To Our Shareholders and Investors

  During the six months ended September 30, 2025, the Japanese economy recovered gradually. Looking ahead, although recovery driven by the improving employment and income situation and the effects of government policies is expected, we must also keep an eye on the impact of the continued cost-of-living crisis on consumer confidence and downside risks to the economy from U.S. trade policies. At the same time, we must 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 are implementing 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 brand 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 six months ended September 30, 2025 were as follows.
  Net sales were 309,229 million yen (down 0.8% YoY). Operating profit was 9,172 million yen (down 22.4% YoY), reflecting an increase in expenses due to the implementation of various brand promotional measures and 100th anniversary commemorative events, the absence of a temporary increase in sales volumes due to system trouble at a competitor the previous fiscal year, and greater-than-anticipated decline in sales volume in categories where we implemented price increases ahead of competitors. Progress against the plan was mostly as expected, with the effects of the second price increases implemented in July and August also increasing. Ordinary profit was 10,592 million yen (down 16.9％ YoY), while profit attributable to owners of parent was 11,285 million yen (up 23.5% YoY) due mainly to the posting of a gain on the sale of cross-shareholdings.

  This year, which marks the 100th anniversary of our founding, we developed “Future Vision 2050” as a milestone for the next 100 years and made a fresh start aiming for sustainable growth and a further leap forward.
  We intend to continue implementing initiatives aimed at transforming Japan’s dairy industry into a sustainable industry and addressing and resolving the social issue of “food sustainability.” We offer our appreciation to all our stakeholders and look forward to your continued support for our initiatives in the future.