The original disclosure in Japanese was released on May 10, 2023 at 15:00
May 10, 2023
Consolidated Financial Results (Japanese Accounting Standards)
for the FY2022 (Ended March 31, 2023)
Company name: | House Foods Group Inc. |
Stock exchange listing: | Tokyo Stock Exchange |
Stock code: | 2810 |
URL: | https://housefoods-group.com |
Representative: | Hiroshi Urakami, President |
Contact: | Nobuhide Nakagawa, General Manager, Public & Investors Relations Division |
Tel. +81-3-5211-6039 |
Scheduled date of ordinary shareholders' meeting: | June 27, 2023 |
Scheduled date of commencement of dividend payment: | June 28, 2023 |
Scheduled date for filing of annual securities report: | June 27, 2023 |
Supplementary documents for financial results: | Yes |
Financial results briefing: | Yes (for analysts and institutional investors) |
(Amounts of less than one million yen are rounded to the nearest million yen.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)
(1) Consolidated Results of Operations | (Percentages show year-on-year changes.) | ||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||
owners of parent | |||||||||||||||||
Year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||
275,060 | 8.6 | 16,631 | (13.5) | 18,253 | (13.6) | 13,703 | (1.8) | ||||||||||
March 31, 2023 | |||||||||||||||||
Year ended | 253,386 | 1.3 | 19,227 | (1.0) | 21,125 | 6.5 | 13,956 | 59.5 | |||||||||
March 31, 2022 | |||||||||||||||||
(Note) Comprehensive income: | 15,973 million yen (-26.0%) for the fiscal year ended March 31, 2023 | ||||||||||||||||
21,581 million yen (75.7%) for the fiscal year ended March 31, 2022 | |||||||||||||||||
Profit per share | Profit per share | Return on equity | Ratio of | Ratio of | |||||||||||||
ordinary profit | operating profit | ||||||||||||||||
(basic) | (diluted) | ||||||||||||||||
to total assets | to net sales | ||||||||||||||||
Year ended | Yen | Yen | % | % | % | ||||||||||||
139.95 | - | 5.1 | 4.7 | 6.0 | |||||||||||||
March 31, 2023 | |||||||||||||||||
Year ended | 139.75 | - | 5.3 | 5.6 | 7.6 | ||||||||||||
March 31, 2022 | |||||||||||||||||
(Reference) Share of profit (loss) of entities accounted for using equity method: | |||||||||||||||||
139 million yen for the fiscal year ended March 31, 2023 | |||||||||||||||||
(322) million yen for the fiscal year ended March 31, 2022 | |||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||||
As of | Million yen | Million yen | % | Yen | |||||||||||||
396,732 | 301,343 | 68.6 | 2,791.64 | ||||||||||||||
March 31, 2023 | |||||||||||||||||
As of | 382,021 | 298,567 | 70.4 | 2,700.99 | |||||||||||||
March 31, 2022 | |||||||||||||||||
(Reference) Shareholders' equity: | As of March 31, 2023: | 272,293 million yen | |||||||||||||||
As of March 31, 2022: | 268,966 million yen | ||||||||||||||||
(3) Consolidated Cash Flows | |||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | ||||||||||||||
operating activities | investing activities | financing activities | at end of fiscal year | ||||||||||||||
Year ended | Million yen | Million yen | Million yen | Million yen | |||||||||||||
19,483 | (21,467) | (12,739) | 62,682 | ||||||||||||||
March 31, 2023 | |||||||||||||||||
Year ended | 16,140 | (10,398) | (10,068) | 75,705 | |||||||||||||
March 31, 2022 | |||||||||||||||||
2. Dividends
Dividend per share | Total | Ratio of | ||||||
Payout ratio | dividends to | |||||||
End of | dividends | |||||||
End of | End of | (consolidated) | net assets | |||||
second | Year-end | Annual | (annual) | |||||
first quarter | third quarter | (consolidated) | ||||||
quarter | ||||||||
Year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % |
- | 23.00 | - | 23.00 | 46.00 | 4,581 | 32.9 | 1.7 | |
March 31, | ||||||||
2022 | ||||||||
Year ended | - | 23.00 | - | 23.00 | 46.00 | 4,487 | 32.9 | 1.6 |
March 31, | ||||||||
2023 | ||||||||
Year ending | ||||||||
March 31, | - | 23.00 | - | 23.00 | 46.00 | 25.5 | ||
2024 | ||||||||
(forecasts) |
3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)
(Percentages show year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit per share | |||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Year ending March 31, 2024 | 304,800 | 10.8 | 20,000 20.3 | 20,900 | 14.5 | 17,500 | 27.7 | 180.07 | |
* Notes
- Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance with changes in the scope of consolidation): Yes
New: 3 companies (Company Name) House Foods Group Asia Pacific Co., Ltd.
Keystone Natural Holdings, LLC
Nature Soy, LLC
- Changes in accounting policies and changes or restatement of accounting estimates
- Changes in accounting policies caused by revision of accounting standards: Yes
(ii) | Changes in accounting policies other than (i): | None |
(iii) | Changes in accounting estimates: | None |
(iv) | Restatement: | None |
(Note) Please refer to "4. Consolidated Financial Statements and Key | Notes (5) Notes to Consolidated Financial |
Statements, Changes in Accounting Policies" on page 24 of the Accompanying Materials for details.
(3) Number of shares outstanding (common shares):
(i) Number of shares outstanding at end of period (including treasury shares)
As of March 31, 2023: | 100,750,620 shares |
As of March 31, 2022: | 100,750,620 shares |
(ii) Number of treasury shares at end of period
As of March 31, 2023: | 3,212,078 shares |
As of March 31, 2022: | 1,169,959 shares |
(iii) Average number of shares outstanding during the term
Year ended March 31, | 2023 | 97,913,505 shares |
Year ended March 31, | 2022: | 99,867,791 shares |
(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)
(1) Non-Consolidated Financial Results | (Percentages show year-on-year changes.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit | ||||||
Year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
16,271 | (27.6) | 3,909 | (64.7) | 4,588 | (62.0) | 6,787 | (48.2) | ||
March 31, 2023 | |||||||||
Year ended | 22,464 | 6.7 | 11,066 | 9.8 | 12,079 | 10.2 | 13,096 | 23.0 | |
March 31, 2022 | |||||||||
Profit per share (basic) | Profit per share (diluted) | ||||||||
Year ended | Yen | Yen | |||||||
69.31 | - | ||||||||
March 31, 2023 | |||||||||
Year ended | 131.13 | - | |||||||
March 31, 2022 | |||||||||
(2) Non-Consolidated Financial Position | |||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||
As of | Million yen | Million yen | % | Yen | |||||
225,485 | 189,581 | 84.1 | 1,943.65 | ||||||
March 31, 2023 | |||||||||
As of | 222,917 | 193,625 | 86.9 | 1,944.40 | |||||
March 31, 2022 | |||||||||
(Reference) Shareholders' equity: | As of March 31, 2023: 189,581 million yen | ||||||||
As of March 31, 2022: 193,625 million yen |
- These consolidated financial results are not included in the scope of audits by certified public accountants or the audit corporation.
- Explanations and other special notes concerning the appropriate use of business results forecasts
-
The forward-looking statements such as result forecasts included in this document are based on the information available to the Company at the time of the announcement and on certain assumptions considered reasonable, and the Company makes no representations as to their achievability. Actual results may differ materially from the forecast depending on a range of factors.
For other matters relating to the forecasts, please refer to "1. Analysis of Operating Results and Financial Position, (4) Future Outlook" on page 5 of the accompanying materials.
Accompanying Materials - Contents
1. Analysis of Operating Results and Financial Position | 2 | ||
(1) | Analysis of Operating Results | 2 | |
(2) | Analysis of Financial Position | 3 | |
(3) | Analysis of Cash Flows | 4 | |
(4) | Future Outlook | 5 | |
(5) | Basic Policy on the Payment of Dividends and Dividends for the Fiscal Year under Review and Next Fiscal Year | 6 | |
(6) | Business and Other Risks | 7 | |
2. Basic Corporate Management Policy and Issues Facing the Group | 12 | ||
(1) | Basic Corporate Management Policy | 12 | |
(2) | Business Environment | 12 | |
(3) | The Company's Medium- to Long-term Management Strategy and the Issues that the Company Needs to Address | 12 | |
3. Basic Concept concerning the Selection of Accounting Standards | 15 | ||
4. Consolidated Financial Statements and Key Notes | 16 | ||
(1) | Consolidated Balance Sheets | 16 | |
(2) | Consolidated Statements of Income and Comprehensive Income | 18 | |
(3) | Consolidated Statements of Changes in Equity | 20 | |
(4) | Consolidated Statements of Cash Flows | 22 | |
(5) | Notes to Consolidated Financial Statement | 24 | |
Notes Relating to Assumptions for the Going Concern | 24 | ||
Changes in Accounting Policies | 24 | ||
Business Combination, etc | 24 | ||
Segment Information | 26 | ||
Per Share Information | 31 | ||
Important Subsequent Events | 31 | ||
5. | Other Information | 32 | |
(1) | Senior Management Changes | 32 | |
6. | Supplementary Information | 33 | |
(1) | Business Results | 33 | |
(2) | Number of Group Companies | 33 | |
(3) | Consolidated Statements of Income | 34 | |
(4) | Consolidated Balance Sheets | 38 | |
(5) | Consolidated Statements of Cash Flows | 38 | |
(6) | Capital Investment | 39 | |
(7) | Depreciation | 39 | |
(8) | Major Management Indicators, etc | 39 | |
(9) | Reference Information | 40 |
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1. Analysis of Operating Results and Financial Position
(1) Analysis of Operating Results
House Foods Group currently conducts business management based on five business segments; however, in terms of strategies for realizing its aspirations, the Group formulates and implements strategies for each of its four value chains (hereinafter referred to as "VC"): Spice VC, Functional Ingredients VC, Soybean VC and Value Added Vegetable VC, based on the theme of striving to become a high quality company that provides "Healthy Life Through Foods" Striving for Four Value Chains set out in the Seventh Medium-term Business Plan.During the fiscal year under review, the business environment was quite volatile, with the resumption of economic activity after COVID-19 giving rise to a supply-demand gap and various international factors stoking global inflation, divergence in monetary policies, and the depreciation of the yen, and the outlook remained clouded with uncertainty.
To summarize the Group's performance based on its five business segments under such conditions, the Health Food Business, International Food Business and Restaurant Business posted gains in sales and profits as a result of price revisions and improvement of efficiency by Group companies in Japan and overseas to respond to cost increases in raw materials, energy, and personal expenses; however the Spice/Seasoning/Processed Food Business could not fully absorb higher costs through price revisions and reported lower profit. This heavily impacted the overall performance and, totally, sales were up but profits were down.
In addition, the Company made US-based Keystone Natural Holdings into a subsidiary on September 30, 2022, and the consolidated business results of Keystone Natural Holdings are included in the International Food Business from the fourth quarter of the fiscal year under review.
As a result, the Group's operating results were as shown below.
FY2022 | |||
Amount (million yen) | Year-on-year change (%) | ||
Net sales | 275,060 | 108.6 | |
Operating profit | 16,631 | 86.5 | |
Ordinary profit | 18,253 | 86.4 | |
Profit attributable to owners of parent | 13,703 | 98.2 |
As a result, the management indicators regarded as important by the Company are as follows.
FY2021 | FY2022 | ||
ATO (Asset Turnover) | 0.67 times | 0.71 times | |
ROS (Ratio of operating profit to net sales) | 7.6% | 6.0% | |
ROA (Ratio of operating profit to total assets) | 5.1% | 4.3% | |
ROE (Ratio of profit to equity) | 5.3% | 5.1% |
The following is an overview of results by segment (before the elimination of inter-segment transactions).
Consolidated net sales | Consolidated operating profit | |||
Segment | (Segment profit (loss)) | |||
Amount | Year-on-year | Amount | Year-on-year | |
(million yen) | change (%) | (million yen) | change (%) | |
Spice / Seasoning / Processed Food Business | 119,802 | 102.0 | 7,915 | 62.7 |
Health Food Business | 16,520 | 114.5 | 1,908 | - |
International Food Business | 48,875 | 125.0 | 5,368 | 102.3 |
Restaurant Business | 48,371 | 106.5 | 2,268 | 151.0 |
Other Food Related Business | 50,699 | 111.3 | 1,234 | 83.4 |
Subtotal | 284,266 | 108.5 | 18,693 | 90.2 |
Adjustment (elimination) | (9,206) | - | (2,062) | - |
Total | 275,060 | 108.6 | 16,631 | 86.5 |
(Note) 1. Adjustment (elimination) comprises profit or loss not distributed to segments and the elimination of inter-segment transactions.
Spice / Seasoning / Processed Food Business
This business segment has always functioned as a core business, underpinning the Group's earnings; however, in the fiscal year under review, the segment was severely impacted by rising prices for raw materials and rising energy costs. Despite revisions to the prices of some products, including core curry roux products, in August 2022, surging costs could not be fully absorbed, leading to lower profits.
As a result of the above, sales in the Spice/Seasoning/Processed Food Business stood at 119,802 million yen, up 2.0% year on year, and operating profit was 7,915 million yen, down 37.3% year on year. As a consequence, the ratio of operating profit to net sales was 6.6%, falling 4.1 percentage point from a year earlier.
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House Foods Group Inc. published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2023 08:49:09 UTC.