Company DescriptionEzaki Glico Co., Ltd., together with its subsidiaries, produces and sells confectionery and other food products in Japan, China, Southeast Asia, the United States, and internationally. The company operates through five segments: Confectioneries and Food Products, Ice Cream, Milk and Dairy, Food Ingredients, and Overseas. It produces and sells chocolates, cookies, curry roux, retort-packed food, and other products; milk and other dairy products, western-style fresh confectioneries, and baby formula products; snacks and ice creams; and starch, food coloring, and other products. The company also offers fruit juices and soft drinks, food and fine chemical materials, and health-related products. It sells its products in offices and stores, as well as through e-commerce. The company was founded in 1922 and is headquartered in Osaka, Japan.

How the Company Makes Money

Ezaki Glico Co., Ltd. Financial Statement Overview

Summary

Ezaki Glico Co., Ltd. exhibits a mixed financial picture with strong gross profit margins but decreasing net margins and operational efficiency. The balance sheet is robust with low leverage, yet cash flow challenges indicate potential issues in sustaining long-term growth.

Income Statement

Positive

Ezaki Glico Co., Ltd. has demonstrated fluctuating revenue performance with a decline from 2020 to 2022, followed by stabilization. The gross profit margin in 2024 is strong at 38.54%, indicating effective cost management. However, the net profit margin dropped to 2.45% in 2024 from 4.25% in 2023, suggesting reduced efficiency in converting revenue into actual profit. The EBIT margin also decreased, reflecting a potential concern in operational efficiency.

Balance Sheet

Positive

The company maintains a robust equity position with an equity ratio of 72.00% in 2024, indicating a stable financial foundation. The debt-to-equity ratio is exceptionally low at 0.61%, demonstrating minimal reliance on debt financing. Return on equity has decreased to 2.98% in 2024, down from 5.38% in 2023, which could indicate less efficient use of equity capital.

Cash Flow

Neutral

Ezaki Glico's cash flow from operations decreased significantly in 2024, leading to negative free cash flow, which poses a challenge for long-term sustainability. The free cash flow to net income ratio is negative, indicating that the company's earnings are not translating into cash flow effectively. Operating cash flow to net income also decreased, showing weakened cash flow generation relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
331.13B	332.59B	303.92B	338.57B	344.05B
	Gross Profit
127.67B	120.35B	110.75B	158.03B	162.41B
	EBIT
11.06B	18.62B	12.85B	19.31B	18.52B
	EBITDA
29.06B	32.54B	27.93B	35.09B	34.36B
	Net Income Common Stockholders
8.11B	14.13B	8.10B	13.52B	11.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
60.24B	97.20B	91.93B	102.25B	98.64B
	Total Assets
377.77B	395.74B	369.05B	356.74B	340.08B
	Total Debt
165.00M	30.00B	30.02B	30.35B	30.64B
	Net Debt
-60.08B	-67.20B	-61.68B	-71.67B	-67.26B
	Total Liabilities
105.18B	132.63B	124.30B	115.57B	117.53B
	Stockholders Equity
272.00B	262.54B	244.29B	240.79B	221.75B
Cash Flow		Free Cash Flow
-15.66B	9.69B	-8.89B	4.89B	474.00M
	Operating Cash Flow
1.81B	28.06B	16.80B	28.65B	17.22B
	Investing Cash Flow
-10.26B	-10.37B	-20.14B	-29.19B	-12.44B
	Financing Cash Flow
-39.15B	-6.09B	-10.28B	-4.86B	-9.74B

Ezaki Glico Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5EJ		€1.85B	52.41	2.04%	1.96%	―	―
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
CBCFF		$2.47B	17.26	10.34%	2.01%	―	―
71N		€1.57B	10.22	9.59%	3.39%	―	―
2296	72 Outperform	¥265.59B	21.70		2.89%	3.47%	-15.46%
2811	66 Neutral	¥260.53B	16.54		1.94%	25.63%	-24.35%
2264	63 Neutral	¥292.02B	50.96		2.73%	2.58%	-90.55%

* Consumer Defensive Sector Average

Performance Comparison

DE:5EJ

Ezaki Glico Co., Ltd.

27.80

4.09

17.25%

CBCFF

CALBEE

18.92

-0.68

-3.47%

DE:71N

Nippon Suisan Kaisha

5.10

0.15

3.03%

JP:2264

Morinaga Milk Industry Co., Ltd.

3,294.00

115.86

3.65%

JP:2296

Itoham Yonekyu Holdings, Inc.

4,980.00

956.24

23.76%

JP:2811

Kagome Co., Ltd.

2,931.50

-643.92

-18.01%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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