Ajinomoto Co., Inc.
2802・Prime Market・Foods
Business
The Ajinomoto Group has placed scientific knowledge of amino acids (AminoScience®) at the core of its business since the launch of "Ajinomoto®" in 1909. The company operates three reportable segments—Seasonings and Foods (approximately 59% of net sales), Frozen Foods (approximately 18%), and Healthcare and Others (approximately 22%)—and expands across Asia, Latin America, North America, Europe, Africa, and other regions through 105 consolidated subsidiaries and 15 equity-method affiliates. Its main customers range widely from general consumers to food processing manufacturers, pharmaceutical companies, and semiconductor manufacturers, and with an overseas sales ratio of 63.9%, it is a truly global enterprise.
Business Model
The Seasonings & Foods segment forms a stable earnings base, generating approximately 79% of business profit (before deduction of company-wide expenses), while the Healthcare, etc. segment (ABF™ electronic materials, CDMO, pharmaceutical amino acids) drives growth through high growth and high profitability, creating a two-tiered structure. In addition to product sales, revenue sources also include technology licensing, CDMO contract manufacturing, and equity-method income, achieving an EBITDA margin of 17.1% (FY2026 (ending March 2026)).
Company Strengths
Through over 100 years of accumulated amino acid research since its founding, the company holds proprietary platform technologies such as AJIPHASE®, CORYNEX®, and AJICAP®. It owns approximately 4,280 patents domestically and internationally, and ABF™ (Ajinomoto Build-up Film) has established an industry-standard position as a build-up layer material for advanced semiconductor packaging. This technological foundation, difficult for competitors to replicate in a short period, is the source of high profitability.
The company has established local subsidiaries in Thailand, Indonesia, Vietnam, the Philippines, Malaysia, Brazil, Peru, Nigeria, and other countries, achieving an overseas sales ratio of 63.9%. Including its expansion into Africa through the equity-method affiliate Promasidor Holdings, its long track record of operations and local brand strength in emerging markets form entry barriers that are difficult for competitors to build in a short period.
In FY2026 (ending March 2026), the company achieved business profit of ¥181,100 million (113.7% year on year), marking seven consecutive periods of profit growth. ROE of 17.7%, ROIC of 11.8%, and EBITDA margin of 17.1% all show steady progress toward medium- to long-term targets. Operating cash flow of ¥239,300 million renewed its record high, while the net interest-bearing debt/EBITDA ratio of 1.6x maintains financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, rising from ¥1,149,370 million in FY2022 (ended March 2022) to ¥1,583,719 million in FY2026 (ending March 2026), up 3.5% year on year. Business profit reached a record high of ¥181,163 million (up 13.7% year on year), with the business profit margin improving to 11.4% (from 10.4% in the prior period). Operating profit and net income, which had declined in FY2025 (ended March 2025) due to impairment losses, recovered significantly in FY2026, aided by the recording of a gain on sale of the head office building (gain on sale of fixed assets of ¥41,265 million). As an external factor, the continued depreciation of the yen boosted yen-denominated revenue from overseas operations. For the next fiscal year (FY2027, ending March 2027), the company forecasts revenue of ¥1,723,000 million, business profit of ¥197,000 million, and profit attributable to owners of parent of ¥120,000 million (assuming an exchange rate of ¥150 to the US dollar).
Growth Strategy
Concentration on the four Amino Science® growth areas and business model transformation aimed at achieving 3x EPS
Driven by capturing AI and data center demand for electronic materials ABF™ and increased profits in pharmaceutical-grade amino acids and CDMO, business profit in the Healthcare, etc. segment for FY2026 (ending March 2026) reached ¥66,202 million (up 45.1% year on year). Further growth is expected, with the forecast for the next fiscal year at ¥800 million (up 20.8% year on year).
Supported by the effect of unit price increases in Japan and expanded sales in emerging overseas markets, business profit in the Seasonings & Foods segment for FY2026 (ending March 2026) was ¥143,036 million (up 6.6% year on year). The forecast for the next fiscal year is ¥1,459 million (up 2.0% year on year), maintaining a policy of continued stable growth.
The Frozen Foods segment, which continues to face declining profits in the North American business, posted business profit of ¥8,457 million for FY2026 (ending March 2026), down 35.0% year on year, remaining sluggish. The forecast for the next fiscal year anticipates a recovery to business profit of ¥121 million (up 44.1% year on year), though managing raw material costs and strengthening competitiveness in the North American market remain challenges.
A progressive dividend policy was declared under the "Mid-term ASV Management 2030 Roadmap." For FY2026 (ending March 2026), the dividend per share was ¥48 (an increase of ¥8 year on year), with a forecast of ¥50 for FY2027 (ending March 2027). Share buybacks of ¥130,009 million were carried out, maintaining the policy of a total shareholder return ratio of 50% or more over the three-year period.
Following the divestment of Ajinomoto Althea, in FY2026 (ending March 2026) the company transferred the land and building of its head office building, recording a gain on sale of fixed assets of ¥41,265 million. Portfolio optimization continues to be implemented, with proceeds from divestments allocated to reinvestment in growth areas and shareholder returns.
Last updated: July 19, 2026