November 5, 2021
Consolidated Financial Results (Japanese Accounting Standards)
for the Six Months Ended September 30, 2021 (Q2 FY2021)
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 for filing of securities report: | November 12, 2021 | |||||||||||
Scheduled date of commencement of dividend payment: | December 6, 2021 | |||||||||||
Supplementary documents for quarterly results: | Yes | |||||||||||
Quarterly 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 Six Months Ended September 30, 2021 (April 1, 2021 - September 30, 2021) | ||||||||||||
(1) Consolidated Results of Operations (Accumulated Total) | (Percentages show year-on-year changes.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Six months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
September 30, 2021 | 124,127 | 0.4 | 9,032 | (8.8) | 10,336 | 16.9 | 7,211 | 625.2 | ||||
September 30, 2020 | 123,685 | - | 9,906 | - | 8,838 | - | 994 | - | ||||
(Note) Comprehensive | income: | 9,766 million yen (-%) for the six months ended September 30, 2021 | ||||||||||
74 million yen (-%) for the six months ended September 30, 2020 | ||||||||||||
Profit per share | Profit per share | |||||||||||
(basic) | (diluted) | |||||||||||
Six months ended | Yen | Yen | ||||||||||
September 30, 2021 | 72.00 | - | ||||||||||
September 30, 2020 | 9.87 | - |
(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), effective from beginning of the first quarter of the fiscal year and the figures for the six months ended September 30, 2020 are figures after retrospective application of the standard and guidance. Therefore, year-on-year changes are not shown.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | |||
Six months ended | Million yen | Million yen | % | Yen | ||
369,697 | 290,088 | 70.5 | 2,615.78 | |||
September 30, 2021 | ||||||
Year ended | 369,335 | 286,883 | 69.8 | 2,559.12 | ||
March 31, 2021 | ||||||
(Reference) Shareholders' | equity: | As | of September 30, 2021: | 260,804 million yen | ||
As of March 31, 2021: | 257,825 million yen |
(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), effective from beginning of the first quarter of the fiscal year and the figures for the year ended March 31, 2021 are figures after retrospective application of the standard and guidance.
2. Dividends
Dividend per share | |||||
End of | End of | End of | Year-end | Annual | |
first quarter | second quarter | third quarter | |||
Yen | Yen | Yen | Yen | Yen | |
Year ended March 31, 2021 | - | 23.00 | - | 23.00 | 46.00 |
Year ending March 31, 2022 | - | 23.00 | |||
Year ending March 31, 2022 | - | 23.00 | 46.00 | ||
(forecasts) | |||||
(Note) Revisions to dividend forecasts published most recently: None |
3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentage figures represent the changes from the previous year)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit | |||||
owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Year ending March 31, 2022 | 256,000 | 2.4 | 20,000 | 3.0 | 22,200 | 11.9 | 14,700 | 68.0 | 147.19 |
(Note) Revisions to financial forecasts published most recently: Yes
* Notes
-
Changes of important subsidiaries during the period
(changes of specific subsidiaries in accordance with changes in the scope of consolidation): None - Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: Yes
- 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 "2. Quarterly Consolidated Financial Statements and Key Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 13 of the Accompanying Materials for details.
- Number of shares outstanding (common shares):
- Number of shares outstanding at end of period (including treasury shares)
As of September 30, 2021: | 100,750,620 shares |
As of March 31, 2021: | 100,750,620 shares |
(ii) Number of treasury shares at end of period | |
As of September 30, 2021: | 1,046,536 shares |
As of March 31, 2021: | 2,816 shares |
(iii) Average number of shares outstanding during the term | |
Six months ended September 30, 2021: 100,154,885 shares | |
Six months ended September 30, 2020: | 100,748,979 shares |
- Quarterly consolidated financial results are not subject to a quarterly review by certified public accountants or audit corporations.
- 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 related to the forecasts, please refer to "(3) Information on the Future Outlook, Including Consolidated Business Results Forecasts" under "1. Qualitative Information on Results for the First Half Ended September 30, 2021" on page 6 of the accompanying materials.
Accompanying Materials - Contents | ||
1. Qualitative Information on Results for the First Half Ended September 30, 2021................................................... | 2 | |
(1) | Details of Operating Results .......................................................................................................................... | 2 |
(2) | Details of Financial Position .......................................................................................................................... | 5 |
(3) | Information on the Future Outlook, Including Consolidated Business Results Forecasts.............................. | 6 |
2. Quarterly Consolidated Financial Statements and Key Notes .................................................................................. | 7 | |
(1) | Quarterly Consolidated Balance Sheets ......................................................................................................... | 7 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ................................................. | 9 |
(3) | Quarterly Consolidated Statements of Cash Flows ...................................................................................... | 11 |
(4) | Notes to Quarterly Consolidated Financial Statements ................................................................................ | 13 |
Notes Relating to Assumptions for the Going Concern ............................................................................... | 13 | |
Notes for Case Where Shareholders' Equity underwent Significant Changes in Value .............................. | 13 | |
Application of Particular Accounts Procedures to the Preparation of | ||
Quarterly Consolidated Financial Statements .............................................................................................. | 13 | |
Changes in Accounting Policies................................................................................................................... | 13 | |
Additional Information................................................................................................................................. | 14 | |
Segment Information.................................................................................................................................... | 14 | |
3. Supplementary Information .................................................................................................................................... | 16 | |
(1) | Business Results........................................................................................................................................... | 16 |
(2) | Number of Group Companies ...................................................................................................................... | 16 |
(3) | Consolidated Statements of Income ............................................................................................................. | 17 |
(4) | Consolidated Balance Sheets........................................................................................................................ | 20 |
(5) | Consolidated Statements of Cash Flows ...................................................................................................... | 20 |
(6) | Capital Investment ....................................................................................................................................... | 21 |
(7) | Depreciation ................................................................................................................................................. | 21 |
(8) | Major Management Indicators, etc............................................................................................................... | 21 |
(9) | Reference Information.................................................................................................................................. | 22 |
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1. Qualitative Information on Results for the First Half Ended September 30, 2021
(1) Details of Operating Results
With the COVID-19 pandemic dragging on amid resurgences triggered by new variants, the outlook remains uncertain. Under these conditions, House Foods Group launched its Seventh Medium-term Business Plan from April 2021. Under this Medium-term Business Plan, the Group will accelerate its transformation into a high quality company in terms of all "three responsibilities" ("For our customers," "For our employees and their families," and "For society"). It has also defined four value chains or VCs (the Spice VC, the Functional Ingredients VC, the Soybean VC and the Value Added Vegetable VC) as domains in which it will, create the value of "Healthy Life Through Foods" and will seek priority allocation of management resources to growing domains with the aim of achieving sustainable growth.
Net sales for the first six months ended September 30, 2021 increased mainly due to growth in the International Food Business and Other Food Related Business, which offset year-on-year declines in the Spice/Seasoning/Processed Food Business and the Health Food Business. Operating profit decreased in the absence of the special demand arising from at- home consumption in the same period a year earlier in the Spice/Seasoning/Processed Food Business, which offset a boost to profit because the goodwill which arose in the Restaurant Business when Ichibanya Co., Ltd. was made into a consolidated subsidiary was fully amortized the previous fiscal year. Ordinary profit and profit attributable to owners of parent both increased, bolstered by the recording of a gain on sale of investment securities in addition to decreases in the share of loss of entities accounted for using equity method and impairment losses which were recorded in the same period a year earlier.
As a result, the Group's operating results were as shown below.
Six months ended September 30, 2021 | ||
Amount (million yen) | Year-on-year change | |
(%) | ||
Net sales | 124,127 | 100.4 |
Operating profit | 9,032 | 91.2 |
Ordinary profit | 10,336 | 116.9 |
Profit attributable to owners of parent | 7,211 | 725.2 |
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and the Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021), effective from beginning of the first quarter of the fiscal year. Regarding application of said accounting standard and implementation guidance, the Company applied the new policy retrospectively to all prior periods in accordance with the principle treatment set forth in Paragraph 84 of the Accounting Standard for Revenue Recognition. Comparative analysis with the first half ended September 30, 2020 and the fiscal year ended March 31, 2021 are therefore based on figures after retrospective application of said standard and implementation guidance. Please refer to "2. Quarterly Consolidated Financial Statements and Key Notes (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" for details.
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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 (million yen) | Year-on-year change | Amount (million yen) | Year-on-year change | ||||||
(%) | (%) | ||||||||
Spice / Seasoning / | 56,965 | 96.2 | 5,402 | 67.9 | |||||
Processed Food Business | |||||||||
Health Food Business | 7,039 | 87.0 | (333) | - | |||||
International Food Business | 19,440 | 106.4 | 3,227 | 108.6 | |||||
Restaurant Business | 22,106 | 102.0 | 526 | - | |||||
Other Food Related Business | 22,867 | 110.1 | 799 | 86.8 | |||||
Subtotal | 128,417 | 100.3 | 9,621 | 92.9 | |||||
Adjustment (elimination) | (4,290) | - | (589) | - | |||||
Total | 124,127 | 100.4 | 9,032 | 91.2 | |||||
(Note) 1. Adjustment (elimination) | comprises profit or | loss not distributed to | segments and the elimination of | inter-segment | |||||
transactions. |
Spice / Seasoning / Processed Food Business
The Spice/Seasoning/Processed Food Business segment posted declines in sales and profit in the absence of special demand arising from at-home consumption in the same period a year earlier and also due to higher advertising expenses, depreciation and amortization, and other costs.
In the products for household use business of House Foods Corporation, as the COVID-19 pandemic dragged on and changes in customer needs became apparent, efforts were made to propose new value, including the promotion of a shift towards microwaveable retort pouched products to increase convenience and reduce environmental impact, in addition to enhancement of menu varieties and a review of product promotions.
The business of products for food service use conducted by House Foods Corporation and Gaban Co., Ltd. posted higher net sales than a year earlier despite continued challenging conditions as people refrained from going out and restaurants shortened their operating hours. Sun House Foods Corporation, which is charge of manufacturing retort-pouched products, put a production line for large-volume products into operation in July 2021.
As a result of the above, sales in the Spice/Seasoning/Processed Food Business stood at 56,965 million yen, down 3.8% year on year, and operating profit was 5,402 million yen, down 32.1% year on year. As a result, the ratio of operating profit to net sales was 9.5%, declining 4.0 percentage point from the same period of the previous fiscal year.
The Group decided to transfer part of the business of Malony Co., Ltd. to House Foods Corporation with effect from April 1, 2022. Please refer to "Notice of Partial Business Transfer to House Foods Corporation by Malony Co., Ltd." issued on September 30, 2021, for further details.
Health Food Business
The Health Food Business pushed ahead with restructuring, including integrating House Wellness Foods Corporation's sales capabilities for products for household use in Japan into House Foods Corporation in April, which was the start of the period under review. However, the segment continued to face a challenging business environment as the effects of COVID-19 dragged on and reported decreased sales and an operating loss.
After plunging sharply the year before, sales of the Ukon No Chikara series fell year on year, with further resurgences of COVID-19 at the beginning of the period under review limiting opportunities to drink out for a prolonged period of time. Meanwhile, sales of vitamin products such as C1000 and Ichinichibun No Vitamin decreased, reflecting the impact of withdrawal from unprofitable business in the previous year. However, the effects of restructuring such as the diversification of sales channels through the integration of sales capabilities were apparent in some areas.
As a result of the above, sales in the Health Food Business declined 13.0% year on year, to 7,039 million yen. The implementation of cost reductions and expeditious cost control was not enough to offset the impact of the decline in sales
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House Foods Group Inc. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 06:11:28 UTC.