Kobe Bussan : Monthly Performance for June 2023

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

KOBE BUSSAN CO., LTD.

	July 19, 2023
Company name:	Kobe Bussan Co., Ltd.
Securities code:	3038
Listing:	Prime Market of Tokyo Stock Exchange
Representative:	Hirokazu Numata,
	President and Representative Director
Contact:	Masahiro Sakamoto,
	Manager, Corporate Planning Department

Monthly Performance for June 2023

Kobe Bussan Co., Ltd. discloses its monthly performance for June 2023 on a non-consolidated basis.

1. Trends in net sales, gross profit, operating profit, and ordinary profit (non-consolidated)
	[Net sales]				(Upper: Millions of yen, Lower: YoY %)
	Nov.	Dec.	Jan.	Feb.	Mar.	Apr.	H1
	36,947	41,392	32,684	35,364	39,845	41,342	227,577
111.1	112.6	110.5	113.8	109.6	112.5	111.7
	May	June	July	Aug.	Sept.	Oct.	H2		Full year
	40,175	39,372

117.7 110.5

[Gross profit]				(Upper: Millions of yen, Lower: YoY %)
Nov.	Dec.	Jan.	Feb.	Mar.	Apr.	H1
3,116	3,465	3,060	3,406	3,946	4,305	21,300
91.2	95.2	100.8	103.9	114.8	114.2	103.5
May	June	July	Aug.	Sept.	Oct.	H2	Full year
4,363	4,178

127.1 118.4

[Operating profit]				(Upper: Millions of yen, Lower: YoY %)
Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
1,725		2,062	1,668	1,988	2,222	2,690	12,357
77.7		85.1	97.5	93.9	108.0	114.5	95.9
May		June	July	Aug.	Sept.	Oct.	H2		Full year
2,861		2,701

131.9 120.1

[Ordinary profit]				(Upper: Millions of yen, Lower: YoY %)
Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
174		204	1,031	5,127	1,830	2,793	11,163
7.8		7.7	59.3	229.7	63.3	97.1	76.2
May		June	July	Aug.	Sept.	Oct.	H2		Full year
2,913		2,253

132.280.9

Note: This flash report is unaudited and the figures are subject to change. Accordingly, they are revised and updated as appropriate on a timely basis if differed from the quarterly or annual results. For the purpose of year-on-year comparison, buy-sell transactions with subsidiaries are not accounted for under the Accounting Standard for Revenue Recognition on a monthly basis. The figures under the Standard will be disclosed in the full-year financial results.

2. Trends in the number of Gyomu Super stores
					Nov.		Dec.		Jan.		Feb.		Mar.	Apr.	H1
		Directly		Opened	0	3	2		4		6	4	19
		managed		Closed	0	0	0		4		0	1	5
		areas
			Total	633	636	638		638		644	647	+14
		Indirectly		Opened	1	1	0		1		0	2	5
		managed		Closed	0	1	1		0		1	0	3
		areas
			Total	372	372	371		372		371	373	+2
		Total franchise stores	1,005	1,008	1,009		1,010		1,015	1,020	－
		Total directly operated stores	3	3	3		3		3	3	－
		Total stores	1,008	1,011	1,012		1,013		1,018	1,023	+16
					May		June		July		Aug.		Sept.	Oct.	H2	Full year
		Directly		Opened	3		3
		managed		Closed	1		0
		areas		Total	649		652
		Indirectly		Opened	0		2
		managed		Closed	0		0
		areas		Total	373		375
		Total franchise stores	1,022		1,027
		Total directly operated stores	3		3
		Total stores	1,025		1,030
		■ Directly managed areas (areas with franchise stores under general franchise contract)
		[Hokkaido area]	Hokkaido prefecture
		[Kanto area]	Tokyo, Chiba, Kanagawa, and Saitama prefectures
		[Kansai area]	Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara, Wakayama, and Shiga prefectures
		[Kyushu area]	Fukuoka, Saga, Nagasaki, Kumamoto, Oita, and Miyazaki prefectures

• Indirectly managed areas (areas with franchise stores under area franchise contract) Prefectures other than those listed above

[Stores opened during June 2023]

Store name

Address

[Directly managed areas]

―

Matsudo Rokkodai

4-134-1 Rokkodai, Matsudo-shi, Chiba

Yokaichiba

962-5 Yokaichibaha, Sosa-shi, Chiba

Hasami

484-1 Shukugo, Hasami-cho,Higashisonogi-gun, Nagasaki

[Indirectly managed areas]

―

Akanuma

2399-1 Akanuma, Nagano-shi, Nagano

Tsu Sumiyoshi

2-12Sumiyoshi-cho,Tsu-shi, Mie

3. Year-on-year changes in product shipments to Gyomu Super stores

(YoY %)

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

H1

Directly managed areas

Existing stores

105.6

107.2

103.9

106.8

103.2

106.8

105.6

All stores

112.1

112.6

109.5

112.5

108.5

112.7

111.4

Nationwide*

All stores

111.6

112.5

109.3

112.0

108.3

111.8

111.0

May

June

July

Aug.

Sept.

Oct.

H2

Full year

Directly managed areas

Existing stores

110.5

105.6

All stores

116.5

111.1

Nationwide*

All stores

116.6

110.3

* "Nationwide" represents the product shipments to the stores in both directly and indirectly managed areas.

4. Overview

For June 2023, we reported net sales of ¥39,372 million (up 10.5% year-on-year),gross profit of ¥4,178 million (up 18.4%), operating profit of ¥2,701 million (up 20.1%), and ordinary profit of ¥2,253 million (down 19.1%)on a non-consolidatedbasis.

During the period, Gyomu Super opened five stores, resulting in 1,030 stores in total, an increase of 58 stores from a year earlier. In addition, net sales also increased driven by the continued coverage on television programs and social media.

Ordinary profit fell short of that for the same period of the previous fiscal year. This is because we recorded valuation loss on forward exchange contracts entered into to hedge risks of exchange rate fluctuations. Nevertheless, the impact of the valuation loss is of one-time nature and operating profit, which indicates profit from our core business, exceeded that for the same period of the previous fiscal year.

Our product shipments to Gyomu Super stores remained strong, with an increase of 5.6%from a year earlier to existing stores in directly managed areas, an increase of 11.1%to all stores in directly managed areas, and an increase of 10.3%to all stores nationwide.

In terms of our product trends, sales of conveniently available frozen vegetables have continued showing a strong positive trend. Also, we enjoyed strong performance in beverage sales along with a rise in temperature across Japan.

5. Scheduled disclosure date

The flash report for July is scheduled to be released on Tuesday, August 22. Please note that the date of release may be changed for unavoidable reasons.