sales (FY2027, ending March 2027) | ¥953,900 million | ¥942,879 million | ↑ |
| Full-year planned operating profit (FY2027, ending March 2027) | ¥74,000 million | ¥68,746 million | ↑ |
Business Details
The Food segment, operated primarily by Meiji Co., Ltd., consists of five businesses: Dairy (yogurt, milk), Cacao (chocolate, gummies), Nutrition (infant formula, sports nutrition), Food Solutions (BtoB, cheese, frozen desserts), and Others (dairy raw materials, independent subsidiaries). In addition to domestic consumer products, the segment is expanding its BtoB business and overseas operations (China, US, Asia). It is the core segment, accounting for approximately 80% of consolidated net sales.
Recent Overview
Achieved a 6.4% increase in full-year operating profit driven by the effect of price revisions and increased profit in Dairy and Food Solutions
For FY2026 (ending March 2026) full year, Food segment net sales were ¥942,879 million (up 1.9% year on year), and operating profit was ¥68,746 million (up 6.4%). The increase in net sales (+¥29.0 billion) exceeded the increase in raw material costs (-¥21.8 billion, cacao and domestic raw milk, etc.) and increased expenses (-¥4.1 billion), resulting in higher profit. The Dairy Business achieved a significant increase in operating profit of +22.8% due to the effect of price revisions and reduced manufacturing overhead. The Food Solutions Business also saw profit increase by 18.7%. On the other hand, the Cacao Business (-6.4%) and Nutrition Business (-5.5%) saw profit decline due to increased raw material costs, among other factors. In China, an impairment loss of ¥22,522 million was recorded for the Food segment as a whole, but the loss is trending toward narrowing due to cost improvements from the revival plan. The plan for FY2027 (ending March 2027) targets operating profit of ¥74,000 million (+7.6%).
Key Products
Growth Drivers
- Continuation of the effect of domestic price revisions (contributed to increased profit in Dairy, Cacao, and Food Solutions businesses; Food segment net sales increase of +¥29.0 billion)
- Expansion of the US chocolate snack business (expanded sales channels for "Hello Panda" and others, leveraging enhanced US production lines)
- Strong growth of the domestic BtoB (Food Solutions) business (BtoB cream, cacao, cheese; enhanced proposals of proprietary technology products tailored to customer needs)
- Narrowing of losses through the China revival plan (progress in cost improvement in overseas Dairy and Food Solutions; aiming for profitability of the overall China business in FY2027, ending March 2027)
- Strengthened chocolate deployment, including exports outside the Asia region (Asia region overseas net sales up 6.2% in FY2026, ending March 2026)
- 2026 Medium-Term Management Plan target: Food segment operating profit of ¥83.0 billion (original FY2027, ending March 2027 target), revised plan now at ¥74.0 billion
Risks
- Soaring raw material costs for cacao and domestic raw milk, etc. (Food segment cost variance of -¥21.8 billion for full-year FY2026, ending March 2026; -¥8.9 billion also expected in the FY2027, ending March 2027 plan)
- Declining competitiveness of the Nutrition Business (decreased inbound demand for infant formula, burden of overseas upfront investment; full-year operating profit -5.5%)
- Continued weakness in personal consumption in China and execution risk of the revival plan (impairment loss of ¥22,522 million recorded for the Food segment)
- Foreign exchange fluctuation risk (expanding impact due to rising proportion of overseas net sales, uncertainty over geopolitical risk and trade policy)
- Impact on sales volume from continued frugal consumer sentiment in Japan amid price increases
- Profit pressure in Other Businesses from decreased sales of contract-manufactured products and overseas upfront investment costs (full-year FY2026, ending March 2026 operating profit -47.3%)
- The original 2026 Medium-Term Management Plan target (Food operating profit of ¥83.0 billion) has already been revised downward to ¥74.0 billion, mainly due to soaring and persistently high raw material prices and the slowdown of the Chinese economy
Last updated: June 24, 2026