NISSHIN SEIFUN GROUP INC. 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 Second Quarter of Fiscal 2023 [Japanese Standards]
October 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: | November 8, 2022 | |
Date to start distributing dividends: | December 2, 2022 | |
Supplementary materials for this summary of financial statements: | Yes | |
Results briefing for financial results: | Yes (for analysts and institutional investors) |
(Figures shown are rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Second Quarter of Fiscal 2023 (April 1, 2022 to September 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 six months of | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||
388,742 | 19.3 | 15,919 | 2.3 | 17,220 | (1.2) | (37,795) | ― | ||||||
Fiscal 2023 | |||||||||||||
First six months of | 325,727 | (3.0) | 15,568 | 26.0 | 17,425 | 27.6 | 9,957 | 9.9 | |||||
Fiscal 2022 | |||||||||||||
(Note) Comprehensive income: First six months of Fiscal 2023: ¥(20,775) million (―%) | |||||||||||||
First six months of Fiscal 2022: ¥7,652 million (down 66.1%) | |||||||||||||
Earnings per share | Fully diluted earnings | ||||||||||||
per share | |||||||||||||
First six months of | Yen | Yen | |||||||||||
(127.11) | ― | ||||||||||||
Fiscal 2023 | |||||||||||||
First six months of | 33.49 | 33.49 | |||||||||||
Fiscal 2022 | |||||||||||||
(2) Consolidated Financial Position | |||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||
Millions of yen | Millions of yen | % | |||||||||||
September 30, 2022 | 701,993 | 433,096 | 60.0 | ||||||||||
March 31, 2022 | 723,073 | 460,643 | 62.1 |
(Reference) Equity capital: September 30, 2022: ¥420,940 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 | ― | 19.00 | |||
Fiscal 2023 (forecast) | ― | 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 percentages indicate the rates of increase or decrease compared with 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 | |
Full year | 780,000 | 14.8 | 33,000 | 12.1 | 35,000 | 7.3 | (18,500) | ― | (62.22) |
(Note) Revision to the latest forecast of business results: None
(Note) No revisions made to full-year forecasts announced on October 19, 2022.
* Notes
- Changes in important subsidiaries during the first six 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 (4) Notes on Quarterly Consolidated Financial Statements [Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statements]" on page 14 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 September | 304,357,891 | As of March 31, | 304,357,891 |
30, 2022 | 2022 | ||
As of September | 7,078,546 | As of March 31, | 6,960,907 |
30, 2022 | 2022 | ||
First six months | 297,346,493 | First six months | 297,345,165 |
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 8 of the Attachment.
- Supplementary materials for this report and results briefing materials can be found on the Company's website.
Contents of the Attachment | ||
(2) | Financial Position ................................................................................................................ | 6 |
(3) | Forecast of Consolidated Business Results and Other Forward-looking Information............ | 8 |
2. Quarterly Consolidated Financial Statements and Related Notes ........................................ | 9 | |
(1) | Quarterly Consolidated Balance Sheets................................................................................ | 9 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ....................... | 11 |
[Quarterly Consolidated Statements of Income]................................................................. | 11 | |
[Quarterly Consolidated Statements of Comprehensive Income]........................................ | 12 | |
(3) | Quarterly Consolidated Statements of Cash Flows............................................................. | 13 |
(4) | Notes on Quarterly Consolidated Financial Statements ...................................................... | 14 |
[Notes on the Premise of a Going Concern] ....................................................................... | 14 | |
[Notes on a Significant Change in Shareholders' Equity] ................................................... | 14 | |
[Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial | ||
Statements]........................................................................................................................ | 14 | |
[Related to the Quarterly Consolidated Statements of Income] .......................................... | 14 | |
[Segment Information, etc.] ............................................................................................... | 15 |
1
1. Qualitative Information for the Period under Review
(1) Business Performance
[Overview of the Period under Review]
During the first six months of the fiscal year ending March 31, 2023, the Japanese economy continued to mount a gradual turnaround as social activities steadily returned to normal despite a resurgence in COVID-19 infections domestically. 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 raw materials, along with devaluation of the yen in currency markets.
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, while also giving highest priority to responding to food inflation.
Recently, the Group newly formulated "Medium-term Management Plan 2026," a five-year roadmap for achieving social contribution through business and realizing sustained growth as a food-centered enterprise, running from the fiscal year ended March 31, 2022 to the year ending March 31, 2026. Addressing environmental issues connected to social sustainability is crucial for the Group's own sustainable growth. At the same time, taking steps to view digital technologies and other technological innovations as growth opportunities is becoming even more important. Given these changes in the business environment, the Group is promoting management for realizing its vision driven by three basic policies - "Stimulate the Group's ability to grow by restructuring the business portfolio," "Enhance management by clarifying our business' relationships toward stakeholders," and "Integrate ESG into management strategy, implement by adapting to social trends." In terms of target figures, for the fiscal year ending March 31, 2026, the plan's final year, the Group is targeting net sales of ¥900.0 billion, operating profit of ¥48.0 billion, and EPS (earnings per share) of ¥110 per share. Through sustained EPS growth, the Group is aiming to achieve an appropriate TSR (total shareholder return) for its shareholders.
With respect to performance, consolidated net sales for the first six months of the fiscal year ending March 31, 2023, increased 19.3% year on year to ¥388,742 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 2.3% year on year to ¥15,919 million. In addition to lower shipments of raw materials for pharmaceuticals and the inability to enact price revisions that kept pace with higher-than-anticipated increases in cost for raw materials and ingredients in the processed food business, performance was initially lower year on year due to effects from the absence of shipment growth reported a year earlier. These effects were countered, however, by firm sales prices for bran in the flour milling business in Japan, and favorable performance from the overseas flour milling business, with the exception of Australia. Ordinary profit was down 1.2% to ¥17,220 million, largely due to a lower share of profit of entities accounted for using equity method. Furthermore, as stated in the "Notice of recognition of Impairment Loss and Revision of Business Forecasts (Second Quarter, Full Year)" announced on October 19, 2022, due to market changes and supply chain disruption in Australia caused by measures to combat the spread of COVID-19, the impact of soaring prices for natural resources and the grain market triggered by the situation in Ukraine, the Company carefully reevaluated the feasibility of its business plan, opting instead to draft a new plan. This led to a significant departure from the initial business plan, culminating in the recognition of an impairment loss on non-current assets, including goodwill for the flour milling business in Australia. Consequently, the Company reported a loss attributable to owners of parent for the period of ¥37,795 million.
2
(Year-on-year Comparison)
(Millions of yen) | ||||
First six months of | First six months of | Difference | Change | |
Fiscal 2022 | Fiscal 2023 | |||
Net sales | 325,727 | 388,742 | 63,014 | 19.3% |
Operating profit | 15,568 | 15,919 | 351 | 2.3% |
Ordinary profit | 17,425 | 17,220 | (204) | (1.2)% |
Profit (loss) | ||||
attributable to owners | 9,957 | (37,795) | (47,752) | ― |
of parent |
3
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Nisshin Seifun Group Inc. published this content on 18 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2022 01:58:03 UTC.
