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Meiji Holdings Co (TSE:2269) Operating Margin % : 5.36% (As of Mar. 2024)


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What is Meiji Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Meiji Holdings Co's Operating Income for the three months ended in Mar. 2024 was 円14,610 Mil. Meiji Holdings Co's Revenue for the three months ended in Mar. 2024 was 円272,491 Mil. Therefore, Meiji Holdings Co's Operating Margin % for the quarter that ended in Mar. 2024 was 5.36%.

Warning Sign:

Meiji Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.

The historical rank and industry rank for Meiji Holdings Co's Operating Margin % or its related term are showing as below:

TSE:2269' s Operating Margin % Range Over the Past 10 Years
Min: 4.44   Med: 7.63   Max: 9.17
Current: 7.63


TSE:2269's Operating Margin % is ranked better than
62.61% of 1856 companies
in the Consumer Packaged Goods industry
Industry Median: 4.955 vs TSE:2269: 7.63

Meiji Holdings Co's 5-Year Average Operating Margin % Growth Rate was -1.50% per year.

Meiji Holdings Co's Operating Income for the three months ended in Mar. 2024 was 円14,610 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was 円84,322 Mil.


Meiji Holdings Co Operating Margin % Historical Data

The historical data trend for Meiji Holdings Co's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Meiji Holdings Co Operating Margin % Chart

Meiji Holdings Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.20 8.90 9.17 7.10 7.63

Meiji Holdings Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.05 7.42 8.81 8.81 5.36

Competitive Comparison of Meiji Holdings Co's Operating Margin %

For the Packaged Foods subindustry, Meiji Holdings Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Meiji Holdings Co's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Meiji Holdings Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Meiji Holdings Co's Operating Margin % falls into.



Meiji Holdings Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Meiji Holdings Co's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=84322 / 1105494
=7.63 %

Meiji Holdings Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=14610 / 272491
=5.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Meiji Holdings Co  (TSE:2269) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Meiji Holdings Co Operating Margin % Related Terms

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Meiji Holdings Co (TSE:2269) Business Description

Traded in Other Exchanges
Address
4-16, Kyobashi 2-chome, Chuo-ku, Tokyo, JPN, 104-0031
Meiji Holdings was established in April 2009 as a merged entity of Meiji Dairies, Japan's largest dairy company, and Meiji Seika, the country's number-two confectionery maker. The amalgamation was propelled by a surge in commodity prices, Japan's aging and shrinking population, and fierce competition. The food business, comprising dairy and confectionery operations, represents more than 80% of the group's sales and profits. The rest mainly comes from the pharmaceutical business, specializing in antibacterial and generic drugs, as well as vaccines. Meiji is looking to step up overseas expansion of the food business, particularly in China, which will serve as a key growth driver over the medium term.

Meiji Holdings Co (TSE:2269) Headlines

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