Prime Highlights:
- Mitsubishi Corporation will spend ¥4 trillion ($27 billion) over three years to fund long-term expansion.
- The firm forecast a 2027/28 financial-year net profit of ¥1.2 trillion.
Key Facts:
- Mitsubishi will spend ¥1 trillion on maintenance capital expenditure and over ¥3 trillion on expansion investment.
- The firm will buy back as much as ¥1 trillion of stock between April 2025 and March 2026.
Key Background:
Japan’s biggest trading company, Mitsubishi Corporation, launched a three-year strategic investment plan from April 2025. The group pledged to invest a massive amount of ¥4 trillion ($27 billion) with the twin motive of supporting existing business and growth. ¥1 trillion will be spent on supporting the capital investment out of the total amount, and over ¥3 trillion will be spent on growth projects.
Under its plan of long-term development, Mitsubishi targets to record ¥1.2 trillion net income in FY 2027/28. The ambitious projection signals the company’s confidence on the long-term plan of its growth. Aside from maintaining keen eye on maximising shareholder value, Mitsubishi will pursue its dividend strategy and make open-ended share buybacks publicly announced. Included under more noteworthy features of the plan is buying up to ¥1 trillion worth of its own shares between April 2025 – March 2026.
Despite this projected growth, Mitsubishi has projected a decrease in its short-term profits. For March 2025 year, it projected a net profit of ¥950 billion. In the next year, April 2025, net profit is projected to fall to ¥700 billion. In its attempt to reassure its shareholders, Mitsubishi has announced its dividend to rise by ¥10 to ¥110 per share.
Joining market interest, Warren Buffett’s Berkshire Hathaway now owns 9.67% of Mitsubishi Corporation. The investment is a reflection of unshakeable confidence in the long-term financial well-being of Mitsubishi and long-term strategic direction, placing the company on firm footing to move forward successfully on the global market.
Read More – Click Here