News Release
Announcement of the Settlement of Accounts
2003.5.15
Announcement of the Settlement of Accounts for the Year Ending March 2003
Our settlement of consolidated and non-consolidated accounts for the year ending March 2003 was announced on the afternoon of May 15 at the Tokyo Stock Exchange and Osaka Securities Exchange Press Clubs. An outline of the accounts is presented below.
A. Settlement of Consolidated Accounts
Consolidated Results for the Fiscal Year Ending March 2003
(April 1, 2002 to March 31, 2003)
(1) Conditions Influencing the Results
During the year, personal consumption remained stagnant in Japan as progressive deflation brought on increasingly competitive price-cutting and higher levels of unemployment. In the food industry, demand was sluggish as consumer attitudes were chilled by successive incidents of reputed corporate irresponsibility involving false labeling, unapproved flavorings, and pesticide residues. The Fuji Group nevertheless achieved favorable results by focusing on proposals to customers for new specialty products while proceeding aggressively with our triple renewal initiative (new products, new technologies, new markets).
(2) Consolidated Operating Results
Net sales | Operating income | Ordinary income | Net income for the year | |||||
---|---|---|---|---|---|---|---|---|
(millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | |
Year ending March 2003 | 154,470 | 102.2% | 11,436 | 92.8% | 10,827 | 93.7% | 4,654 | 114.9% |
Year ending March 2002 | 151,094 | 105.4% | 12,329 | 96.4% | 11,557 | 100.3% | 4,051 | 110.1% |
Consolidated Results Forecast for the Fiscal Year Ending March 2003
(April 1, 2002 to March 31, 2003)
Forecast Result
Net sales | Ordinary income | Net income for the year | ||||
---|---|---|---|---|---|---|
(millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | |
Mid term | 77,000 | 105.7% | 4,000 | 86.2% | 2,000 | 86.3% |
Yearly | 163,000 | 105.5% | 10,900 | 100.7% | 5,800 | 124.6% |
Breakdown of Results by Division
Segmented by Division (April 1, 2002 to March 31, 2003)
Oils and Fats Division
In the domestic Japanese market, sales of oils and fats, decreased both in volume and value from the previous year, due to lower oil and meal sales resulting from the shutting down of our soybean crushing (September 2001) and copra crushing (May 2002) operations in Japan. Profits were also lower than the previous year, due to the effects of deflation and the inability to raise selling prices to compensate for higher raw material costs. Overseas, prices for raw materials rose as in Japan and price competition intensified, so that although sales increased, ensuring profits was a challenge. Nevertheless, our Belgium-based group company was able to boost profits through increased sales of specialty products and by lowering costs. At the same time, our group company in the United States has steadily expanded sales volume, significantly cutting losses. As a result, sales for our oils and fats business increased by 1.6% over the previous year to 50,475 million yen.
Confectionery and Baking Ingredients Division
Even as the overall market for various types of ingredient chocolate for confectionery and baking use remained sluggish, reflecting a slump in the industries concerned, we were able to increase sales by responding to specific customer needs. By developing new products and aggressively pursuing proactive sales, our various ingredient cream products have continued to enjoy satisfactory sales. For margarines and shortenings, although sales volume increased, lower selling prices resulted in lower turnover than in the previous year. Regarding profits, the unfortunate combination of higher raw material costs and stiffer price competition made for a very difficult struggle. Among our group companies, sales companies in Japan were able to increase profits through expanded sales to retailers as a result of proactive sales activities and by lowering costs through improved logistics and distribution. Faced with sharply lower market prices for milk powder and sugar, our subsidiary in Singapore experienced lower sales and profits for processed cacao compound products and processed milk powder compound products. In contrast, sales of new ingredient cream products did very well. As a result, for our overall confectionery intermediate products business, sales decreased by 3.5% from the previous year to 67,335 million yen.
Soy Protein Division
Our products with soy protein as the base material continued to do well, with our development of health food applications and other new markets making an important contribution. For isolated soy protein, the withdrawal of a domestic competitor from this field allowed us to increase market share. Industrial supply of our soy protein food products declined due to the adverse effects of deflation. Regarding products for household use, sales through supermarkets and other mass-marketing routes faced difficult conditions, but sales through food cooperatives did very well. As a result, we were able to maintain the same overall level as the previous year. Meanwhile, sales of water-soluble soy polysaccharides made from "okara" (fibrous bean curd residue) - used as function-enhancing ingredients for food products such as beverages, instant noodles, and cooked noodles sold at convenience stores - have continued to do very well. Accompanying the amino acid boom in the healthfood market, sales of soy peptide for use in sports drinks and other healthfood products showed significant growth. Sales of soy milk also increased markedly, especially sales of soy milk to Fuji Oil Group companies for use as a raw material. Mail order sales of "Isofla 10" high-isoflavone-content tablets, "Hi! Tonyu," a government-certified FSHU (Food for Specified Health Uses), and other soybean-related products also did very well. Among our group companies, thanks to the expanding market for soybean-related products, the group company in Japan that produces and markets soy milk, soy milk yogurt, and other products certified as FSHU saw increases in both sales and profits. In China, meanwhile, backed by growth of the sausage product market, our group company in China that produces and markets isolated soy protein enjoyed a surge in both sales and profits, aided by a reputation for high quality. As a result, sales for our soy protein related businesses increased by 15.9% over the previous year to 36,659 million yen.
B. Non-consolidated Settlement of Accounts
1. Results for the Year Ending March 2003
(April 1, 2002 to March 31, 2001)
Non-consolidated Operating Results
Net sales | Operating income | Ordinary income | Net income for the year | |||||
---|---|---|---|---|---|---|---|---|
(millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | |
Year ending March 2003 | 100,059 | 101.4% | 8,645 | 86.0% | 9,046 | 91.2% | 3,561 | 93.8% |
Year ending March 2002 | 98,725 | 103.2% | 10,049 | 86.7% | 9,915 | 89.7% | 3,797 | 606.6% |
- A term-end dividend of 6.00 yen and a mid-term dividend of 6.00 yen were issued, for a total of 12.00 yen per share.
2. Predictions for Non-consolidated Results for the Year Ending March 2004
(April 1, 2003 to March 31, 2004)
Net sales | Ordinary income | Net income for the year | ||||
---|---|---|---|---|---|---|
(millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | |
Mid term | 50,000 | 105.7% | 3,500 | 88.2% | 1,800 | 89.9% |
Yearly | 105,000 | 104.9% | 8,800 | 97.3% | 5,000 | 140.4% |
- Note:The above predictions were prepared on the basis of information available on the date of issue of this announcement. Actual performance may deviate from the predicted levels due to various circumstances in the future.
End of report