Financial Performance - The company's revenue for 2024 was JPY 8,675,000,000, a decrease of 10.1% year-on-year, with a significant decline in sales volume and prices [4] - Gross profit margin improved from 37.2% in 2023 to 39.6% in 2024, an increase of 2.4 percentage points, while operating margin expanded by 190 basis points to 8.2%, marking the best operating profit in the company's history [6][7] - Attributable net profit was JPY 4,435,000,000, excluding the impact of goodwill impairment from Bellamy and Modern Dairy [8][15] Business Segment Performance - Revenue from white milk and ice cream faced challenges, but chilled products and yogurt segments showed positive growth trends [9] - Formula milk revenue declined, but excluding Bellamy's impairment, profitability was maintained [10] - The cheese business stabilized and improved profitability, achieving a market share of over 49.5% [11][34] Market Performance - Fresh milk faced intense competition but saw a 20% growth in the high-end brand "Shiny Metal," which became the market leader among premium brands [28] - The ice cream segment experienced destocking pressure, but inventory levels improved in early 2025 [30] - The infant milk formula market returned to a growth track, achieving double-digit growth for the company's brands [31] Company Strategy and Industry Competition - The company is implementing a "One Core, Two Wings" strategy, focusing on core businesses like room temperature chilled products and fresh milk while expanding into new markets and product categories [18][19] - Emphasis on innovation, product upgrades, and improving supply chain efficiency to navigate industry challenges [52][54] - The company aims to enhance its brand value and market presence through strategic collaborations and marketing campaigns [41][44] Management's Comments on Operating Environment and Future Outlook - The management highlighted the current dairy industry challenges, including supply-demand imbalances and weak consumer consumption [52][56] - The focus will be on enhancing nutritional offerings and addressing consumer health needs, particularly in lower-tier markets [60][66] - The company is optimistic about future growth opportunities, especially in the context of an expanding middle class and increasing demand for high-quality dairy products [69][70] Other Important Information - The company reported a significant increase in free cash flow due to lower capital expenditures, allowing for a dividend payout ratio of 45% in 2024 [15] - The company is committed to advancing its ESG initiatives, including green packaging and sustainability efforts [50][51] Q&A Session Summary Question: What are the company's strategies for future growth? - The company is focusing on its "One Core, Two Wings" strategy to strengthen core businesses and expand into new markets [18] Question: How is the company addressing the challenges in the dairy industry? - The management emphasized the need for refined management and innovation to improve efficiency and navigate current challenges [52][54] Question: What is the outlook for the infant milk formula segment? - The company is optimistic about the growth potential in the infant milk formula market, especially with the aging population and increased health awareness [32]