News Release
Financial results
FUJI OIL HOLDINGS
Announcement of the Settlement of Accounts for the Third Quarter of the Year Ending March 2015
2015.2.6
(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% |
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%) |
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%) |
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