To Our Shareholders and Investors

The Japanese economy saw a mild recovery thanks to the effects of various measures implemented amid an environment of improving employment and wages, and this recovery trend is expected to continue. Looking ahead, the Japanese economy is increasingly at risk of an economic downturn due to US trade policy and the impact of rising cost of living on consumer spending. We must also pay greater attention to fluctuations in the financial and capital markets.

Looking at the food industry, dining demand is trending towards recovery thanks to increased inbound demand. At the same time, the operating environment remains severe due to global increases in raw material and logistics costs. Additionally, while we have seen increases in salaries thanks to wage hikes, the rising cost of food and other daily necessities has brought a halt to the recovery in consumer sentiment.

Amid such an environment, in FY2023 our Group launched the Megmilk Snow Brand Group Medium-Term Management Plan 2025, which is centered on three pillars of business strategies: 1) Creating seeds for new growth, 2) Expanding quantity by utilizing platform, 3) Strengthening and supporting domestic dairy farming production platform. In FY2024, the second year of the plan, we established “MOVE” as the theme of the Megmilk Snow Brand Group Management Policy 2024 and aggressively engaged in various initiatives.
As a result, consolidated earnings for the current consolidated fiscal year were net sales of 615,819 million yen (up 1.7% YoY), operating profit of 19,125 million yen (up 3.6% YoY), ordinary profit of 20,262 million yen (up 1.9% YoY), and profit attributable to owners of parent of 13,904 million yen (down 28.4% YoY).

This year, the Group will celebrate the 100th anniversary of its founding. We took this opportunity to draft “Future Vision 2050” as a milestone for the next 100 years and “Next Design 2030” as a new business plan in which we backcast from that milestone. We will progressively transition to Next Design 2030 and Future Vision 2050 from Megmilk Snow Brand Group Medium-Term Management Plan 2025, which concludes with FY2025.

To tackle the important social issue of achieving food sustainability, we ourselves need to be solid and resilient as we work towards our ideal position.

Next Design 2030 reflects our commitment to leading as an industry orchestrator that helps develop Japanese dairy farming into a sustainable industry.

We will implement asset reform in pursuit of what one could call our second founding as we strive for the next 100 years. We will embrace completely new ideas without relying on conventional thinking as we work to achieve food sustainability and improve our corporate value.
I ask for your continued support for the initiatives implemented by our Group as we aim to achieve dynamic and dramatic growth.