Ajinomoto Co., Inc.

For the first nine months of FY2025, Ajinomoto reported sales of JPY 1,164.1 billion, equal to 101% of FY2024 and 101% excluding currency translation, and business profit of JPY 145.9 billion, equal to 105% of FY2024 and 105% excluding currency translation. Management said sales, business profit, and profit attributable to owners of the parent all reached new record highs, and third-quarter business profit increased to 115% year on year. For the full year FY2025, sales were revised slightly downward overall, but business profit and profit attributable to owners of the parent were revised upward; the upward revision was helped by stronger Healthcare and Others results and a gain on the partial sale of fixed assets expected to exceed the original assumption. Management also said FY2025 ROE is expected to be approximately 18% on a substantive basis, organic growth about 5%, and EBITDA margin 17% in line with the road map.

Masataka Kaji emphasized that the company is seeing accelerating growth and broad-based operational improvement, not just a one-business story. He repeatedly pointed to the firm’s 2030 road map, saying Ajinomoto wants to achieve sustainable growth in Seasonings and Foods, significant growth in Bio & Fine Chemicals, and potentially reach its 2030 goals ahead of schedule. His tone was constructive and confident, while still acknowledging some quarter-to-quarter volatility in areas like Functional Materials and CDMO.

Kaji highlighted that the main drivers of profit improvement were higher sales and better gross margin, including a JPY 4.8 billion increase tied to sales growth and a JPY 18.6 billion increase tied to gross margin improvement. He said SG&A is rising as Ajinomoto expands investments in intangible assets and other areas to support sustainable growth under the 2030 road map. On capital allocation, he said the company expects cash from the headquarters land and building sale to push cash above the initial JPY 90 billion target by fiscal year-end, but stressed that Ajinomoto does not intend to keep excess cash and will use it, including through share repurchases already discussed earlier.

Analysts focused on whether the strong third-quarter performance in Functional Materials and CDMO was sustainable, and management said ABF demand remains very strong, with the main drag on margins coming from depreciation on the new Gunma facility and some R&D timing, not a change in the revenue structure. Questions also centered on the timing and certainty of the Japan CDMO shipment and whether the fourth-quarter concentration implies risk; management said the shipment is scheduled with the customer and that the revised forecast already reflects its current view. On Seasonings and Foods, analysts pressed on Umami seasoning for food processing, price competition, and Japan coffee margins; management said customer price adjustments have been working in coffee, competition is not causing a broad B2C issue, and the processing business remains profitable with a steady multi-year track record.