Announcement of the Settlement of Accounts for the Third Quarter of the Year Ending March 2014
(Note) Figures shown have been rounded down to the nearest million yen
Our settlement of accounts for the third quarter of the year ending March 2014 was announced on the afternoon of Friday, February 7 at the Tokyo Stock Exchange and Osaka Securities Exchange Press Clubs. An outline of the accounts is presented below.
Consolidated Results for the Third Quarter of the Year Ending March 2014 (April 1, 2013 to December 31, 2013)
|Net sales||Operating income||Ordinary income||Net income|
|(millions of yen)||(%)||(millions of yen)||(%)||(millions of yen)||(%)||(millions of yen)||(%)|
|Third quarter of the |
year ending March 2014
|Third quarter of the |
year ending March 2013
- *Comprehensive income:
- 3Q for year ending March 2014: 12,184 million yen (+64.2%)
- 3Q for year ending March 2013: 7,420 million yen (+58.8%)
Overview of the third quarter for FY ending March 2014
The Japanese economy during the company’s third quarter period revealed modest signs of recovery in economic trends and company earnings as well as maintained strong stock prices, but continued to be challenged with unstable economic conditions due to prolonged trends of deflation, deficit in trade balance and stagnating employment. Although the US economy displayed recovery, the future projection of economic trends remains to be opaque both within Japan and globally following the dwindling economic growth of emerging markets.
The domestic food industry in which our group is placed continued to face adverse business conditions challenged with thrifty consumer spending and lower pricing trends, and suffered from rise in raw material prices following the depreciating yen.
Amid such environment, we carried out measures from our new middle term business plan “Global & Quality 2013”, engaging in product development fitting the needs of customers, delivering high-functionality ingredients and reducing production costs upon positioning “promotion of global management”, “promotion of technological management” and “promotion of sustainable management” as our fundamental policies.
As a result, for the third quarter of the year ending March 2014, we achieved net sales of 188,270 million yen (7.5% y-o-y increase), operating income of 12,147 million yen (9.5% y-o-y increase), ordinary income of 11,790 million yen (8.6% y-o-y increase) and net income of 6,679 million yen (1.3% y-o-y increase).
Overviews by division are as follows:
<Oils and Fats Processing Division>
Domestically, decreased sales volume of coconut oil, palm oil, blended oil and hard butters for chocolate led to lower net sales for the division, but cost-cutting efforts contributed to increased profit.
Overseas, hard butters for chocolate gained sales volume in the US and Europe to post increased sales year-on-year. Higher yen translation due to weaker yen also contributed to growth in both sales and profit.
Through these results, this division achieved net sales of 75,091 million yen (10.7% y-o-y increase) and an operating income of 3,659 million yen (38.6% y-o-y increase).
<Confectionery and Baking Ingredients Division>
Domestically, coating chocolates decreased sales but sweet chocolates, ice-coating chocolates and colored chocolates posted gains, resulting in increased sales for chocolates for industrial use. Creams achieved improved sales following robust results for products for desserts and drinks. Fillings also increased in sales as a result of improved sales volume for fillings for bread. Prepared products saw increase in sales after rise in dairy products pricing. The confectionery and baking ingredients division posted gains in sales and profit overall domestically.
Overseas, the division posted increase in both sales and profit year-on-year following strong sales of chocolates for industrial use and creams in Southeastern Asia.
Through these results, this division achieved a sales volume of 83,400 million yen (5.5% y-o-y increase) and an operating income of 7,649 million yen (8.0% y-o-y increase).
<Soy Protein Division>
Soy protein ingredients increased sales for frozen foods, prepared foods, health foods and fermentation and culture medium to post gains in sales, but was impacted by the rise in raw material prices following weaker yen and decreased in profitability. Food function-enhancing ingredients improved in sales following increase in sales for exports and products for rice. Soy protein products sales saw lower sales in products for retailers but increased in revenue overall as sales in China were favorable. The soy protein division overall achieved improved sales but was impacted by struggling profitability of soy protein ingredients, and resulted in significantly lower profit.
Through these results, this division achieved a sales volume of 29,778 million yen (5.4% y-o-y increase) and an operating income of 838 million yen (38.7% y-o-y decrease).
Predictions for Consolidated Results for the Year Ending March 2014 (April 1, 2013 to March 31, 2014)
|Net sales||Operating income||Ordinary income||Net income||Net income |
|(millions of yen)||(%)||(millions of yen)||(%)||(millions of yen)||(%)||(millions of yen)||(%)||(yen)|
(Note) No revisions for forecast consolidated figures were made this quarter
*Qualitative information regarding forecast consolidated figures
No revisions have been made for the full-year forecast announced on May 9, 2013. Revisions will promptly be announced if deemed necessary after determining the changes that may arise in the Company’s business environment.
*Explanation and other notes regarding appropriate utilization of the predictions
The forecasts above have been made based on assumptions deemed rational together with information available at the time of this announcement, and the actual results may differ from these forecasts due to various factors.
End of report