In Japan, MEIJI Holdings Co Ltd. (TSE:2269) reported healthier margins and rising profitability. The integration of the 2009 merger of its dairy and pharmaceutical divisions is finally achieving better results. The company has successfully reorganized the business, implemented structural reforms and increased overseas operations. With an aging population eating more probiotics, MEIJI’s dairy division more than offset Japanese drug price cuts impacting the pharmaceutical division. We expect that the decrease in oil prices will have a beneficial effect on disposable income, leading to further consumer demand in Japan, and in all non-oil producing countries.
From Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund Q4 2014 Shareholder Letter.
