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    1379   JP3843250006

HOKUTO CORPORATION

(1379)
  Report
Delayed Japan Exchange  -  08:02 2022-12-04 pm EST
1876.00 JPY   -0.05%
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Hokuto : Summary of Consolidated Financial Results for the Six Months Ended September 30,2021(Based on Japanese GAAP)

11/29/2021 | 01:20am EST

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Six Months Ended September 30, 2021

(Based on Japanese GAAP)

November 12, 2021

Company name:

HOKUTO CORPORATION

Stock exchange listing:

Tokyo

Stock code:

1379

URL https://www.hokto-kinoko.co.jp

Representative:

President

Masayoshi Mizuno

Inquiries:

Executive

Director,

Administration

Tomio Takato

TEL 026-259-5955

Department Director

Scheduled date to file Quarterly Securities Report:

November 12, 2021

Scheduled date to commence dividend payments:

December 3, 2021

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended September 30, 2021

31,497

-

(913)

-

(725)

-

(612)

-

Six months ended September 30, 2020

33,610

4.6

997

-

980

-

528

-

Note: Comprehensive income Six months ended September 30, 2021

¥(898) million

[-%]

Six months ended September 30, 2020

¥1,077 million

[-%]

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

(19.45)

-

Six months ended September 30, 2020

16.88

14.64

Note: As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022, each figure as of September 30, 2021, is the figure after the application of the said standard, etc.

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2021

104,814

51,772

49.4

As of March 31, 2021

100,237

54,140

54.0

Reference: Equity

As of September 30,

2021

¥51,772

million

As of March 31, 2021

¥54,140

million

Note: As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022, each figure as of September 30, 2021, is the figure after the application of the said standard, etc.

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2021

-

10.00

-

50.00

60.00

Year ending March 31, 2022

-

10.00

Year ending March 31, 2022 (Forecast)

-

50.00

60.00

Note: Revisions to the cash dividend forecasts most recently announced: None

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

74,800

-

5,100

(15.2)

5,240

(19.7)

3,300

(18.3)

104.72

Note: Revisions to the earnings forecasts most recently announced: None

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year ending March 31, 2022. Although this impact has been taken into account, year-on-year changes for net sales are not presented in the consolidated earnings forecasts above as the accounting method used for comparison differs.

4. Notes

(1) Changes in significant subsidiaries during the six months ended September 30, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:

Yes

Changes in accounting policies due to other reasons:

No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No

Note: For the details, please refer to 'Changes in accounting policies' in '(3) Notes to quarterly consolidated financial statements' in '2. Quarterly Consolidated Financial Statements and Significant Notes Thereto' on page 8 of the attached materials.

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of September 30, 2021

33,359,040

shares

As of March 31, 2021

33,359,040

shares

Number of treasury shares at the end of the period

As of September 30, 2021

1,828,319

shares

As of March 31, 2021

1,888,679

shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Six months ended September 30, 2021

31,499,650 shares

Six months ended September 30, 2020

31,294,064 shares

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of forecasts of financial results, and other special matters

(Cautions on forward-looking statements, etc.)

Forward-looking statements, including the earnings forecasts stated in this document, are based on information currently available to the Company and certain assumptions deemed reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual results may differ materially from the forecasts due to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to '(3) Information regarding consolidated earnings forecasts and other forward-looking statements' in '1. Qualitative Information Regarding Financial Results for the Six Months Ended September 30, 2021,' on page 3 of the attached materials.

(Means of access to contents of supplementary material on financial results and financial results meeting)

A financial results presentation meeting for institutional investors and analysts will be held online on Friday, November 19, 2021. Any materials for the financial results presentation to be used in the meeting will be available on our website.

1. Qualitative Information Regarding Financial Results for the Six Months Ended September 30, 2021

  1. Explanation of operating results
    The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year. As a result, net sales for the six months ended September 30, 2021 decreased from the same period of the previous fiscal year, and in the description about the operating results mentioned below, the amount and percentage of year-on-year change of net sales are not included.
    In the Japanese economy for the six months ended September 30, 2021, there were significant impacts to economic activity, such as the implementation of "states of emergency" and "strict infection control measures" in many prefectures due to the spread of the novel coronavirus disease (COVID-19). Although vaccinations have been proceeding steadily, the outlook of the economy remains uncertain as there is no projection for when COVID-19 will be brought under control due to the spread of variants.
    In this economic environment, the Group believes that its priority is the safety of all consumers and employees, and it carried out business activities to deliver deliciousness and health to more and more people through research & development, production, and sales of the health food, mushrooms, primarily in the mushroom business, while taking into account measures to prevent the spread of COVID-19. Furthermore, the Group formulated a new Medium-Term Management Plan with the Management Vision of "Expand the market and consumption, with delivering health through mushrooms as our mission" and "Achieve both generation of profit and social responsibility as a company," and carried it out from April 2021.
    As a result of the above, the operating results of the Group for the six months ended September 30, 2021 were net sales of ¥31,497 million (¥33,610 million in the same period of the previous fiscal year), decreased by ¥498 million due to the application of the Accounting Standard for Revenue Recognition. Operating loss was ¥913 million (operating profit of ¥997 million in the same period of the previous fiscal year), ordinary loss was ¥725 million (ordinary profit of ¥980 million in the same period of the previous fiscal year), and loss attributable to owners of parent was ¥612 million (profit attributable to owners of parent of ¥528 million in the same period of the previous fiscal year).
    Production output for the six months ended September 30, 2021 consists of 22,434t of Bunashimeji, including Bunapi (up 2.0% from the same period of the previous fiscal year), 9,235t of Eryngii (up 1.0% from the same period of the previous fiscal year), and 6,484t of Maitake (down 3.5% from the same period of the previous fiscal year).
    Performance in each business segment for the six months ended September 30, 2021 was as follows.
    [Mushroom business in Japan]
    The production division performed even more thorough hygiene control, worked to improve quality and for stable cultivation, and produced mushrooms safely and securely, while taking into account measures to prevent the spread of COVID-19. The R&D division worked to strengthen the quality control system, develop new high value-added products and pursue pharmacological effects and functionality of mushrooms. The sales division advocated for "Kinkatsu through mushrooms (the lifestyle habit of incorporating mushrooms into daily meals)" with the three pillars of health, beauty and sports in order to stimulate mushroom demand amid not being able to carry out direct sales promotion activities due to the impact of COVID-19, and carried out sales activities with a commitment to freshness. In terms of sales, the price of mushrooms declined as the market value of produce was low in general due to the abundant supply of produce because of continuous days with good weather in the first half of the six months ended September 30, 2021. In the second half, although mushroom prices leveled out as produce prices soared from the impact of heavy rain at the beginning of August, mushroom prices declined as demand for mushrooms was sluggish due to the intense late summer heat after entering September.

1

As a result, net sales for the mushroom business in Japan as a whole were ¥19,782 million (¥22,449 million in the same period of the previous fiscal year).

Net sales decreased by ¥400 million due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations.

[Mushroom business outside Japan]

At Hokto Kinoko Company, a local subsidiary in the U.S., net sales and operating profit both greatly exceeded the plan as sales volume and unit price both exceeded the plan against the backdrop of economic activities activating due to the spread of vaccinations. At Taiwan Hokuto Corporation, a local subsidiary in Taiwan, net sales and operating profit both exceeded the plan due to the increase of demand for eating at home as a result of the strengthening of rules to prevent the spread of COVID-19, and mushroom prices being strong because of produce prices soaring due to heavy rain. At Hokto Malaysia Sdn. Bhd., a local subsidiary in Malaysia, the sales environment deteriorated due to strict laws to restrict activities as a result of the increase of the number of people infected with COVID-19 in the various ASEAN countries that house the Group's customers, and due to the increasing trend of restrained buying as a result of the economic outlook being unclear. In this difficult environment, net sales fell below the plan despite focusing on sales, primarily bargain sales, and reducing expenses.

As a result, net sales for the mushroom business outside Japan as a whole were ¥2,875 million (¥2,172 million in the same period of the previous fiscal year). There is no effect on net sales due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations.

[Processed products business]

The processed products business carried out sales of processed mushroom products, such as those that are boiled or frozen, developed boiled, frozen and dried items, and worked to develop new products and develop markets. Although the situation continues to be difficult for business related to restaurants as the inclination to eat at home is continuing due to the impact of COVID-19, sales were steady for convenience stores. In the mail-order business, sales of retort food were favorable. Furthermore, at the subsidiary Arden Corporation, sales decreased year on year due to a rebound from the previous year.

As a result, net sales for the processed products business as a whole were ¥3,576 million (¥4,081 million in the same period of the previous fiscal year). Net sales decreased by ¥1 million due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations.

[Chemical products business]

Amid prices of materials being affected by soaring crude oil prices, the First Business Department, whose main business is packaging materials, strengthened sales from various perspectives, such as proposals for environmentally-friendly packaging materials and industrial materials that will contribute to SDGs, energy-saving equipment, etc., and worked to reinforce sales and profits. At the Second Business Department, which primarily produces and sells our own products and sells agricultural materials, sales and profits were both favorable due to the expansion of new orders for our own products, such as cultivation bottles and food containers for mushroom farmers. Furthermore, the Toyono Factory newly acquired ISO 9001 certification in order to improve quality, etc.

As a result, net sales for the chemical products business as a whole were ¥5,262 million (¥4,907 million in the same period of the previous fiscal year). Net sales decreased by ¥95 million due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations.

2

  1. Explanation of financial position
    Positions of assets, liabilities and net assets, and the factors thereof as of September 30, 2021 are as follows.
    (Assets)
    Current assets as of September 30, 2021 amounted to ¥31,463 million, up ¥4,581 million from the previous fiscal year end. This was due mainly to increases of ¥2,599 million in cash and deposits, ¥671 million in notes and accounts receivable - trade and ¥556 million in merchandise and finished goods. Non- current assets amounted to ¥73,351 million, down ¥3 million from the previous fiscal year end.
    As a result, total assets amounted to ¥104,814 million, up ¥4,577 million from the previous fiscal year end.
    (Liabilities)
    Current liabilities as of September 30, 2021 amounted to ¥29,105 million, up ¥5,781 million from the previous fiscal year end. This was due mainly to an increase of ¥10,012 million in short-term borrowings and a decrease of ¥3,199 million in current portion of long-term borrowings included in other under current liabilities. Non-current liabilities amounted to ¥23,937 million, up ¥1,165 million from the previous fiscal year end. This was due mainly to an increase of ¥1,651 million in long-term borrowings.
    As a result, total liabilities amounted to ¥53,042 million, up ¥6,946 million from the previous fiscal year end.
    (Net assets)
    Total net assets as of September 30, 2021 amounted to ¥51,772 million, down ¥2,368 million from the previous fiscal year end. This was due mainly to the recording of ¥612 million in loss attributable to owners of parent and a decrease of ¥2,202 million in retained earnings due to the payment of dividend of ¥1,590 million.
    As a result, the equity ratio was 49.4% (54.0% at the end of the previous fiscal year).
  2. Information regarding consolidated earnings forecasts and other forward-looking statements
    There is no change in the earnings forecasts in the "Summary of Consolidated Financial Results for the Year Ended March 31, 2021 (Based on Japanese GAAP)," dated May 14, 2021.
    The earnings forecasts are based on information currently available to the Company and certain assumptions deemed reasonable. Actual results may differ materially from the forecasts due to various factors.

3

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

Disclaimer

HOKUTO Corporation published this content on 29 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2021 06:19:14 UTC.


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