Company announces sale of China milk and yogurt business Quick Note

Research evidence excerpt

Company announces sale of China milk and yogurt business Quick Note

Global Markets Research

21 July 2026Meiji Holdings

2269.T 2269 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

Company announces sale of China milk and Rating Neutralyogurt business

Target price JPY 4,000Quick Note

Closing price

21 July 2026 JPY 3,751First impression slightly positive: We like the direction of restructuring

Meiji Holdings announced the sale of its China milk and yogurt business and B2B (Note: Quick Note reports are not a

business on 21 July. The sale price is around ¥7.6bn and the sale is scheduled to be vehicle for changes to ratings, target

finalized in December 2026. prices, or earnings forecasts)

Meiji Holdings has three businesses in China: dairy (mainly milk and yogurt), ice cream,

and confectionery. Its withdrawal from the dairy business involves selling the dairy plants

in Suzhou and Tianjin and converting the Guangzhou plant, currently a multipurpose

facility shared by the dairy and confectionery businesses, into a confectionery plant. Research Analysts

The company is guiding for 27/3 operating losses of ¥0.8bn in China (breaking down as Japan food

losses of ¥1.6bn at the dairy business, profits of ¥0.7bn at the confectionery business, and Makoto Morita - NSC

zero profits at the ice cream business), and expects the risk of losses at the dairy business makoto.morita@nomura.com

+81 3 6703 1211to drop from the picture from 28/3 onwards. We estimate losses associated with the sale

at around ¥5.5bn, calculated by subtracting net assets of ¥13.1bn at the Tianjin and

Suzhou businesses at end-25/12 from the sale price of ¥7.6bn.

Earnings in China have remained weak because of the downturn in the competitive

climate, and the company had outlined a radical overhaul of its strategy when it