Ajinomoto President Shigeo Nakamura said on May 7 that, due to escalating tensions in the Middle East since February 2026, “there is a possibility that the fiscal year ending March 2027 earnings forecast will be affected in terms of procurement and costs. We will take agile measures to minimize the impact on our business performance.”
Assuming crude oil prices remain at $110 per barrel and the exchange rate remains at approximately ¥158 to the U.S. dollar, the company currently expects an impact on business profit on the scale of ¥30 billion.
“With respect to procurement risks, supply constraints for packaging materials could arise owing to tight supplies of naphtha and other materials. To address this, we will seek to secure a stable supply by diversifying our procurement sources. With respect to cost risks, we anticipate impacts on the food business from higher prices for main and auxiliary raw materials and food ingredients, higher costs for various packaging materials due to rising naphtha prices, and higher electricity and gas prices. We will seek to minimize these impacts by advancing broad-based and reliable cost reductions, while also implementing agile price measures in response to market conditions,” the company said.
However, Nakamura added: “If the assumptions no longer hold and procurement risks also emerge, we will update the situation quarterly and pass on costs when raw-material and fuel costs rise. It is clear that packaging-material prices will increase, so if we cannot absorb the costs through our own efforts, passing them on in prices may be considered.”
