Ajinomoto Co. raised its full-year forecast for the second time this fiscal year after reporting record first-half fiscal 2026 results on November 9, 2026, according to a company presentation delivered by President and CEO Shigeo Nakamura. The report credits strong demand for ABF (Ajinomoto Build-up Film) used in high-performance boards for AI, servers and networks.
First-half sales reached ¥831.1 billion, 112% of the prior year. Business profit rose 25% to ¥108.6 billion. Profit attributable to owners of the parent rose 43% to ¥73.3 billion. The report says tax effects tied to the merger of Ajinomoto Fine-Techno Co., Inc. contributed to that profit increase. Organic sales growth, excluding currency effects, reached 106% of the prior year.
Within Healthcare and Others, Functional Materials sales reached 163% of the prior year and business profit reached 181%. The company attributed this to strong ABF sales and an improved product mix. Healthcare and Others added ¥17.3 billion to first-half business profit. Seasonings and Foods added ¥7.9 billion. Frozen Foods fell ¥2.2 billion due to cost headwinds.
The company plans a new varnish factory at its Gunma Plant, with an investment of about ¥21.5 billion. The report says completion is scheduled for FY2029 and mass production for FY2030.
Ajinomoto estimated that higher costs linked to the Middle East situation could reduce full-year business profit by about ¥25 billion. That estimate assumes Dubai crude at $110 per barrel and an exchange rate of ¥158 per dollar. The company said second-half revenue increases and cost reductions should outweigh those costs.
In Japan, Seasonings and Foods sales reached 106% of the prior year, or 103% excluding coffee products. Unit prices rose 8%, or 1% excluding coffee.
The stock rose 3.8% to $4,430 following the announcement, according to the source.