News Release

2017.5.9Announcement of the Settlement of Accounts for the Year Ending March 2017

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

Our settlement of accounts for the year ending March 2017 was announced on the afternoon of Tuesday, May 9 at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

Consolidated Results for the Year Ending March 2017 (April 1, 2016 to March 31, 2017)

Consolidated operating results (total)

(% is in comparison to the previous year)

  Revenue Operating profit Ordinary profit Net income attributable to shareholders of parent company
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%)
Year ending
March 2017
292,547 1.7 19,694 16.9 19,712 39.6 12,105 31.2
Year ending
March 2016
287,537 5.7 16,840 18.5 14,121 5.3 9,227 (1.1)
*Comprehensive income:
  • Year ending March 2017: 14,354 million yen (-%)
  • Year ending March 2016: -344 million yen (-%)

Overview of the FY ending March 2017

First time in 7 years achieving record high operating profit. A breakdown of the YoY increase of JPY 2.9 billion in operating profit is Japan + JPY 0.3 billion, overseas +JPY 2.6 billion. Increase in income significant overseas, mainly in the Americas.

[Japan]

Increased profitability of the soy protein division covered declines in the oils and fats division and confectionery and bakery ingredients division to result in increased income.

[The Americas]

Increased income on increased sales volume for low trans fat oils in North America. In addition to no longer carrying the one-time expenses related to stock acquisition for Brazil's Harald that were incurred last year, Chocolate pricing revisions and improved profitability resulted in increased income.

Overviews by division are as follows:

Oils and Fats Processing division

Year ending
March 2016
Year ending
March 2017
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 1,088 1,094 +6 +0.5%
Operating profit 64 64 +0 +0.3%

Japan

Increase in income on sales growth for flying oil, palm oil, and hard butters for chocolate.

Overseas

Yen conversion amount decreased but income increased on increased sales of palm oil in the Americas. Income increased thanks to sales growth, improved profitability in Asia and the Americas.

Confectionery and Bakery Ingredients division

Year ending
March 2016
Year ending
March 2017
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 1,382 1,440 +57 +4.1%
Operating profit 92 106 +14 +15.3%
Japan

Growth in sales of commercial chocolate, chocolate for frozen confectioneries

Overseas

Increase in revenues and income on favorable sales of filling products in Chinese markets, net increase in revenue of Harald in Brazil, a chocolate manufacturer and distributor added to the scope of consolidated during previous FY, and the fact that we recorded stock acquisition expenses for this company during the previous FY.

Soy Protein division

Year ending
March 2016
Year ending
March 2017
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 405 392 (13) (3.2%)
Operating profit 13 27 +14 +112.9%
Soy protein materials

Income increased on firm sales to health food market, efforts to improved profitability.

Soy protein functional agents

Sales for use in beverages grew.

Division overall

Income decreased due to decline in sales caused by transfer of retail soy milk sales business at the consolidated subsidiary Toraku Foods Co., Ltd.

Predictions for Consolidated Results for the Year Ending March 2018 (April 1, 2017 to March 31, 2018)

(% 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)
148,000 4.7 8,500 (7.6) 8,400 (7.3) 5,500 (10.6) 63.98
Full Year 309,000 5.6 20,000 1.6 19,400 (1.6) 12,500 3.3 145.42

*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.

Basic policy and allocation in this period and next period for profit dividends

We consider the return of profits to our shareholders to be an important part of management. With the enhancement of business infrastructure, such as investment in production facilities, new business, and research and development and the internal reserves required for the growth plan, we always perform appropriate and stable allocation of dividends from a long-term perspective. Dividends are paid after performing a comprehensive evaluation of finances, profit levels, payout ratio, and other elements.
Based on this policy, the dividends for the end of this year shall be 22 yen per share in recognition of the support of our shareholders, and the annual payout is planned to be 44 yen. The payout for the next period is planned to be 44 yen per share for the year.

End of report

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