FP CORPORATION April 28, 2021
Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
Company name: | FP Corporation | ||
Stock exchange listing: | Tokyo Stock Exchange | ||
Stock code: | 7947 | URL: | https://www.fpco.jp/ |
Representative: | Morimasa Sato, Representative Director, President | ||
Contact: | Isao Ikegami, Executive Vice President and Director, Executive General Manager of Finance and | ||
Accounting Division | |||
Tel. +81-8-4953-1145 | |||
Scheduled date for ordinary general meeting of shareholders: | June 24, 2021 | ||
Scheduled date of commencement of dividend payment: | June 7, 2021 | ||
Scheduled date for filing of securities report: | June 25, 2021 | ||
Supplementary documents for financial results: | Yes | ||
Financial results briefing: | None |
(Amounts of less than one million yen are truncated.) | ||||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021) | ||||||||||||||
(1) Consolidated Results of Operations | (Percentages show year-on-year changes.) | |||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||
March 31, 2021 | 196,950 | 5.7 | 18,763 | 21.0 | 19,381 | 19.1 | 12,211 | 13.3 | ||||||
March 31, 2020 | 186,349 | 2.9 | 15,507 | 11.2 | 16,274 | 9.5 | 10,777 | 8.9 | ||||||
(Note) Comprehensive income: | Fiscal | year ended March 31, 2021: | 13,021 million yen | (24.5%) | ||||||||||
Fiscal year ended March 31, 2020: | 10,461 million yen | (12.1%) | ||||||||||||
Net income per | Net income per | Ratio of | ||||||||||||
Return on equity | ordinary profit to | Operating margin | ||||||||||||
share (basic) | share (diluted) | |||||||||||||
total assets | ||||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | |||||||||
March 31, 2021 | 147.80 | - | 10.0 | 7.9 | 9.5 | |||||||||
March 31, 2020 | 130.36 | - | 9.4 | 6.6 | 8.3 | |||||||||
(Reference) Shares of (profit) loss | of entities accounted for | using equity method: | Fiscal year ended March 31, | 2021: | 38 million yen | |||||||||
Fiscal year ended March 31, 2020: | 32 million yen |
(Note) On October 1, 2020, the Company implemented a two-for-one common stock split. Net income per share was calculated assuming that the stock split was implemented at the beginning of the previous consolidated fiscal year.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | ||
As of | Million yen | Million yen | % | Yen | |
March 31, 2021 | 247,234 | 124,980 | 50.3 | 1,520.06 | |
March 31, 2020 | 242,497 | 119,301 | 49.0 | 1,436.07 | |
(Reference) Equity: | As of | March 31, 2021: | 124,349 million yen | ||
As of March 31, 2020: | 118,733 million yen |
(Note) On October 1, 2020, the Company implemented a two-for-one common stock split. Net assets per share was calculated assuming that the stock split was implemented at the beginning of the previous consolidated fiscal year.
(3) Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | ||||||||||||||||||
operating activities | investing activities | financing activities | equivalents at year-end | ||||||||||||||||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | |||||||||||||||||
March 31, 2021 | 31,814 | (19,131) | (15,086) | 17,884 | |||||||||||||||||
March 31, 2020 | 27,770 | (10,989) | (15,643) | 20,288 | |||||||||||||||||
2. Dividends | |||||||||||||||||||||
Dividend per share | Total | Dividend | Dividend | ||||||||||||||||||
End of first | End of second | End of third | payout | ||||||||||||||||||
Year-end | Annual | Dividend | on equity | ||||||||||||||||||
quarter | quarter | quarter | ratio | ||||||||||||||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen Million yen | % | % | ||||||||||||||
March 31, 2020 | - | 40.00 | - | 41.00 | 81.00 | 3,348 | 31.1 | 2.9 | |||||||||||||
March 31, 2021 | - | 41.00 | - | 24.00 | - | 3,658 | 30.1 | 3.0 | |||||||||||||
Fiscal year ending | - | 21.50 | - | 25.50 | 47.00 | 29.8 | |||||||||||||||
March 31, 2022 (forecast) | |||||||||||||||||||||
(Note) On October 1, 2020, the Company implemented a two-for-one common stock split. The amount forecast for the year-end dividend per share for the fiscal year ending March 31, 2021 is the amount after the stock split. The forecast for the annual dividend is not indicated above because a simple sum cannot be obtained due to the stock split. When the stock split is not factored in, the year-end dividend will be 48 yen while the annual dividend will be 89 yen.
3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages show year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | |||||
owners of parent | share | ||||||||
First six-month | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
96,700 | 5.3 | 8,780 | 5.6 | 9,100 | 6.3 | 5,840 | 3.3 | 71.39 | |
cumulative period | |||||||||
Year ending | 195,000 | 4.0 | 19,600 | 4.5 | 20,200 | 4.2 | 12,900 | 5.6 | 157.69 |
March 31, 2022 | |||||||||
(Note) The FPCO Group began to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. at the beginning of the fiscal year ending March 31, 2022. Accordingly, the said accounting standard has been applied to the above consolidated forecasts. The percentages for year-on-year changes were calculated by assuming that the said standard, etc. was applied in the fiscal year ended March 31, 2021.
* Notes
- Changes of important subsidiaries during the period (change in specific subsidiaries accompanied by a change in the scope of consolidation): No
- Changes in accounting policies and accounting estimates, and restatement
(i) Changes in accounting policies accompanying amendments to accounting standards, etc.: No
(ii) Changes in accounting policies other than (i): | No |
(iii) Changes in accounting estimates: | No |
(iv) Restatement: | No |
(3) Number of shares outstanding (common stock):
(i) Number of shares outstanding at the end of the period (including treasury shares):
As of March 31, 2021: | 84,568,424 shares |
As of March 31, 2020: | 88,568,424 shares |
(ii) Number of treasury shares at the end of the period: | |
As of March 31, 2021: | 2,762,648 shares |
As of March 31, 2020: | 5,888,810 shares |
(iii) Average number of shares outstanding during the period: | |
Fiscal year ended March 31, 2021: | 82,624,651 shares |
Fiscal year ended March 31, 2020: | 82,679,722 shares |
(Note) On October 1, 2020, the Company implemented a two-for-one common stock split. The number of shares outstanding at end of period, the number of treasury shares at end of period, the number of treasury shares at the end of the period and the average number of shares outstanding during the period were calculated assuming that the stock split was implemented at the beginning of the previous consolidated fiscal year.
(Reference) Overview of Non-Consolidated Results | ||||||||
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021) | ||||||||
(1) Non-Consolidated Results of Operations | (Percentages show year-on-year changes.) | |||||||
Net sales | Operating profit | Ordinary profit | Profit | |||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % |
March 31, 2021 | 159,549 | 6.4 | 12,451 | 19.4 | 13,873 | 12.9 | 9,471 | 8.7 |
March 31, 2020 | 149,995 | 3.1 | 10,427 | 14.9 | 12,284 | 5.8 | 8,710 | 3.8 |
Net income per share | Net income per share | |||||||
(basic) | (diluted) | |||||||
Fiscal year ended | Yen | Yen | ||||||
March 31, 2021 | 114.63 | - | ||||||
March 31, 2020 | 105.36 | - |
(Note) On October 1, 2020, the Company implemented a two-for-one common stock split. Net income per share was calculated assuming that the stock split was implemented at the beginning of the previous consolidated fiscal year.
(2) Non-Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | ||
As of | Million yen | Million yen | % | Yen | |
March 31, 2021 | 223,343 | 98,633 | 44.2 | 1,205.71 | |
March 31, 2020 | 220,479 | 95,899 | 43.5 | 1,159.89 | |
(Reference) Equity: | As of | March 31, 2021: | 98,633 million yen | ||
As of March 31, 2020: | 95,899 million yen |
(Note) On October 1, 2020, the Company implemented a two-for-one common stock split. Net assets per share was calculated assuming that the stock split was implemented at the beginning of the previous consolidated fiscal year.
- This summary of financial statements is outside the scope of audit procedures by certified public accountants and audit firm.
- Explanations and other special notes concerning the appropriate use of business performance forecasts
(Notes on forward-looking statements)
Descriptions regarding the future, such as the forecast of financial results herein, are calculated based on the information which is available to the Company as of the date hereof. Please note that actual results may be different due to various factors such as subsequent changes in business environment. For assumptions underlying the forecasts and notes to the use of the forecasts, please refer to (2) Projections of 1. Overview of Consolidated Results of Operations, Etc. on page 11.
(Financial results briefing session and how to obtain the supplementary documents for financial results) Documents and a video regarding the financial results are published on the Company's website on May 7, 2021.
Accompanying Materials - Contents
1. Overview of Consolidated Results of Operations, Etc............................................................................................................ | 2 | ||
(1) | Overview of Consolidated Results of Operations and Financial Situation for the Fiscal Year Ended March 31, 2021.... | 2 | |
(2) | Projections ...................................................................................................................................................................... | 11 | |
(3) | Basic Principles of Profit Distribution and Dividends for the Fiscal Year under Review and for the Next Fiscal Year.13 | ||
2. | Management Policy .............................................................................................................................................................. | 14 | |
(1) | Management's Basic Principle ....................................................................................................................................... | 14 | |
(2) | Targeted Management Indicators ................................................................................................................................... | 14 | |
(3) | Challenges to Be Addressed ........................................................................................................................................... | 14 | |
3. Basic Approach to Selection of Accounting Standards......................................................................................................... | 16 | ||
4. Consolidated Financial Statements and Main Notes............................................................................................................. | 17 | ||
(1) | Consolidated Balance Sheets.......................................................................................................................................... | 17 | |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income...................................... | 19 | |
Consolidated Statements of Income ............................................................................................................................... | 19 | ||
Consolidated Statement of Comprehensive Income ....................................................................................................... | 20 | ||
(3) | Consolidated Statement of Changes in Equity................................................................................................................ | 21 | |
(4) | Consolidated Statement of Cash Flows .......................................................................................................................... | 23 | |
(5) | Notes to Consolidated Financial Statements................................................................................................................... | 25 | |
Note to Going Concern Assumption............................................................................................................................... | 25 | ||
Consolidated Balance Sheet ........................................................................................................................................... | 25 | ||
Consolidated Statement of Income ................................................................................................................................. | 25 | ||
Segment Information ...................................................................................................................................................... | 26 | ||
Per Share Information..................................................................................................................................................... | 27 | ||
Important Subsequent Events ......................................................................................................................................... | 27 | ||
Omission of Notes .......................................................................................................................................................... | 27 | ||
5. | Other..................................................................................................................................................................................... | 28 | |
(1) | Change in Officers.......................................................................................................................................................... | 28 |
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1. Overview of Consolidated Results of Operations, Etc.
- Overview of Consolidated Results of Operations and Financial Situation for the Fiscal Year Ended March 31, 2021
- Overview of Consolidated Results of Operations for the Fiscal Year Ended March 31, 2021
The Group ensures the Hands-on Approach and Customer-First Concept as its source and practices the three basic pillars of a manufacturer, that is, "reliably deliver the most environmentally friendly products of the highest quality," "at the most competitive prices," "whenever they are needed." In 2021, the Group aims to achieve growth by having all departments create great synergy through mutual understanding and cooperation under the theme of "sympathetic resonance."
(Influence of COVID-19)
In the fiscal year under review (from April 1, 2020 to March 31, 2021), consumption matched with stay-at-home lifestyles was on the rise during the state of emergency in April and May 2020. After the state of emergency ended, changes in consumer behavior were seen, including adapting to new lifestyles that assume coexistence with COVID-19.
Regarding containers for supermarkets, the shipment of containers for fresh food, such as dressed meat and fresh fish, increased significantly due to increased opportunities to eat at home. In addition, partly because customers are switching to the Company's eco-friendly products (Eco Tray, Eco APET, and Eco OPET), shipment has continued to trend upward.
Containers for convenience stores saw a decline in shipment due to a decrease in sales at stores in business districts, downtown areas, and tourist sites.
Regarding containers for takeout and delivered food from restaurants, shipment increased rapidly in May during the state of emergency. While the temporary growth of demand subsided after the state of emergency ended, the takeout and delivered food market has been expanding as a new market because major restaurant chains began strategic initiatives.
Shipments of containers for boxed meals sold at railway stations and those for picnics and events fell sharply due in part to the voluntary ban on inter-prefectural business, holiday trips and the cancellation of events. Demand for these products has yet to recover.
Amid the significant change in the sales composition of products caused by changes in consumers' purchasing behavior during the COVID-19 pandemic, the Group was able to stably deliver products by maintaining appropriate inventory levels through the supply chain management system for the timely, centralized management of forecasts for demand, production, and distribution across Japan, which was highly acclaimed by business partners. The Group will continue striving to ensure stable supply by thoroughly implementing necessary infection control measures to continue supporting safe, secure food lifestyles.
(Business transfer from Sekisui Hinomaru K.K.)
On October 1, 2020, the Group completed the takeover of Sekisui Hinomaru K.K.'s molding business, the business of manufacturing and selling plastic food containers, and accepted 139 employees from the company. This project was implemented in the form of a business transfer instead of a share acquisition. It was a highly difficult M&A project involving scrupulous preparations, such as registration with the FPCO System. However, the Company was able to complete it with virtually no trouble. This has resulted in the enhancement of the Group's lineup of products for fishery products, such as fishcakes, dried-salted fish, and spicy cod roe, and the expansion of a new sales network through business with new customers. In addition, a great deal of synergy occurred from the business transfer, including the achievement of stable supply through the integration of the supply chain management systems, a reduction of raw material procurement costs enabled by leveraging the benefits of scale, resource conservation with lighter weight products, improvement of production capacity through efficient use of spaces in the plant, and a reduction of logistics costs enabled by a shift from the use of consolidated cargo services to the use of its own trucks. Thus, the business transfer has generated greater-than-expected profit.
- 2 -
(A fire at the Company's Chubu Plant 1)
A fire occurred at the Company's Chubu Plant 1, Wanouchi-cho, Gifu, on November 30, 2020. The Company hereby extends its deep apology for having caused great problems and anxiety to local residents, business partners, and related people.
This fire did not result in injuries or damage to the neighborhood. While the building and molding machines were damaged, the metal molds escaped damage. Products that were manufactured at this plant are now manufactured in Kanto and Fukuyama districts. They continue to be supplied to business partners without problems.
To prevent a recurrence, the Company is replacing high-voltage AC load switches, which caused the fire at the Chubu Plant 1, at its plants all over Japan. At the same time, it is reviewing its method of inspecting the equipment.
Because this is an old plant that was built 28 years ago, the Company has decided to expand and rebuild it to respond to the future growth of demand in the Chubu district. The Company aims to complete the new plant by May 2022.
(Net sales)
Net sales in the fiscal year under review rose 10,600 million yen or 5.7% year on year, to reach a record high of 196,950 million yen. Net sales of products manufactured by the Group rose 6.5% year on year to 152,158 million yen. Net sales of goods purchased increased 2.9% year on year to 44,791 million yen.
Sales volume of products increased 6.8% year on year in the first quarter of the consolidated fiscal year under review (from April 1 to June 30, 2020), rose 4.9% year on year in the second quarter (July 1 to September 30, 2020), rose 9.4% year on year in the third quarter (from October 1 to December 31, 2020), and rose 8.7% year on year in the fourth quarter (from January 1 to March 31, 2021). Sales volume of products for the consolidated fiscal year under review increased 7.5% year on year.
In the second half of the fiscal year under review, the business transfer from Sekisui Hinomaru K.K. contributed to a 3.5% increase in sales volume.
(Profits)
For the fiscal year under review, operating profit increased 3,255 million yen or 21.0% year on year to 18,763 million yen, ordinary profit increased 3,107 million yen (*1) or by 19.1% year on year to 19,381 million yen, ordinary profit before depreciation and amortization increased 10.7% year on year to 32,991 million yen, and profit attributable to owners of parent increased 13.3% year on year to 12,211 million yen. All of these are record-high figures. Factors for the increase in profits include the effect of raw material prices, growth in sales of products in terms of quantity associated with the consumption matched with stay-at-home lifestyles, the expansion of the market for takeout and delivered food from restaurants, the business transfer from Sekisui Hinomaru K.K., and the improvement effect at each division produced by the contribution to profits and increase in sales volume. On the other hand, factors that decreased profits included an increase in costs, such as labor expenses. A loss from the fire accident at Chubu Plant 1, which is 2,104 million yen, was posted as an extraordinary loss, while insurance claim income of 2,012 million yen was posted as extraordinary income. In addition to the above, the Company posted extraordinary losses, including a loss on retirement of aged equipment, which was implemented as a scrap-and-build scheme.
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FP Corporation published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 13:27:07 UTC.
