Summary of Consolidated Financial Results
For the Three Months of the Year Ending March 31, 2021 (Based on Japanese GAAP)
July 31, | 2020 | |||
Company name: | Mitsui Sugar Co., Ltd. | Stock exchange listings: Tokyo | ||
Stock code: | 2109 | https://www.mitsui-sugar.co.jp/ | ||
Company representative: | Daisuke Saiga, President and Chief Executive Officer | |||
Contact person in charge: | Hideaki Batori | Executive Managing Officer, | ||
General Manager, Group Strategy Division | ||||
TEL. 81-3-3663-3111 | ||||
Planned date for submission of quarterly report: | August 6, 2020 | |||
Planned date to start dividend payment: | - | |||
Preparation of supplementary material for quarterly financial statements: | None | |||
Briefing session for quarterly financial statements: | None | |||
(Amounts are | rounded down to the nearest 1 million | yen.) |
1. Consolidated Financial Results for the Three Months of the Year Ending March 31, 2021 (from April 1, 2020 to June 30, 2020)
(1) Consolidated Results of Operations | (Percentages are year-over-year changes.) | |||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||
owners of parent | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
First three months of FY2020 | 26,528 | (7.9) | 1,088 | (22.2) | 991 | (49.0) | 405 | (68.3) |
First three months of FY2019 | 28,795 | 7.9 | 1,398 | 23.3 | 1,945 | (35.4) | 1,276 | (33.8) |
(Note) Comprehensive income: | Three months ended June 30, 2020: | 172 million yen | (-88.6%) | ||||||||||||||||||||||||
Three months ended June 30, 2019: | 1,504 million yen | (-25.6%) | |||||||||||||||||||||||||
Earnings per share | Diluted earnings per share | ||||||||||||||||||||||||||
Yen | Yen | ||||||||||||||||||||||||||
First three months of FY2020 | 15.77 | - | |||||||||||||||||||||||||
First three months of FY2019 | 48.10 | - | |||||||||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||||||||||||||||||||||||
Million yen | Million yen | % | Yen | ||||||||||||||||||||||||
As of June 30, 2020 | 137,016 | 91,811 | 60.0 | 3,199.60 | |||||||||||||||||||||||
As of March 31, 2020 | 141,705 | 92,395 | 58.4 | 3,218.77 | |||||||||||||||||||||||
(Reference) Equity capital: | As of June 30, 2020: | 82,234 million yen | As of March 31, 2020: | 82,727 million yen | |||||||||||||||||||||||
2. Cash Dividends | |||||||||||||||||||||||||||
Annual dividend | |||||||||||||||||||||||||||
End of 1Q | End of 2Q | End of 3Q | Year end | Total | |||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||||||||
Year ended March 31, 2020 | - | 25.00 | - | 25.00 | 50.00 | ||||||||||||||||||||||
Year ending March 31, 2021 | - | ||||||||||||||||||||||||||
Year ending March 31, 2021 | 25.00 | - | 25.00 | 50.00 | |||||||||||||||||||||||
(forecast) | |||||||||||||||||||||||||||
(Note) Revision of the dividend forecast | announced most recently: None | ||||||||||||||||||||||||||
3. Consolidated Business Forecasts for the Year Ending March 31, 2021 (from April 1, 2020 to March 31, 2021) | |||||||||||||||||||||||||||
(Percentages are year-over-year changes.) | |||||||||||||||||||||||||||
Operating | Profit attributable | Earnings per | |||||||||||||||||||||||||
Net sales | Ordinary income | to owners of | |||||||||||||||||||||||||
income | share | ||||||||||||||||||||||||||
parent | |||||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||||||||||||||||||
Full year | 115,000 | 1.0 | 4,800 | (1.0) | 4,800 | (3.7) | 2,400 | (0.9) | 93.38 | ||||||||||||||||||
(Note) Revision of the business forecasts | announced | most | recently: | None |
- Notes
-
Significant changes in subsidiaries during the period
(Changes in specified subsidiaries resulting in changes of scope of consolidation): None
-
Significant changes in subsidiaries during the period
New: | - companies (company name): | - |
Excluded: - companies (company name): | - |
- Application of accounting method unique to preparation of quarterly consolidated financial statements: None
- Changes in accounting policy and accounting estimates and restatement
(i) | Changes in accounting policy due to any revision of accounting standards: | Yes |
(ii) | Changes in accounting policy other than i) above: | None |
(iii) | Changes in accounting estimates: | None |
(iv) | Restatement: | None |
Note: For more details, please refer to "2. Quarterly Consolidated Financial Statements and Important Notes, (3) Notes on quarterly consolidated financial statements (Changes in accounting policies)" on page 8 of the Appendix.
(4) Number of outstanding shares (common shares)
- Number of outstanding shares at period end (including treasury shares)
- Number of treasury shares at period end
- Average number of shares during period (from the beginning of fiscal year to period end)
As of June 30, 2020 | 28,333,480 shares | As of March 31, | 28,333,480 shares |
2020 | |||
As of June 30, 2020 | 2,631,954 shares | As of March 31, | 2,631,827 shares |
2020 | |||
Three months ended | 25,701,616 shares | Three months ended | 26,536,870 shares |
June 30, 2020 | June 30, 2019 | ||
- The quarterly kessan tanshin document is outside the scope of audit procedures conducted by certified public accountants and the independent auditor.
-
Explanation on appropriate use of business forecasts, and other special notes
Business forecasts and other forward-looking statements contained in this report and supplementary materials are based on information currently available to the Company and on certain assumptions deemed as rational. They do not constitute a guarantee that the Company will achieve its forecasts or other forward-looking statements. Actual results may differ significantly from forecasts due to various factors. For assumptions and other criteria used to formulate business forecasts, please refer to "1. Qualitative Information Regarding the Results for the First Three Months of the Year Ending March 31, 2021, (3) Description of consolidated business forecasts and other information about future forecasts" on page 3 of the Appendix.
Mitsui Sugar Co., Ltd. (2109)
Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
- Appendix
(Changes in accounting policies) ................................................................................................................................................ | 8 | |
(Segment information, etc.)......................................................................................................................................................... | 8 |
- 1 -
Mitsui Sugar Co., Ltd. (2109)
Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
1. Qualitative Information Regarding the Results for the First Three Months of the Year Ending March 31, 2021
(1) Description of consolidated operating results
In the first three months of fiscal 2020 (April - June 2020), Mitsui Sugar continued to work closely with Group companies to strengthen existing businesses and expand businesses in growth fields. However, the slowdown in the global economy caused by the COVID-19 outbreak impacted sales at Group companies. Some companies were also affected by one-off factors, with the cost ratio increasing at consolidated subsidiary Hokkaido Sugar Co., Ltd. after an accident in the previous fiscal year, and profitability deteriorating at equity-method affiliates in Thailand due to a drought that led to a poor sugar cane harvest. As a result, the Group's sales and profits both declined year on year.
(Sugar Business)
In the overseas crude sugar market, the sugar price started the fiscal year in the low-10 cents per pound level, before entering a clear downward trend amid a drop in demand caused by the COVID-19 outbreak. In late April, the price fell sharply to the 9- cent level, the lowest point in roughly 13 years, but then rebounded strongly to the 10-cent level. From mid-May, the price started to rise gradually, buoyed by speculative funds flowing into commodities markets on hopes that the global economy was heading for recovery. The sugar price ended the first quarter at the high-11 cents per pound level.
In sales activities, sales volume was sharply lower year on year, reflecting a steep drop in demand for commercial-use products from food service companies and makers of souvenir food products amid calls to remain at home during the COVID-19 outbreak. After the state of emergency was lifted for all regions in Japan at the end of May, there was a gradual rise in sales volume, but no full-fledged recovery. On the cost front, production adjustments were implemented in response to the contraction in sales volume, and there was an increase in depreciation and amortization related to investment in equipment and facility upgrades to ensure stable operations. As a result, sales and profits declined year on year.
In consolidated subsidiaries, sales and profits increased at Showa Sugar Co., Ltd. on higher production volume, supported by favorable sugar cane cultivation. However, sales and profits from consolidated subsidiaries declined overall due to weak earnings at Hokkaido Sugar Co., Ltd. and the impact of the COVID-19 outbreak on SIS' 88 Pte Ltd.
As a result of the above, the Sugar Business reported overall net sales of 21,105 million yen and operating income of 575 million yen.
Sugar market status during period
Domestic market price (listed in Nippon Keizai Shimbun, per kilogram of a large bag of superfine sugar, Tokyo) Three months ended June 30, 2020: 187-188 yen
Overseas raw sugar price (NY sugar current delivery, per pound)
Opening price: 10.39 cents, highest price: 12.27 cents, lowest price: 9.05 cents, closing price: 11.84 cents
(Food Science Business)
In the Food Science Business, sales and profits both increased compared with the same period a year earlier. Despite an impact on domestic operations from the COVID-19 outbreak, sales volume for palatinose picked up overseas and there was an increase in the use of sugar cane extract for disinfection applications.
In consolidated subsidiaries, sales and profits increased at TAISHO TECHNOS CO., LTD., supported by higher sales volumes for lactic acid bacterium, food colorings and other food ingredients, and an improvement in the cost ratio following the startup of a new plant. Nutri Co., Ltd. reported lower sales, as it was forced to scale back seminars, new product sampling events and other active marketing initiatives amid the COVID-19 outbreak. However, profits increased year on year, partly due to lower operating costs.
As a result, net sales in the Food Science Business totaled 4,926 million yen and operating income was 281 million yen.
(Real Estate Business)
The Real Estate Business reported net sales of 496 million yen and operating income of 231 million yen. Sales were steady year on year, but profits declined, mainly reflecting the implementation of maintenance work for aging facilities.
As a result, in the first three months of the fiscal year, net sales decreased 7.9% year on year to 26,528 million yen and operating income dropped 22.2% to 1,088 million yen.
In non-operating income and expenses, the Group booked royalty income of 164 million yen based on a development and marketing rights agreement for fingolimod (FTY720). However, due to an ongoing arbitration process between Novartis Pharma AG and Mitsubishi Tanabe Pharma Corporation, which is the joint holder of the fingolimod patent with the Company, the Group continues to exclude the recognition of profits related to the portion of royalty income subject to the arbitration process by Novartis Pharma AG, which is challenging the enforceability of certain provisions under the agreement. In addition, the Group
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Mitsui Sugar Co., Ltd. (2109) Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020 recorded share of loss of entities accounted for using equity method. As a result, ordinary income declined 49.0% year on year to
991 million yen and profit attributable to owners of parent fell 68.3% to 405 million yen.
As disclosed on March 25, 2020, the Company has started discussions with Dai-Nippon Meiji Sugar Co., Ltd. regarding a possible business integration, and with Nippon Beet Sugar Manufacturing Co., Ltd. regarding a possible capital and business alliance. Talks between the three parties are ongoing.
- Description of consolidated financial position Changes in consolidated financial position
As of June 30, 2020, total assets stood at 137,016 million yen, down 4,688 million yen from the end of the previous fiscal year. Significant changes in the main items on the consolidated balance sheet were as follows:
-
Current assets
Current assets totaled 53,033 million yen, down 4,123 million yen from the end of the previous fiscal year. This mainly reflected a decline of 530 million yen for cash and deposits and a decline of 3,686 million yen for merchandise and finished goods. - Non-currentassets
Non-current assets totaled 83,983 million yen, down 565 million yen from the end of the previous fiscal year. This primarily reflected increases of 472 million yen for lease assets and 262 million yen for construction in progress, outweighed by decreases of 703 million yen for machinery, equipment and vehicles and 514 million yen for investment securities. - Liabilities
Liabilities totaled 45,204 million yen, down 4,104 million yen from the end of the previous fiscal year. This mainly reflected a decrease of 2,310 million yen for loans payable and a decline of 1,560 million yen for income taxes payable.
(iv) Net assets
Net assets totaled 91,811 million yen, down 584 million yen from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parent of 405 million yen and dividends of surplus of 642 million yen.
(3) Description of consolidated business forecasts and other information about future forecasts
At this stage, the Company has not revised its fiscal 2020 consolidated business forecasts, which are based on the assumption that consumption will remain weak in Japan and overseas until the end of the second quarter. However, the Group's earnings could be impacted further if the COVID-19 outbreak becomes prolonged and more serious. The Company will make timely disclosures in the event of earnings trends or other developments that require revisions to business forecasts.
- 3 -
Mitsui Sugar Co., Ltd. (2109)
Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
2. Quarterly Consolidated Financial Statements and Important Notes
(1) Quarterly consolidated balance sheets
(Million yen) | ||||
FY2019 | First three months of FY2020 | |||
(As of March 31, 2020) | (As of June 30, 2020) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 15,520 | 14,989 | ||
Notes and accounts receivable - trade | 9,280 | 9,615 | ||
Merchandise and finished goods | 22,634 | 18,947 | ||
Work in process | 1,342 | 1,265 | ||
Raw materials and supplies | 4,947 | 4,572 | ||
Other | 3,437 | 3,648 | ||
Allowance for doubtful accounts | (5) | (5) | ||
Total current assets | 57,156 | 53,033 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures | 40,418 | 39,976 | ||
Accumulated depreciation | (25,170) | (24,905) | ||
Buildings and structures, net | 15,248 | 15,070 | ||
Machinery, equipment and vehicles | 85,801 | 85,762 | ||
Accumulated depreciation | (66,973) | (67,638) | ||
Machinery, equipment and vehicles, net | 18,827 | 18,123 | ||
Tools, furniture and fixtures | 2,711 | 2,711 | ||
Accumulated depreciation | (2,189) | (2,207) | ||
Tools, furniture and fixtures, net | 521 | 503 | ||
Land | 18,148 | 18,148 | ||
Lease assets | 915 | 1,468 | ||
Accumulated depreciation | (587) | (668) | ||
Lease assets, net | 327 | 800 | ||
Construction in progress | 788 | 1,051 | ||
Total property, plant and equipment | 53,862 | 53,698 | ||
Intangible assets | ||||
Goodwill | 4,639 | 4,428 | ||
Other | 3,017 | 2,980 | ||
Total intangible assets | 7,657 | 7,409 | ||
Investments and other assets | ||||
Investment securities | 11,413 | 10,899 | ||
Investments in capital of subsidiaries and associates | 2,191 | 2,362 | ||
Long-term loans receivable | 20 | 22 | ||
Net defined benefit asset | 210 | 210 | ||
Deferred tax assets | 1,881 | 2,119 | ||
Other | 7,365 | 7,314 | ||
Allowance for doubtful accounts | (53) | (53) | ||
Total investments and other assets | 23,028 | 22,875 | ||
Total non-current assets | 84,548 | 83,983 | ||
Total assets | 141,705 | 137,016 |
- 4 -
Mitsui Sugar Co., Ltd. (2109)
Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
(Million yen)
FY2019 | First three months of FY2020 | ||
(As of March 31, 2020) | (As of June 30, 2020) | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 8,044 | 6,972 | |
Short-term loans payable | 6,103 | 4,335 | |
Current portion of long-term loans payable | 2,120 | 2,070 | |
Lease obligations | 99 | 320 | |
Accrued expenses | 4,035 | 3,272 | |
Income taxes payable | 2,424 | 863 | |
Provision for directors' bonuses | 36 | 11 | |
Asset retirement obligations | 28 | 28 | |
Other | 3,618 | 3,675 | |
Total current liabilities | 26,510 | 21,550 | |
Non-current liabilities | |||
Long-term loans payable | 11,330 | 10,837 | |
Lease obligations | 253 | 497 | |
Deferred tax liabilities | 471 | 428 | |
Provision for directors' retirement benefits | 223 | 104 | |
Net defined benefit liability | 2,893 | 2,817 | |
Asset retirement obligations | 282 | 282 | |
Other | 7,343 | 8,686 | |
Total non-current liabilities | 22,799 | 23,654 | |
Total liabilities | 49,309 | 45,204 | |
Net assets | |||
Shareholders' equity | |||
Capital stock | 7,083 | 7,083 | |
Capital surplus | 1,291 | 1,291 | |
Retained earnings | 79,469 | 79,231 | |
Treasury shares | (5,215) | (5,215) | |
Total shareholders' equity | 82,628 | 82,390 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 483 | 548 | |
Deferred gains or losses on hedges | (197) | (133) | |
Foreign currency translation adjustment | (63) | (448) | |
Remeasurements of defined benefit plans | (123) | (122) | |
Total accumulated other comprehensive income | 99 | (156) | |
Non-controlling interests | 9,668 | 9,577 | |
Total net assets | 92,395 | 91,811 | |
Total liabilities and net assets | 141,705 | 137,016 |
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Mitsui Sugar Co., Ltd. (2109)
Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
- Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income (Quarterly consolidated statements of income)
(Million yen) | |||||
First three months of FY2019 | First three months of FY2020 | ||||
(From April 1, 2019 to June | (From April 1, 2020 to June 30, | ||||
30, 2019) | 2020) | ||||
Net sales | 28,795 | 26,528 | |||
Cost of sales | 22,114 | 20,492 | |||
Gross profit | 6,680 | 6,035 | |||
Selling, general and administrative expenses | |||||
Distribution expenses | 1,269 | 1,201 | |||
Salaries and bonuses | 1,072 | 1,086 | |||
Provision for directors' bonuses | 10 | 10 | |||
Retirement benefit expenses | 40 | 52 | |||
Other | 2,889 | 2,597 | |||
Total selling, general and administrative expenses | 5,282 | 4,947 | |||
Operating income | 1,398 | 1,088 | |||
Non-operating income | |||||
Interest income | 3 | 0 | |||
Dividend income | 61 | 42 | |||
Royalty income | 668 | 165 | |||
Miscellaneous income | 56 | 34 | |||
Total non-operating income | 789 | 242 | |||
Non-operating expenses | |||||
Interest expenses | 23 | 23 | |||
Loss on retirement of non-current assets | 9 | 2 | |||
Facilities removal expenses | 63 | 9 | |||
Share of loss of entities accounted for using equity method | 87 | 288 | |||
Miscellaneous loss | 58 | 16 | |||
Total non-operating expenses | 243 | 339 | |||
Ordinary income | 1,945 | 991 | |||
Extraordinary income | |||||
Gain on disposal of non-current assets | - | 18 | |||
Gain on sales of investment securities | 68 | - | |||
Subsidy income | 33 | - | |||
Insurance claim income | 238 | - | |||
Total extraordinary income | 341 | 18 | |||
Extraordinary losses | |||||
Loss on retirement of non-current assets | - | 49 | |||
Total extraordinary losses | - | 49 | |||
Profit before income taxes | 2,286 | 960 | |||
Income taxes-current | 1,067 | 741 | |||
Income taxes-deferred | (283) | (276) | |||
Total income taxes | 783 | 465 | |||
Profit | 1,503 | 495 | |||
Profit attributable to non-controlling interests | 226 | 90 | |||
Profit attributable to owners of parent | 1,276 | 405 | |||
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Mitsui Sugar Co., Ltd. (2109) Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
(Quarterly consolidated statements of comprehensive income)
(Million yen) | |||||||||
First three months of FY2019 | First three months of FY2020 | ||||||||
(From April 1, 2019 to June | (From April 1, 2020 to June 30, | ||||||||
30, 2019) | 2020) | ||||||||
Profit | 1,503 | 495 | |||||||
Other comprehensive income | |||||||||
Valuation difference on available-for-sale securities | (94) | 64 | |||||||
Deferred gains or losses on hedges | 65 | (176) | |||||||
Foreign currency translation adjustment | (0) | (58) | |||||||
Remeasurements of defined benefit plans | (11) | (1) | |||||||
Share of other comprehensive income of entities | 43 | (150) | |||||||
accounted for using equity method | |||||||||
Total other comprehensive income | 1 | (323) | |||||||
Comprehensive income | 1,504 | 172 | |||||||
Comprehensive income attributable to: | |||||||||
Owners of parent | 1,261 | 149 | |||||||
Non-controlling interests | 243 | 22 |
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Mitsui Sugar Co., Ltd. (2109)
Summary of Consolidated Financial Results for the First Three Months Ended June 30, 2020
-
Notes on quarterly consolidated financial statements (Note on assumptions of a going concern)
None.
(Notes when the amount of the shareholders' equity significantly fluctuates) None.
(Changes in accounting policies) (Application of IFRS 16 "Leases")
Effective from the first quarter of the fiscal year ending March 31, 2021 (fiscal 2020), consolidated subsidiaries that use IFRS accounting standards have adopted IFRS 16 "Leases" (IFRS 16 "Leases," January 13, 2016).
As a result, in principle, all borrower leases are recognized as assets or liabilities. In accordance with transitional treatment for the adoption of IFRS 16 "Leases," the Company has recognized the cumulative impact of the new standard as of the date of application.
The effect of the new accounting standard on the consolidated financial statements for the first quarter is immaterial.
(Segment information, etc.) Segment information
- First three months of FY2019 (From April 1, 2019 to June 30, 2019) Information on net sales and income/loss by each reportable segment
(Million yen) | ||||||
Reportable segment | Amount recorded | |||||
Food | Adjustments | in quarterly | ||||
Sugar | Real Estate | Total | consolidated | |||
Business | Science | Business | statements of | |||
Business | income | |||||
Net sales | ||||||
Net sales to third-party | 23,168 | 5,132 | 494 | 28,795 | - | 28,795 |
customers | ||||||
Intersegment net sales | 10 | 41 | 16 | 68 | (68) | - |
and transfer | ||||||
Total | 23,178 | 5,173 | 511 | 28,863 | (68) | 28,795 |
Segment profit | 992 | 165 | 240 | 1,398 | - | 1,398 |
(Note) Some adjustments were made between segment profit and operating income recorded in the quarterly consolidated statements of income.
- First three months of FY2020 (From April 1, 2020 to June 30, 2020) Information on net sales and income/loss by each reportable segment
(Million yen) | ||||||
Reportable segment | Amount recorded | |||||
Food | Adjustments | in quarterly | ||||
Sugar | Real Estate | Total | consolidated | |||
Business | Science | Business | statements of | |||
Business | income | |||||
Net sales | ||||||
Net sales to third-party | 21,105 | 4,926 | 496 | 26,528 | - | 26,528 |
customers | ||||||
Intersegment net sales | 11 | 31 | 18 | 61 | (61) | - |
and transfer | ||||||
Total | 21,117 | 4,958 | 514 | 26,590 | (61) | 26,528 |
Segment profit | 575 | 281 | 231 | 1,088 | - | 1,088 |
(Note) Some adjustments were made between segment profit and operating income recorded in the quarterly consolidated statements of income.
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Mitsui Sugar Co. Ltd. published this content on 18 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2020 00:42:01 UTC