To Our Shareholders and Investors

Over the period under review, the Japanese economy experienced a gradual recovery. In terms of the future outlook, while improvements to the employment and income environment combined with the effects of various policies are expected to support a gradual recovery, we need to closely monitor the impact of the situation in the Middle East and trends related to U.S. trade policies. We must also continue to pay attention to the effects of fluctuations in the financial and capital markets.
In this environment, the Group developed its new Medium-Term Management Plan “Next Design 2030.” Under “Next Design 2030,” we have set “Drastically transforming Megmilk Snow Brand’s assets” as the theme, and we will pursue initiatives in line with the four pillars of business strategies: 1) Cultivating and harvesting the fruits of growth, 2) Transforming the structure to increase the value of the dairy industry, 3) Developing regenerative dairy farming, and 4) The evolution of our connections with society.” In FY2025, which is the first year of the new plan, our management policy is “Brand-NEW,” and we implemented various measures based on two priority initiatives: strengthening brand power through new activities to disseminate our corporate identity (Brand-NEW “BRAND”) and renewing the management base in preparation for business portfolio transformation (Brand-NEW “BASIS”).
As a result, consolidated earnings for the fiscal year ended March 31, 2026 were as follows.
Net sales remained on par with the previous year at 615,761 million yen (a year-on-year decline of 0.0%), reflecting a decline in the Beverage and Dessert Segment and other areas, offset by an increase in the Dairy Products segment. Operating profit was 18,266 million yen (down 4.5% year on year), in part due to increased expenses from various brand promotional measures and 100th anniversary commemorative events, the absence of a temporary increase in sales volumes due to system failures at a competitor the previous fiscal year and a greater-than-anticipated decline in sales volume in categories where we implemented price increases ahead of competitors, which more than offset the positive effects from price revisions implemented to address various cost increases. Ordinary profit was 20,486 million yen (up 1.1% year on year). Profit attributable to owners of parent totaled 32,897 million yen (up 136.6% year on year), mainly reflecting the posting of a gain on the sale of cross-shareholdings.
　FY2026 represents the second year of Next Design 2030. We have positioned it as a year to accelerate the effectiveness of each business strategy and get on track to achieve our target management metrics. Looking ahead, we appreciate your ongoing support for the upcoming initiatives of the Group as it strives for growth in line with the theme of Next Design 2030: Drastically transforming Megmilk Snow Brand’s assets.