August 1, 2022
Consolidated Financial Results (Japanese Accounting Standards)
for the Three Months Ended June 30, 2022 (Q1 FY2022)
Company name: | House Foods Group Inc. |
Stock exchange listing: | Tokyo Stock Exchange |
Stock code: | 2810 |
URL: | https://housefoods-group.com |
Representative: | Hiroshi Urakami, President |
Contact: | Nobuhide Nakagawa, General Manager, Public & Investors Relations Division |
Tel. +81-3-5211-6039 |
Scheduled date for filing of securities report: | August 10, 2022 | |||||||||||
Scheduled date of commencement of dividend payment: | - | |||||||||||
Supplementary documents for quarterly results: | Yes | |||||||||||
Quarterly results briefing: | None | |||||||||||
(Amounts of less than one million yen are rounded to the nearest million yen.) | ||||||||||||
1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 1, 2022 - June 30, 2022) | ||||||||||||
(1) Consolidated Results of Operations (Accumulated Total) | (Percentages show year-on-year changes.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
June 30, 2022 | 66,324 | 7.6 | 4,970 | (12.7) | 5,591 | (11.9) | 3,597 | (11.7) | ||||
June 30, 2021 | 61,636 | 3.2 | 5,690 | 28.4 | 6,345 | 40.5 | 4,073 | 44.8 | ||||
(Note) Comprehensive income: | 3,999 million yen (-20.5%) for the three months ended June 30, 2022 | |||||||||||
5,032 million yen (69.1%) for the three months ended June 30, 2021 | ||||||||||||
Profit per share | Profit per share | |||||||||||
(basic) | (diluted) | |||||||||||
Three months ended | Yen | Yen | ||||||||||
June 30, 2022 | 36.43 | - | ||||||||||
June 30, 2021 | 40.57 | - | ||||||||||
(2) Consolidated Financial Position | ||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||
As of | Million yen | Million yen | % | Yen | ||||||||
June 30, 2022 | 380,653 | 295,629 | 69.9 | 2,708.75 | ||||||||
March 31, 2022 | 382,021 | 298,567 | 70.4 | 2,700.99 | ||||||||
(Reference) Shareholders' | equity: | As | of June 30, 2022: | 266,004 | million yen | |||||||
As of March 31, 2022: | 268,966 million yen |
2. Dividends
Dividend per share | |||||
End of first quarter | End of second | End of third | Year-end | Annual | |
quarter | quarter | ||||
Yen | Yen | Yen | Yen | Yen | |
Year ended March 31, 2022 | - | 23.00 | - | 23.00 | 46.00 |
Year ending March 31, 2023 | - | ||||
Year ending March 31, 2023 | 23.00 | - | 23.00 | 46.00 | |
(forecasts) | |||||
(Note) Revisions to dividend forecasts published most recently: None |
3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)
(Percentage figures represent the changes from the previous year) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Year ending March 31, 2023 | 270,600 | 6.8 | 18,400 | (4.3) | 19,500 | (7.7) | 11,200 | (19.8) | 113.60 |
(Note) Revisions to financial forecasts published most recently: None
* Notes
-
Changes of important subsidiaries during the period
(changes of specific subsidiaries in accordance with changes in the scope of consolidation): Yes
New: 1 company (Company Name) House Foods Group Asia Pacific Co., Ltd. - Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: Yes
- Changes in accounting policies and changes or restatement of accounting estimates
(i) | Changes in accounting policies caused by revision of accounting standards: | Yes |
(ii) | Changes in accounting policies other than (i): | None |
(iii) | Changes in accounting estimates: | None |
(iv) | Restatement: | None |
(Note) Please refer to "2. Quarterly Consolidated Financial Statements and Key Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 9 of the Accompanying Materials for details.
(4) Number of shares outstanding (common shares):
(i) Number of shares outstanding at end of period (including treasury shares)
As of June 30, 2022: | 100,750,620 shares |
As of March 31, 2022: | 100,750,620 shares |
(ii) Number of treasury shares at end of period | |
As of June 30, 2022: | 2,548,779 shares |
As of March 31, 2022: | 1,169,959 shares |
(iii) Average number of shares outstanding during the term | |
Three months ended June 30, 2022: | 98,730,410 shares |
Three months ended June 30, 2021: | 100,401,313 shares |
- Quarterly consolidated financial results are not subject to a quarterly review by certified public accountants or audit corporations.
- Explanations and other special notes concerning the appropriate use of business results forecasts
- The forward-looking statements such as result forecasts included in this document are based on the information available to the Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially from the forecast depending on a range of factors.
- For other matters related to the forecasts, please refer to "(3) Information on the Future Outlook, Including Consolidated Business Results Forecasts" under "1. Qualitative Information on Results for the First Quarter Ended June 30, 2022" on page 4 of the accompanying materials.
Accompanying Materials - Contents | ||
1. Qualitative Information on Results for the First Quarter Ended June 30, 2022........................................................ | 2 | |
(1) | Details of Operating Results .......................................................................................................................... | 2 |
(2) | Details of Financial Position .......................................................................................................................... | 4 |
(3) | Information on the Future Outlook, Including Consolidated Business Results Forecasts.............................. | 4 |
2. Quarterly Consolidated Financial Statements and Key Notes .................................................................................. | 5 | |
(1) | Quarterly Consolidated Balance Sheets ......................................................................................................... | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ................................................. | 7 |
(3) | Notes to Quarterly Consolidated Financial Statements .................................................................................. | 9 |
Notes Relating to Assumptions for the Going Concern ................................................................................. | 9 | |
Notes for Case Where Shareholders' Equity underwent Significant Changes in Value ................................ | 9 | |
Application of Particular Accounts Procedures to the Preparation of | ||
Quarterly Consolidated Financial Statements ................................................................................................ | 9 | |
Changes in Accounting Policies..................................................................................................................... | 9 | |
Additional Information................................................................................................................................... | 9 | |
Segment Information.................................................................................................................................... | 10 | |
3. Supplementary Information.................................................................................................................................... | 12 | |
(1) | Business Results........................................................................................................................................... | 12 |
(2) | Number of Group Companies ...................................................................................................................... | 12 |
(3) | Consolidated Statements of Income ............................................................................................................. | 13 |
(4) | Consolidated Balance Sheets........................................................................................................................ | 17 |
(5) | Capital Investment ....................................................................................................................................... | 18 |
(6) | Depreciation ................................................................................................................................................. | 18 |
(7) | Major Management Indicators, etc............................................................................................................... | 18 |
(8) | Reference Information.................................................................................................................................. | 19 |
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1. Qualitative Information on Results for the First Quarter Ended June 30, 2022
(1) Details of Operating Results
The House Foods Group has been tackling its Seventh Medium-term Business Plan based on the theme of striving to become a high quality company that provides "Healthy Life Through Foods" Striving for Four Value Chains. In the period under review, which is the second year of the plan, the Group will continue to accelerate its transformation into a high quality company in terms of all "three responsibilities" ("For our customers," "For our employees and their families," and "For society"). It has also defined four value chains or VCs (the Spice VC, the Functional Ingredients VC, the Soybean VC and the Value Added Vegetable VC) as domains in which it will, create the value of "Healthy Life Through Foods" and will seek priority allocation of management resources to growing domains with the aim of achieving sustainable growth.In the first quarter of the fiscal year under review, there was progress in the resumption of economic activity that had stalled due to the COVID-19 pandemic, but the business environment faces concerns about an economic downturn due to global inflation, geopolitical risks such as the situation in Ukraine, fluctuations in the exchange rate market, and other developments.
Net sales in the first quarter of the fiscal year under review generally performed well in each business amid the resumption of economic activity, increasing 7.6% year on year to 66,324 million yen. Operating profit was significantly affected by the sharp rise in raw material prices, particularly in the Spice/Seasoning/Processed Food Business, and declined 12.7% year on year to 4,970 million yen. Ordinary profit declined 11.9% year on year to 5,591 million yen, while profit attributable to owners of parent was 3,597 million yen, down 11.7% year on year.
The following is an overview of results by segment (before the elimination of inter-segment transactions).
Consolidated net sales | Consolidated operating profit | |||||
Segment | (Segment profit (loss)) | |||||
Amount (million yen) | Year-on-year change | Amount (million yen) | Year-on-year change | |||
(%) | (%) | |||||
Spice / Seasoning / Processed | 28,326 | 102.5 | 2,251 | 73.2 | ||
Food Business | ||||||
Health Food Business | 4,110 | 122.7 | 465 | - | ||
International Food Business | 10,796 | 110.0 | 1,747 | 88.1 | ||
Restaurant Business | 11,334 | 101.9 | 193 | 55.0 | ||
Other Food Related Business | 13,921 | 119.2 | 362 | 76.9 | ||
Subtotal | 68,487 | 107.7 | 5,017 | 87.8 | ||
Adjustment (elimination) | (2,163) | - | (47) | - | ||
Total | 66,324 | 107.6 | 4,970 | 87.3 | ||
(Note) 1. Adjustment (elimination) | comprises profit or | loss not distributed to | segments and the elimination | of inter-segment | ||
transactions. |
Spice / Seasoning / Processed Food Business
The Spice/Seasoning/Processed Food Business is focusing on achieving growth based on the creation of new value alongside the strengthening of profitability in existing business.
In the products for household use business, we saw signs of recovery in the curry product line which had struggled as a reactionary decline to extraordinary stay-at-home demand in the previous fiscal year, and demand for the curry menu was firm. The food service business performed strongly on the back of recovery in demand due to the resumption of economic activity. However on the profit front, while the effects of increased sales contributed to some degree, the significant impact of sharply rising raw material prices resulted in a decline in profit.
As a result of the above, sales in the Spice/Seasoning/Processed Food Business stood at 28,326 million yen, up 2.5% year on year, and operating profit was 2,251 million yen, down 26.8% year on year. Consequently, the ratio of operating profit
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to net sales was 7.9%, declining 3.2 percentage point from a year ago.
Health Food Business
In this business segment, we are promoting structural reforms domestically and working to quickly build the Functional Ingredients Value Chain globally.
In the first quarter of the fiscal year under review, Ukon No Chikara performed strongly in part due to recovered demand for going out to drink, and key jelly products such as Ichinichi-bunNo Vitamin Jelly and the new Marude Smoothie product experienced growth. In terms of profit, the structural reforms we have been working on for some time yielded results, and we returned to operating profitability.
As a result of the above, net sales in the Health Food Business rose 22.7% year on year to 4,110 million yen with operating profit of 465 million yen, an improvement of 627 million yen year on year. Consequently, the ratio of operating profit to net sales was 11.3%, improving 16.2 percentage point from a year ago.
International Food Business Period covered by the consolidated financial statements: Mainly from January to March 2022
In this business segment we have strived to accelerate the speed of growth in three priority areas (United States, China and ASEAN).
In the business in the United Sates we capitalized on demand for plant based foods which are on a continued expansionary trend, and also generated increased sales and profit in the tofu business, in part from the effects of price revisions implemented from January 2022. However, in the import business from Japan, both sales and profit declined due to container shipping delays associated with supply chain disruptions and the impact of increased transportation expenses. Overall, the business in the United States recorded increased sales and a decline in profit.
The curry business in China was impacted by Chinese authorities' "zero COVID policy" in addition to a reactionary decline from strong performance a year earlier, with sales declining among products for both household and food service use. On the profit front, profit declined in part due to sharply rising prices of raw materials and a temporary increase in promotion expenses associated with product refreshes.
In the functional drink business in Thailand, with people flowing back into the metropolitan area due to the resumption of economic activity, bottled products performed strongly particularly in the modern trade sector, with both sales and profit increasing.
As a result of the above, sales in the International Food Business rose 10.0% year on year, to 10,796 million yen, and operating profit decreased 11.9%, to 1,747 million yen. As a result, the ratio of operating profit to net sales was 16.2%, declining 4.0 percentage point from the same period of the previous fiscal year.
Restaurant Business Periods covered by the consolidated financial statements: From March to May 2022 for Ichibanya Co., Ltd. and from January to March 2022 for overseas subsidiaries
Even during the COVID-19 pandemic we have actively worked to generate demand in this business segment.
Despite a gradual increase in the number of customers in part due to Ichibanya Co., Ltd. fully lifting requests such as shortened business hours in late March, net sales at existing domestic stores only rose 0.7% year on year. At overseas stores, conditions varied greatly by area, but net sales at existing stores rose 7.4%, exceeding the year-ago performance overall. Operating profit fell below the year-ago level, in part due to sharply rising purchase prices for goods such as frying oil and bento containers, as well as declining sales from overseas subsidiaries due to lockdowns in China.
As a result of the above, sales in the Restaurant Business increased 1.9% year on year, to 11,334 million yen, and operating profit declined 45.0% year on year, to 193 million yen. Consequently, the ratio of operating profit to net sales was 1.7%, declining 1.4 percentage points from a year ago.
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House Foods Group Inc. published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 06:13:23 UTC.