News Release

2017.2.8Announcement of the Settlement of Accounts for the Third Quarter of the Year Ending March 2017

(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 2017 was announced on the afternoon of Wednesday, February 8 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 2017 (April 1, 2016 to December 31, 2016)

Consolidated operating results (total)

(% is in comparison to 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) (%)
Third quarter of the
year ending March 2017
218,372 1.8 15,649 24.5 15,740 52.2 11,468 79.5
Third quarter of the
year ending March 2016
214,413 6.4 12,565 16.2 10,340 (3.3) 6,387 (14.1)
*Comprehensive income:
  • 3Q for year ending March 2017: 4,837 million yen (-%)
  • 3Q for year ending March 2016: 278 million yen (-102.3%)

Overview of the third quarter of the year ending March 2017

The Japanese economy during the company’s first half of the fiscal year saw robust progress in employment and income, and personal consumption is gradually recovering, the economy saw a gentle recovery. Against a backdrop of high expectations for the next government, the USA's economy is growing gently. While the Europe faces the impact of the UK's decision to leave the European Union (EU) and the risk of a slowing economy due to financial instability, gradual recovery in personal consumption and exports means the economy is gradually recovering. Sluggish growth in China and developing countries and other such factors led to a continuation of uncertainty in the global economy.

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 third quarter of the year ending March 2017, we achieved consolidated revenue of 218,372 million yen (increase of 1.8% y-o-y), operating profit of 15,649 million yen (increase of 24.5% y-o-y), ordinary profit of 15,740 million yen (increase of 52.2% y-o-y) and net income attributable to shareholders of parent company of 11,468 million yen (increase of 79.5% y-o-y).

Overviews by division are as follows:

Oils and Fats Processing division

FY2015
Q3 Total
FY2016
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 816 812 (4) (0.5%)
Operating profit 47 55 +9 +19.0%

Sales of frying oil, palm oil for confectionery oils and fats, and hard butters for chocolate for the Japanese market increased. Overseas, while sales of palm oil grew particularly in the US, yen translation by overseas group companies resulted in losses due to a strong yen, which in turn resulted in decreased sales. Profits increased due to increased sales and profitability.
Through these results, this division achieved a sales volume of 81,170 million yen (decrease of 0.5% y-o-y) and an operating profit of 5,548 million yen (increase of 19.0% y-o-y).

Confectionery and Bakery Ingredients division

FY2015
Q3 Total
FY2016
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 1,020 1,082 +63 +6.1%
Operating profit 68 80 +12 +17.0%

Revenue and profit increased due to factors including growth in sales of industrial use chocolate and chocolate for frozen confectionery and creams for the Japanese market, smooth sales of filling products in the Chinese market, blunt growth of sales at the Brazilian chocolate manufacturing and sales company Harald which became a consolidated subsidiary company in the previous fiscal year (revenue for Harald in the previous fiscal year is in the process of consolidation from the start of the third quarter of the consolidated accounting period), and inclusion of the cost of acquiring stock in Harald.
Through these results, this division achieved a sales volume of 108,234 million yen (increase of 6.1% y-o-y) and an operating income of 7,975 million yen (increase of 17.0% y-o-y).

Soy division

FY2015
Q3 Total
FY2016
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue 309 290 (19) (6.1%)
Operating profit 11 21 +10 +95.9%

For Soy Protein ingredients, while sales decreased for the meat and processed foods markets, sales in the health foods market were robust and improvements were made to profitability, which lead to increased profits. Sales of soy protein food products for instant deep-fried products and food function-enhancing ingredients for beverages also increased. However, with regards to overall sales in this department, sales decreased for soy milk due to the consolidated subsidiary Toraku Foods transferred the retail business of soy milk, which led to a decrease in revenue. Profit increased through profitability improvements delivered by business reconstruction and cost reductions.
Through these results, this division achieved a sales volume of 28,968 million yen (decrease of 6.1% y-o-y) and an operating profit of 2,124 million yen (increase of 95.9% y-o-y).

Forecasts for Consolidated Results for the Year Ending March 2017 (Friday, April 1, 2016 to Friday, 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)
Full Year 292,000 1.6 19,600 16.4 18,200 28.9 12,000 30.1 139.60

(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 November 8, 2016. 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.

More Detail

Overview of Consolidated Profits and Losses

(Units: 100m yen)

FY2015
Q3 Total
FY2016
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue Oils and Fats 816 812 (4) (0.5%)
Confectionery and Bakery Ingredients 1,020 1,082 +63 +6.1%
Soy Protein 309 290 (19) (6.1%)
  Total 2,144 2,184 +40 +1.8%
Operating
profit
Oils and Fats 47 55 +9 +19.0%
Confectionery and Bakery Ingredients 68 80 +12 +17.0%
Soy Protein 11 21 +10 +95.9%
  Total 126 156 +31 +24.5%
  Operating profit ratio 5.9% 7.2% +1.3p
Ordinary profit 103 157 +54 +52.2%
Net income attributable to shareholders of
parent company for quarter
64 115 +51 +79.5%
Comprehensive income for quarter (3) 48 +51

Consolidated Profits and Losses by Area

FY2015
Q3 Total
FY2016
Q3 Total
Comparison to
the previous year
Difference
(amount)
Difference
(ratio)
Revenue Japan 1,363 1,348 (15) (1.1%)
Asia 391 359 (32) (8.2%)
Europe and Americas 391 477 +87 +22.2%
  Total 2,144 2,184 +40 +1.8%
Operating
profit
Japan 91 99 +8 +8.8%
Asia 30 35 +6 +18.7%
Europe and Americas 8 22 +15 +190.9%
Elimination (3) (1) +2
  Total 126 156 +31 +24.5%

[Summary of Results]
Japan:
Decreased sales due to factors such as decreased sales of soy milk to retailers, increased profits due to reductions in raw material costs, etc.
Asia:
Decreased sales due to factors including a strong yen, and increased profit due to factors including increased profitability.
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 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 16 +7 19 +5 21 (3) 55 +9
Confectionery and
Bakery Ingredients
25 +12 18 (3) 36 +3 80 +12
Soy Protein 7 +5 6 +2 8 +3 21 +10
Total 49 +23 43 +4 65 +3 156 +31
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 28 +10 27 +2 44 (4) 99 +8
Asia 12 +2 12 +2 11 +2 35 +6
Europe and Americas 9 +9 4 (0) 10 +6 22 +15
Elimination (0) +3 +0 +1 (1) (2) (1) +2
Total 49 +23 43 +4 65 +3 156 +31

Consolidated Balance Sheet

(Units: 100m yen)

FY2015
end of year
FY2016
end of Q3
Comparison
to the
previous
end of year
Main factors for increase/
decrease
Current assets 1,309 1,318 +9 Decrease in cash and deposits, increase in accounts
receivable, decrease in inventory, etc.
Fixed assets 1,360 1,349 (11) Increased assets related to retirement benefits,
decreased accrued amortization, etc.
Total assets 2,669 2,667 (1)  
Interest-bearing liabilities 600 681 +81  
Other liabilities 581 525 (56) Decrease in unpaid corporation tax etc.,
decrease in long-term deferred tax assets, etc.
Total liabilities 1,181 1,206 +25  
Total shareholder's equity 1,488 1,461 (26) Increase in retained earnings, decrease in foreign currency translation adjustment, capital surplus, etc.

Consolidated Cash Flow

(Units: 100m yen)

  FY2015 Q3 Total FY2016 Q3 Total Comparison to
the previous year
Quarter net income before tax 104 165 +61
Depreciation expenses 72 77 +5
Others (112) (134) (23)
Operating cash flow 64 107 +43
Investment cash flow (298) (97) +202
Free cash flow (235) 10 +245
Procurement/repayments through loans, etc. 405 80 (325)
Dividend payments/share buyback, etc. (34) (93) (59)
Financial cash flow 371 (14) (384)
Increase and decrease in cash and cash equivalents Including translation differences
110
Including translation differences
(22)
(132)
Increase and decrease due to new consolidation and consolidation exclusion 0 (5) (5)
Cash and cash equivalents at the end of period 237 140 (98)

(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.

Inquiries

About inquiries

  • Inquiries are accepted during company hours on weekdays.
    Working hours: 9:00 AM ~ 5:00 PM, Monday ~ Friday
    (Inquiries are not accepted on Saturdays, Sundays, holidays, the year-end holiday season, the summer vacation season, and company holidays.)
  • Please note that it may take considerable time for us to respond to your inquiry, depending on the matter raised.
    Please also note that we may not be able to provide a response, depending on the matter raised.
  • Replies will be sent to the individual customer. Please refrain from forwarding, making secondary use of, or disclosing any reply, in whole or in part, to any third party, without the permission of our company.
  • Because we may furnish a reply by telephone, please enter a telephone number where you can be contacted during the day.

Inquiry type

Inquiry subject *
Name of the product
Purpose
Inquiry text *

Customer information

First Name *
Last Name * * This field is required.
E-mail address *
(Enter again for confirmation)
Postal code * This field is required.
Address1 *
Address2 *
City *
State/Province *
Country *
Telephone number
Occupation *
Company name
Organizational unit

Personal information

  • We shall manage all personal information on customers and the text of their inquiries in accordance with our policy on protection of privacy.
  • We shall use any personal information on customers only for response to their inquiries.

Click the send button if the text is correct.

Inquiry type

Inquiry subject
Name of the product
Purpose
Inquiry text

Personal information

First Name
Last Name
E-mail address
Postal code
Address1
Address2
City
State/Province
Country
Telephone number
Occupation
Company name
Organizational unit

We have received your inquiry. Thank you for sending it.