Investor Relations

Message from the President

Shareholder inverstor's To everyone

We would like to express our sincere gratitude for your generous support.

The Japanese economy continues to trend towards mild economic recovery. However, we still face a lack of future transparency due to uncertainty in overseas economies and concerns of market instability, particularly on financial markets.
In the food industry, we are seeing demand diversification as consumer preferences are splitting between low-price products and value-added products.

Amid such an operating environment, our Group focused on diversifying our revenue platforms and maximizing cash flow based on our Group Medium-term Management Plan 2019.
Overall, we enhanced our revenue platform to support future growth. In the Dairy Products Business Sector, we expanded market share for cheese and other mainstay products. In the Beverages and Desserts Business Sector, we strategically expanded sales of functional yogurt and other value-added products. In the Nutrition Business Sector, we expanded into new markets. In the Feedstuffs and Seed Products Business Sector, the new Research Institute of Group company Snowbrand Seeds Co., Ltd. commenced operations in June.

As a result, we recorded increased revenues and profit with consolidated net sales of ¥303.5 billion (101.4% YoY) and consolidated operating profit was ¥11.0 billion (101.7% YoY). Consolidated ordinary profit was ¥11.7 billion (106.0% YoY) and profit attributable to owners of parent was ¥7.1 billion (97.1% YoY). These results represent a solid start as the first fiscal year of our Medium-term Management Plan.

We also are steadily advancing Business Portfolio Transformation initiatives. In Japan, we decided to build a new building at the Isobunnai Plant, our main production facility for butter and other products. This new building will feature manufacturing facilities and utilities that will help transform our production structure. Work is underway with the goal of launching operations by the second half of 2020.
Overseas, in Australia we acquired a 90% stake in Udder Delights Australia Pty Ltd as part of plans for market expansion through the borderless development of cheese. We will expand operations by generating synergy between Udder Delights Australia Pty Ltd and our Group company Snow Brand Australia Pty. Ltd.
We will strengthen initiatives aimed at achieving the goals outlined in our Medium-term Management Plan.

All executives and employees at Megmilk Snow Brand Group are committed to compliance and quality management. We aggressively promote CSR management as we strive towards our mission of being a Future Creation Company with Milk.

We ask for your continued understanding and support.

December 2017
Keiji Nishio
Keiji Nishio
Representative Director and President