Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance
with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.
Summary of Financial Statements for the First Quarter of Fiscal 2023 [Japanese Standards]
July 26, 2022 | ||
Listed Company Name: Nisshin Seifun Group Inc. | Registered on Tokyo Stock Exchange | |
Code: | 2002 | |
URL: | https://www.nisshin.com | |
Representative: | Kenji Takihara, Representative Director and President | |
Contact: | Reiko Adachi, General Manager, Public Communications Department (General Administration Division) | |
Tel.: +81-3-5282-6650 | ||
Date to submit the Quarterly Securities Report: | August 8, 2022 | |
Date to start distributing dividends: | - | |
Supplementary materials for this summary of financial statements: | Yes | |
Results briefing for financial results: | None |
(Figures shown are rounded down to the nearest million yen.)
1. Consolidated Financial Results for the First Quarter of Fiscal 2023 (April 1, 2022 to June 30, 2022)
- Consolidated Business Results
(The percentages indicate | the rates of increase or decrease compared with the same | period of | the previous fiscal | year.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
First three months | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
189,296 | 18.9 | 8,859 | 20.8 | 9,919 | 12.3 | 6,306 | 13.9 | |||||
of Fiscal 2023 | ||||||||||||
First three months | 159,220 | (3.9) | 7,334 | 41.4 | 8,831 | 36.6 | 5,535 | 27.7 | ||||
of Fiscal 2022 | ||||||||||||
(Note) Comprehensive income: First three months of Fiscal 2023: ¥18,096 million (up | 723.6%) | |||||||||||
First three months of Fiscal 2022: ¥2,197 million (down 87.7%) | ||||||||||||
Earnings per share | Fully diluted earnings | |||||||||||
per share | ||||||||||||
First three months | Yen | Yen | ||||||||||
21.21 | - | |||||||||||
of Fiscal 2023 | ||||||||||||
First three months | 18.62 | 18.61 | ||||||||||
of Fiscal 2022 | ||||||||||||
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | |||
Millions of yen | Millions of yen | % | |||
June 30, 2022 | 737,306 | 472,537 | 62.4 | ||
March 31, 2022 | 723,073 | 460,643 | 62.1 | ||
(Reference) Equity capital: | June 30, 2022: ¥460,191 million | March 31, 2022: ¥449,174 million |
2. Dividends
Dividend per share | |||||||
1Q End | 2Q End | 3Q End | Year-End | Annual | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal 2022 | - | 19.00 | - | 20.00 | 39.00 | ||
Fiscal 2023 | - | ||||||
Fiscal 2023 (forecast) | 19.00 | - | 20.00 | 39.00 |
(Note) Revision to the latest forecast of dividends: None
3. Forecast of Consolidated Business Results for the Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
(The full-year percentages indicate the rates of increase or decrease compared with the previous fiscal year, the percentages for the first half are comparisons with the same period of the previous fiscal year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings | |||||
owners of parent | per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
First half | 370,000 | 13.6 | 15,000 | (3.7) | 15,500 | (11.0) | 9,000 | (9.6) | 30.26 |
Full year | 760,000 | 11.8 | 30,000 | 1.9 | 31,000 | (5.0) | 18,500 | 5.7 | 62.21 |
(Note) Revision to the latest forecast of business results: None
* Notes
- Changes in important subsidiaries during the first three months of the fiscal year ending March 31, 2023(changes in specified subsidiaries involving a change in the scope of consolidation): None
- Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Related Notes (3) Notes on Quarterly Consolidated Financial Statements [Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statements]" on page 10 of the Attachment.
-
Changes in accounting policies, changes in accounting estimates and revisions restated
1) Changes in accounting policies associated with the revisions of accounting standards, etc.: None
2) Changes in accounting policies other than the above: | None |
3) Changes in accounting estimates: | None |
4) Revisions restated: | None |
(4) Number of shares issued and outstanding (common stock) |
- Number of shares issued and outstanding (including treasury shares)
- Number of treasury shares
- Average number of shares outstanding
As of June 30, | 304,357,891 | As of March 31, | 304,357,891 |
2022 | 2022 | ||
As of June 30, | 6,961,054 | As of March 31, | 6,960,907 |
2022 | 2022 | ||
First three months | 297,396,837 | First three months | 297,382,954 |
of Fiscal 2023 | of Fiscal 2022 |
- Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent account auditors.
- Statement regarding the proper use of financial forecasts and other special remarks
- The statements contained in this document are based on various assumptions and do not constitute any guarantee or definite promise that projections of future performance or related business policies will actually be realized. For details of assumptions for financial forecasts and other related matters, please refer to "1. Qualitative Information for the Period under Review (3) Forecast of Consolidated Business Results and Other Forward- looking Information" on page 5 of the Attachment.
- Supplementary materials for this report can be found on the Company's website.
Contents of the Attachment | ||
(2) | Financial Position .......................................................................................................................... | 5 |
(3) | Forecast of Consolidated Business Results and Other Forward-looking Information .................. | 5 |
2. Quarterly Consolidated Financial Statements and Related Notes ........................................ | 6 | |
(1) | Quarterly Consolidated Balance Sheets......................................................................................... | 6 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income................................ | 8 |
[Quarterly Consolidated Statements of Income]................................................................... | 8 | |
[Quarterly Consolidated Statements of Comprehensive Income].......................................... | 9 | |
(3) | Notes on Quarterly Consolidated Financial Statements .............................................................. | 10 |
[Notes on the Premise of a Going Concern] ....................................................................... | 10 | |
[Notes on a Significant Change in Shareholders' Equity] ................................................... | 10 | |
[Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial | ||
Statements]........................................................................................................................ | 10 | |
[Segment Information, etc.] ............................................................................................... | 11 |
1
1. Qualitative Information for the Period under Review
(1) Business Performance
[Overview of the Period under Review]
During the first three months of the fiscal year ending March 31, 2023, the Japanese economy continued to show signs of returning to normal, as seen in a gradual loosening of restrictions on economic activity and a turnaround in consumer spending, trends that came despite lingering impacts from the COVID-19 pandemic. The future, however, remained shrouded in uncertainty, as growing inflation with respect to food staples greatly impacted the business environment. Spurring inflation was soaring prices for grain and natural resources caused by the situation in Ukraine, along with faster devaluation of the yen in currency markets, among other factors.
Under these conditions, the Group strives to fulfill its corporate mission of ensuring the stable supply of foods involving wheat flour and the delivery of safe and reliable products in each business area. Along with placing the highest priority on responding to significantly increased costs for raw materials, the Group made progress in taking decisive steps for building the foundation for further growth in order to realize its long-term vision called "NNI 'Compass for the Future'-Toward a New Stage-MaximizingGroup-wide Capabilities and Effecting Business Model Change."
With respect to performance, consolidated net sales for the first three months of the fiscal year ending March 31, 2023, increased 18.9% year on year to ¥189,296 million. Factors driving growth included enactment of price revisions for wheat flour in the flour milling business in Japan in step with wheat price revisions, coupled with growth in wheat market prices and foreign currency translation effects in the overseas flour milling business. In terms of profits, operating profit increased 20.8% year on year to ¥8,859 million, while ordinary profit was up 12.3% to ¥9,919 million. Profit attributable to owners of parent for the quarter, meanwhile, rose13.9% to ¥6,306 million. These results were largely reflective of higher shipments in the flour milling business in Japan, thanks to demand in advance of price revisions for wheat flour, as well as robust performance in the overseas flour milling business. Profitability improved despite unexpectedly dramatic increase in the cost of raw materials, which came amid lower shipments and the decision to enact product price revisions after July 2022 in the processed food business.
(Year-on-year Comparison)
(Millions of yen) | ||||
First three months of | First three months of | Difference | Change | |
Fiscal 2022 | Fiscal 2023 | |||
Net sales | 159,220 | 189,296 | 30,075 | 18.9% |
Operating profit | 7,334 | 8,859 | 1,525 | 20.8% |
Ordinary profit | 8,831 | 9,919 | 1,088 | 12.3% |
Profit attributable to | 5,535 | 6,306 | 771 | 13.9% |
owners of parent | ||||
2
[Business Overview by Segment] 1) Flour Milling Segment
(Millions of yen) | ||||
First three months of | First three months of | Difference | Change | |
Fiscal 2022 | Fiscal 2023 | |||
Net sales | 71,977 | 96,949 | 24,971 | 34.7% |
Operating profit | 1,685 | 3,727 | 2,041 | 121.2% |
In the flour milling business in Japan, shipments where higher year on year, lifted mainly by a recovery in restaurant demand in step with the elimination of restrictions on consumer behavior, along with demand in advance of wheat flour price revisions. Additionally, in June 2022, we implemented price revisions for commercial wheat flour in response to revised government prices for five classes of imported wheat enacted in April 2022. On average, the government's price for imported wheat rose 17.3%.
In the overseas flour milling business, sales were higher year on year mainly due to strong shipment performance, as well as the effects of rising wheat market prices, coupled with foreign currency translation effects.
As a result, net sales of the Flour Milling Segment increased 34.7% year on year to ¥96,949 million. Operating profit climbed 121.2% to ¥3,727 million, benefiting mainly from firm business performance in the overseas flour milling business, shipment growth in the flour milling business in Japan, and higher sales prices for bran, a byproduct from the flour milling business in Japan.
2) Processed Food Segment
(Millions of yen) | ||||
First three months of | First three months of | Difference | Change | |
Fiscal 2022 | Fiscal 2023 | |||
Net sales | 46,143 | 46,736 | 592 | 1.3% |
Operating profit | 4,094 | 2,896 | (1,198) | (29.3)% |
In the processed food business, shipments of household-use products fell short of growth stimulated in the prior year by product price revisions enacted in line with rising costs for raw materials in the fourth quarter of previous year, coupled with the impact last year of pandemic- related behavior restrictions. Nevertheless, sales in the processed food business were higher year on year, lifted by recovery trends in demand for commercial-use products and firm shipments of prepared mix overseas, among other factors.
In the yeast and biotechnology business, sales were lower year on year, mainly reflecting lower shipments of both yeast and other bread making ingredients and culture media. Meanwhile, the new yeast plant under construction at India-based subsidiary Oriental Yeast India Pvt. Ltd. has entered the final stage of adjustments ahead of the start of full-scale operations.
In the healthcare foods business, sales were lower year on year due to lower shipments of raw materials for pharmaceuticals.
As a result, net sales of the Processed Food Segment increased 1.3% year on year to ¥46,736 million. Operating profit, however, declined 29.3% to ¥2,896 million, attributable mainly to unexpectedly dramatic increase in the cost of raw materials, which came amid lower shipments and the decision to enact product price revisions after July 2022.
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Nisshin Seifun Group Inc. published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2022 07:33:05 UTC.