MORINAGA MILK INDUSTRY CO.,LTD (2264) Stock Price

Morinaga Milk Industry has two main business segments: food products and other businesses. In the food products segment, the company manufactures and sells milk, dairy products, ice cream, and beverages. Specifically, subsidiaries such as MK Cheese, Yokohama Morinaga Milk, Fuji Morinaga Milk, and Tohoku Morinaga Milk handle manufacturing, while subsidiaries including Morinaga Milk Sales supply products nationwide.

In other businesses, Morinaga Dairy Sales handles feed sales, and Mori Milk Sunworld manages the procurement and sales of pet food. Additionally, related companies including Morinaga Engineering engage in plant equipment design and construction, real estate leasing, and transportation and warehousing services. Through these operations, Morinaga Milk Industry pursues a diversified business portfolio.

Morinaga Milk Industry established a new corporate mission in 2017, marking its 100th anniversary, and adopted the slogan "For Radiant Smiles." Leveraging the technologies developed through its dairy business, the company aims to contribute to healthy and happy lives. As it enters its second century, the company has set enhancing its unique value, contributing to society, and continuing sustainable growth as its fundamental management principles.

In 2019, the company formulated the "Morinaga Milk Industry Group 10-Year Vision" targeting 2029, aiming to become a company that balances "deliciousness and enjoyment of food" with "health and nutrition." The company also aims to strengthen its presence as a global enterprise and contribute to the realization of a sustainable society. Specific numerical targets include an operating profit margin of 7% or higher, ROE of 10% or higher, and an overseas sales ratio of 15% or higher.

The medium-term management plan "2025-28" is built on three core strategies: growth strategy, structural reform, and organizational culture reform. The growth strategy focuses on expanding profitability by concentrating management resources on core strengths such as yogurt, ice cream, and overseas infant formula. Structural reform aims to improve production efficiency through value chain optimization and production system restructuring.

Organizational culture reform introduces ROIC targets to heighten awareness of capital costs and advance investment screening and cash conversion cycle improvements. The company also promotes the development of highly specialized and diverse talent, with target engagement ratings established. These initiatives aim to enhance corporate value over the medium to long term.

In cash allocation, the company pursues optimal capital structure while concentrating resources on growth areas and strengthening shareholder returns. The dividend payout ratio target has been raised to 40%, with plans for share buybacks and cancellations. These measures aim to reduce capital costs and enhance corporate value.