News Release

2020.11.6Announcement of the Settlement of Accounts for the 2nd Quarter of the Year Ending March 2021

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

Our settlement of accounts for the 2nd quarter of the year ending March 2021 was announced on the afternoon of Wednesday, November 6th at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

Consolidated Results for the 2nd quarter of the Year Ending March 2021 (April 1, 2020 to September 30, 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 2nd quarter of the year ending March 2021 172,589 (9.9) 7,338 (19.6) 6,835 (17.9) 4,318 (30.5)
The 2nd quarter of the year ending March 2020 191,585 30.2 9,127 (3.7) 8,328 (12.6) 6,212 41.6

*Comprehensive income:  The 2nd quarter of the Year ending March 2021: 805 million yen (69.1%)
The 2nd quarter of the Year ending March 2020: 2,601 million yen -%

During the 3rd quarter of the fiscal year ended March 2020, we finalized provisional accounting treatments related to corporate consolidation. As such, figures related to the 2nd quarter of the fiscal year ended March 2020 reflect the application of provisional accounting treatments.

FY2020 Q2 Consolidated Financial Highlights

Revenue decreased on lower sales volume for the Industrial Chocolate business and the Emulsified and Fermented Ingredients business due to the impact of COVID-19. Operating profit decreased due to lower sales in the vegetable Oil and Fats business and the Emulsified and Fermented Ingredients business, despite higher profits in the Industrial Chocolate business due to Blommer futures valuation gains.

FY2020 Q2 Segment Highlights

Vegetable Oils and Fats

Revenue decreased as a result of lower sales volume in Southeast Asia and Europe due to the impact of COVID-19. Profit decreased on lower sales in Europe.

Industrial Chocolate

Revenue decreased as a result of lower sales volume in Japan and Americans due to the impact of COVID-19. Profit increased despite decreased revenue thanks to Blommer futures valuation gains.

Emulsified and Fermented Ingredients

Despite an improvement in sales volumes of margarine and fillings in China, revenue and profits decreased due to lower sales volumes of whipping cream and margarine in Japan and poor performance of the preparations business in Southeast Asia.

Soy-based Ingredients

Revenues decreased due to the impact of the selling of the soy milk subsidiary in Japan and the Chinese soy protein food subsidiary in the previous year. Sales of soy protein ingredients in Japan were firm, despite the lower operating profit.

FY2020 Q2 Revenue and Operating profit by Segment

Unit : JPY million FY2019
Q2 Total*
FY2020
Q2 Total
Change
Revenue 188,511 172,589 (15,922)
 Vegetable Oils and Fats 47,822 46,985 (837)
 Industrial Chocolate 83,097 75,108 (7,989)
 Emulsified and Fermented Ingredients 39,804 33,245 (6,559)
 Soy-based Ingredients 17,787 17,249 (538)
Operating profit 9,370 7,338 (2,032)
 Vegetable Oils and Fats 4,742 3,427 (1,315)
 Industrial Chocolate 2,214 2,836 +622
 Emulsified and Fermented Ingredients 1,993 829 (1,164)
 Soy-based Ingredients 2,226 2,056 (170)
 Consolidated adjustment / Group
 administrative expenses
(1,806) (1,811) (5)

*For overseas consolidated subsidiaries subject to accounting period change in FY2019, FY2019 2Q total is April – September 2020.

Main KPI

FY2019
Q2
FY2020
Q2
Change
ROE 7.9% 5.6% (2.3)
ROA 4.4% 3.8% (0.6)
ROIC 3.9% 3.2% (0.7)
Net D/E Ratio 0.84 0.70 (0.14)
CCC 116 days 118 days +2 days

*Main KPI is annual reference figures.

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
360,000 16,500 15,300 10,000 116.33

*1 Revised from most recently released earnings forecast: Yes
*2 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

Earnings for the consolidated first half outperformed our initial announcement but we conducted a downward revision to our full-year earnings forecast due to changes in assumptions related to the COVID-19 pandemic and changes in assumed currency rates.
Furthermore, our previous announcement assumed the impact of COVID-19 lasting through the consolidated first half but we did not reflect the impact of COVID-19 on the consolidated third quarter onward due to the difficulty of making reasonable projections. Based on an evaluation of current conditions, we have changed to an assumption that the impact of COVID-19 will continue through the end of the current consolidated fiscal year. Furthermore, in light of current conditions, we have changed currency rate assumptions to the assumption that yen appreciation against the US dollar, the euro, the Chinese yuan, and the Brazilian real will be higher than assumptions at the time of our previous announcement.

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