News Release

2020.5.12Announcement of the Settlement of Accounts for the Year Ending March 2020

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

Our settlement of accounts for the year ending March 2020 was announced on the afternoon of Tuesday, May 12nd at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

Consolidated Results for the Year Ending March 2020 (April 1, 2019 to March 31, 2020)

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) (%)
The year ending March 2020 414,727 23,598 22,359 16,375
The year ending March 2019 300,844 (2.2) 18,525 (9.5) 18,176 (9.0) 11,582 (15.7)

*Comprehensive income:  The Year ending March 2020: 4,400 million yen ―%
 The Year ending March 2019: 3,226 million yen (76.7%)

FY2020 Consolidated Financial Highlights

Looking at revenue, although there was the impact of a decreasing raw material prices, the new consolidation of Blommer contributed. Operating income was impacted by a downswing caused by Blommer futures valuation losses, the correction from acquisition costs recorded during the previous fiscal year and growth in the Vegetable Oils and Fats Business contributed. Furthermore, the impact of the accounting period change on revenues and operating income was 28,660 million yen and 2,404 million yen, respectively.

FY2020 Segment Highlights

Vegetable Oils and Fats

Revenues were impacted by profit-focused sales and the drop in raw material prices. Expanded sales of hard butters for chocolate in Japan and the Americas and improved profitability in the EU contributed to profit.

Industrial Chocolate

Revenues improved significantly due to adding Blommer as a consolidated subsidiary. Profit grew in Japan but profitability for raw materials worsened due to the depreciation of the procurement transaction currency in Brazil and the downswing caused by Blommer futures valuation losses. Profit decreased when excluding the impact of the change in accounting period.

Emulsified and Fermented Ingredients

Looking at revenues, sales of margarine and preparations decreased in Japan. In Japan, sales growth for cream products and improved profitability contributed to profits.

Soy-based Ingredients

Looking at factors behind decreased revenues, revenues were impacted by the sale of a Chinese subsidiary last fiscal year. Profits were impacted by the lack of sales from the Chinese subsidiary but sales of soy protein ingredients and soy protein foods were firm in Japan.

FY2019 Revenue and Operating profit by Segment

Unit : JPY million FY2018 FY2019 Change Rate of Increase Impact of change in accounting period
Revenue 300,844 414,727 28,660
 Vegetable Oils and Fats 106,140 114,104 16,443
 Industrial Chocolate 72,100 180,068 7,351
 Emulsified and Fermented Ingredients 86,492 85,192 4,416
 Soy-based Ingredients 36,110 35,360 449
Operating profit 18,525 23,598 2,404
 Vegetable Oils and Fats 7,825 11,203 1,585
 Industrial Chocolate 7,756 8,324 729
 Emulsified and Fermented Ingredients 3,320 4,054 △2
 Soy-based Ingredients 3,289 4,016 92
 Consolidated adjustment / Group administrative expenses △3,665 △4,000

Main KPI

FY2018 FY2019 Change Rate of Increase
ROE 7.3% 10.5%
ROA 5.5% 6.0%
ROIC 4.0% 5.1%
Net D/E Ratio 0.89 0.82
CCC 151 days 113 days

Forecasts for Consolidated Results for the Year Ending March 2021 (April 1, 2020 to March 31, 2021)

(% 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)
The year ending March 2021 370,000 19,300 17,800 11,500 133.79

*Qualitative information regarding forecast consolidated figures

For the current consolidated fiscal year, the transitional period during this change in accounting periods, the accounting period for overseas consolidated subsidiaries subject to the accounting period change shall be the 15-month period from January 1, 2019 to March 31, 2020. As such, we do not indicate the rate of change (%) in YoY performance.

Consolidated Financial Guidance for FY2020

Our consolidated earnings forecast for FY2020 is based on a scenario in which the consolidated 1Q is heavily impacted by the novel coronavirus pandemic and the consolidated 2Q will see the global economy gradually move towards recovery. Our full-year earnings forecast is for revenues of 370 billion yen, operating income of 19.3 billion yen, ordinary income of 17.8 billion yen, and net income of 11.5 billion yen.
Furthermore, this fiscal year includes a change in accounting periods resulting in a 15-month fiscal year for 19 overseas consolidated subsidiaries. We have omitted the full-year YoY rate of change from next fiscal year’s forecasts due to the difference in comparison standards. The rate of change when comparing next year’s full-year forecast based on the adjusted amount derived by assuming the 12-month accounting of April 1, 2019 through March 31, 2020 for the 19 companies subject to a change in accounting periods would result in a 3.6% decrease in revenues, a 10.1% decrease in operating income, a 12.2% decrease in ordinary income, and a 21.7% decrease in net income.

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