News Release

2016.2.5Announcement of the Settlement of Accounts for the Third 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 third quarter of the year ending March 2016 was announced on the afternoon of Friday, February 5 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 2016 (April 1, 2015 to December 31, 2015)

Consolidated operating results (total)

(% is in comparison to the previous year)

  Revenue Operating profit Ordinary profit Net income attributable to owners of parent
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%)
Third quarter of the
year ending March 2016
214,413 6.4 12,632 16.8 10,406 (2.7) 6,386 (14.1)
Third quarter of the
year ending March 2015
201,568 7.1 10,810 (11.0) 10,696 (9.3) 7,435 11.3
*Comprehensive income:
  • 3Q for year ending March 2016: -64 million yen (-100.5%)
  • 3Q for year ending March 2015: 12,245 million yen (-0.5%)

Overview of the third quarter of the year ending March 2016

The Japanese economy during the company’s third quarter period saw a continued moderate recovery due to financial and fiscal policies by the government and the Bank of Japan. Although the global economy tended towards a moderate recovery, due to the effect of slower growth in China and other developing countries, 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 consolidated cumulative third quarter period, we achieved revenue of 214,413 million yen (increase of 6.4% y-o-y), operating profit of 12,632 million yen (increase of 16.8% y-o-y), ordinary profit of 10,406 million yen (decrease of 2.7% y-o-y) and net income attributable to owners of parent of 6,386 million yen (decrease of 14.1% y-o-y).

Overviews by division are as follows:

Oils and Fats Processing Division

FY2014
Q3 Total
FY2015
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 773 816 +43 +5.5%
Operating profit 42 47 +5 +11.9%

Domestically, increased sales of frying oil, coconut oil for confectionery oils and fats, palm oil, and hard butters for chocolate lead to an increase in revenue.
Overseas, revenue 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 increased due to increased profits in Asia.
Through these results, this division achieved a revenue volume of 81,583 million yen (increase of 5.5% y-o-y) and an operating profit of 4,662 million yen (increase of 11.9% y-o-y).

Confectionery and Bakery Ingredients Division

FY2014
Q3 Total
FY2015
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 945 1,020 +74 +7.9%
Operating profit 63 69 +6 +9.2%

Domestically, revenue increased for chocolate mainly due to growth in revenue of sweet chocolate, while revenue of creams and prepared products decreased. Revenue of margarines, shortenings, and fillings increased, leading to increased revenue for Japan overall.
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 revenue 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 revenue volume of 101,972 million yen (increase of 7.9% y-o-y) and an operating profit of 6,885 million yen (increase of 9.2% y-o-y).

Soy Protein Division

FY2014
Q3 Total
FY2015
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 297 309 +12 +3.9%
Operating profit 3 11 +7 +220.3%

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 revenue increase.
Functional food ingredients improved in revenue following extended sales in products for beverages. Soy protein products saw lower revenue in products for instant noodles, catering foods and the fishery market. Revenue of soy milk increased as sales of soy milk beverages and other products progressed steadily.
As such, the division saw an overall increase in revenue.
Profits increased due to factors including increased profits from sales growth and cost reductions.
Through these results, this division achieved a revenue volume of 30,857 million yen (increase of 3.9% y-o-y) and an operating profit of 1,084 million yen (increase of 220.3% y-o-y).

Predictions for Consolidated Results for the Year Ending March 2016 (Wednesday, April 01, 2015 to Thursday, March 31, 2016)

(% is in comparison to the previous year)

  Revenue Operating profit Ordinary profit Net income attributable to owners of parent Net income
per share
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (yen)
Full Year 300,000 10.3 16,000 12.6 14,400 7.4 9,500 1.8 110.52

(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 Friday, November 6, 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
Q3 Total
FY2015
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue Oils and Fats

773

816 +43 +5.5%
Confectionery and Bakery Ingredients

945

1,020 +74 +7.9%
Soy Protein

297

309 +12 +3.9%
  Total

2,016

2,144 +128 +6.4%
Operating
profit
Oils and Fats

42

47 +5 +11.9%
Confectionery and Bakery Ingredients

63

69 +6 +9.2%
Soy Protein

3

11 +7 +220.3%
  Total 108 126 +18 +16.8%
  Operating profit ratio 5.4% 5.9% +0.5p
Ordinary profit 107 104 (3) (2.7%)
Net income attributable to owners of parent 74 64 (10) (14.1%)
Comprehensive income for quarter 122 (1) (123)

Consolidated Profits and Losses by Area

(Units: 100m yen)

FY2014
Q3 Total
FY2015
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue Japan 1,324 1,363 +39 +3.0%
Asia 388 391 +3 +0.8%
Europe and North America 304 391 +86 +28.3%
  Total 2,016 2,144 +128 +6.4%
Operating
profit
Japan 71 91 +20 +28.1%
Asia 16 30 +14 +85.9%
Europe and North America 18 8 (10) (54.1%)
Elimination 3 (3) (6)
  Total 108 126 +18 +16.8%

[Summary of Results]
Japan:
Increased revenue and profits through increased sales of oils and fats, confectionery and bakery ingredients and soy protein.
Asia:
Increased profits through increased revenue of chocolate, creams, and margarines.
Europe and North America:
Decreased profits due to factors including increased costs through the accrual of costs related to the stock acquisition of Harald.

Consolidated Operating Profit Transition by Quarter

(Units: 100m yen)

  Q1
(three months)
Year-on-
year
comparison
Q2
(three months)
Year-on-
year
comparison
Q3
(three months)
Year-on-
year
comparison
Q3 Total Year-on-
year
comparison
Oils and Fats 9 (3) 13 (2) 24 +9 47 +5
Confectionery and
Bakery Ingredients
14 (7) 22 +8 33 +5 69 +6
Soy Protein 2 (0) 4 +3 5 +4 11 +7
Total 25 (10) 39 +10 62 +18 126 +18
  Q1
(three months)
Year-on-
year
comparison
Q2
(three months)
Year-on-
year
comparison
Q3
(three months)
Year-on-
year
comparison
Q3 Total Year-on-
year
comparison
Japan 18 (3) 25 +9 48 +14 91 +20
Asia 11 +4 11 +4 9 +7 30 +14
Europe and North  
America
(0) (6) 4 (1) 5 (3) 8 (10)
Elimination (4) (4) (1) (1) +1 (0) (3) (6)
Total 25 (10) 39 +10 62 +18 126 +18

Consolidated Balance Sheet

(Units: 100m yen)

FY2014
end of year
FY2015
end of Q3
Comparison
to the
previous
end of year
Main factors for increase/
decrease
Current assets 1,186 1,441 +255 Gain of assets from new consolidation of Harald, etc.
Fixed assets 1,051 1,329 +279 Accrued amortization due to new consolidation of
Harald and gained assets, etc.
Total assets 2,236 2,770 +534  
Interest-bearing liabilities 296 721 +426 Increase in loans due to acquisition of Harald, etc.
Other liabilities 432 569 +136  
Total liabilities 728 1,290 +562  
Total shareholder's equity 1,508 1,480 (28) Increases in retained earnings,
decrease in foreign currency translation adjustment, etc.

Consolidated Full Year Forecast by Segment

(Units: 100m yen)

2014
Q3 Total
2014
full year
2015
Q3 Total
Year-on-year
comparison
2015 full
year forecast
Year-on-year
comparison
Revenue Oils and Fats 773

1,048

816 +43 1,124 +75
Confectionery and Bakery Ingredients 945

1,276

1,020 +74 1,461 +184
Soy Protein 297

394

309 +12 416 +22
  Total 2,016

2,719

2,144 +128 3,000 +281
Operating
profit
Oils and Fats 42

53

47 +5 53 +0
Confectionery and Bakery Ingredients 63

87

69 +6 98 +11
Soy Protein 3

2

11 +7 9 +7
  Total 108 142 126 +18 160 +18

Consolidated Full Year Forecast by Area

(Units: 100m yen)

2014
Q3 Total
2014
full year
2015
Q3 Total
Year-on-year
comparison
2015 full
year forecast
Year-on-year
comparison
Revenue Japan 1,324 1,761 1,363 +39 1,848 +87
Asia 388 547 391 +3 585 +38
Europe and North America 304 411 391 +86 567 +156
  Total 2,016

2,719

2,144 +128 3,000 +281
Operating
profit
Japan 71 94 91 +20 107 +13
Asia 16 24 30 +14 42 +18
Europe and North America 18 22 8 (10) 14 (8)
Elimination 3 2 (3) (6) (2) (5)
  Total 108 142 126 +18 160 +18

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