Ajinomoto (2802): FY2025 Results Summary — Record Sales and Profit Led by Bio & Fine Chemicals Growth

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Ajinomoto Co., Inc. reported record-high sales and business profit for FY2025 (fiscal year ended March 31, 2026), the second consecutive year of record results. Sales rose to ¥1,583.7 billion (103% of FY2024, excluding currency translation: 102%; up ¥53.1 billion), while business profit increased to ¥181.1 billion (113% of FY2024, excluding currency translation: 111%; up ¥21.8 billion), continuing double-digit growth. Profit attributable to owners of the parent company rose sharply to ¥134.6 billion (191% of FY2024; up ¥64.4 billion), reflecting increased business profit plus a ¥40.6 billion gain on the transfer of head office land and structures recorded in the fourth quarter. Profit growth was led by significant increases in Functional Materials and Bio-Pharma Services & Ingredients within Healthcare and Others, alongside increased profit in the combined Seasonings and Foods and Frozen Foods businesses.

Consolidated Results (Full-Year Actual)

In FY2025, both sales and business profit hit record highs, with business profit continuing double-digit growth. Business profit increased on higher gross profit from sales growth and an improved gross profit margin, partly offset by higher SG&A expenses reflecting increased investment in human resources and marketing. Profit attributable to owners of the parent company increased significantly, primarily due to the ¥40.6 billion gain on the transfer of head office land and structures. (Business profit, as defined in this material, is sales less cost of sales, selling expenses, R&D expenses, and G&A expenses, plus share of profit of associates and joint ventures.)

Item	FY2025 Actual	vs FY2024	Change
Sales	¥1,583.7 billion	103% of FY2024 (excl. currency translation: 102%)	+¥53.1 billion
Business profit	¥181.1 billion	113% of FY2024 (excl. currency translation: 111%)	+¥21.8 billion
Operating profit	¥199.4 billion	–	–
Profit before income taxes	¥196.1 billion	–	–
Profit attributable to owners of the parent company	¥134.6 billion	191% of FY2024	+¥64.4 billion

Segment Results

In the Food Products business, revenue increased overall when Seasonings and Foods and Frozen Foods are combined; profit decreased in Frozen Foods but increased overall on higher profit in Seasonings and Foods. Within Seasonings and Foods, Japan sales grew on higher coffee revenue plus menu-specific seasonings, soups, and cooking sauces, while overseas sales grew on higher volume and unit prices in Sauce and Seasonings. In Frozen Foods, Japan sales increased for the full year (profit decreased) after a September 2025 price-strategy revision helped sales recover in H2; overseas profit decreased significantly mainly due to temporary factors in North America, including expenses from product recalls, and strategic expenses in newly entered markets. In Bio & Fine Chemicals, Functional Materials (electronic materials) revenue and profit increased significantly on strong sales of ABF for high-performance boards used in AI, servers, and networks. Bio-Pharma Services & Ingredients profit increased on growth in small molecules, medium molecules, and gene therapy combined with the effect of the sale of Ajinomoto Althea, Inc. Amino Acids for Pharmaceuticals and Foods profit increased due to higher revenue in high-value-added amino acids for biopharmaceuticals and culture media.

Segment	Sales FY2025 (¥ bil.)	Business Profit FY2025 (¥ bil.)	Business Profit Change vs FY2024 (¥ bil.)
Seasonings and Foods	936.9	143.0	+8.9
Frozen Foods	290.3	8.4	-4.5
Healthcare and Others	341.5	66.2	+20.5
Other	14.9	6.0	-0.3
Shared companywide expenses	–	-42.5	-2.7
Total	1,583.7	181.1	+21.8

FY2026 Forecast

In its forecast for FY2026 (fiscal year ending March 31, 2027), Ajinomoto Co., Inc. expects to again reach new record highs in both sales and business profit, with increased revenue and profit planned in each of Seasonings and Foods, Frozen Foods, and Healthcare and Others. The assumed exchange rate is ¥150/USD. Profit attributable to owners of the parent company is forecast to decrease from the FY2025 level (89% of FY2025), as FY2025 included the one-time gain on the transfer of head office land and structures. The company also flagged a potential business profit impact of about -¥30.0 billion from the increasingly tense situation in the Middle East since the end of February 2026, under assumptions of Dubai crude oil at $110/BBL and an exchange rate of ¥158/USD, and said it would respond flexibly through diversified procurement sources, cost reductions, and flexible pricing geared to the market environment.

Item	FY2026 Forecast (¥ bil.)	FY2025 Actual (¥ bil.)	Change (vs FY2025)
Sales	1,723.0	1,583.7	+139.2 (108%; excl. currency translation: 108%)
Business profit	197.0	181.1	+15.8 (108%; excl. currency translation: 108%)
Other operating income & expenses	-17.8	18.2	-36.0
Operating profit	179.2	199.4	-20.2 (89%)
Financial income & expenses	-3.9	-3.2	-0.6
Profit before income taxes	175.2	196.1	-20.8 (89%)
Income taxes	45.2	51.0	-5.8
Profit	130.0	145.0	-15.0 (89%)
Profit attributable to owners of the parent company	120.0	134.6	-14.6 (89%)
Profit attributable to non-controlling interests	10.0	10.3	-0.3 (96%)

Shareholder Returns

Under its medium-term ASV initiatives, Ajinomoto Co., Inc. continues a progressive dividend policy based on Normalized EPS, targeting a three-year total return ratio of 50% or more. The FY2025 dividend per share was ¥48 (up ¥8 from FY2024); for FY2026 the company plans a further increase to ¥50 per share (up ¥2 from FY2025). On share repurchases, the company completed a repurchase of 27.9 million shares for ¥100 billion (2.77% of outstanding shares excluding treasury stock), announced May 8, 2025. It also announced a further repurchase of up to 30 million shares for up to ¥80 billion (3.09% of outstanding shares excluding treasury stock) on November 6, 2025, covering the period from December 1, 2025 to November 30, 2026; of this program, about 8 million shares (about ¥30 billion) were repurchased within FY2025, with the remainder underway.

Item	FY2025	FY2026 Forecast
Dividend per share	¥48/year (+¥8 vs FY2024)	¥50/year (planned; +¥2 vs FY2025)
Share repurchases	¥100 billion (27.9 million shares; announced May 8, 2025; completed). Approx. ¥30 billion (approx. 8 million shares) also executed in FY2025 under the Nov. 6, 2025 program.	Up to ¥80 billion (up to 30 million shares); announced Nov. 6, 2025; period Dec. 1, 2025–Nov. 30, 2026 (underway)

Medium-Term Plan / Topics

Ajinomoto Co., Inc. continues to pursue its 2030 Roadmap, aiming for ASV (Ajinomoto Group Creating Shared Value) to grow dramatically and continually. FY2025 economic value indicators were ROE 17.7% (vs. 9.0% in FY2024), ROIC 11.8% (vs. 6.7% in FY2024), organic sales growth 3.7% (unchanged from FY2024), and EBITDA margin 17.1% (vs. 16.1% in FY2024); Brand Value (Interbrand-published) rose to approximately 2,425 million USD. For FY2026 the company targets ROE of 15%, ROIC of 11%, organic sales growth of 9%, and EBITDA margin of 17%, working toward FY2030 targets of ROE 20%, ROIC 17%, organic sales growth of 5% (FY26-30), and EBITDA margin 19%. Under President and CEO Shigeo Nakamura, the company set out seven company-wide strategies for FY2026 — medium- to long-term growth strategy, portfolio strategy, financial and capital strategy, speed-up x scale-up of organizational execution capabilities, sustainability strategy, stakeholder engagement, and strengthening of corporate governance and compliance — and established a new Company-Wide Growth Strategy Committee, which will hold monthly meetings from May 2026.

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.