News Release

Financial results

FUJI OIL HOLDINGS

Announcement of the Settlement of Accounts for the Year Ending March 2022

2022.5.10

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

Our settlement of accounts for the year ending March 2022 was announced on the afternoon of Tuesday, May 10th at the Tokyo Stock Exchange Press Club. An outline of the accounts is presented below.

1. Consolidated Results for the Year Ending March 2022 (April 1, 2021 to December 31, 2021)

Consolidated operating results (total)

(% is in comparison to the previous year)

  Net Sales 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 2022 433,831 18.9 15,008 (16.2) 14,360 (18.2) 11,504 4.4
The year ending March 2021 364,779 - 17,911 - 17,565 - 11,014 -

*Comprehensive income: The Year ending March 2022: 31,254 million yen 172.1%
The Year ending March 2021: 11,486 million yen -%

FY2021 Consolidated Financial Highlights

Net sales increased across all segments on higher sales volume and higher sales prices due to increased raw material costs. Despite profit increase factors such as higher sales volume, operating profit decreased on the removal of cacao futures gains recorded during the previous fiscal year, expenses related to the launch of a new plant, and higher logistics and personnel expenses.

FY2021 Segment Highlights

Vegetable Oils and Fats
Net sales increased significantly on higher sales prices to reflect the higher cost of palm oil, one of our main raw materials, and on growth in sales volume thanks to demand recovery. On the other hand, Operating profit decreased, despite increased sales volume for vegetable fats for chocolate in Southeast Asia and Europe, profitability declined on skyrocketing raw material costs and increased depreciation expenses related to the launch of a new plant in North America.

Industrial Chocolate
Net sales increased significantly on increased sales volume driven by the resumption of economic activities and aggressive sales promotion, as well as on higher sales prices to reflect rising raw material costs. Operating profit decreased despite positive profit factors such as firm sales and higher sales volume in Japan and Brazil mainly due to the removal of futures gains recorded by Blommer in the previous consolidated fiscal year.

Emulsified and Fermented Ingredients
Net sales increased on higher sales prices to reflect rising raw material costs and a recovery in sales volume. Operating profit decreased, despite positive profit factors such as a recovery of sales volume in Japan, profitability in Southeast and China declined due to rising raw material costs.

Soy-based Ingredients
Net sales increased on higher sales prices to reflect rising raw material costs and sales growth for textured soy protein. Operating profit declined on a decline in profitability caused by higher raw material costs and increased expenses related to the construction of a new plant in Europe.

FY2021 Net sales and Operating profit by Segment
Unit : JPY million FY2020 FY2021 Change
Net Sales 364,779 433,831 +69,051
Vegetable Oils and Fats 98,413 134,976 +36,563
Industrial Chocolate 162,445 185,540 +23,094
Emulsified and Fermented Ingredients 70,599 79,146 +8,547
Soy-based Ingredients 33,321 34,167 +845
       
Operating profit 17,911 15,008 (2,903)
Vegetable Oils and Fats 7,872 7,401 (470)
Industrial Chocolate 7,608 7,548 (59)
Emulsified and Fermented Ingredients 2,703 1,617 (1,085)
Soy-based Ingredients 3,484 2,149 (1,334)
Consolidated adjustment /
Group administrative expenses
(3,756) (3,708) +47

From FY2021, soymilk and USS soymilk products in the Soy-based Ingredients Business have been reclassified to the Emulsified and Fermented Ingredients Business, so the FY2020 results have been retroactively adjusted.

Main KPI
  FY2020 FY2021 Change
ROE 7.0% 6.6% (0.4)
ROA 4.8% 3.7% (1.1)
ROIC 4.3% 3.1% (1.2)
Net D/E Ratio 0.63 0.73 +0.10
CCC 107 days 115 days +8

2. Forecasts for Consolidated Results for the Year Ending March 2023 (April 1, 2022 to March 31, 2023)

(% is in comparison to the previous year)

  Net sales 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 2023 480,000 10.6 16,500 9.9 15,800 10.0 10,500 (8.7) 122.15

Consolidated Financial Guidance for FY2022
As our outlook for the full year, despite ongoing uncertainty concerning the global economy, we project demand recovery and growth will continue thanks to the easing of COVID-19-related restrictions on activities. We also expect some improvement in raw material prices thanks to the resolution of labor shortages in producer nations and improvements to production and logistics. However, we project raw material prices will remain at high levels.
Amid this environment, the Fuji Oil Group announced our new three-year Mid-Term Management Plan, Reborn 2024. This Mid-Term Plan outlines our 2030 Vision “Together with our stakeholders, we will co-create a sustainable future for food, based on plant-based ingredients that are both delicious and healthy”. The key policies of this Plan include strengthening of business foundation, strengthening global management, and enhancing sustainability. Through this plan, we will be reborn into a corporate group that is able to generate new value even in these increasingly uncertain times.
As the inaugural year of this new Mid-Term Plan, this fiscal year will be a critical period for our Group. We will continue our focus on appropriately revising sales prices to reflect raw material costs while also working to reduce costs. At the same time, we will work towards increasing our corporate value by strengthening management to increase growth investment and operational efficacy, and also strengthen our financial policies.