Meiji (2269) Q4 2024 earnings summary

Executive summary

• FY2023 net sales and operating profit grew, while profit attributable to owners of parent declined; the FY2024–2026 plan targets renewed growth through overseas expansion, portfolio changes and stronger capital efficiency.

• Priorities include investing in growth businesses, sustaining stable cash flows, linking sustainability to business strategy and developing human capital.

Financial highlights

• FY2023 net sales were ¥1,105.4bn, up 4.1% YoY; operating profit was ¥84.3bn, up 11.8%.

• Ordinary profit rose 2.5% to ¥76.0bn; profit attributable to owners of parent fell 27.0% to ¥50.6bn.

• Operating cash flow was ¥107.9bn and free cash flow was ¥83.3bn, respectively up ¥22.9bn and ¥35.1bn YoY.

Outlook and guidance

• FY2024 plan: net sales ¥1,159.0bn (+4.8% YoY), operating profit ¥86.0bn (+2.0%) and profit attributable to owners of parent ¥50.0bn (-1.3%).

• FY2026 targets: operating profit ¥116.5bn, profit attributable to owners of parent ¥76.5bn, overseas net sales ¥252.5bn and ROIC of at least 8.5%.

• FY2026 shareholder return target: total payout ratio of at least 50%; ROE target is at least 9.5%.