Message from Management to Investors

To Our Shareholders and Stakeholders

We are deeply grateful for the support and guidance we receive from our shareholders and all other stakeholders.
We will continue to deliver deliciousness, health functionality, and other values so that we remain a company that fulfills society's needs in any age.
We ask for your continuing support for the Morinaga Milk Group.

Michio Miyahara

Michio Miyahara

Improving profitability and achieving higher income for consecutive years

In the fiscal year ended in March 2018, in addition to the goal of "pulling out of a high-cost and low-revenue structure" that we concentrated on through the previous fiscal year, we worked aggressively to strengthen our revenue and earnings base in line with our new policy of "taking up the challenge of creating value for sustainable growth."
As a result, consolidated sales fell 0.1% over the previous fiscal year to 592.1 billion yen, operating income rose 2.8% to 21.7 billion yen, ordinary income increased 1.8% to 22.4 billion yen, and profit attributable to owners of parent was up 19.5% to 15.8 billion yen in the fiscal year ended in March 2018. This was the second year of record-high operating income and the third straight year of record-high profit attributable to owners of parent.

Steady improvements to income to achieve medium-term business plan's target of 22.5 billion yen in operating income

In our current medium-term business plan, we have worked to improve and strengthen our revenue and earnings base and have made improvements to our income structure as a result. Thanks to this progress, we hope to achieve our ¥22.5 billion consolidated operating income target for the final year of the plan one year earlier, in the fiscal year ending in March 2019. Meeting this target would mean that we would achieve operating income over 20 billion yen for the third straight fiscal year—a first for the Group—and will have built the foundation for achieving our goal of creating value for sustainable growth.
We have also begun to devise a specific concept for our next medium-term business plan, which represents a new stage in our growth. We believe our next issue is to continue building on growth in our four pillars—the B-to-B Business, International Business, Health and Nutritional Food Business and B-to-C business—while also deepening affiliations that go beyond our business frameworks and raise the Group's ability overall to propel growth.

Continue with challenge of creating value while aiming for income growth

Morinaga Milk must play an even more important role to resolve social issues such as responding to the declining birth rate, aging society, and realizing a longer-living, healthy society.
While continuing to make investments for growth and always remaining aware of the need to improve cost efficiency and profitability, we hope to contribute to the health and happiness of people in the way that only Morinaga Milk products can.
We paid dividends totaling 50 yen per share in the fiscal year ended in March 2018, including dividends commemorating the 100th anniversary of our founding. We will continue to provide stable dividends while also maintaining and reinforcing our business structure.

We would like to express my gratitude again to all of the shareholders who have supported us for the past 100 years. We ask for your continuing support of the Morinaga Milk Group as we take up the challenge of creating value for the next 100 years.

TOP