Ajinomoto Co (2802) Q2 2026 Earnings Report

The call had a cautiously constructive tone. Ajinomoto maintained full-year guidance, reported higher net profit, strong Functional Materials and CDMO momentum, improved cash flow, share recovery actions in domestic Frozen Foods, and expanded shareholder returns. However, first-half performance was behind plan, with significant declines in processed-food Umami seasonings and domestic Frozen Foods, competitive pressure from Chinese and local players, North American Frozen Foods weakness, and short-term Forge commercialization costs. Management characterized many issues as recoverable or temporary and emphasized second-half improvement, but execution risks remain.

Management said the FY 2025 full year forecast remains unchanged, with sales and profits projected to rise in the second half, including a significant profit increase for the CDMO business; Functional Materials sales and business profit reached 120% of the previous year's levels in the first half, and the company expects to maintain strong momentum in the second half. For domestic Frozen Foods, the company targets sales growth to a CAGR of about 3% and business profit growth to about 7% toward 2030, while Aete annual sales are projected to reach billions of yen; Forge is targeting a positive EBITDA during the current fiscal year, and Bio, Fine and Healthcare are expected to deliver 48% of full year profit budget in the first half and 52% in the second half. MSG intra-group sales are more than 70% and are planned to rise to more than 85% by 2030, the company remains committed to tripling EPS in 2030 compared to the 2022 level, and it announced a JPY 80 billion share buyback with the acquisition period starting from December 1 and until November 2026, in addition to the JPY 100 billion share buyback announced on May 8.