Sato Holdings updates medium-term plan, sets ambitious new financial targets

Sato Holdings Corporation has updated its medium-term management plan (FY24-28), originally disclosed in March 2024, to reflect progress and changes in the business environment. The revised plan outlines a clearer strategic portfolio, focusing on strengthening core business profitability and advancing its "Perfect and Unique Tagging (PUT)" concept. This concept underpins growth drivers in new domains like blood supply chain management and the circular economy, with smart packaging now added as a strategic focus.

The company has set new management targets for FY28, aiming for sales of JPY 186 bn, operating income of JPY 15.7 bn, ROIC of 9.4%, ROE of 10.2%, and a P/B ratio of 1.0 or higher. These targets represent an acceleration towards its 2030 Vision, with blood supply chain management alone projected to reach JPY 10 bn in sales by FY30.

Sato Holdings also updated its capital allocation policy, expecting to generate approximately JPY 70 bn in cash from FY2025-2028. The company will prioritize investments for business growth (approximately 70%) while maintaining its progressive dividend policy and allocating around 20% to shareholder returns.