Kewpie Corporation TSE:2809

Kewpie : FY2024 Financial Meeting

Published

Source: MarketScreener

FY2024

Financial Meeting

January 9, 2025 Kewpie Corporation

FY2024 Key Earnings Data and FY2025 Outlook

Achieved record high annual profit due to overseas growth

and improvement in domestic profitability

FY2024

Key Earnings

Data

  • Net sales growth rate of +11%, exceeding the management indicator's target level of +10% in the
    Overseas Medium-Term Business Plan
  • Profit composition ratio rose to over 30%
  • Following China, Southeast Asia and North America emerging as key pillars of overseas expansion

Eggs

• Significant profitability improvement

• Sales recovered post-avian influenza, enhanced added value, Implementation of price revision

Condiments

•

Profitability recovered as new prices took hold and the impact of key raw materials eased

•

Progress in strengthening lineup of core products and expanding added-value products

Defying strengthening headwinds, we will invest

management resources for further growth

FY2025 Outlook

Laying

groundwork

  • Counter rising costs and build the capacity to generate ¥14.7 billion.
    Accelerating overseas growth, adding value, cultivating new areas, price revisions, and reorganizing Group companies
  • We expect a significant increase in profit due to the sale of assets associated with the reorganization, and we are also looking at growth investments

Anniversary

•

Global brand promotion to commemorate the 100th anniversary of Kewpie Mayonnaise

•

Plans for a commemorative dividend, strengthening shareholder returns

© Kewpie Corporation All rights reserved.

2

  1. FY2024 Financial Results
  2. FY2025 Target
  3. FY2025 Outlook
  4. Reference Materials

© Kewpie Corporation All rights reserved.

Notes regarding the information in this document

  • The amounts stated in this document are rounded to the nearest 100 million yen when figures are presented in billions of yen.
  • The numbers related to Overseas cover the period from October through September of the following year. (December through November for the Australian subsidiary)
  • Changes for Overseas in FY2024 include foreign exchange effects (Net sales +¥5.7 billion, operating income +¥0.8 billion). Changes for Overseas in the FY2025 forecast include foreign exchange effects (Net sales -¥0.3 billion, operating income -¥0 billion).
  • Starting in FY2025, the allocation standards for company-wide expenses have been changed to more accurately reflect the actual profits and losses of each segment.

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1. FY2024 Financial Results

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4

FY2024 Financial Results Highlights

Achieved record high profit due to overseas growth and

improvement in profitability

FY2024 Financial Results

Net sales

Operating income

Ordinary income

Profit

¥484.0bn

¥34.3bn

¥36.9bn

¥21.4bn

YoY +6%

YoY +74%

YoY +80%

YoY +63%

ＲＯＥ

ＲＯＡ

Operating income ratio

Overseas growth rate

7.3%

8.3%

7.1%

+11%

YoY +2.5%

YoY +3.4%

YoY +2.8%

(YoY in local currency)

© Kewpie Corporation All rights reserved.

5

FY2024 Financial Results Highlights

(¥bn)

¥484.0 Increase in sales (+¥28.9bn)

Net salesbn Percentage change +6%

  • Increase in sales due to sustained double-digit growth Overseas
  • Increase in sales due to condiment new prices taking hold
  • Increase in sales due to higher egg sales and impact of price revisions

Operating

¥34.3bn

Increase in income (+¥14.6bn)

income

Percentage change +74%

  • Overseas business income increased by 39% in line with sales growth
  • For condiments and eggs, profits increased due to price revisions and easing of surging raw material costs
  • In 2H, we will invest in marketing, human capital, etc. as future investments

20

18

250

16

200

14

12

150

10

8

100

6

50

4

2

0

0

1H

2H

1H

2H

1H

2H

1H

2H

1H

2H

1H

2H

1H

2H

1H

2H

FY2021

FY2022

FY2023

FY2024

FY2021

FY2022

FY2023

FY2024

© Kewpie Corporation All rights reserved.

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FY2024 Factors behind Changes in Operating Income

Operating

FY2024: ¥34.3bn YoY change: +¥14.6bn

income

(¥bn)

Effect of price

revisions+3.8

Increased production

efficiency+2.9

Enhanced added

+2.3

value, etc.

+9.0

Japan +4.2

Overseas +4.5

+ 8.7

11.5

(3.6)

general raw

(2.5)

materials

(3.1)

Transportation and

warehousing expenses

(4.3)

34.3

(1.0)

"Earning power"

built since last year

+¥17.7bn

"Growing headwinds"

to watch

19.7

-¥6.1bn

© Kewpie Corporation All rights reserved.

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FY2024 Net Sales and Business Income by Segment

Net sales

FY2024 full-year

¥484.0bn

YoY change

+¥28.9bn

YoY change (%)

+6%

Operating income

FY2024 full-year

¥34.3bn

YoY change

+¥14.6bn

YoY change (%)

+74%

© Kewpie Corporation All rights reserved.

FY2023

FY2024

YoY change

YoY change

full-year

full-year

(%)

Retail Market

177.4

186.7

+9.4

+5%

Food Service

165.3

170.1

+4.8

+3%

Overseas

78.3

92.2

+13.9

+18%

Fruits Solutions

17.0

17.0

+0

+0%

Fine Chemicals

11.2

11.4

+0.2

+2%

Common

6.0

6.6

+0.6

+10%

Business

FY2023

FY2024

YoY change

YoY change

full-year

full-year

(%)

Retail Market

9.9

14.3

+4.3

+44%

Food Service

4.1

12.0

+7.8

+189%

Overseas

10.3

14.4

+4.1

+39%

Fruits Solutions

0.3

0.2

-0.1

-38%

Fine Chemicals

1.0

0.6

-0.5

-45%

Common

1.2

1.4

+0.1

+12%

Business

Company-wide

-7.3

-8.4

-1.1

-

expenses

(¥bn)

1H YoY

2H YoY

change

change

+5.1

+4.3

+1.8

+2.9

+9.3

+4.6

+0.4

-0.4

+0.2

-0

-0.4

+1.0

1H YoY

2H YoY

change

change

+3.6

+0.7

+5.0

+2.8

+4.0

+0.1

-0.1

-0

-0.1

-0.4

-0.1

+0.3

-0.3

-0.8

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FY2024 Retail Market Segment Financial Results

Net sales

FY2024 full-year

¥186.7bn

YoY change

+¥9.4bn

YoY change (%)

+5%

Business income

FY2024 full-year

¥14.3bn

YoY change

+¥4.3bn

YoY change (%)

+44%

FY2021-FY2024

Medium-Term Business Plan

2H

2H

2H

2H

94.3

86.7

87.7

90.2

1H

1H

1H

1H

86.0

85.7

87.2

92.4

FY2021

FY2022

FY2023

FY2024

full-year

full-year

full-year

full-year

FY2021-FY2024

Medium-Term Business Plan

2H

7.5

2H

2H

6.2

6.0

2H

1H

5.5

1H

9.7

1H

8.1

7.4

1H

4.4

FY2021

FY2022

FY2023

FY2024

full-year

full-year

full-year

full-year

(¥bn)

Increase in sales due to higher unit prices from new condiments prices taking root and recovery in sales of delicatessen foods

FY2024

YoY change

YoY change

1H

2H

full-year

(%)

YoY change YoY change

Condiments

77.5

+3.4

+5%

+2.1

+1.2

Delicatessen

65.3

+3.2

+5%

+2.0

+1.1

Cut

28.6

+2.2

+8%

+0.6

+1.6

vegetables

Increase in income due to price revision effects for

condiments and easing of raw material impact

Increase in income due to expansion of core products in

condiments and delicatessen foods

FY2024

YoY change

YoY change

1H

2H

full-year

(%)

YoY change YoY change

Condiments

10.2

+4.3

+73%

+3.0

+1.2

Delicatessen

3.1

+0.5

+19%

+0.7

-0.2

Cut

0.9

+0.2

+29%

+0.1

+0.1

vegetables

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9

FY2024 Food Service Segment Financial Results

Net sales

FY2024 full-year

+¥170.1bn

YoY change

+¥4.8bn

YoY change (%)

+3%

Business income

FY2024 full-year

+¥12.0bn

YoY change

+¥7.8bn

YoY change (%)

+189%

FY2021-FY2024

Medium-Term Business Plan

2H

2H

2H

86.8

2H

83.9

82.9

77.4

1H

1H

1H

1H

81.4

83.3

72.4

75.9

FY2021

FY2022

FY2023

FY2024

full-year

full-year

full-year

full-year

FY2021-FY2024

Medium-Term Business Plan

2H

5.6

2H

2H

2.8

3.6

2H

1H

1H

6.4

1H

2.7

4.1

2.7

1.4

FY2021

FY2022

FY2023

FY2024

full-year

full-year

full-year

full-year

(¥bn)

Increase in sales due to higher unit prices resulting from price revisions for condiments and eggs, recovery in dining out demand, and the rebound in egg supply

FY2024

YoY change

YoY change

1H YoY

2H YoY

full-year

(%)

change

change

Condiments

52.0

+1.4

+3%

+1.7

-0.3

Eggs

101.6

+3.7

+4%

+0.2

+3.5

Increase in income due to price revisions for condiments

and eggs

Increase in income from the easing of raw material cost

impacts and expansion of value-added products.

FY2024

YoY change

YoY change

1H YoY

2H YoY

full-year

(%)

change

change

Condiments

3.7

+1.0

+37%

+1.1

-0.1

Eggs

7.6

+6.4

+633%

+3.5

+2.9

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