August 9, 2022

Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2023

Listed company:

Morinaga Milk Industry Co., Ltd.

Listed stock exchange:

Tokyo

Securities code:

2264

URL:

https://www.morinagamilk.co.jp/english/

Representative:

Yohichi Ohnuki, President & Representative Director

Contact:

Taku Yamada, General Manager, IR&PR Dept.

TEL: +81-3-3798-0126

Submission of quarterly report: August 10, 2022

Dividend payment commencement date: -

Preparation of explanatory materials for quarterly financial results: Yes

Holding of a briefing on quarterly financial results: Yes

(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Cumulative First Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (Cumulative)

(% figures show year-on-year change)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Three months ended

130,300

1.6

6,289

(36.2)

7,044

(31.7)

2,942

(68.2)

June 30, 2022

Three months ended

128,195

9,854

10,309

9,264

June 30, 2021

(Note) Comprehensive income: Three months ended June 30, 2022: ¥4,638 million / (50.3)%

Three months ended June 30, 2021: ¥9,330 million / %

Basic earnings

Diluted earnings

per share

per share

Yen

Yen

Three months ended

65.09

64.98

June 30, 2022

Three months ended

187.19

186.85

June 30, 2021

(Note) The Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and related guidance from the beginning of the fiscal year ended March 31, 2022. Accordingly, all figures for the first quarter of the fiscal year ended March 31, 2022 are figures after application of the said standard and guideline, and no year-on-year changes are presented.

(2) Consolidated financial position

Total assets

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2022

464,514

209,457

44.6

As of March 31, 2022

458,788

208,026

44.9

(Reference) Shareholders' equity: As of June 30, 2022: ¥207,302 million

As of March 31, 2022: ¥205,896 million

2. Dividends

Annual dividends

First quarter-end

Second

Third

Fiscal year-end

Total

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2022

80.00

80.00

Fiscal year ending March 31, 2023

Fiscal year ending March 31, 2023

90.00

90.00

(Forecast)

(Note) Amendment to forecasts of dividends recently announced: None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(% figures show year-on-year change for the full year and quarter)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Profit

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Second quarter-end

270,000

3.3

17,000

(18.0)

17,700

(17.6)

10,700

(37.9)

236.70

(Cumulative)

Full year

520,000

3.3

25,000

(16.1)

25,900

(16.8)

15,800

(53.2)

349.52

(Note) Amendment to forecasts of consolidated financial results recently announced: None

  • Notes
  1. Changes in significant subsidiaries during the three months ended June 30, 2022: None (changes in specified subsidiaries affecting the scope of consolidation)

New: -

(Company name:

)

Excluded: -

(Company name:

)

  1. Application of special accounting for preparing quarterly consolidated financial statements: Yes
    For details, refer to page 10 of the attached materials, "2. Quarterly Consolidated Financial Statements and Notes (3) Note regarding the quarterly consolidated financial statements (Application of special accounting for preparing quarterly consolidated financial statements)."
  2. Changes in accounting policies and estimates, and retrospective restatements
    1. Changes in accounting policies in accordance with revision of accounting standards: Yes
    2. Changes in accounting policies other than item (i) above: None
    3. Changes in accounting estimates: None
    4. Retrospective restatements: None
  4. Number of shares issued (common stock)
    1. Number of shares outstanding at end of period (including treasury shares)

As of June 30, 2022

49,845,343 shares

As of March 31, 2022

49,845,343 shares

(ii) Number of treasury shares at end of period

As of June 30, 2022

4,639,521 shares

As of March 31, 2022

4,641,538 shares

(iii) Average number of shares during period

For the three months ended June 30, 2022

45,205,153 shares

For the three months ended June 30, 2021

49,489,711 shares

  • Quarterly financial results are not subject to audit by a certified public accountant or audit corporation.
  • Proper use of earnings forecasts, and other special matters
    The above forecasts of consolidated financial results are based on information currently available to the Company and on certain assumptions on market trends, etc. deemed to be reasonable, and are subject to uncertainties. Consequently, actual business and other results may differ substantially due to various factors. For details on the above forecasts of consolidated financial results, refer to page 5 of the attached materials, "1. Qualitative Information on Quarterly Results (3) Explanation of forward-looking information including consolidated earnings forecasts."

[Attached Materials]

Index

1. Qualitative Information on Quarterly Results ...........................................................................................

2

(1)

Explanation of consolidated operating results ........................................................................................

2

(2)

Explanation of consolidated financial position.......................................................................................

5

(3)

Explanation of forward-looking information including consolidated earnings forecasts .......................

5

2. Quarterly Consolidated Financial Statements and Notes...........................................................................

6

(1)

Quarterly consolidated balance sheets ....................................................................................................

6

  1. Quarterly consolidated statements of income and consolidated statements of comprehensive income . 8 Consolidated statements of income

April 1, 2022 - June 30, 2022.................................................................................................................

8

Consolidated statements of comprehensive income

April 1, 2022 - June 30, 2022.................................................................................................................

9

(3) Note regarding the quarterly consolidated financial statements ...........................................................

10

(Notes on premise of going concern) ....................................................................................................

10

(Notes on significant changes in the amount of shareholders' equity) .................................................

10

(Application of special accounting for preparing quarterly consolidated financial statements) ...........

10

(Changes in accounting policies) ..........................................................................................................

10

(Significant subsequent events) ............................................................................................................

10

- 1 -

1. Qualitative Information on Quarterly Results

(1) Explanation of consolidated operating results

In the first quarter of the consolidated fiscal year under review, diverse geopolitical risks, such as the prolonged situation in Ukraine and the curtailment of economic activity in China as a countermeasure against COVID-19, caused various impacts. In Japan, the economy is expected to pick up along with normalization of economic and social activities as the country continues to take all possible precautionary measures against COVID-19. Still, the trends in the pandemic and global situation will continue to require close monitoring.

Under these circumstances, the Morinaga Milk Group has made every effort to continue supplying products to the extent possible, while giving the utmost consideration to the safety and health of employees, in order to fulfill its mission as a company that manufactures foods that are essential to daily life. Under the new Medium-term Business Plan 2022-2024, which began in the current fiscal year, the Morinaga Milk Group is striving to provide health value and tastiness and delightfulness that are unique to it. In particular, against the backdrop of increasing health needs in and outside Japan, the Group has been expanding products in the "five domains of wellness," including yogurt and functional ingredients, that take into consideration various health issues.

Meanwhile, raw material and energy prices and logistics costs surged at levels significantly different from the past environment, due to uncertainty over the situation in Ukraine, in addition to a global rise in demand and depreciation of the yen. To counter this situation, we revised prices of cheeses, ice creams, and other products, improved our product mix through expansion of high-profit-margin businesses and products, and reviewed Group-wide costs. However, the environment remained very challenging due to abrupt changes in the cost structure and changes in consumption trends.

10-year vision and Medium-term Business Plan>

The Group established the Morinaga Milk Group 10-year Vision in April 2019, setting out its vision for the next 10 years. Under the vision, the Morinaga Milk Group sees itself one decade ahead in terms of becoming:

  • "a company that balances 'delicious and pleasurable food' with 'health and nutrition',"
  • "a global company that exerts a unique presence worldwide," and
  • "a company that persistently helps make social sustainability a reality,"

based on which we have established targets for the fiscal year ending March 31, 2029, aiming to achieve:

  • an "operating profit margin of at least 7%," an "ROE of at least 10%," and a "ratio of overseas sales of at least 15%."

Underpinned by this vision, we have established three basic policies for the new three-yearMedium-term Business Plan that extends through the fiscal year ending March 31, 2025, which are:

  • "achieving sustainable growth by increasing the added value of our business,"
  • "further strengthening our business base with an eye on the future," and
  • "financial strategies focused on efficiency,"

and will aim to balance resolution of social issues and improvement of profitability as we pursue the plan. Additionally, we have formulated the "Sustainability Medium- to Long-Term Plan 2030," in which 2030 targets and KPIs have been set for the three themes of "Food and Wellness," "Resources and the environment," and "People and Society." It is placed at the core of management and is carried out in conjunction with the Medium-term Business Plan.

- 2 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Morinaga Milk Industry Co. Ltd. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 07:25:10 UTC.