Financial Results Presentation for FY2020 3Q
(Fiscal Year Ending April 30, 2021)
March 1, 2021 ITO EN, LTD.
■ Summary of Operations (Consolidated and Non-Consolidated)
( million)
FY 2019 3Q(9months) Sa le s Com position | FY 2020 3Q(9months) | ||||
Sales Com position | YoY % Cha nge | ||||
Net Sales | 379,214 | 100.0% | 338,641 | 100.0% | -10.7% |
Gross Profit | 182,394 | 48.1% | 161,138 | 47.6% | -11.7% |
Sales Commission Advertising Freight Depreciation and Amortization Selling, General and Administrative Expenses | 63,195 | 16.7% | 56,828 | 16.8% | -10.1% |
9,201 | 2.4% | 7,943 | 2.3% | -13.7% | |
11,519 | 3.0% | 10,573 | 3.1% | -8.2% | |
8,312 | 2.2% | 7,689 | 2.3% | -7.5% | |
164,542 | 43.4% | 150,701 | 44.5% | -8.4% | |
Operating Income | 17,852 | 4.7% | 10,436 | 3.1% | -41.5% |
Ordinary Income | 17,690 | 4.7% | 10,240 | 3.0% | -42.1% |
Extraordinary Losses and Income | -33 | - | -309 | - | - |
Net Income | 11,299 | 3.0% | 5,754 | 1.7% | -49.1% |
Consolidated
Net Sales | 295,751 | 100.0% | 268,458 | 100.0% | -9.2% |
Gross Profit | 140,446 | 47.5% | 127,014 | 47.3% | -9.6% |
Operating Income | 13,342 | 4.5% | 9,688 | 3.6% | -27.4% |
Ordinary Income | 15,167 | 5.1% | 10,936 | 4.1% | -27.9% |
Non-Consolidated
■ Performances of Subsidiaries
( million, $ thousand)
Upper: Net Sales | FY 2019 | FY 2020 | |
Bottom: Operating Income | 3Q(9months) | 3Q(9months) | YoY % Change |
Domestic Subsidiaries | 81,170 | 69,111 | -14.9% |
4,350 | 88 | -98.0% | |
Tully's Coffee Japan Co., Ltd. | 27,267 | 19,454 | -28.7% |
2,878 | - 1,106 | - | |
Chichiyasu Company | 10,631 | 10,517 | -1.1% |
348 | 573 | 64.5% | |
Overseas Subsidiaries | 27,718 | 26,098 | -5.8% |
1,292 | 1,392 | 7.9% | |
US Business | 23,382 | 21,970 | -6.0% |
453 | 487 | 7.8% | |
$ 215,723 | $ 207,977 | -3.6% | |
$ 4,184 | $ 4,619 | 10.4% | |
Other Overseas Subsidiaries | 4,336 | 4,127 | -4.8% |
839 | 904 | 7.9% | |
Elimination of Internal Transactions | - 25,424 | - 25,026 | - |
- 1,132 | - 732 | - |
Exchange rate (US$)
(3Q average rate)
108.39
105.64
Monthly Sales Volume Trends
Beverage business of ITO EN (non-consolidated)
*Unit: Price base
(%) 10 0 -10 -20 -30
MayJunJulAugSepOctNov
*Source: ITO EN. May 2020 to Jan 2021
(%)
10
0 -10 -20 -30
MayJun
JulAugSepOctNov
*Source: ITO EN. May 2019 to Jan 2020
Topics of Soft Drink Market
DecJanDecJan
2020 Apr
May
Declaration of the State of Emergency Lifting of the State of Emergency
Jul Aug
Record amount of rainfall and long rainy season
Surge in COVID-19 (2nd wave) Reduced summer holiday and self-restraint on events
Oct
Voluntary restraint on outdoor amusement events and athletic meets in autumn
Dec
Voluntary restraint on year-end events and homecoming visits
2021 Jan
Voluntary restraint on New Year's events such as New Year's visit to shrines
Declaration of the State of Emergency (2nd time)
FY 2020 3Q(May 2020 to Jan 2021) YoY -10.3%
Proportional sales 2%3%
11% 14%
Shares in soft drink market
YoY
A 25.6 %
6%
64%
Tea total | - 10.6 % | |
Vegetable | + 0.6 % | B 22.6 % |
Coffee | - 10.4 % | C 14.0 % |
Mineral Water | - 23.1 % | ITO EN 12.2 |
Carbonated | - 15.3 % | D 12.0 % |
Others | - 20.1 % | Other 13.6 |
*2020 year / Qu Ratio of sugar-free beverages: 75 % |
%
%
12.2 %
%
%
*2020 year / Quantity based
( million)
3Q(9months) | FY 2019 Res ults SalesComposition | FY 2020 Res ults SalesComposition | ||||
YoY % Change | YoY % Change | |||||
Drinks Tea total | 267,594 | 100.0% | -2.8% | 240,060 | 100.0% | -10.3% |
172,627 | 64.5% | 0.4% | 154,345 | 64.3% | -10.6% | |
Japanese Tea/Healthy Tea | 152,678 | 57.1% | -1.0% | 139,976 | 58.3% | -8.3% |
Chinese Tea | 13,775 | 5.1% | 6.8% | 11,385 | 4.7% | -17.4% |
Black Tea | 6,174 | 2.3% | 28.3% | 2,984 | 1.2% | -51.7% |
Vegetable | 33,120 | 12.4% | -5.4% | 33,326 | 13.9% | 0.6% |
Coffee | 28,577 | 10.7% | -10.9% | 25,591 | 10.7% | -10.4% |
Mineral Water | 7,581 | 2.8% | -13.9% | 5,830 | 2.4% | -23.1% |
Carbonated | 9,209 | 3.4% | -5.4% | 7,802 | 3.3% | -15.3% |
Others | 16,480 | 6.2% | -6.7% | 13,166 | 5.5% | -20.1% |
Source: ITO EN
3
Effects of COVID-19
ITO EN (non-consolidated) Main impact on sales *3Q ( Nov 2020 to Jan 2021 )
Shift to telecommuting
○ Decrease in visits to convenience stores particularly in urban areas
○ Decline in purchase from vending machines at offices
○ Increase in consumers making tea and coffee from leaves and beans at home
Nationwide re-expansion of COVID-19 cases (serious cases)
○ Voluntary restraint on year-end events, homecoming visits and New Year's events including New Year's visit to shrines
○ Suspension of business of supermarkets, etc. for the first three days of the New Year
○ The government declared the state of emergency(2nd time) in Tokyo and three neighboring prefectures on January 7, 2021
*Coverage areas were expanded to 11 prefectures on January 13
Subsidiaries Main impact on sales *3Q ( Nov 2020 to Jan 2021 )
○ Business hours have been shortened in the coverage areas of the state of emergency since January 2021.
Sales results YoY
( April )
November
December
January
All Pref
Sales
Ratio ofshops that suspended operations or shortened business hours (at the end ofthe month)
- 75%
97%
- 20%
17%
- 9%
23%
- 35%
61%
Prefectures
Ratio of shops that suspended operations 76 %
Ratio of shops that shortened business hours 21 %
China Business
+ 4%
○ Sales are on a recovery trend, reflecting the slowdown in the spread of COVID-19.
*With respect the China business, numbers are based on results for the period from Oct to Dec, 2020.
○ It has an impact on stores in urban areas and around transportation, but its impact is relatively minor compared with the time of the previous state of emergency because fewer stores suspend operations.
As of April 30, 2020
As of January 31, 2021
Area subject to Emergency Declaration
Oct to Dec, 2020
Tully's Coffee Japan
Area subject to Emergency Declaration
11 Prefectures
Tully's Coffee Japan
Ratio of shops that suspended operations 1 %
Ratio of shops that shortened business hours 60 %
Reference: 2Q
( Jul to Sep, 2020 )
March 15, 2021
Japan's first food with function claims that reduces body fat in people with high body mass index*
"Premium Oi Ocha" (Japanese green tea leaf product)
*Japan' first food with function claims that reduces body fat by gallate catechins as functional ingredients in the green tea leaf product category
Three kinds of green tea leaf products of food with function claims that reduces body fat supported by gallate catechins' functions will go on sale nationwide on March 15. They will contribute to the health of customers by adding new value to green tea leaf products, which are growing on the back of a recent increase in "at-home demand".
Features
・Functional ingredients: Gallate catechins
・Procurement of raw materials and a quality control system able to solidly secure functional ingredients
*ITO EN handles about 25% of the crude tea production volume in Japan.
100g/1,000yen
100g/1,200yen
100g/1,500yen
Content of gallate catechins, functional ingredients of food with function claims: 340 mg (after extraction)
[Notification labeling] This product contains gallate catechins. Gallate catechins are reported to have a function of reducing the body fat of people with high BMI. ●A dietary lifestyle should consider a dietary balance based on a staple food, a main dish and a side dish. ●This product is not for the diagnosis, treatment and prevention of diseases. ●This product does not obtain a license from the government.
Reference: Status of research and development
ITO EN has been working on extensive research and development on tea to open up its possibilities for about half a century. ITO EN will continue to create and provide health value in response to changes in lifestyles in collaboration with various stakeholders.
Three key themes
○ Healthy
○ Delicious
○ Environment
Status of research and development of five main beverage manufacturers
○ Total number of FOSHU-certified products and food with function claims*
No.1 (Total 85 cases)
Of which, a total of 33 products contain tea catechins
as functional ingredients.
As of February 16, 2021 / Source: The Consumer Affairs Agency
*FOSHU-certified products: Number of licenses / Food with function claims: Number of items issued
○ Number of tea-related patents owned*
No.1 (Total 103 cases)
As of February 16, 2021 / Source: The National Center for Industrial Property Information and Training
*Tea; tea substitutes; preparations thereof (A23F3)
Appendix: Forecasts for FY 2020
■ Summary of Operations (Consolidated and Non-Consolidated)
( million)
*Earnings forecast announced on December 1, 2020
■ Performances of Subsidiaries
( million, $ thousand)
Upper: Net Sales | FY 2019 | FY 2020 | |
Bottom: Operating Income | Results | Forecas t | YoY % Change |
Domestic Subsidiaries | 102,885 | 92,745 | -9.9% |
3,196 | -1,772 | - | |
Tully's Coffee Japan Co., Ltd. | 32,811 | 27,500 | -16.2% |
1,725 | -1,500 | - | |
Chichiyasu Company | 14,251 | 14,042 | -1.5% |
410 | 648 | 58.0% | |
Overseas Subsidiaries | 36,282 | 35,314 | -2.7% |
1,617 | 2,077 | 28.4% | |
US Business | 30,971 | 29,920 | -3.4% |
654 | 941 | 43.9% | |
$ 285,736 | $ 277,043 | -3.0% | |
$ 6,034 | $ 8,714 | 44.4% | |
Other Overseas Subsidiaries | 5,311 | 5,394 | 1.6% |
963 | 1,136 | 18.0% | |
Elimination of Internal Transactions | -33,595 | -34,059 | - |
-1,500 | -2,305 | - |
Exchange rate (US$) (average during a year)
108.39
108.00
■ Breakdown of Gross Profit Change (Non-Consolidated)
180.9
-10.2
(¥ billion)
0
+0.3
171.0
FY 2019
Sales Changes
Changes in Product Mix, etc.
Fluctuations in Raw Material
Costs, etc.
FY 2020Est.
Appendix:Related materials
ITO EN (non-consolidated) Results & forecast by Category
( million) | ||||||
3Q(9months ) | FY 2019 | FY 2020 | ||||
Sales | YoY % | Sales | YoY % | |||
Com position | Change | Com position | Change | |||
Net Sales | 295,751 | 100.0% | -3.0% | 268,458 | 100.0% | -9.2% |
Tea Leaves | 25,649 | 8.7% | -5.2% | 26,532 | 9.8% | 3.4% |
Drinks | 267,594 | 90.5% | -2.8% | 240,060 | 89.7% | -10.3% |
Tea total | 172,627 | 58.4% | 0.4% | 154,345 | 57.5% | -10.6% |
Japanese Tea/Healthy Tea | 152,678 | 51.6% | -1.0% | 139,976 | 52.5% | -8.3% |
Chinese Tea | 13,775 | 4.7% | 6.8% | 11,385 | 4.2% | -17.4% |
Black Tea | 6,174 | 2.1% | 28.3% | 2,984 | 1.1% | -51.7% |
Vegetable | 33,120 | 11.2% | -5.4% | 33,326 | 12.4% | 0.6% |
Coffee | 28,577 | 9.7% | -10.9% | 25,591 | 9.5% | -10.4% |
Mineral Water | 7,581 | 2.6% | -13.9% | 5,830 | 2.2% | -23.1% |
Carbonated | 9,209 | 3.1% | -5.4% | 7,802 | 2.9% | -15.3% |
Fruit | 7,087 | 2.4% | -13.2% | 5,721 | 2.1% | -19.3% |
Others | 9,388 | 3.1% | -1.2% | 7,437 | 2.8% | -20.8% |
Others | 2,506 | 0.8% | -2.7% | 1,866 | 0.7% | -25.6% |
*Earnings forecast announced on December 1, 2020 |
( million)
Sales composition by Channels (Non-Consolidated)
Full-year (2020/5-2021/4) | FY 2019 Res ults | FY 2020 Forecas t | ||||
Sales Com position | YoY % Change | Sales Com position | YoY % Change | |||
Net Sales Tea Leaves Drinks Tea total | 377,787 | 100.0% | -4.2% | 356,000 | 100.0% | -5.8% |
35,269 | 9.3% | -4.6% | 36,142 | 10.2% | 2.5% | |
339,395 | 89.9% | -4.1% | 316,838 | 89.0% | -6.6% | |
218,142 | 57.8% | -1.4% | 202,790 | 57.0% | -7.0% | |
Japanese Tea/Healthy Tea | 193,246 | 51.2% | -2.8% | 183,814 | 51.6% | -4.9% |
Chinese Tea | 17,219 | 4.6% | 2.6% | 14,838 | 4.2% | -13.8% |
Black Tea | 7,677 | 2.0% | 34.1% | 4,138 | 1.2% | -46.1% |
Vegetable | 43,960 | 11.6% | -3.5% | 44,741 | 12.6% | 1.8% |
Coffee | 36,538 | 9.7% | -12.5% | 33,895 | 9.5% | -7.2% |
Mineral Water | 9,396 | 2.5% | -14.9% | 7,547 | 2.1% | -19.7% |
Carbonated | 11,175 | 3.0% | -6.2% | 10,101 | 2.8% | -9.6% |
Fruit | 8,855 | 2.3% | -15.3% | 7,797 | 2.2% | -11.9% |
Others | 11,325 | 3.0% | -4.9% | 9,965 | 2.8% | -12.0% |
Others | 3,122 | 0.8% | -13.4% | 3,019 | 0.8% | -3.3% |
Sales composition by Packaging (Non-Consolidated)
3Q(9months) | FY 2019 | FY 2020 YOY % ChangeComposition ratio YOY | ||
Drink Total | 182,543 | 165,687 | -9.2% | - |
Cans | 18,374 | 18,680 | 1.7% | + 1 pt |
PET(large) | 56,119 | 53,738 | -4.2% | + 2 pt |
PET(small) | 84,566 | 71,545 | -15.4% | - 3 pt |
Cartons | 21,656 | 20,463 | -5.5% | + 0 pt |
Others | 1,828 | 1,259 | -31.1% | - 0 pt |
Unit: thousand cases May 2020 to Jan 2021
The purpose of the materials you have received is to provide the means for a more thorough understanding of ITO EN and should not necessarily be regarded as a recommendation to invest. Furthermore, the data in these materials is based on what we believe is the most accurate information. However, please understand that even without advance notice, both past data and future forecasts may be revised.
Attachments
- Original document
- Permalink
Disclaimer
ITO EN Ltd. published this content on 01 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2021 06:01:04 UTC.