News Release

2015.2.6Announcement of the Settlement of Accounts for the Third Quarter of the Year Ending March 2015

(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 2015 was announced on the afternoon of Friday, February 6 at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

Consolidated Results for the Third Quarter of the Year Ending March 2015 (April 1, 2014 to December 31, 2014)

Consolidated operating results (total)

(% is in comparison to the previous year)

  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 2015

201,568 7.1 10,810 (11.0) 10,696 (9.3) 7,435 11.3
Third quarter of the
year ending March 2014

188,270 7.5 12,147 9.5 11,790 8.6 6,679 1.3
*Comprehensive income:
  • 3Q for year ending March 2015: 12,245 million yen (0.5%)
  • 3Q for year ending March 2014: 12,184 million yen (64.2%)

Overview of the third quarter of the year ending March 2015

The Japanese economy during the company's consolidated cumulative third quarter period saw continuous improvements in corporate earnings and increased stock prices due to government fiscal and financial policies, but a slowdown in the economic recovery was also observed due to continuing trade deficit and a reaction to the last-minute demand accompanying the increase in consumption tax. However, while a recovery in the economy of the United States was seen and the dollar rapidly gained value, the future of the economic situation overseas remained uncertain with slowing growth in developing countries and conflicts in certain areas among other factors.

The domestic food industry in which our group is placed continued to face adverse business conditions as a result of a continuing rise in raw material prices following the depreciating yen. Amid such environment, we created a new midterm management plan called “Renaissance Fuji 2016”, engaging in product development fitting the needs of customers, delivering high-functionality ingredients and reducing production costs upon positioning “promotion / acceleration of global management”, “promotion / acceleration of technological management” and “promotion / acceleration of sustainable management” as our fundamental policies.

As a result, for the consolidated cumulative third quarter period, we achieved net sales of 201,568 million yen (increase of 7.1% y-o-y), operating income of 10,810 million yen (decrease of 11.0% y-o-y), ordinary income of 10,696 million yen (decrease of 9.3% y-o-y) and net income of 7,435 million yen (increase of 11.3% y-o-y).

Overviews by division are as follows:
The operations division that is included as a report division has been changed since the first quarter period, and the comparisons and analysis for the consolidated cumulative third quarter period are based on the division after the change.

Oils and Fats Processing Division

FY2013
Q3 Total
FY2014
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 703 773 +70 +10.0%
Operating income 33 42 +9 +26.0%
  • Q3 Operating income

Domestically, sales for blended oils centering on industrial use 18-liter square cans decreased, but increased sales were achieved due to increased sales volume and sales prices of coconut oil, palm oil and hard butters for chocolate.
Overseas, the sales volume of hard butters for chocolate in the United States, Southeast Asia and China increased, and sales and profits increased due to factors including an overall increase in sales prices and favorable yen conversion rates due to the weakened yen.
Through these results, this division achieved a sales volume of 77,314 million yen (increase of 10.0% y-o-y) and an operating income of 4,165 million yen (increase of 26.0% y-o-y).

Confectionery and Baking Ingredients Division

FY2013
Q3 Total
FY2014
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 882 945 +64 +7.2%
Operating income 78 63 (15) (19.1%)
  • Q3 Operating income

Domestically, sweet chocolates, ice-coating chocolates, and molded chocolates posted gains in sales volume, resulting in increased sales for chocolates. Sales of cream and fillings increased and sales of prepared products decreased, but net sales overall for the Confectionery and Baking Ingredients Division increased. In terms of profitability, profits decreased as a result of an overall increase in the price of raw materials.
Overseas, sales of chocolate progressed favorably in Europe and Southeast Asia. Sales of creams increased in Southeast Asia, and sales of margarines, shortenings, and fillings increased in China and Southeast Asia.
Although overall sales increased, lower sales of prepared products for Japan combined with struggling profitability lead to lower profits.
Through these results, this division achieved a sales volume of 94,547 million yen (7.2% y-o-y increase) and an operating income of 6,305 million yen (19.1% y-o-y decrease).

Soy Protein Division

FY2013
Q3 Total
FY2014
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 298 297 (1) (0.2%)
Operating income 10 3 (7) (67.6%)
  • Q3 Operating income

Soy protein ingredients decreased sales volume for meat, health foods, prepared foods, processed foods, fermentation and culture medium, and in the fishery market, leading to a decrease in sales overall. Functional food ingredients improved in sales following increase in sales for beverages and processed foods. Soy protein products saw lower sales as products for instant noodles and catering foods accumulated lower sales. Sales of soy milk increased due to the sale of new products.
The soy protein division overall saw lower sales and was impacted by the price of raw materials for soy protein ingredients, which resulted in lower profits.
Through these results, this division achieved a sales volume of 29,707 million yen (0.2% y-o-y decrease) and an operating income of 338 million yen (67.6% y-o-y decrease).

Predictions for Consolidated Results for the Year Ending March 2015 (April 1, 2014 to March 31, 2015)

(% is in comparison to the previous year)

  Net sales Operating
income
Ordinary
income
Net income Net income
per share
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (yen)
Full Year 282,700 11.7 15,000 (1.6) 14,600 (1.3) 9,000 10.2 104.70

(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, 2014. 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

More Detail

Overview of Consolidated Profits and Losses

(Units: 100m yen)

FY2013
Q3 Total
FY2014
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales Oils and Fats

703

773 +70 +10.0%
Confectionery and Baking Ingredients

882

945 +64 +7.2%
Soy Protein

298

297 (1) (0.2%)
  Total

1,883

2,016 133 7.1%
Operating
income
Oils and Fats

33

42 +9 +26.0%
Confectionery and Baking Ingredients

78

63 (15) (19.1%)
Soy Protein

10

3 (7) (67.6%)
  Total 121 108 (13) (11.0%)
  Operating income ratio 6.5% 5.4% (1.1p)
Ordinary income 118 107 (11) (9.3%)
Net income 67 74 +8 +11.3%
Comprehensive income for quarter 122 122 +1 +0.5%

Consolidated Profits and Losses by Area

(Units: 100m yen)

FY2013
Q3 Total
FY2014
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales Japan 1,276 1,324 +47 +3.7%
Asia 347 388 +41 +11.9%
Europe and North America 260 304 +44 +17.0%
  Total 1,883 2,016 +133 +7.1%
Operating
income
Japan 90 71 (19) (21.4%)
Asia 26 16 (10) (38.8%)
Europe and North America 7 18 +11 +168.0%
Elimination (2) 3 5 -
  Total 121 108 (13) (11.0%)

[Summary of Results]
Japan:
Increased overall sales through increased sales of coconut oil, hard butters for chocolate, chocolate, etc.
Asia:
Increased overall sales through increased sales of hard butters for chocolate, chocolate, creams, margarines, etc.
Europe and North America:
Increased overall sales and profit due to increased sales and increased prices for hard butters for chocolate.

Consolidated Full Year Forecast by Segment

(Units: 100m yen)

2013 Q3
Results
2014 Q3
Results
Year-on-year
comparison
Progression rate 2013 full year results 2014 full year forecast Year-on-year
comparison
Net sales Oils and Fats 703 773 +70 71.4% 952 1,083 +131
Confectionery and Baking Ingredients 882 945 +64 71.1% 1,186 1,329 +143
Soy Protein 298 297 (1) 71.6% 392 415 +23
  Total 1,883 2,016 +133 71.3% 2,530 2,827 +297
Operating
income
Oils and Fats 33 42 +9 81.7% 45 51 +6
Confectionery and Baking Ingredients 78 63 (15) 69.3% 97 91 (6)
Soy Protein 10 3 (7) 42.3% 10 8 (2)
  Total 121 108 (13) 72.1% 152 150 (2)

(Note) No revisions have been made for the consolidated full year forecast announced on May 9, 2014. However, revisions have been made for the numbers in the breakdown of operating income based on first half results and circumstances.
・Progression rate = 2014 Q3 results ÷ 2014 full year forecast

Consolidated Full Year Forecast by Area

(Units: 100m yen)

2013
Q3
Results
2014
Q3
Results
Year-on-year
comparison
Progression
rate
2013
full
year
results
2014
full
year
forecast
Year-on-year
comparison
Net sales Japan 1,276 1,324 +47 73.9% 1,690 1,792 +102
Asia 347 388 +41 62.2% 486 624 +138
Europe and
North America
260 304 +44 74.0% 354 411 +57
  Total 1,883 2,016 +133 71.3% 2,530 2,827 +297
Operating
income
Japan 90 71 (19) 73.4% 110 97 (13)
Asia 26 16 (10) 55.4% 33 29 (4)
Europe and
North America
7 18 +11 76.1% 11 24 +13
Elimination (2) 3 +5 (1) +1 +2
  Total 121 108 (13) 72.1% 152 150 (2)

(Note) No revisions have been made for the consolidated full year forecast announced on May 9, 2014. However, revisions have been made for the numbers in the breakdown of operating income based on first half results and circumstances.
・Progression rate = 2014 Q3 results ÷ 2014 full year forecast

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