Against a backdrop of strong financial health, 鳥越製粉 is pursuing growth in its barley processing business and stronger shareholder returns. Its policy of a 100% dividend payout ratio at the end of 2024 and expectations for higher revenue and profit in 2025 have attracted the attention of the stock market.
Founded in 1887, 鳥越製粉 has been diversifying beyond its core wheat flour business into breadcrumbs, blended products, barley processing, feed and other areas, and investor interest has increased following its change in shareholder return policy at the end of 2024. Revenue for the fiscal year ended December 2024 was ¥26.168 billion, broadly unchanged from the previous year, while expansion of the barley processing business supported profits. Revenue and profit are also expected to increase in the fiscal year ending December 2025, with barley processing continuing to be viewed as an important driver of growth.
Financial soundness remains high, with the equity ratio stable at approximately 80%. This makes it easier for the company to respond to changes in the external environment, and over the long term it is expected to balance stronger shareholder returns with growth investment. At the same time, attention is considered necessary regarding changes in the market environment, including demographic trends and the shift toward gluten-free products.
The view is that share price trends will be influenced by the low PBR and perceived undervaluation, as well as shareholder return measures including a 100% dividend payout ratio. The earnings forecast for the fiscal year ending December 2025 calls for higher revenue and profit, while demand for barley-based products is expected to remain firm amid growing health consciousness. Activist involvement could also affect management efficiency initiatives and shareholder measures going forward.