Nov 7,2023

Notice Regarding Differences Between Consolidated Financial Results Forecasts and Actual Results for

First Six Months of Fiscal Year Ending March 2024, Dividends of Surplus (interim dividends) and

Revision of Year-end Dividend Forecast

NIPPN CORPORATION (the "Company") announces that differences have arisen between consolidated financial results forecasts for the first six months of the fiscal year ending March 31, 2024 published on May 12, 2023 and actual results for the same period.

The Company also announces that, in consideration of the actual results, etc., it resolved at the meeting of the Board of Directors held on November 7, 2023 to revise full-year consolidated financial results forecasts as well as forecasts for dividends of surplus (interim dividends) as of the record date (September 30, 2023) and year-end dividend for the fiscal year ending March 2024.

1. Differences between the consolidated financial results forecasts and the results for the first six months of the fiscal year ending March 31, 2024 (April 1, 2023 - September 30, 2023)

Net income

Net sales

Operating

Ordinary

attributable

Net income

income

income

to owners of

per share

parent

Million yen

Million yen

Million yen

Million yen

Yen

Previous forecast (A)

191,000

6,300

7,400

5,100

65.45

Results (B)

198,973

11.035

12,544

8,489

108.90

Change (B-A)

7,973

4,735

5,144

3,389

Change (%)

4.2

75.2

69.5

66.5

(Reference) Actual results

for

previous fiscal year

(2nd quarter of fiscal year ended

March 31, 2023)

176,488

5,829

7,211

4,963

64.17

2. Revision of consolidated financial forecast for the fiscal year ending March 31, 2024 (April 1, 2023 - March 31, 2024)

Net income

Net sales

Operating

Ordinary

attributable

Net income

income

income

to owners of

per share

parent

Million yen

Million yen

Million yen

Million yen

Yen

Previous forecast (A)

387,000

12,500

14,600

10,800

138.60

Revised forecast (B)

400,000

17,500

20,000

14,500

186.00

Change (B-A)

13,000

5,000

5,400

3,700

Change (%)

3.4

40.0

37.0

34.3

(Reference) Actual results

for

previous fiscal year

(Fiscal year ended March 31,

2023)

365,525

12,288

14,816

10,260

132.16

3. Reasons for differences and revisions

Regarding consolidated financial results for the first six months of the fiscal year under review, net sales exceeded the previous forecast, attributable to increased demand mainly reflecting recovery in personal consumption and inbound consumption in addition to price revisions implemented in response to rises in raw material prices and various other costs. Profits exceeded the previous forecasts, mainly owing to growth in sales volume of frozen foods and robust performance of the ready-made meal business, despite rises in raw material prices and various other costs and an increase in costs for sales expansion strategies.

Financial results forecasts for the fiscal year ending March 31, 2024 have been revised by taking into account effects of the changes in net sales and profits in the first six months and the outlook for the latter half.

4. Dividends of surplus (interim dividends) and revision of year-end dividend forecast

(1) Details of dividends from surplus (Interim dividend)

Most recent dividend

Dividends in the previous

forecast

fiscal year

Amount determined

(Announced on May 12,

(Interim dividend for fiscal

2023)

year ended March 31,

2023)

Record date

September 30, 2023

Same as left

September 30, 2022

Dividend per share

28.00 yen

20.00 yen

19.00 yen

Total dividends

2,194 million yen

－

1,484 million yen

Effective date

December 4, 2023

－

December 5, 2022

Source of dividends

Retained earnings

－

Retained earnings

(2) Details of revision to year-end dividend forecast

Dividend per share

Record date

End of 2nd quarter

End of fiscal year

Full year

Previous forecast

20.00 yen

20.00 yen

40.00 yen

Revised forecast

28.00 yen

56.00 yen

Result

28.00 yen

Dividends in the

previous fiscal year

19.00 yen

21.00 yen

40.00 yen

(Fiscal year ended

March 31, 2023)

5.

Reason

The Company positions the return of profits to shareholders as an important management issue and adopts a basic policy to maintain stable and sustained payment of dividends in consideration of business development in the future, management environment, etc., while securing sufficient internal reserves to fund growth investment for strengthening its corporate structure and achieving future business expansion. Based on this policy, the Company has set a target of 30% or higher for its consolidated dividend payout ratio, with special and extraordinary profit/loss due to the sale of assets and other factors excluded from calculations, and determines dividends by taking into account financial results, management environment in the future, etc.

With regard to dividends for the fiscal year ending March 31, 2024, the Company has decided to increase both interim and year-end dividends forecasts by ¥8 per share from the immediately preceding forecasts to ¥28 per share, respectively, based on recent favorable financial results in addition to the future outlook for management environment. As a result, the forecast for annual dividend for the fiscal year under review is ¥56 per share, representing an increase of ¥16 compared to the actual result of the previous fiscal year.

(Note) The above financial results forecasts have been prepared based on information available as of the date on which this material was announced, and actual results may differ from the forecasts due to a variety of factors going forward.

(Reference)

1. Changes in consolidated results

(Million yen)

Year ended

Year ended

Year ended

Year ended

Year ended

Year ending

March 2024

March 2019

March 2020

March 2021

March 2022

March 2023

(forecast)

Net sales

335,399

344,839

288,324

321,317

365,525

400,000

Operating income

11,222

11,101

10,370

11,282

12,288

17,500

Ordinary income

13,065

12,740

12,659

14,270

14,816

20,000

Profit attributable to

8,455

8,941

8,636

9,327

10,260

14,500

owners of parent

Payout ratio

29.4%

29.1%

32.0%

31.3%

30.3%

30.1%

(consolidated)

(Note) The figures for the fiscal year ended March 31, 2021 reflect those to which retrospective accounting has been applied due to accounting policy changes.

2. Changes in dividend per share

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Disclaimer

Nippn Corporation published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 13:34:01 UTC.