Basic Policy on Distribution of Profits
1. Basic Policy on Distribution of Profits
Fuji Seal aims to realize a sustainable and circular society that brings peace and happiness to all through packaging, and to raise corporate value. It positions continual increase of profit returns, while achieving close communications with shareholders and returning profits to shareholders based on consolidated results to be the most important management issue.
The Company’s view on profit allocation is as follows.
- ①Invest in continued growth (technology development, human capital development, capital expenditures, M&A)
- ②While targeting a consolidated dividend payout ratio of 30% in principle, referring to DOE ratio and variation of business environment comprehensibly, also increase the dividend per share in a stable and sustained manner
- ③Build a stable financial base prepared for emergencies and flexibly acquire and dispose of treasury stock (increase capital efficiency)
In the fiscal year ending March 2024, while the international situation remained unstable, there were signs of improvement in corporate earnings and the employment situation, but the business environment surrounding the Group remained severe due to the effects of weak personal consumption caused by high prices and concerns about a slowdown in the global economy. In such a situation, the continued price revisions, structural reforms, productivity improvement measures, business portfolio replacement measures, etc. contributed to the achievement of record highs in consolidated net sales, operating profit, ordinary profit, and net profit attributable to owners of parent, exceeding the initial performance forecast.
At the Board of Directors meeting held on May 20, 2024, we decided to pay a year-end dividend of 43 yen per share for the fiscal year ending March 2024. As a result, the annual dividend for the fiscal year ending March 2024, including the interim dividend (17 yen per share), will be 60 yen per share, and the consolidated dividend payout ratio will be 32.0%.
For the fiscal year ending March 2025, based on the above basic policy, we plan to pay an annual dividend of 60 yen per share.
2.Dividend Trends (Per Share)
| Fiscal Year | 2019/3 | 2020/3 | 2021/3 | 2022/3 | 2023/3 | 2024/3 |
|---|---|---|---|---|---|---|
| Cash Dividends Per Share (yen) | 29 | 32 | 32 | 35 | 35 | 60 |
| Total dividends (Millions of yen) | 1,654 | 1,794 | 1,771 | 1,916 | 1,916 | 3,287 |
| Net Sales (Millions of yen) | 162,189 | 160,925 | 163,635 | 170,321 | 184,035 | 196,624 |
| Consolidated Net Income (Millions of yen) | 8,259 | 8,808 | 8,375 | 6,117 | 6,869 | 10,277 |
| Net income per share (yen) | 144.78 | 155.51 | 150.93 | 111.70 | 125.43 | 188 |
| Consolidated dividend payout ratio | 20.0% | 20.6% | 21.2% | 31.3% | 27.9% | 32.0% |
| ROE | 8.9% | 9.1% | 8.3% | 5.8% | 6.0% | 8.1% |
| Average number of shares during the period (shares) | 57,045,725 | 56,642,827 | 55,489,651 | 54,764,416 | 54,764,711 | 54,735,245 |