Nitta Gelatin Inc.【JP:4977】Stock Price

Nitta Gelatin operates a collagen business globally through a network of 11 subsidiaries and 3 affiliated companies. These entities divide manufacturing and sales responsibilities and work cooperatively to conduct business operations. The company's business is organized into four product categories: gelatin, collagen peptides, food ingredients, and biomedical products.

The gelatin division supplies gelatin for food, capsules, and photography applications. The company also handles by-products such as calcium phosphate. Key affiliated companies include Nitta Gelatin, Hikone Gelatin, Nitta Gelatin N.A., Weishardt Gelatin, Nitta Gelatin Canada, Nitta Gelatin India, Bamni Proteins, Shanghai Nitta Gelatin, Guangdong Mingyang Gelatin, and Nitta Gelatin Vietnam.

The collagen peptides division provides collagen peptides for health foods and beauty applications. Key affiliated companies include Nitta Gelatin, Nitta Gelatin N.A., Weishardt Gelatin, Nitta Gelatin India, Shanghai Nitta Gelatin, Guangdong Baiwei Biotech, and Nitta Gelatin Vietnam.

The food ingredients division supplies stabilizers for processed meat products and gelling agents for desserts. Key affiliated companies include Nitta Gelatin, Nitta Gelatin N.A., Shanghai Nitta Gelatin, and Nitta Gelatin Vietnam.

The biomedical division provides medical-grade collagen and gelatin products. Key affiliated companies include Nitta Gelatin, Nitta Gelatin N.A., and Shanghai Nitta Gelatin. These products are expected to find applications in the medical field.

Nitta Gelatin aims to create new value by leveraging collagen materials across the food market, health and beauty market, and medical field. The company is particularly focused on contributing to the extension of healthy life expectancy and addressing social challenges. Additionally, the company is advancing business activities toward realizing a sustainable society while preserving the global environment and promoting coexistence with local communities.

The company launched its "2024-2026 Medium-Term Management Plan" in April 2024, positioning the three-year period through March 2027 as a "period for fundamentally strengthening profitability and cash generation capacity." Under this plan, the company aims to expand gelatin and collagen peptide supply capacity at its India operations and strengthen the revenue structure across the entire group.

In the biomedical division, the company is leveraging Japan's expert network to expand medical applications while advancing sales expansion in overseas markets, including China. Through these efforts, the company aims to achieve profitability in the biomedical division's operating profit.

As a financial strategy, the company will invest a total of 9,800 million yen in capital expenditures, including strategic investments. For dividends, the company will stably maintain a dividend on equity of 1.5% or higher, with the goal of raising it to 2.0% or higher by the final fiscal year. The company will also work to improve price-to-book ratio to 1.0x or higher and enhance working capital efficiency to strengthen cash generation capacity.

Furthermore, the company aims to rebuild its business foundation and construct an optimal business portfolio by introducing business-specific return on invested capital management. Through strengthening global governance and investing in human capital, the company aims to realize sustainable growth.