The ITOCHU Corporation (TYO:8001) announced it plans to amplify investment towards accelerated growth by spending an estimated 1tn JPY in the present financial year.
Itochu Targets Growth with Planned $6.6bn Spend
According to reports, by taking this action, the company aims to increase its net profit margin by 10%.
After revealing the management plan for its fiscal year starting on 1 April 2024, the Japanese trade and investment company indicated it wants to achieve profits of 880bn JPY during its 2024/25 financial year. Reuters reported that the organisation’s president and chief operating officer, Keita Ishii, said:
Relying solely on organic growth won’t be adequate for further growth, and it’s imperative that we aggressively pursue investments of a certain scale. We’ll broaden the scope of our investment targets.
Ishii further stated the company’s 2023/24 fiscal results will be announced on 8 May 2024. To date, ITOCHU’s largest net investment totalled 755bn JPY during its 2020/2021 financial year when it increased its stake in FamilyMart.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
According to Reuters, ITOCHU wants to achieve a total shareholder return ratio of 50% in the present financial year with a 200 JPY per share dividend. It is also dedicating 150bn JPY to a share buyback. Should this actualise, it would reportedly be the firm’s tenth successive dividend increase.
Instead of the typical 3-year financial management plan, ITOCHU went with a 1-year initiative to navigate unforeseen challenges in the current economic climate. The company closed its Wednesday, 3 April 2024, trading down 1.84% at $83.76 per share. The company’s market cap is roughly $60.49bn at present.
