Expect OP Decline Until F3/28

Research evidence excerpt

Expect OP Decline Until F3/28

Idea

June 30, 2026 08:40 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MYakult Honsha (2267) | Japan Tomonobu Tsunoyama

Equity Analyst

Expect OP Decline Until F3/28 Tomonobu.Tsunoyama@morganstanleymufg.comSeki Li +81 3 6836-8936

Research Associate

What’s Changed Seki.Li@morganstanleymufg.com +81 3 6836-8934

Haruka Miyake

Yakult Honsha (2267.T) From To Equity Analyst

Price Target ¥2,300 ¥2,200 Haruka.Miyake@morganstanleymufg.com +81 3 6836-5421

Jully Ussui

Domestic business still in post-boom downturn. New plants to ResearchJully.Akina.Ussui.Nakao@morganstanleymufg.comAssociate +81 3 6836-5408

start operations in Japan/US in 2027. Still expect OP to decline

through F3/28 on weak unit sales/new plant start-up costs.

Focus on restructuring plan covering strategy and capital policy

(Nov), but outlook remains challenging.

Yakult Honsha (2267.T, 2267 JT)

Domestic business off to a weak start: Domestic dairy product sales volumes

Food | Japan

were -8.9% YoY in Apr, -9.3% in May (guidance: -0.9%). In particular, Yakult 1000

Stock Rating Underweight

Series was stagnant at -18.1% in Apr and -19.3% in May (guidance: -1%). We see this Industry View In-Line

as a post-boom slump. Price target ¥2,200

Up/downside to price target (%) (20)

Shr price, close (Jun 30, 2026) ¥2,746

Expect OP decline until F3/28: We forecast a continued OP decline, at ¥42.0bn (- Mkt cap, curr, basic (bn) ¥846.6

7% YoY; previously ¥45.0bn) in F3/27, and ¥39.5bn (-6%; ¥43.0bn) in F3/28. By Div yld (03/27e) (%) 2.6

region we forecast ¥20.9bn (-24% YoY) in Japan and ¥40.7bn (+12%) overseas in Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

F3/27. We foresee domestic dairy product sales volumes -5% (-12% for Yakult 1000 Revenue, net (¥bn) 486.4 503.1 509.0 488.3