Lion Corporation

Lion Corporation has announced higher interim and year-end dividends compared with the previous year, signaling management confidence in current earnings capacity and cash generation. The company links the dividend changes to its current view of earnings capacity and balance sheet strength. Lion's new guidance for basic earnings per share of ¥90.38 against a full-year dividend plan of ¥34.00 per share implies a payout ratio that sits alongside its push into higher margin Oral Health Care and overseas markets. The key thing to watch is how reported profit for the period attributable to owners of parent tracks against the guided ¥25,000m and whether future dividend announcements remain in line with the current payout level.