News Release
Financial results
FUJI OIL HOLDINGS
Announcement of the Settlement of Accounts for the First Quarter of the Year Ending March 2016
2015.8.7
(Note) Figures shown have been rounded down to the nearest million yen
Our settlement of accounts for the first quarter of the year ending March 2016 was announced on the afternoon of Friday, August 7 at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.
Consolidated Results for the First Quarter of the Year Ending March 2016 (April 1, 2015 to June 30, 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) | (%) | |
| First quarter of the year ending March 2016 | 66,191 | 3.7 | 2,519 | (27.6) | 2,434 | (31.2) | 1,302 | (55.0) |
| First quarter of the year ending March 2015 | 63,802 | 8.4 | 3,480 | (1.2) | 3,540 | (0.1) | 2,893 | 37.2 |
| *Comprehensive income: | 1Q for year ending March 2016: 756 million yen (-68.1%) |
|---|---|
| 1Q for year ending March 2015: 2,371 million yen (-55.5%) |
Overview of the first quarter of the year ending March 2016
The Japanese economy during the company’s first quarter period saw a continued moderate recovery due to financial and fiscal policies by the government and the Bank of Japan. Overseas, however, factors including financial concerns in Europe and slower growth in China and other developing countries led to a continued state of uncertainty.
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 rolling midterm management plan called “Renaissance Fuji 2017” (April 2015 - March 2018), 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 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 first quarter of the year ending March 2016, we achieved net sales of 66,191 million yen (increase of 3.7% y-o-y), operating income of 2,519 million yen (decrease of 27.6% y-o-y), ordinary income of 2,434 million yen (decrease of 31.2% y-o-y) and net income attributable to shareholders of parent company of 1,302 million yen (decrease of 55.0% y-o-y).
Overviews by division are as follows:
Oils and Fats Processing Division
| FY2014 Q1 | FY2015 Q1 | Comparison to the previous year | ||
|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | |||
| Net sales | 249 | 256 | +7 | +2.9% |
| Operating income | 12 | 9 | (3) | (21.2%) |
Domestically, sales of industrial use 18-liter square cans of blended oil, frying oil, coconut oil for confectionery oils and fats, palm oil, and hard butters for chocolate progressed strongly, but factors such as reduced retail prices led to lower net sales and profit.
Overseas, however, declining raw material market prices led to lower retail pricing, but sales increased overall due to factors including extended sales 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 25,574 million yen (2.9% y-o-y increase) and an operating income of 932 million yen (21.2% y-o-y decrease).
Confectionery and Baking Ingredients Division
| FY2014 Q1 | FY2015 Q1 | Comparison to the previous year | ||
|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | |||
| Net sales | 292 | 304 | +13 | +4.3% |
| Operating income | 21 | 14 | (7) | (33.8%) |
Domestically, sweet chocolates, ice-coating chocolates, and other products posted gains in sales volume, resulting in increased sales for chocolates.
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 profitability, profits decreased as a result of factors including an increase in the price of raw materials.
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 factors including 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 30,431 million yen (4.3% y-o-y increase) and an operating income of 1,375 million yen (33.8% y-o-y decrease).
Soy Protein Division
| FY2014 Q1 | FY2015 Q1 | Comparison to the previous year | ||
|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | |||
| Net sales | 98 | 102 | +4 | +4.3% |
| Operating income | 2 | 2 | (0) | (4.1%) |
Soy protein ingredients saw declines in sales for fisheries and fermentation and culture mediums, 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.
In terms of profit, overall there was a reduction in profit as the increased profit from extended sales was exceeded by the impact of increased raw material prices.
Through these results, this division achieved a sales volume of 10,186 million yen (4.3% y-o-y increase) and an operating income of 211 million yen (4.1% 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 | 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 |
(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 8, 2015.
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)
| FY2014 Q1 | FY2015 Q1 | Comparison to the previous year | |||
|---|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | ||||
| Net sales | Oils and Fats | 249 | 256 | +7 | +2.9% |
| Confectionery and Baking Ingredients | 292 | 304 | +13 | +4.3% | |
| Soy Protein | 98 | 102 | +4 | +4.3% | |
| Total | 638 | 662 | +24 | +3.7% | |
| Operating income | Oils and Fats | 12 | 9 | (3) | (21.2%) |
| Confectionery and Baking Ingredients | 21 | 14 | (7) | (33.8%) | |
| Soy Protein | 2 | 2 | (0) | (4.1%) | |
| Total | 35 | 25 | (10) | (27.6%) | |
| Operating income ratio | 5.5% | 3.8% | (1.7p) | － | |
| Ordinary income | 35 | 24 | (11) | (31.2%) | |
| Net income attributable to shareholders of parent company for quarter | 29 | 13 | (16) | (55.0%) | |
| Comprehensive income for quarter | 24 | 8 | (16) | (68.1%) | |
Consolidated Profits and Losses by Area
(Units: 100m yen)
| FY2014 Q1 | FY2015 Q1 | Comparison to the previous year | |||
|---|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | ||||
| Net sales | Japan | 414 | 425 | +10 | +2.5% |
| Asia | 129 | 129 | +0 | +0.3% | |
| Europe and North America | 95 | 108 | +13 | +13.7% | |
| Total | 638 | 662 | +24 | +3.7% | |
| Operating income | Japan | 21 | 18 | (3) | (15.0%) |
| Asia | 7 | 11 | +4 | +51.5% | |
| Europe and North America | 6 | (0) | (6) | - | |
| Elimination | +1 | (4) | (4) | - | |
| Total | 35 | 25 | (10) | (27.6%) | |
[Summary of Results]
Japan:
Lower profits were recorded due to an increase in raw material prices resulting from a weak yen, and an increase in the price of soy protein ingredients.
Asia:
Increased profits through increased sales of hard butters for chocolate, creams, margarines.
Europe and North America:
Sales progressed for hard butters for chocolate, but lower profits were recorded due to factors including the accrual of costs related to the acquisition of Harald.
Consolidated Balance Sheet
(Units: 100m yen)
| FY2014 end of year | FY2015 end of year | Comparison to the previous end of year | Main factors for increase/ decrease | |
|---|---|---|---|---|
| Current assets | 1,186 | 1,231 | +46 | Gain of assets from new consolidation of Harald, etc. |
| Fixed assets | 1,051 | 1,365 | +314 | Accrued amortization due to new consolidation of Harald and gained assets, etc. |
| Total assets | 2,236 | 2,596 | +360 | |
| Interest-bearing liabilities | 296 | 600 | +305 | Increase in loans due to acquisition of Harald, etc. |
| Other liabilities | 432 | 492 | +60 | |
| Total liabilities | 728 | 1,092 | +364 | |
| Total net assets | 1,508 | 1,504 | (4) | Increase in valuation difference on available-for-sale securities, decrease in foreign currency translation adjustment, etc. |
Second Quarter Forecast and Full Year Forecast
[Consolidated results forecast]
(Units: 100m yen)
| First 2 Quarters (Aggregate) | Full Year | |||||
|---|---|---|---|---|---|---|
| Previous Year | This Year | Difference | Previous Year | This Year | Difference | |
| Net sales | 1,281 | 1,390 | +109 | 2,719 | 3,000 | +281 |
| Operating income | 64 | 63 | (1) | 142 | 160 | +18 |
| Ordinary income | 64 | 60 | (4) | 134 | 156 | +22 |
| Net income attributable to shareholders of parent company for quarter (this year) | 47 | 34 | (13) | 93 | 100 | +7 |
(Note) The forecast for the first 2 quarters and the full-year forecast announced on March 8, 2015 are not changed.