News Release

2015.11.6Announcement of the Settlement of Accounts for the Second Quarter of the Year Ending March 2016

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

Our settlement of accounts for the second quarter of the year ending March 2016 was announced on the afternoon of Friday, November 6 at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

Consolidated Results for the Second Quarter of the Year Ending March 2016 (April 1, 2015 to September 30, 2015)

Consolidated operating results (total)

(% is in comparison to the previous year)

  Net sales Operating income Ordinary income Net income attributable to shareholders of parent company for quarter
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%)
Second quarter of the
year ending March 2016
134,098 4.7 6,436 0.2 5,926 (7.5) 3,622 (22.7)
Second quarter of the
year ending March 2015
128,115 8.0 6,421 (0.2) 6,403 0.5 4,684 20.3
*Comprehensive income:
  • 2Q for year ending March 2016: 2,489 million yen (-48.1%)
  • 2Q for year ending March 2015: 4,801 million yen (-46.2%)

Overview of the second quarter of the year ending March 2016

The Japanese economy during the company’s first half of the fiscal year saw a continued moderate recovery due to financial and fiscal policies by the government and the Bank of Japan. Overseas, however, due to the effect of slower growth in China and other developing countries and concerns about higher interest rates resulting from financial measures in the United States, fears of a slow down in the global economy grew and lead to the continuation of a state of uncertainty.

The domestic food industry in which our group is placed continued to face adverse business conditions as a result of sustained high raw material prices following the continuation of the weak yen.

Against this backdrop, our rolling midterm management plan called “Renaissance Fuji 2017” (April 2015 - March 2018) sets forth “promotion / acceleration of global management”, “promotion / acceleration of technological management” and “promotion / acceleration of sustainable management” as our fundamental policies and we have been enhancing operational strength through growth strategy, profit structure reform, and the construction of a supply chain, and engaging in product development fitting the needs of customers, delivering high-functionality ingredients.

As a result, for the first half of the year ending March 2016, we achieved net sales of 134,098 million yen (increase of 4.7% y-o-y), operating income of 6,436 million yen (increase of 0.2% y-o-y), ordinary income of 5,926 million yen (decrease of 7.5% y-o-y) and net income attributable to shareholders of parent company of 3,622 million yen (decrease of 22.7% y-o-y).

Overviews by division are as follows:

Oils and Fats Processing Division

FY2014
Q2 Total
FY2015
Q2 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 496 520 +24 +4.9%
Operating income 27 23 (4) (15.3%)

Domestically, sales of frying oil, coconut oil for confectionery oils and fats, palm oil, and hard butters for chocolate progressed strongly, but in terms of profits, factors such as reduced retail prices and increased costs led to lower profit.

Overseas, however, declining raw material market prices led to lower retail pricing, but sales increased overall due to factors including extended sales mainly in the Americas and favorable yen conversion rates due to the weakened yen. In terms of profit, overall profits from overseas decreased due to factors including reduced profits in Europe.

Through these results, this division achieved a sales volume of 51,989 million yen (4.9% y-o-y increase) and an operating income of 2,268 million yen (15.3% y-o-y decrease).

Confectionery and Bakery Ingredients Division

FY2014
Q2 Total
FY2015
Q2 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 591 617 +26 +4.4%
Operating income 35 36 +1 +2.5%

Domestically, chocolates centering on sweet chocolates grew, leading to increased sales. Creams and prepared products saw decreased sales, but sales of margarines, shortenings, and fillings increased, leading to increased net sales for this division in Japan. In terms of profits, increased profits were seen due to increased sales and sales price revisions, despite increasing raw material prices.

Overseas, sales of chocolate, cream, margarine, and fillings progressed steadily, resulting in a sales increase. In terms of profits, a decrease was seen due to an increase in costs resulting from the accrual of costs related to the stock acquisition of the Brazilian consolidated subsidiary Harald.

Through these results, this division achieved a sales volume of 61,710 million yen (increase of 4.4% y-o-y) and an operating income of 3,552 million yen (increase of 2.5% y-o-y).

Soy Protein Division

FY2014
Q2 Total
FY2015
Q2 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales 195 204 +9 +4.9%
Operating income 3 6 +3 +123.3%

Soy protein ingredients saw declines in sales for meat and fisheries, but sales progressed for health foods, prepared foods, and processed foods, resulting in an overall sales increase. Functional food ingredients improved in sales following extended sales in products for beverages. Soy protein products saw lower sales in products for instant noodles, catering foods and the fishery market. Sales of soy milk increased as sales of soy milk beverages and other products progressed steadily. As such, the division saw an overall increase in sales. Profits increased due to factors including increased profits from sales growth and cost reductions.

Through these results, this division achieved a sales volume of 20,398 million yen (increase of 4.9% y-o-y) and an operating income of 615 million yen (increase of 123.3% y-o-y).

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

Based on recent performance trends, the results forecast announced on May 8, 2015 has been modified as follows.

  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)
Previous forecast (A) 300,000 16,000 15,600 10,000 116. 33
Revised forecast (B) 300,000 16,000 14,400 9,500 110. 52
Difference (B-A) (1,200) (500)
Difference ratio (%) (7.7) (5.0)
(Reference) Results from previous year
(Year ending March 2015)
271,903 14,211 13,405 9,330 108. 55

*Qualitative information regarding forecast consolidated figures

Throughout the period we have continued to make efforts to expand sales, revise sale prices, and reduce costs, and there are no changes in terms of the previous forecast of sales or operating income. However, it is forecast that our current-account balance shall deteriorate due to exchange appraisal losses occurring in the foreign currency denominated claims and obligations (foreign currency denominated loans and debts, etc.) held by the Fuji Oil Group because of weak currencies in developing countries.

As such, ordinary income and net income attributable to shareholders of parent company is expected to be lower than the previous forecast.

*The forecasts above have been made based on information available at the time of this announcement.
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)

FY2014
Q2 Total
FY2015
Q2 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales Oils and Fats 496 520 +24 +4.9%
Confectionery and Bakery Ingredients 591 617 +26 +4.4%
Soy Protein 195 204 +9 +4.9%
  Total 1,281 1,341 +60 +4.7%
Operating
income
Oils and Fats 27 23 (4) (15.3%)
Confectionery and Bakery Ingredients 35 36 +1 +2.5%
Soy Protein 3 6 +3 +123.3%
  Total 64 64 +0 +0.2%
  Operating income ratio 5.0% 4.8% (0.2p)
Ordinary income 64 59 (5) (7.5%)
Net income attributable to shareholders of
parent company for quarter
47 36 (11) (22.7%)
Comprehensive income for quarter 48 25 (23) (48.1%)

Consolidated Profits and Losses by Area

(Units: 100m yen)

FY2014
Q2 Total
FY2015
Q2 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Net sales Japan 833 864 +31 +3.8%
Asia 259 261 +2 +0.6%
Europe and North America 189 216 +27 +14.1%
  Total 1,281 1,341 +60 +4.7%
Operating
income
Japan 38 43 +6 +14.6%
Asia 14 21 +7 +52.0%
Europe and North America 11 4 (7) (65.5%)
Elimination +1 (4) (6)
  Total 64 64 +0 +0.2%

[Summary of Results]
Japan:
Increased sales and profits through increased sales of confectionery and bakery ingredients and soy protein.
Asia:
Increased profits through increased sales of chocolate, creams, and margarines.
Europe and North America:
Lower profits were recorded due to decreased profits in Europe and the accrual of costs related to the acquisition of Harald.

Consolidated Balance Sheet

(Units: 100m yen)

FY2014
end of year
FY2015
end of Q2
Comparison
to the
previous
end of year
Main factors for increase/
decrease
Current assets 1,186 1,287 +101 Gain of assets from new consolidation of Harald, etc.
Fixed assets 1,051 1,369 +319 Accrued amortization due to new consolidation of
Harald and gained assets, etc.
Total assets 2,236 2,656 +420
Interest-bearing liabilities 296 622 +327 Increase in loans due to acquisition of Harald, etc.
Other liabilities 432 513 +80
Total liabilities 728 1,135 +407
Total net assets 1,508 1,521 +13 Increased in retained earnings, decrease in valuation
difference on available-for-sale securities, etc.

Consolidated Full Year Forecast by Segment

(Units: 100m yen)

2014
Q2 Total
2014
full year
2015
Q2 Total
Year-on-year
comparison
2015 full
year forecast
Year-on-year
comparison
Net sales Oils and Fats 496 1,048 520 +24 1,124 +75
Confectionery and Bakery Ingredients 591 1,276 617 +26 1,461 +184
Soy Protein 195 394 204 +9 416 +22
  Total 1,281 2,719 1,341 +60 3,000 +281
Operating
income
Oils and Fats 27 53 23 (4) 53 +0
Confectionery and Bakery Ingredients 35 87 36 +1 98 +11
Soy Protein 3 2 6 +3 9 +7
  Total 64 142 64 +0 160 +18

(Note) No revisions have been made for sales and operating income for the consolidated full year forecast announced on Friday, May 8, 2015. Full year forecasts for the consolidated sales by segment and operating income breakdown figures have been changed based on the recent performance trends.

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