TOKYO, May 22 (Pulse News Wire) – S&B Foods Inc. (2805.T) disclosed its strategies aimed at achieving management conscious of capital costs and share prices during a board meeting held.
The company conducted a reassessment of its current situation and updated its approach towards concrete initiatives. In terms of capital efficiency and stock price analysis, S&B Foods reported a ROE of 14.0%, a share price of ¥5,000 (as of March 31), and a P/B ratio of 2.00. The company's capital cost based on CAPM was recorded at 4,500%. The firm also noted that the expected shareholder capital cost is around “7-９%”, indicating a commitment to continuous improvement in capital profitability.
To enhance the P/B ratio, S&B Foods outlined several strategic measures, including expanding overseas operations, reinforcing production systems domestically and internationally, reducing policy-held shares to create funds, and enhancing investor relations through regular half-yearly earnings briefings and stakeholder dialogues. Additionally, the company plans to invest approximately 80 to ¥9 billion in setting up a dedicated powder roux production line at the Ueda factory’s new building scheduled for completion in 2028. For financial strategy, S&B Foods targets a total payout ratio of ３５% over the long term, aiming to strengthen shareholder returns through stable dividend payments and increased payouts. The company also intends to reduce policy-held shares by approximately ¥2 billion within the fourth medium-term plan period, generating funds for future investments and human resource development.
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