Lacto Japan (3139): FY2025 Results Summary — Record Net Sales and Profit on Higher Prices and Margins

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

For FY11/2025 (the fiscal year ended November 30, 2025), Lacto Japan posted record-high net sales of 182,816 million yen (+7.0% YoY), record ordinary profit of 5,796 million yen (+34.1%), and record profit attributable to owners of parent of 4,317 million yen (+37.2%). Elevated unit sales prices amid high raw material markets, together with improved profit margins in both the domestic and Asian businesses, drove the gains. For FY11/2026 the Company forecasts higher net sales but lower profit due to upfront growth investment, and it has launched a new Medium-Term Management Plan, “NEXT-LJ 2028.”

Note: Lacto Japan’s fiscal year ends in November; this article covers the year ended November 30, 2025, which the Company’s materials label “FY11/2025.” Under our site’s convention this is classified as FY2025. Body text and tables retain the Company’s labels.

Consolidated Results (Full-Year Actual)

Net sales, ordinary profit, and profit attributable to owners of parent all reached record highs. Profit performance progressed favorably across all business divisions, and even excluding one-off compensation income (non-operating income of 650 million yen) recorded in relation to quality issues with certain products in the prior year, profit reached a record high. Results came in above the initial forecast on all major lines. (Amounts in million yen unless noted; rounded down to the nearest million yen.)

Item	FY11/2025	FY11/2024	YoY Change (%)
Net sales	182,816	170,907	+7.0
Ordinary profit	5,796	4,320	+34.1
Ordinary profit margin (%)	3.2	2.5	—
Profit attributable to owners of parent	4,317	3,146	+37.2
Net profit margin (%)	2.4	1.8	—
Earnings per share (yen)	433.18	315.83	—
ROE (%)	14.4	12.1	—

Segment Results

By business division, net sales in the core Dairy Ingredients and Cheese Business Division rose 3.9% to 118,679 million yen (64.9% of total sales) as higher unit prices offset a 6.2% decline in sales volume. The Functional Food Ingredients Division (renamed the Life Science Business Division effective December 1, 2025) grew 86.6% to 9,594 million yen on strong plant-based high-protein demand. The Asian Business (Cheese Manufacturing and Sales Division) rose 14.2% to 6,391 million yen. The table below shows net sales by division. (Million yen.)

Business Division	FY11/2025	FY11/2024	FY11/2026 Forecast
Dairy Ingredients and Cheese Business	118,679	114,182	121,000
Meat and Ingredients	22,770	21,788	24,300
Functional Food Ingredients	9,594	5,141	12,600
Asian Business (Dairy Ingredients)	22,819	21,584	24,000
Asian Business (Cheese)	6,391	5,594	7,600
Others	2,561	2,616	3,500
Total net sales	182,816	170,907	193,000

FY11/2026 Forecast

For FY11/2026 the Company forecasts net sales of 193,000 million yen (+5.6%), ordinary profit of 4,800 million yen (-17.2%), and profit attributable to owners of parent of 3,450 million yen (-20.1%). The decline in profit reflects upfront investment for future growth, including depreciation from growth investments (450 million yen) and one-off head-office relocation expenses (100 million yen); the FY11/2025 actual figure also included 650 million yen of one-off compensation income. On an ordinary-profit-after-depreciation-adjustment basis, the forecast is 5,350 million yen versus 5,146 million yen in FY11/2025 (+4.0%). (Million yen.)

Item	FY11/2026 Forecast	FY11/2025 Results	YoY Change (%)
Net sales	193,000	182,816	+5.6
Ordinary profit	4,800	5,796	-17.2
Ordinary profit margin (%)	2.5	3.2	—
Ordinary profit after depreciation adjustment	5,350	5,146	+4.0
Profit attributable to owners of parent	3,450	4,317	-20.1
Earnings per share (yen)	346.00	433.18	—

Shareholder Returns

The dividend per share for FY11/2025 was 132.00 yen (interim 50.00 yen, year-end 82.00 yen), for a payout ratio of 30.5%, achieving the Company’s long-term 30% payout target ahead of schedule. The FY11/2026 forecast dividend per share is 132.00 yen (interim 66.00 yen, year-end 66.00 yen). The Company maintains a progressive dividend policy so long as growth in shareholders’ equity from net profit exceeds the reduction resulting from shareholder returns, and under “NEXT-LJ 2028” targets a payout ratio of 35%.

Medium-Term Plan (NEXT-LJ 2028)

FY11/2025 was the final year of the previous plan “NEXT-LJ 2025,” in which all quantitative targets other than net sales were achieved. The new Medium-Term Management Plan “NEXT-LJ 2028” targets, for FY11/2028, net sales of 210.0 billion yen, ordinary profit of 6.00 billion yen, ROE of 10%-12%, a payout ratio of 35%, and a consolidated equity-to-asset ratio of 35%-40%. The 6.00 billion yen ordinary profit target of the long-term vision “LACTO VISION 2032” has effectively been brought forward. A new cheese factory in Singapore (floor area approx. 6,500 m2, investment approx. 3.5 billion yen) is scheduled to commence operations in FY11/2026. (Figures as labeled in the materials.)

Item	FY11/2025 (Results)	FY11/2026 (Forecast)	FY11/2028 (Plan)
Net sales	182.8 bn yen	193.0 bn yen	210.0 bn yen
Ordinary profit	5.79 bn yen	4.80 bn yen	6.00 bn yen
Profit attributable to owners of parent	4.31 bn yen	3.45 bn yen	4.35 bn yen
ROE	14.4%	–	10%-12%
Payout ratio	30.5%	38.2%	35%
Consolidated equity-to-asset ratio	35.9%	–	35%-40%

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.