Calbee, Inc. (TSE:2229) dominates the snack-food market in Japan with market share of over 50%. The company has an enviable brand, though for many years Calbee was only able to generate single-digit margins, far lower than its global peers. The current CEO, Akira Matsumoto, previously worked at Johnson & Johnson‡ and has brought a focused discipline to margins and returns on capital. Mr. Matsumoto has also led an aggressive push into international markets, growing Calbee’s international business by an annualized 57% over the past four years. His leadership is one of the key reasons the company’s return on equity (ROE)‡‡ has nearly doubled over the same time frame.
From Wasatch International Growth (Trades, Portfolio) Fund’s Q1 2015 Commentary.
