Lacto Japan Co., Ltd. revised consolidated earnings guidance for the first half ended May 31, 2024 and full year ending November 30, 2024. For the half, the company expects Net sales to be JPY 84,560 million compared to previous guidance of JPY 80,000 million. Net income attributable to owners of parent to be JPY 1,654 million compared to previous guidance of JPY 1,300 million. Earnings per share to be JPY 165.97 compared to previous guidance of JPY 130.44 per share.

For the year, the company expects Net sales to be JPY 164,000 million compared to previous guidance of JPY 160,000 million. Net income attributable to owners of parent to be JPY 3,000 million compared to previous guidance of JPY 2,400 million. Earnings per share to be JPY 301.13 compared to previous guidance of JPY 240.90 per share. Reasons for difference and revisions: Performance for the second quarter of the fiscal year ending November 2024 continued to be strong from the first quarter. In the domestic business, demand for various food products, especially for commercial use, showed signs of recovery on the back of increased travel demand including inbound tourism. Additionally, the market for protein products continued to grow contributing to steady sales of related ingredients. As a result, sales volume in the dairy ingredients and cheese business division increased. In the meat and ingredients division, sales volume exceeded expectations thanks to a recovery in demand for eating out. Furthermore, in Asian business, sales of cheese for restaurants and other outlets particularly in Singapore and Malaysia performed well. As a result, net sales for the first half exceeded expectations. Regarding profits in the domestic business, there was an increase in sales volume of high-margin products in the dairy ingredients and cheese business division. Additionally, in Asian business, both the dairy ingredients sales division and the cheese manufacturing and sales division saw improved profit margins compared to the previous period. As a result, both operating income and net income attributable to owners of parent for the first half significantly exceeded the revised forecast announced on April 12, 2024. In terms of full-year consolidated results, despite concerns surrounding the impacts on
consumption trends from the depreciating yen and rising food prices, as well as the effects of increasing raw milk production on domestic skim milk powder inventories, earnings
forecast will be revised upwards in light of actual results from the first half and order trends for the second half.