News Release

2015.5.8Announcement of the Settlement of Accounts for the Year Ending March 2015

(Note) Figures shown have been rounded down to the nearest million yen

Our settlement of accounts for the year ending March 2015 was announced on the afternoon of Friday, May 8 at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

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

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) (%)
Year ending
March 2015

271,903 7.5 14,211 (6.8) 13,405 (9.4) 9,330 14.3
Year ending
March 2014

253,004 9.0 15,241 7.7 14,798 6.9 8,164 (2.1)
*Comprehensive income:
  • Year ending March 2015: 19,325 million yen (14.4%)
  • Year ending March 2014: 16,892 million yen (13.5%)

Overview of the FY ending March 2015

The Japanese economy during the company's fiscal year saw continuous improvements in corporate earnings and increased stock prices due to government fiscal and economic policies, and the trade deficit improved, but an increase in consumption tax was among the factors leading to a slow recovery in domestic consumption. 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 annual term ending March 2015, we achieved consolidated net sales of 271,903 million yen (7.5% y-o-y increase), operating income of 14,211 million yen (6.8% y-o-y decrease), ordinary income of 13,405 million yen (9.4% y-o-y decrease) and net income of 9,330 million yen (14.3% y-o-y increase).

Overviews by division are as follows:
The operations division that is included as a report division has been changed since the fiscal year ending March 2015, and the comparisons and analysis of this period are based on the division after the change.

Oils and Fats Processing Division

Year ending
March 2014
Year ending
March 2015
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 952 1,048 +96 +10.1%
Operating income 45 53 +8 +18.5%
  • 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 104,838 million yen (10.1% y-o-y increase) and an operating income of 5,326 million yen (18.5% y-o-y increase).

Confectionery and Baking Ingredients Division

Year ending
March 2014
Year ending
March 2015
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 1,186 1,276 +90 +7.6%
Operating income 97 87 (11) (10.8%)
  • 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 margarines and 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 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 127,631 million yen (7.6% y-o-y increase) and an operating income of 8,674 million yen (10.8% y-o-y decrease).

Soy Protein Division

Year ending
March 2014
Year ending
March 2015
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 392 394 +2 +0.6%
Operating income 10 2 (8) (79.3%)
  • 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. Food function-enhancing ingredients improved in sales following increase in sales for beverages and processed foods. Soy protein products sales saw lower sales as products for instant noodles, catering foods and the fishery market accumulated lower sales. Sales of soy milk increased due to sales of new products, resulting in increased overall sales for the soy protein division. In terms of profit, soy protein ingredients and soy protein food products saw lower profits resulting from decreased sales and higher raw material prices, and while functional food ingredients saw increased profits, the overall profit for the soy protein division decreased.
Through these results, this division achieved a sales volume of 39,433 million yen (0.6% y-o-y increase) and an operating income of 210 million yen (79.3% y-o-y decrease).

Predictions for Consolidated Results for the Year Ending March 2016 (April 1, 2015 to March 31, 2016)

(% is in comparison to the previous year)

  Net sales Operating
income
Ordinary
income
Net income attributable to shareholders of parent company Net income
per share
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (yen)
First 2 Quarters
(Aggregate)
139,000 8.5 6,300 (1.9) 6,000 (6.3) 3,400 (27.4) 39.55
Full Year 300,000 10.3 16,000 12.6 15,600 16.4 10,000 7.2 116.33

The economy in Japan is at last seeing the effects of the so-called "Abenomics" financial and fiscal measures taken by the government in the form of continued improvement to corporate profits and increasing stock prices, and individual consumption is also gradually increasing. However, while a recovery in the economy of the United States is being seen, the future of the economic situation overseas can be considered to remain uncertain with financial concerns in Europe, slowing growth in developing countries and conflicts in certain areas among other factors. The food industry is not in a position to pass on all increases in raw material costs resulting from factors including the weak yen, and the harsh business environment is expected to continue.
In order to achieve a scale that gives the group a presence on the global stage and secure high profit margins through technological innovation and become a group that contributes to health, abundance, and good tasting food, we have defined the position we would like to be in by 2030 and the position we should have achieved by 2020, and have formulated the rolling midterm management plan "Renaissance Fuji 2017" (April 2015 - March 2018) as an activity plan for the forthcoming three years to achieve these goals. We shall continue and enhance our fundamental policies of promotion / acceleration of global management, technological management, and sustainable management.

*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

Consolidated Full Year Forecast

(Units: 100m yen)

Year ending
March 2015
Year ending
March 2016
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales Oils and Fats 1,048 1,140 +92 +8.7%
Confectionery and Baking Ingredients 1,276 1,444 +168 +13.1%
Soy Protein 394 416 +22 +5.5%
  Total 2,719 3,000 +281 +10.3%
Operating
income
Oils and Fats 53 53 (0) (0.5%)
Confectionery and Baking Ingredients 87 97 +10 +11.8%
Soy Protein 2 10 +8 +374.6%
  Total 142 160 +18 +12.6%
  Operating income ratio 5.2% 5.3% +0.1p
Ordinary income 134 156 +22 +16.4%
Net income 93 100 +7 +7.2%

Consolidated Full Year Forecast by Area

(Units: 100m yen)

Year ending
March 2015
Year ending
March 2016
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales Japan 1,761 1,834 +73 +4.1%
Asia 547 625 +78 +14.3%
Europe and North America 411 541 +130 +31.6%
  Total 2,719 3,000 +281 +10.3%
Operating
income
Japan 94 101 +7 +7.8%
Asia 24 37 +13 +51.8%
Europe and North America 22 23 +1 +4.6%
Elimination 2 (1) (3)
  Total 142 160 +18 +12.6%

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