News Release
Financial results
FUJI OIL HOLDINGS
Announcement of the Settlement of Accounts for the First Quarter of the Year Ending March 2017
2016.8.5
(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 2017 was announced on the afternoon of Friday, August 5 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 2017 (April 1, 2016 to June 30, 2016)
Consolidated operating results (total)
(% is in comparison to the same quarter in the previous year)
| Revenue | Operating profit | Ordinary profit | Net income attributable to shareholders of parent company for quarter | |||||
|---|---|---|---|---|---|---|---|---|
| (millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | (millions of yen) | (%) | |
| Year ending March 2017 First quarter | 71,759 | 8.4 | 4,860 | 92.9 | 4,834 | 98.6 | 3,314 | 154.5 |
| Year ending March 2016 First quarter | 66,191 | 3.7 | 2,519 | (27.6) | 2,434 | (31.2) | 1,302 | (55.0) |
- *Comprehensive income:
-
- 1Q for year ending March 2017: 1,205 million yen (59.5%)
- 1Q for year ending March 2016: 756 million yen (-68.1%)
Overview of the first quarter of the year ending March 2017
While the Japanese economy during the company's first quarter period saw robust employment and income figures, the economic situation saw sluggish consumption, which among other factors has resulted in a long-term stagnation. With regards to the overseas economy, while the US economy saw a brief pause in its deceleration, the increased risk of a downward trend in the European economy due to the impact of the UK's decision to leave the European Union, sluggish growth in China and developing countries, and other such factors led to a continuation of weakness in the global economy and continued uncertainty for the future.
The group continues to face a harsh business environment due to sudden changes in exchange rates, sluggish personal consumption, and other factors.
Against this backdrop and in line with the fundamental policies of “sustainable management”, “global management”, and “technological management” in our rolling midterm management plan called “Renaissance Fuji 2018” (April 2016 - March 2019), we have been enhancing operational strength through our growth strategy, profit structure reform, and the construction of a supply chain, and engaging in product development meeting the needs of customers while delivering high-functionality ingredients.
As a result, for the first quarter of the year ending March 2017, we achieved consolidated revenue of 71,759 million yen (8.4% y-o-y increase), operating profit of 4,860 million yen (92.9% y-o-y increase), ordinary profit of 4,834 million yen (98.6% y-o-y increase) and net income attributable to shareholders of parent company of 3,314 million yen (154.5% y-o-y increase).
Overviews by division are as follows:
Oils and Fats Processing division
| FY2015 Q1 Total | FY2016 Q1 Total | Comparison to the previous year | ||
|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | |||
| Revenue | 256 | 265 | +9 | +3.5% |
| Operating profit | 9 | 16 | +7 | +72.8% |
Domestically, increased sales amount from frying oil, palm oil for confectionery oils and fats, and hard butters for chocolate led to an increase in income and profit.
Overseas, increased sales of palm oil mainly in the Americas led to an increase in income and profit.
Through these results, this division achieved a sales volume of 26,461 million yen (3.5% y-o-y increase) and an operating profit of 1,611 million yen (72.8% y-o-y increase).
Confectionery and Bakery Ingredients division
| FY2015 Q1 Total | FY2016 Q1 Total | Comparison to the previous year | ||
|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | |||
| Revenue | 304 | 356 | +51 | +16.9% |
| Operating profit | 14 | 25 | +12 | +84.2% |
Domestically, increased sales of chocolate for frozen confectionery and creams contributed to an overall increase in income and profit.
Overseas, while sales of margarines and shortenings decreased in Southeast Asia, the Brazilian chocolate manufacturing and sales company Harald (which became a consolidated subsidiary in the previous fiscal year) achieved an increase in net sales, leading to increased income and profit.
Through these results, this division achieved a sales volume of 35,566 million yen (16.9% y-o-y increase) and an operating profit of 2,532 million yen (84.2% y-o-y increase).
Soy Protine Division
| FY2015 Q1 Total | FY2016 Q1 Total | Comparison to the previous year | ||
|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | |||
| Revenue | 102 | 97 | (5) | (4.5%) |
| Operating profit | 2 | 7 | +5 | +238.5% |
While soy protein ingredients increased sales for the health food market robustly, sales for the meat, prepared, and processed foods markets decreased. Soy protein products saw increased sales for instant deep-fried tofu. Food function-enhancing ingredients saw increased sales in products for beverages. Sales decreased for soy milk due to the consolidated subsidiary Toraku Foods taking over sales of soy milk to retailers. Because of these factors, the division overall saw a decrease in sales, but profitability increased due to business reconstruction and cost reduction resulted in increased profits.
Through these results, this division achieved a sales volume of 9,731 million yen (4.5% y-o-y decrease) and an operating profit of 715 million yen (238.5% y-o-y increase).
Predictions for Consolidated Results for the Year Ending March 2017 (April 1, 2016 to March 31, 2017)
(% is in comparison to the previous year)
| Revenue | Operating profit | Ordinary profit | 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) | 147,000 | 9.6 | 6,700 | 4.1 | 6,000 | 1.2 | 3,700 | 2.2 | 43.04 |
| Full Year | 310,000 | 7.8 | 17,500 | 3.9 | 16,000 | 13.3 | 10,000 | 8.4 | 116.33 |
* 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)
| FY2015 Q1 Total | FY2016 Q1 Total | Comparison to the previous year | |||
|---|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | ||||
| Revenue | Oils and Fats | 256 | 265 | +9 | +3.5% |
| Confectionery and Bakery Ingredients | 304 | 356 | +51 | +16.9% | |
| Soy Protein | 102 | 97 | (5) | (4.5%) | |
| Total | 662 | 718 | +56 | +8.4% | |
| Operating profit | Oils and Fats | 9 | 16 | +7 | +72.8% |
| Confectionery and Bakery Ingredients | 14 | 25 | +12 | +84.2% | |
| Soy Protein | 2 | 7 | +5 | +238.5% | |
| Total | 25 | 49 | +23 | +92.9% | |
| Operating profit ratio | 3.8% | 6.8% | +3.0p | － | |
| Ordinary profit | 24 | 48 | +24 | +98.6% | |
| Net income attributable to shareholders of parent company for quarter | 13 | 33 | +20 | +154.5% | |
| Comprehensive income for quarter | 8 | 12 | +4 | +59.5% | |
Consolidated Profits and Losses by Area
(Units: 100m yen)
| FY2015 Q1 Total | FY2016 Q1 Total | Comparison to the previous year | |||
|---|---|---|---|---|---|
| Difference (amount) | Difference (ratio) | ||||
| Revenue | Japan | 425 | 429 | +5 | +1.1% |
| Asia | 129 | 117 | (12) | (9.1%) | |
| Europe and Americas | 108 | 171 | +63 | +58.1% | |
| Total | 662 | 718 | +56 | +8.4% | |
| Operating profit | Japan | 18 | 28 | +10 | +55.0% |
| Asia | 11 | 12 | +2 | +14.0% | |
| Europe and Americas | (0) | 9 | +9 | － | |
| Elimination | (4) | (0) | +3 | － | |
| Total | 25 | 49 | +23 | +92.9% | |
[Summary of Results]
Japan:
Increased income and profit due to increased sales volume of oils and fats, confectionery and bakery ingredients, reductions in raw material costs, etc.
Asia:
Decreased sales due to factors including decreased sales of margarines and shortenings.
Europe/Americas:
Increased income and profit due to factors including increased net sales at Harald and increased sales of palm oil in the Americas.
Consolidated Balance Sheet
(Units: 100m yen)
| FY2015 end of year | FY2016 end of Q1 | Comparison to the previous end of year | Main factors for increase/ decrease | |
|---|---|---|---|---|
| Current assets | 1,309 | 1,254 | (55) | Decrease in cash and deposits, decrease in inventory, etc. |
| Fixed assets | 1,360 | 1,377 | +17 | Increase in investment securities, etc. |
| Total assets | 2,669 | 2,631 | (38) | |
| Interest-bearing liabilities | 600 | 591 | (9) | |
| Other liabilities | 581 | 556 | (25) | Reduction in reserved money due to payment of corporation tax, etc. |
| Total liabilities | 1,181 | 1,147 | (34) | |
| Total shareholder's equity | 1,488 | 1,484 | (4) | Increases in retained earnings, decrease in foreign currency translation adjustment, etc. |
Consolidated Cash Flow
(Units: 100m yen)
| FY2015 Q1 | FY2016 Q1 | Comparison to the previous year | |
|---|---|---|---|
| Quarter net income before tax | 24 | 48 | +24 |
| Depreciation expenses | 22 | 25 | +3 |
| Others | (36) | (49) | (13) |
| Operating cash flow | 11 | 24 | +14 |
| Investment cash flow | (245) | (43) | +202 |
| Free cash flow | (235) | (19) | +216 |
| Procurement/repayments through loans, etc. | 257 | (3) | (261) |
| Dividend payments/share buyback, etc. | (17) | (16) | +1 |
| Financial cash flow | 240 | (20) | (260) |
| Increase and decrease in cash and cash equivalents (including translation differences) | 4 | (43) | (48) |
| Increase and decrease due to new consolidations | 0 | － | (0) |
| Total cash and cash equivalents | 132 | 124 | (8) |
(Note):
▪ Depreciation expenses include depreciation of tangible fixed assets and intangible fixed assets, etc.
▪ Increase and decrease in cash and cash equivalents include translation differences on cash and cash equivalents.
Consolidated Indicators
(Units: 100m yen)
| 2013 full year | 2014 Q1 | 2014 full year | 2015 Q1 | 2015 full year | 2016 Q1 | |
|---|---|---|---|---|---|---|
| Capital investments | 61 | 15 | 112 | 26 | 153 | 36 |
| Depreciation expenses | 83 | 19 | 82 | 21 | 92 | 23 |
| Interest-bearing liabilities | 289 | 285 | 296 | 600 | 600 | 591 |
| Net assets (except minority interests) | 1,281 | 1,309 | 1,456 | 1,448 | 1,423 | 1,420 |
| Net assets per share | 1,490 yen | 1,522 yen | 1,694 yen | 1,684 yen | 1,656 yen | 1,652 yen |
| Total assets | 2,022 | 2,046 | 2,236 | 2,596 | 2,669 | 2,631 |
| Capital adequacy ratio | 63.3% | 63.9% | 65.1% | 55.8% | 53.3% | 54.0% |
| D/E ratio | 0.23 | 0.22 | 0.20 | 0.41 | 0.42 | 0.42 |
| ROE | 6.7% | 8.9% | 6.8% | 3.6% | 6.4% | 9.3% |
| ROA | 7.4% | 7.0% | 6.3% | 4.0% | 5.8% | 7.3% |
(Note):
▪ Depreciation expenses show the depreciation of tangible fixed assets.
▪ Net assets show the amount for net assets for common stock and excluding those held by minority shareholders.
▪ D/E ratio = Interest-bearing liabilities/Net assets (excluding those held by minority shareholders.)
▪ ROE = Net income/Net assets (Q1 indicators have been annualized)
▪ ROA =Ordinary income/Net assets (Q1 indicators have been annualized)