Announcement of the Settlement of Accounts for the Year Ending March 2023

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

Our settlement of accounts for the ending March 2023 was announced on the afternoon of Wednesday, 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 2023 (April 1, 2022 to March 31, 2023)

*Comprehensive income: The Year ending March 2023: 18,811 million yen (39.8%)
The Year ending March 2022: 31,254 million yen 172.1%

FY2022 Consolidated Financial Highlights

Net sales significantly increased due to higher sales price resulting from rising prices for palm, our main raw material, the effect of yen's depreciation in foreign exchange, and higher sales volume due to the operation of the oils and fats new plant in the Americas. Operating profit decreased due to lower sales volume caused by economic deterioration in Blommer (Industrial Chocolate/ Americas), higher expenses and lower profitability resulting from the operation of the oils and fats new plant in the Americas, and lower sales volume in China.

FY2022 Segment Highlights

Vegetable Oils and Fats
Net sales increased significantly due to higher sales prices to reflect rising prices for palm oil, our main raw material, and other raw materials. Net sales also rose on the launch of operations at a new plant in North America and on the effect of yen depreciation in foreign exchange rates. Despite the contribution of steady sales in Southeast Asia, operating profit decreased due to increased depreciation and other fixed costs associated with the launch of operations at a new plant in North America.

Industrial Chocolate
Net sales increased due to the effect of yen depreciation in foreign exchange rates and higher sales prices to reflect rising raw material prices. Despite the contribution of steady sales in Brazil, operating profit decreased on factors such as an increase of labor costs and other fixed costs and lower sales volume due to cocoa processing facilities problem on the second quarter in North America, in addition to lower sales volume in Japan.

Emulsified and Fermented Ingredients
Net sales increased due to higher sales prices to reflect higher raw material prices and the effect of yen depreciation in foreign exchange rates. Despite the higher sales volume of whipping cream, margarine and other in Japan, operating profit decreased due to lower sales volume in China associated with decreased demand caused by prolonged Zero-COVID policy.

Soy-based Ingredients
Net sales increased due to higher sales prices to reflect rising raw material prices despite the deconsolidation of a soy protein food company in China in the previous fiscal year. Despite the contribution of the higher sales of functional ingredients in Japan, operating profit decreased due to a decrease in sales volume of soy protein ingredients.

FY2022 Net sales and Operating profit by Segment

Main KPI

2. Forecasts for Consolidated Results for the Year Ending March 2024 (April 1, 2023 to March 31, 2024)

(% is in comparison to the previous year)

Consolidated Financial Guidance for FY2023
Societal structures changed significantly due to the destabilization of the global economy caused by COVID-19. However, with improvement in vaccine uptake, the global economy is showing signs of a recovery as strong demand returns. On the other hand, global inflation is accelerating. In addition to rising raw material prices due to a lack of supply caused by logistics and production labor shortages, we are also facing rising fuel and energy costs caused by the Russian invasion of Ukraine. Moving forward, the global economy is projected to continue demonstrating a lack of future transparency. In such an environment, we have revised “Together with our stakeholders, we will co-create a sustainable future for food, based on plant-based ingredients that are both delicious and healthy.” as the new vision of the Fuji Oil Group Management Philosophy. This vision represents the direction we will pursue as we work to overcome issues and achieve continuous growth by ourselves. To achieve this vision by 2030, we formulated Reborn 2024, our Mid-Term Management Plan for the three-year period from this fiscal year to FYE March 2025. We position this period as the time for us to enhance our management platform so that the Fuji Oil Group can be reborn into a corporate group capable of generating new value. Outlining the basic policies of “strengthening our business foundation”, “strengthening global business management”, and “enhancing sustainability”, We are working to improve our corporate value by restoring basic profitability through initiatives such as optimizing sales prices, strengthening business-specific performance management, and market differentiation through sustainable procurement.
For the next fiscal year, the Group expects consolidated net sales of 550,000 million yen, consolidated operating profit of 16,500 million yen, consolidated ordinary profit of 15,000 million yen, and profit attributable to owners of parent of 16,000 million yen.