Advertise
Fuji Oil Holdings reported a record-breaking business profit of ¥36 billion (approximately $227.5 million) for fiscal 2025, significantly outperforming its previous high of ¥23.6 billion set in 2019. The surge was primarily driven by the plant-based oils and fats segment, where demand for cocoa butter equivalents (CBE) skyrocketed as chocolate manufacturers sought alternatives to historically high cocoa bean prices. This specific segment posted a profit of ¥33.4 billion, marking its second consecutive record year.
CFO Maeda highlighted that the company effectively converted the external shock of soaring cocoa prices into a growth opportunity. As cocoa prices spiked to five times their average levels between 2024 and 2025, global manufacturers shifted toward CBE due to its pricing stability. Consequently, CBE sales volume grew to 1.3 times the level seen in fiscal 2023. Maeda emphasized that customers have embraced the functional benefits of CBE, such as optimized melting points and superior solidification speeds, ensuring resilient demand even as cocoa prices begin to retreat from their peaks.
While the group's U.S. subsidiary, Blommer, faced profitability challenges due to market volatility, management insists the unit has reached a structural turning point. Reforms and the launch of new production lines in Canada are expected to position Blommer as a future growth driver. The group is now targeting a business profit of ¥45 billion by fiscal 2027, supported by a global expansion of compound chocolate capacity across sites in Japan, Brazil, North America, Europe, and Australia.
In terms of shareholder value, Fuji Oil plans to increase its annual dividend to ¥62 per share in fiscal 2026. Although the current payout ratio of 27.3% is slightly below the 30% policy floor, the company is considering additional returns based on future performance. Beyond oils, the group is seeing rising demand for soy protein ingredients in the U.S., linked to changing dietary habits and the rise of GLP-1 medications. Additionally, the recent acquisition of a French sunflower oil specialist underscores the group's strategy to secure raw materials for its high-margin CBE business.
Source: finance.biggo.com