August 2, 2023
Consolidated Financial Results (Japanese Accounting Standards)
for the Three Months Ended June 30, 2023 (Q1 FY2023)
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, 2023 | |||||||||||
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, 2023 (April 1, 2023 - June 30, 2023) | ||||||||||||
(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, 2023 | 70,453 | 6.2 | 4,914 | (1.1) | 5,252 | (6.1) | 7,978 | 121.8 | ||||
June 30, 2022 | 66,324 | 7.6 | 4,970 | (12.7) | 5,591 | (11.9) | 3,597 | (11.7) | ||||
(Note) Comprehensive income: | 10,701 million yen (167.6%) for the three months ended June 30, 2023 | |||||||||||
3,999 million yen (-20.5%) for the three months ended June 30, 2022 | ||||||||||||
Profit per share (basic) | Profit per share (diluted) | |||||||||||
Three months ended | Yen | Yen | ||||||||||
June 30, 2023 | 81.79 | - | ||||||||||
June 30, 2022 | 36.43 | - | ||||||||||
(2) Consolidated Financial Position | ||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | |||||||||
As of | Million yen | Million yen | % | Yen | ||||||||
June 30, 2023 | 404,738 | 309,030 | 69.2 | 2,872.17 | ||||||||
March 31, 2023 | 396,910 | 301,335 | 68.6 | 2,791.56 | ||||||||
(Reference) Shareholders' | equity: | As | of June 30, 2023: | 280,146 | million yen | |||||||
As of March 31, 2023: | 272,285 million yen |
(Note) In the first quarter of the fiscal year under review, provisional accounting treatment related to business combinations was finalized. Accordingly, the figures for the previous fiscal year reflect the finalization of the provisional accounting treatment.
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, 2023 | - | 23.00 | - | 23.00 | 46.00 |
Year ending March 31, 2024 | - | ||||
Year ending March 31, 2024 | 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, 2024 (April 1, 2023 - March 31, 2024)
(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, 2024 | 304,800 | 10.8 | 20,000 | 19.9 | 20,900 | 14.2 | 17,500 | 28.0 | 180.07 |
(Notes) 1. Revisions to financial forecasts published most recently: None
2. In the first quarter of the fiscal year under review, provisional accounting treatment related to business combinations was finalized. Accordingly, the figures for the previous fiscal year reflect the finalization of the provisional accounting treatment. The percentages showing year-on-year changes have also been calculated based on figures reflecting finalization of the provisional accounting treatment.
* Notes
-
Changes of important subsidiaries during the period
(changes of specific subsidiaries in accordance with changes in the scope of consolidation): None - 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: | None |
(ii) | Changes in accounting policies other than (i): | None |
(iii) | Changes in accounting estimates: | None |
(iv) | Restatement: | None |
- Number of shares outstanding (common shares):
- Number of shares outstanding at end of period (including treasury shares)
As of June 30, 2023: | 100,750,620 shares |
As of March 31, 2023: | 100,750,620 shares |
(ii) Number of treasury shares at end of period | |
As of June 30, 2023: | 3,212,337 shares |
As of March 31, 2023: | 3,212,078 shares |
(iii) Average number of shares outstanding during the term | |
Three months ended June 30, 2023: | 97,538,286 shares |
Three months ended June 30, 2022: | 98,730,410 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, 2023" on page 4 of the accompanying materials.
Accompanying Materials - Contents | ||
1. Qualitative Information on Results for the First Quarter Ended June 30, 2023 | 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 | |
Segment Information | 9 | |
Business Combination, etc | 11 | |
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, 2023
(1) Details of Operating Results
During the first quarter of the fiscal year under review, moves toward normalization of economic activity picked up pace; however, the outlook remained uncertain amid increases in raw material prices, stubbornly high energy prices, and changes in consumer behavior associated with rising inflation.
Net sales for the three months ended June 30, 2023 increased, reflecting price revisions at Group companies in Japan and overseas and the inclusion of US-based Keystone Natural Holdings, LLC in the consolidated financial statements for the first time. Operating profit decreased but was still mostly unchanged year on year, with lower profit in the International Food Business and Spice/Seasoning/Processed Food Business offset by strong profitability in the Restaurant Business, Other Food Related Business and Health Food Business. While ordinary profit fell, profit attributable to owners of parent rose due to the recording of a gain on revision of retirement benefit plan associated with revision of the retirement benefit plan at House Foods Corporation, which is consolidated subsidiary of the Company.
In addition, allocation of the purchase price paid for US-based Keystone Natural Holdings, LLC in the business combination effected on September 30, 2022 was completed during the first quarter of the fiscal year under review. Year- on-year comparison/analysis is based on amounts after allocation of the purchase price. Please refer to "2. Quarterly Consolidated Financial Statements and Key Notes (3) Notes to Quarterly Consolidated Financial Statements (Business Combination, etc.)" for details.
As a result, the Group's operating results were as shown below.
Three months ended June 30, 2023 | |||
Amount | Year-on-year | ||
(million yen) | change (%) | ||
Net sales | 70,453 | 106.2 | |
Operating profit | 4,914 | 98.9 | |
Ordinary profit | 5,252 | 93.9 | |
Profit attributable to owners of parent | 7,978 | 221.8 |
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 | Year-on-year | Amount | Year-on-year | ||||
(million yen) | change (%) | (million yen) | change (%) | ||||
Spice / Seasoning / Processed Food Business | 29,594 | 104.5 | 1,794 | 79.7 | |||
Health Food Business | 4,136 | 100.6 | 589 | 126.7 | |||
International Food Business | 13,441 | 124.5 | 1,175 | 67.3 | |||
Restaurant Business | 12,897 | 113.8 | 930 | 482.8 | |||
Other Food Related Business | 12,858 | 92.4 | 532 | 146.9 | |||
Subtotal | 72,927 | 106.5 | 5,020 | 100.0 | |||
Adjustment (elimination) | (2,474) | - | (106) | - | |||
Total | 70,453 | 106.2 | 4,914 | 98.9 | |||
(Note) 1. Adjustment (elimination) comprises | profit or loss not | distributed to segments | and the elimination | of inter-segment | |||
transactions. |
Spice / Seasoning / Processed Food Business
In the products for household use business, we continued gradually implementing price revisions from June onwards, while focusing on recovery of profitability as the most important theme. On the sales front, the surge in demand ahead of price revisions was bigger this time and was followed by a reactionary drop; however, the sales performance was solid, driven by curry roux products. In the food service business, we began operating as House Gaban Co., Ltd., a new company formed through the integration of the food service business of House Foods Corporation and Gaban Co., Ltd., and net
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sales were solid, buoyed by a recovery in demand associated with the resumption of economic activity. In terms of profitability, the effects of price revisions implemented the previous fiscal year were not enough to absorb the higher costs resulting from rising raw material prices and profit fell.
As a result of the above, sales in the Spice/Seasoning/Processed Food Business stood at 29,594 million yen, up 4.5% year on year, and operating profit was 1,794 million yen, down 20.3% year on year. As a result, the ratio of operating profit to net sales was 6.1%, declining 1.9 percentage points from the same period of the previous fiscal year.
Health Food Business
In this business segment, we are focusing on creating sustainable revenue in the domestic business and building the Functional Ingredients Value Chain globally.
In the first quarter of the fiscal year under review, Ukon No Chikara and Ichinichi-bunNo Vitamin Jelly, which has been a focus of our efforts, both performed strongly; however, some products such as Marude Smoothie fought an uphill battle, and net sales were mostly unchanged year on year. Profitability improved thanks to thoroughgoing implementation of cost control.
As a result of the above, sales in the Health Food Business rose 0.6% year on year, to 4,136 million yen, and operating profit increased 26.7%, to 589 million yen. Consequently, the ratio of operating profit to net sales was 14.2%, improving 2.9 percentage point from a year ago.
International Food Business Period covered by the consolidated financial statements: Mainly from January to March 2023
In the tofu business in the United States, House Foods America Corporation posted gains in sales and profit, thanks to the effects of price revisions and favorable exchange rates. Keystone Natural Holdings, LLC also achieved profitability as initially planned; however, the International Food Business as a whole reported an increase in sales and a decrease in profit, partly due to the amortization of goodwill and other intangible assets associated with the acquisition of Keystone Natural Holdings, LLC.
The results of the curry business in China reflect the impact of a COVID-19 resurgence after the lifting of COVID-19 restrictions. The household use business posted gains in sales and profit thanks to high demand for home-cooked meals especially in January this year and the effect of price revisions. The food service business hit bottom in January this year and then began to recover from February but nonetheless reported declines in sales and profit, reflecting fewer orders as a result of a surge in COVID-19 cases. As a result, the business as a whole reported increased sales and decreased profit. The functional drink business in Thailand registered sharp drops in sales and profit, with the distribution inventories built up to encourage sales during the fourth quarter of the previous fiscal year taking time to return to reasonable levels because of the slump in traditional trade channels due to the movement of people back into urban areas and withdrawal of government support measures in the wake of the COVID crisis as well as dramatic changes in the beverages market as a whole associated with the resumption of economic activity.
As a result of the above, sales in the International Food Business rose 24.5% year on year, to 13,441 million yen, and operating profit decreased 32.7%, to 1,175 million yen. As a result, the ratio of operating profit to net sales was 8.7%, declining 7.4 percentage point from the same period of the previous fiscal year.
Restaurant Business Periods covered by the consolidated financial statements: From March to May 2023 for Ichibanya Co., Ltd. and from January to March 2023 for overseas subsidiaries
This business segment is strengthening marketing measures at domestic stores and developing new business formats. Ichibanya Co., Ltd. saw a significant increase in average customer spend as a result of price revisions implemented the previous fiscal year and the number of customers also exceeded the level a year earlier, partly due to the implementation of menu measures intended to bring more customers into stores. Overseas stores performed strongly mainly due to the
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House Foods Group Inc. published this content on 02 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2023 06:10:23 UTC.