Fuji Oil Holdings (2607) Q4 2024 earnings summary

Executive summary

• FY2023 net sales were ¥564.1bn, up ¥6.7bn YoY; operating profit rose ¥7.3bn to ¥18.2bn, while profit attributable to owners of parent increased ¥0.4bn to ¥6.5bn.

• Profit growth reflected stronger Vegetable Oils and Fats profitability and an FVN asset transfer, partly offset by lower Industrial Chocolate profit and an extraordinary Blommer loss.

• FY2024 guidance targets ¥600.0bn net sales, ¥20.0bn operating profit and ¥10.0bn profit attributable to owners of parent.

Financial highlights

• FY2023 ordinary profit was ¥16.8bn, up ¥7.1bn YoY; net sales exceeded the February forecast by ¥14.1bn and operating profit by ¥1.7bn.

• Operating margin was 3.2%, up 1.3 percentage points YoY and 0.2 points above forecast.

• Q4 net sales were ¥142.5bn, up ¥1.8bn YoY; operating profit reached ¥5.3bn, up ¥3.2bn, and parent-attributable profit was ¥1.6bn, up ¥0.5bn.

• Operating-profit bridge: sales-volume impact was -¥3.2bn, price revision +¥7.9bn, raw materials and other factors +¥3.2bn, and expenses -¥0.7bn.

Outlook and guidance

• FY2024 forecast: net sales ¥600.0bn, operating profit ¥20.0bn, ordinary profit ¥16.0bn and parent-attributable profit ¥10.0bn; operating margin 3.3%.

• Sales growth is expected from price revisions reflecting higher raw-material costs and expansion in Emulsified and Fermented Ingredients; Blommer Chicago closure will reduce Industrial Chocolate sales volume.

• Operating-profit growth is expected from Blommer improvement, partly offset by lower Vegetable Oils and Fats profit as sales prices adjust to stable raw-material prices.

• FY2024 guidance includes ROE of 4.4%, ROIC of 3.8% and CCC of 97 days.