Meiji focused on driving growth

Meiji focused on driving growth

Meiji Holdings, the Japanese food-to-pharmacy giant, has booked a jump in first-half earnings as it continues to progress its mid-term "Take Off 14" growth strategy.

In a regulatory filing, the company revealed operating income rose 58.2% in the first six months of the year, from 1 April to 30 September. Operating income climbed to JPY15.89bn (US$158.9m) from JPY10.05bn last year. Net income totalled JPY9.79bn, up 85.9% in the period from JPY5.27bn in the half to 30 September 2012.

Profit gains were driven by cost efficiencies, lower promotion and advertising costs and higher sales, the company revealed today (20 November) in a presentation to investors. During the period, sales rose 0.3% to JPY562.96bn.

Looking to the full-year, Meiji revised its outlook for its food business upward. Meiji said it expects to see higher net sales and profits from its dairy business. Full-year operating income is also expected to be higher at its confectionery and health and wellness units.

The company is focused on driving mid-term growth through its "Take Off 14" plan. Under the strategy, Meiji will work to expand its business in China, Asia and the US while, leveraging its existing brand equity and fostering its high-growth categories, such as probiotics. In seperate announcements, Meiji revealed that it plans to enter the Chinese fresh dairy market next month while also investing in expanding probiotic production capacity.

Click here to view Meiji's regulatory filing.