Q1 2027 Ajinomoto Co Inc Earnings Call Transcript

Aug 6, 2026 / 08:00 AM GMT

Release Date Price: $32.26 (+1.67%)

Transcript

Key Points

Positve

Ajinomoto Co Inc (AJINF) achieved record first-quarter sales, business profit, and profit attributable to owners, with business profit growing 127% year-over-year.
The functional materials segment, particularly ABF for AI servers and networks, saw robust demand and significant sales and profit increases, leading to an upward revision of the full-year forecast.
The company is taking proactive measures to absorb the estimated JPY25 billion cost impact from the Middle East situation through price adjustments and cost reduction initiatives.
The CDMO business posted increased sales and profit, driven by strong performance in small molecules and gene therapy (Forge), with a confident outlook for significant full-year profit growth.
The planned absorption-type merger of Ajinomoto Fine-Techno is expected to enhance competitiveness in the electronic materials business and may have a positive tax impact.
Seasonings and food products saw increased sales and profits in both Japan and overseas, with strong growth in key markets like Indonesia and Vietnam.

Negative

Ajinomoto Co Inc (AJINF) faces a projected annual cost increase of approximately JPY25 billion due to escalating tensions in the Middle East, impacting logistics, packaging, and raw materials.
The frozen food segment experienced a profit decrease of JPY600 million in the first quarter, impacted by higher raw material and logistics costs, and a delayed recovery from product recalls in North America.
The company anticipates a time lag in passing on increased costs to consumers, meaning the second quarter may see a full-scale impact that cannot be completely offset.
In the Philippines, temporary production issues with umami seasoning prevented shipments from meeting the planned schedule, leading to broadly unchanged sales for the quarter.
The umami seasoning business in Brazil is suffering from a decline in profit due to tough market conditions and inventory reductions by wholesalers.
The company's ability to fully offset the Middle East cost increases remains uncertain, with management unable to provide a clear breakdown of price revision versus cost reduction measures.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

2802.T - Ajinomoto Co., Inc.
Q1 2027 Ajinomoto Co Inc Earnings Call
Aug 06, 2026 / 08:00AM GMT

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Conference Call Participants
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* Miguel Marques
Sanford C Bernstein & Co LLC - Equity Analyst

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Presentation
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Unidentified Company Representative [1]
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Thank you very much for participating in the earnest call for Ajinomoto. I am Executive Officer General Manager of IIR Kaji.

Before we start the presentation, I would like to offer my heartfelt sympathy to the people of Kumamoto who have suffered from the earthquake. We are praying for the earliest possible recovery and restoration.

As a group that focuses on food and health, we will offer all the support that is necessary.

Let me start my presentation based on the financial results material posted on our website.

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