Yamazaki Baking : Fiscal 2023 Second Quarter Results

1．Overview

(Millions of yen)

Fiscal 2022

Fiscal 2023

Increase/

Percentage

2nd Quarter

%

2nd Quarter

%

(decrease)

change

Net sales

528,252

100.0

563,944

100.0

35,692

6.8

Operating income

14,381

2.7

20,610

3.7

6,228

43.3

Ordinary income

17,111

3.2

22,756

4.0

5,645

33.0

Profit attributable to

9,023

1.7

14,055

2.5

5,031

55.8

owners of parent

Comprehensive income

12,897

2.4

18,770

3.3

5,872

45.5

1st Quarter

2nd Quarter

Net sales

276,839

287,104

Operating income

9,335

11,274

Fiscal 2022

Fiscal 2023

Increase/

2nd Quarter

2nd Quarter

(decrease)

Number of consolidated

35

35

0

subsidiaries

Number of equity-method

2

2

0

subsidiaries

Fiscal 2022

Fiscal 2023

Increase/

Percentage

2nd Quarter Percentage of total

2nd Quarter

Percentage of total

(decrease)

change

Food business

491,953

93.1

525,013

93.1

33,059

6.7

Bread

51,692

9.8

53,463

9.5

1,770

3.4

Sweet buns

187,083

35.4

204,168

36.2

17,085

9.1

Japanese-style confectionery

34,138

6.4

35,093

6.2

955

2.8

Western-style confectionery

71,751

13.6

75,274

13.3

3,522

4.9

Processed bread, prepared

69,753

13.2

74,208

13.2

4,454

6.4

rice and processed noodles

Biscuits, crackers, sembei

77,533

14.7

82,804

14.7

5,270

6.8

and other merchandise

Retail business

29,995

5.7

32,200

5.7

2,205

7.4

Other businesses

6,303

1.2

6,730

1.2

426

6.8

Total

528,252

100.0

563,944

100.0

35,692

6.8

Fiscal 2022

Fiscal 2023

Increase/

Percentage

2nd Quarter

2nd Quarter

(decrease)

change

Food business

14,712

20,170

5,458

37.1

Retail business

(1,804)

(1,165)

638

-

Other businesses

1,195

1,321

126

10.6

Subtotal

14,103

20,326

6,222

44.1

Adjustment

277

283

5

-

Total

14,381

20,610

6,228

43.3

Fiscal 2022

Fiscal 2023

Increase/

Percentage

Reasons

2nd Quarter

%

2nd Quarter

%

(decrease)

change

Gross profit

173,835

32.9

183,494

32.5

9,658

5.6

Selling, general and

159,454

30.2

162,884

28.8

3,430

2.2

administrative expenses

Sales promotion expenses

3,236

3,478

241

Advertising expenses

5,856

5,365

(490)

Haulage expenses

31,377

31,653

275

Personnel expenses

72,962

73,750

788

Depreciation and amortization

6,123

6,222

98

Rental fees

11,608

11,500

(108)

Others

28,288

30,913

2,624

Operating income

14,381

2.7

20,610

3.7

6,228

43.3

Nonoperating income

3,438

0.6

2,929

0.5

(509)

(14.8)

Interest income

62

100

38

Dividend income

747

802

54

Rent income on fixed assets

496

492

(3)

Foreign exchange gains

1,143

668

(475)

Equity in earnings of affiliates

339

224

(115)

Other nonoperating income

650

641

(8)

Nonoperating expenses

708

0.1

782

0.2

74

10.5

Interest expense

367

353

(13)

Rent expenses on fixed assets

163

153

(9)

Loss on disaster

1

126

125

Other nonoperating expenses

176

148

(27)

Ordinary income

17,111

3.2

22,756

4.0

5,645

33.0

Extraordinary gains

441

0.1

221

0.1

(220)

(49.9)

Gain on sales of fixed assets

52

61

9

Gain on sale of shares of

-

76

76

subsidiaries and associates

Subsidy income

375

-

(375)

Other extraordinary gains

13

83

69

Extraordinary losses

1,756

0.3

948

0.2

(808)

(46.0)

Loss on sales and retirement

658

471

(187)

of fixed assets

Impairment loss

610

288

(322)

Loss on valuation of investment

305

2

(302)

securities

Other extraordinary losses

182

186

4

Income before income taxes

15,796

3.0

22,028

3.9

6,232

39.5

Income and other taxes

5,673

1.1

7,441

1.3

1,767

31.2

Profit

10,122

1.9

14,587

2.6

4,464

44.1

Profit attributable to non-

1,099

0.2

532

0.1

(566)

(51.5)

controlling interests

Profit attributable to owners of

9,023

1.7

14,055

2.5

5,031

55.8

parent

Consolidated Results

5．Consolidated Balance Sheets (Including Reasons for Major Changes)

(Millions of yen)

Fiscal 2022

Fiscal 2023

Increase/

Reasons

2nd Quarter

(decrease)

Current assets

291,321

272,902

(18,419)

Cash and deposits

125,184

133,252

8,067

Repayments of loans payable: ¥6.2 billion

New loans payable: ¥2.4 billion

Notes and accounts receivable

184

162

(22)

Accounts receivable

123,520

95,955

(27,565)

Decrease due to seasonal fluctuation

Merchandise and finished goods

13,254

13,918

664

Work in process

922

952

29

Raw materials and supplies

13,952

13,844

(107)

Other current assets

14,690

15,171

480

Allowance for doubtful accounts

(388)

(354)

34

Fixed assets

466,709

473,360

6,650

Capital investment: ¥15.2 billion

Depreciation and amortization: ¥19.0 billion

Tangible fixed assets

332,385

326,884

(5,500)

Buildings and structures

112,360

111,217

(1,143)

Machinery, equipment and vehicles

88,336

84,427

(3,908)

Tools, furniture and fixtures

7,628

7,517

(111)

Land

114,813

114,972

159

Lease assets

6,939

6,430

(509)

Construction in progress

2,307

2,320

12

Intangible fixed assets

23,365

22,097

(1,268)

Investments and other assets

110,958

124,378

13,419

Investment securities

65,876

81,641

15,764

Acquisition of YK Baking Company, Ltd.: ¥6.7 billion

Increase due to mark-to-market valuation difference: ¥8.7 billion

Long-term loans receivable

812

2,778

1,966

Net defined benefit asset

490

476

(14)

Deferred tax assets

16,129

12,934

(3,195)

Other investments and other assets

29,866

28,666

(1,199)

Allowance for doubtful accounts

(2,217)

(2,118)

98

Total assets

758,031

746,262

(11,768)

Current liabilities

237,341

222,293

(15,048)

Notes and accounts payable

83,496

77,655

(5,840)

Decrease due to seasonal fluctuation

Short-term loans payable

55,795

55,690

(105)

Lease obligations

3,159

2,870

(288)

Accrued income tax

6,273

8,977

2,703

Accrued expenses

39,079

36,044

(3,035)

Decrease due to seasonal fluctuation

Allowance for employees' bonuses

5,186

5,002

(183)

Provision for loss on store closures

47

47

(0)

Asset retirement obligations

29

28

(0)

Other current liabilities

44,272

35,975

(8,297)

Long-term liabilities

112,791

106,773

(6,017)

Long-term loans payable

22,779

19,016

(3,763)

Increase in new loans payable: ¥0.9 billion

Transfer to short-term loans payable: ¥4.6 billion

Lease obligations

4,476

4,045

(431)

Reserve for retirement benefits for

4,795

4,918

123

directors and corporate auditors

Reserve for loss on guarantees

33

33

-

Net defined benefit liability

68,598

66,909

(1,688)

Increase due to provision for liabilities: ¥4.6 billion

Decrease due to pension contributions/benefits: ¥6.3 billion

Asset retirement obligations

4,977

4,880

(96)

Other long-term liabilities

7,131

6,970

(160)

Total liabilities

350,133

329,067

(21,066)

Total net assets

407,897

417,195

9,297

Non-controlling interests: ¥44.2 billion

Total liabilities and net assets

758,031

746,262

(11,768)

(1) Net sales

(Millions of yen)

Fiscal 2022

Fiscal 2023

Increase/

2nd Quarter

2nd Quarter

(decrease)

Fujiya Co., Ltd. (Consolidated)

48,599

51,010

2,410

Sun-Delica Co., Ltd.

47,332

49,842

2,510

Yamazaki Biscuits Co., Ltd.

14,482

14,917

435

Vie de France Co., Ltd.

12,939

14,061

1,121

Tohato Inc.

12,378

13,605

1,226

(2） Operating income

(Millions of yen)

Fiscal 2022

Fiscal 2023

Increase/

2nd Quarter

2nd Quarter

(decrease)

Fujiya Co., Ltd. (Consolidated)

2,160

205

(1,955)

Sun-Delica Co., Ltd.

(64)

364

428

Yamazaki Biscuits Co., Ltd.

255

256

0

Vie de France Co., Ltd.

(662)

112

775

Tohato Inc.

610

869

259

Fiscal 2022

Fiscal 2023

Increase/

2nd Quarter

2nd Quarter

(decrease)

Capital investment

15,074

15,206

131

Depreciation and amortization

18,919

19,053

133