Nichirei (2871) Q4 2024 earnings summary

Executive summary

• FY24 net sales rose 3% YoY to ¥680.1bn; operating profit increased 12% to a record ¥36.9bn, led by core businesses and Bioscience.

• FY25 guidance targets net sales of ¥690.0bn, operating profit of ¥39.0bn and EPS of ¥194.17, with growth in core businesses offsetting structural declines in Marine Products and Meat and Poultry.

Financial highlights

• FY24 ordinary profit was ¥38.3bn, up 14% YoY; profit attributable to owners of parent was ¥24.5bn, up 14%; EPS was ¥191.80, up ¥24.66.

• EBITDA reached ¥61.1bn, up ¥6.0bn YoY; ROIC was 7.5%, up 0.6 percentage points, and ROE was 10.3%.

• FY24 overseas sales rose 9% to ¥145.0bn; the overseas sales ratio was 21.3%.

Outlook and guidance

• FY25 net sales are forecast at ¥690.0bn (+1% YoY), operating profit at ¥39.0bn (+6%), ordinary profit at ¥39.7bn (+4%) and attributable profit at ¥24.8bn (+1%).

• FY25 EPS is projected at ¥194.17 (+¥2.37); ROIC target is 7.5%, with ROE of 10% or higher.

• FY25 overseas sales are forecast at ¥162.0bn (+12%); forecast exchange rates are ¥148/USD, ¥160/EUR and ¥4.00/THB.

• FY25 operating profit growth includes expected gains from processed foods, marine products and logistics, partly offset by a ¥0.4bn Bioscience rebound decline and increased DX and sustainability spending.