August 7, 2020
Consolidated Financial Results (JapaneseAccounting Standards) for the Three Months Ended June 30, 2020 (Q1 FY2020)
(English Translation)
Company name: | KAMEDA SEIKA CO., LTD. |
Stock exchange: | Tokyo Stock Exchange |
Stock code: | 2220 |
URL: | www.kamedaseika.co.jp |
Representative: | Isamu Sato, President and COO |
Contact: | Akira Kobayashi, General Manager Administrative Div. Director |
Tel. +81-25-382-2111 |
Scheduled date for filing of securities report: August 14, 2020
Scheduled date of commencement of dividend payment: | - | |
Supplementary documents for quarterly results: Available | ||
Quarterly results briefing: | None | |
(All | amounts are rounded down to the nearest million yen) |
1. Consolidated Financial Results for the Three Months Ended June 30, 2020 (April 1 - June 30, 2020)
(1) Consolidated Results of Operations (Accumulated Total)
(Percentages show year-on-year changes.)
Net income | |||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||
owners of the parent | |||||||||
Three Months ended | ¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | |
June 30, 2020 | 24,837 | 5.7 | 893 | 110.6 | 1,052 | 81.8 | 686 | 122.0 | |
June 30, 2019 | 23,501 | 0.2 | 424 | 8.6 | 579 | (7.7) | 309 | 12.5 | |
(Note) Comprehensive income: | ¥ 642 million (-%) for the three months ended June 30, 2020 | ||||||||||||||||||||
¥ -98 million (-%) for the three months ended June 30, 2019 | |||||||||||||||||||||
Net income Per | Net income Per | ||||||||||||||||||||
share | share | ||||||||||||||||||||
(basic) | (diluted) | ||||||||||||||||||||
Three Months ended | ¥ | ¥ | |||||||||||||||||||
June 30, 2020 | 32.57 | - | |||||||||||||||||||
June 30, 2019 | 14.67 | - | |||||||||||||||||||
(2) | Consolidated Financial Position | ||||||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per | ||||||||||||||||||
share | |||||||||||||||||||||
¥ | million | ¥ million | % | ¥ | |||||||||||||||||
As of June 30, 2020 | 85,296 | 54,382 | 61.9 | 2,502.29 | |||||||||||||||||
As of March 31, 2020 | 85,825 | 53,902 | 61.6 | 2,508.48 | |||||||||||||||||
(Reference) Shareholder's equity: | As of June 30, 2020: ¥ 52,758 million | ||||||||||||||||||||
As of March 31, 2020: ¥ 52,889 million | |||||||||||||||||||||
2. | Dividends | ||||||||||||||||||||
Dividend per share | |||||||||||||||||||||
End of first | End of | End of third | |||||||||||||||||||
second | Year-end | Annual | |||||||||||||||||||
quarter | quarter | ||||||||||||||||||||
quarter | |||||||||||||||||||||
¥ | ¥ | ¥ | ¥ | ¥ | |||||||||||||||||
Year ended March 31, 2020 | - | 15.00 | - | 37.00 | 52.00 | ||||||||||||||||
Year ending March 31, 2021 | - | ||||||||||||||||||||
Year ending March 31, 2021 | 15.00 | - | 38.00 | 53.00 | |||||||||||||||||
(forecasts) | |||||||||||||||||||||
(Note) Revisions to dividend forecasts published most recently: Not applicable |
3. Consolidated Forecasts for the Fiscal year Ending March 31, 2021 (April 1, 2020 - March 31, 2021) (Percentage figures for the fiscal year represent the changes from the previous year,
while percentage figures for the six months' period represent the changes from the same period of the previous year)
Net income | Net | |||||||||||
attributable to | ||||||||||||
Net sales | Operating income | Ordinary income | income | |||||||||
owners of the | ||||||||||||
per share | ||||||||||||
parent | ||||||||||||
Six months ending | ¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | |||
September 30, | 50,000 | 2.8 | 1,600 | 14.1 | 2,000 | 18.2 | 1,300 | 9.3 | 61.66 | |||
2020 | ||||||||||||
Year ending March | 106,000 | 2.1 | 6,000 | 3.2 | 7,200 | 4.2 | 4,800 | 7.5 | 227.66 | |||
31, 2021 | ||||||||||||
(Note) Revisions to financial forecasts published most recently: Not applicable |
* Notes
- Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance with changes in the scope of consolidation): Yes
2 new companies | (Company name) 1. | Singha Kameda (Thailand) Co., Ltd. |
2. | Singha Kameda Trading (Thailand) Co., Ltd. |
(Note) For details, please refer to p.9 of the Appendix,"2. Quarterly Consolidated Financial Statements (3) Notes onto the Quarterly Consolidated Financial Statements (Changes of important subsidiaries during the period)"
- Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: Not applicable
- Changes in accounting policies and changes or restatement of accounting estimates
- Changes in accounting policies caused by revision of accounting standards: Not applicable
(ii) | Changes in accounting policies other than (i): | Not applicable |
(iii) | Changes in accounting estimates: | Not applicable |
(iv) | Restatement: | Not applicable |
- Number of shares outstanding (common stock):
- Number of shares outstanding at end of period (including treasury stock)
As of June 30, 2020: | 22,318,650 shares |
As of March 31, 2020: | 22,318,650 shares |
- Number of treasury stock at end of period
As of June 30, 2020: | 1,234,665 shares |
As of March 31, 2020: | 1,234,462 shares |
- Average number of shares outstanding during the term Three Months ended June 30, 2020: 21,084,123 shares Three Months ended June 30, 2019: 21,084,259 shares
- Representations concerning the implementation of auditing procedures
These financial results are not subject to quarterly review under the Financial Instruments and Exchange Act, and quarterly review procedures on the consolidated financial statements are currently underway at the time of disclosure of the financial results.
* Explanations and other special notes concerning the appropriate use of performance forecasts
(Caution concerning statements, etc. regarding the future)
The forward-looking statements such as performance 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. Actual results may differ materially from the forecast depending on a range of factors. See "1. Qualitative Consolidated Financial Results Data for the Period under Review (3) Explanation of Future Estimates, including Consolidated Forecasts" on page 4 of the Appendix for the conditions assumed in consolidated forecasts and notes on the use of consolidated forecasts.
(How to obtain supplementary materials on financial results)
Download from the Company's website, available from Tuesday, August 11, 2020.
Contents of Appendix
- Qualitative Consolidated Financial Results Data for the Period under Review ………………………………. 2
- Explanation of Consolidated Operating Results …………………………………………………………… 2
- Explanation of Consolidated Financial Position …………………………………………………………… 4
- Explanation of Future Estimates, Including Consolidated Forecasts ……………………………………… 4
- Consolidated Financial Statements………………………………………………………………………… 5
- Consolidated Balance Sheet …….………………………………………………………………………… 5
-
Consolidated Income Statement and Consolidated Comprehensive Income Statement…………………… 7 Consolidated Income Statement
Cumulative First Quarter ………………………………………………………………………… 7
Consolidated Comprehensive Income Statement
Cumulative First Quarter …………………………………………………………………………..……… 8
(3) Notes to the Quarterly Consolidated Financial Statements and Primary Notes ................………………… 9
(Notes to the Assumption of a Going Concern)…………………………………………………………… 9
(Notes Concerning Significant Changes in the Amount of Shareholder Equity) ………………………….. 9
(Changes in Important Subsidiaries during the Period) …………………...………………………………. 9
(Segment Information) …………………………………….……………………………………………… 9
(Additional Information) …………………………………….………………………………………….… 11
(Business Combinations) …...………………….……………….……………………………………….… 11
1
1. Qualitative Consolidated Financial Results Data for the Period under Review
-
Explanation of Consolidated Operating Results
During the first consolidated quarter under review, the Japanese economy has seen a state of emergency announced
due to the spread of COVID-19, tightly constraining personal consumption and corporate activities, and inevitably shifting economic activity to low levels. In addition, even after the state of emergency had been lifted, we have not seen a clear path to a return to normal economic activity, as fears over the spread of the virus still remain.
Similarly for the global economy, with the impact of the spread of COVID-19 being felt severely in countries other than Japan, and with tight restrictions being placed on cross-border travel and economic slowdown in many countries, there is an increasing sense of uncertainty about the future.
In the food industry, all companies are fully committed to continuing operations in order to fulfil their supply responsibilities. However, while costs are trending upward, we expect we will continue to face a harsh earnings environment owing to factors such as a trend toward low-priced products, and consumers taking an increasingly defensive stance toward spending in order to maintain their lifestyles as they expect economic slowdown going forward.
Based on these economic conditions and changes in the environment surrounding the food industry, the Kameda Seika Group will continue its efforts as part of the medium-term business plan to achieve sustainable growth and enhance corporate value by providing customer value from the standpoint of the slogan "Better for You," which represents "contribution to a healthy lifestyle through the selection, eating and enjoyment of things that are delicious and good for the body," and realizing its goal of becoming a "Global Food Company." By FY2030, we aim to evolve from a "Rice Snacks and Cracker Business" to a "'Better for You' Food Business."
In terms of our medium-term business plan through to FY2023, together with striving to realize our vision as a distinctive global corporation with a solid foundation in the three pillars of our Domestic Rice Cracker Business, Overseas Business, and Food Business, we will continue to implement structural reforms in the medium-to-long-term while taking action to address changes in the business environment, such as changes in consumer behavior in response to the current spread of COVID-19, to accelerate our efforts to achieve sustained growth and enhance our corporate value.
Although for some time we have been focusing on policies aimed at future growth, for FY2020 we plan to take a more dynamic approach toward both the short and medium-to-long term in light of the current changes in the business environment. We are working on the following as priority initiatives: further enhancing our revenue base to strengthen our position as a far-and-ahead leader in the Domestic Rice Cracker Business; in our Overseas Business, clearing a path toward securing profits in our North American subsidiaries and restoring profitability across all segments; and in our Food Business, growing sales by expanding plant-based foods.
In the Domestic Rice Cracker Business, we have been making every effort to expand our production and sales I nfrastructure in order to fulfill our responsibility of supplying consumer staples with regard to the current increased demand due to consumer cocooning. For this reason, we have taken measures to focus on the manufacture and sale of our core products by temporarily discontinuing or suspending to sell some of our products.
We have also changed the ratio of "Kaki-no-Tane" crackers to peanuts in our "KAMEDA Kaki-no-Tane" for the first time in 40 years in response to consumer feedback from a nation-wide poll that we conducted last year, with the aim of promoting medium-to-long-term brand growth, and as part of initiatives to encourage public spending by focusing resources on one of our flagship brands. At the same time, we have enhanced our savory snacks line in order to capture the rise in demand due to more people drinking at home.
As a result of these initiatives, although sales of our core brands "KAMEDA Kaki-no-Tane," "Happy Turn," "Tsumami Dane," "Soft Salad," "Waza-no-KodaWari," "Potapota Yaki," "Age-Ichiban," and "Katabutsu" were up year-on-year, "KAMEDA no Magari Senbei," "Usuyaki," "Teshioya" and "HaiHain" were down year-on-year due to reduced effectiveness of aggressive sales promotion activities.
In the Overseas Business, some countries have issued lockdown orders and operations have unavoidably temporarily changed or stopped in some regions due to the spread of COVID-19. However, for Mary's Gone Crackers, Inc. in North America, which is positioned as a major base, we have on the whole maintained supply due to such factors as
2
operations continuing due to the Company's position as supplying consumer staples. In addition, sales increased year- on-year due to gaining new customers and expanding our sales areas, and due to a rise in consumer household spending and consumer stockpiling.
In order to capitalize on this growing global demand for rice crackers, in June 2020 we started a joint venture for the manufacture and sale of rice crackers for the export market together with Singha Corporation Co., Ltd., a business with similar interests to our own that operates in Thailand, as a new base for cross-border business. By combining the strengths of both our companies, we will strengthen our global footprint with a blend of high quality and cost- competitiveness, and continue expanding our Overseas Business.
In the Food Business, sales increased year-on-year with increased demand for stockpiling of food, particularly for personal consumption, and the strong performance of long-life Alpha Rice (pre-cooked and dehydrated rice) and long- life allergen-free brown rice bread.
As a result of the above, net sales totaled ¥24,837 million (up 5.7% year-on-year).
In terms of operating income, sales dipped for subsidiaries who deal in department stores and souvenirs due to lockdowns and travel restrictions. However, operating income increased with higher revenue from consumer cocooning and as a result of efforts to improve productivity through concentrating on products designed to maximize supplies.
In addition, Mary's Gone Crackers, Inc. has achieved sustained profitability with increased profits through increased revenues, along with the effects of previous structural reforms becoming apparent.
As a result of these efforts, operating income increased 110.6% year-on-year to ¥893 million.
Furthermore, ordinary income increased 81.8% year-on-year to ¥1,052 million, and quarterly net income attributable to owners of the parent increased 122.0% year-on-year to ¥686 million resulting from increased equity-method investment earnings from equity-method affiliate TH Foods, Inc. despite decreased equity-method investment earnings from Daawat KAMEDA (India) Private Limited in line with factory utilization.
Supplementary Information | (Unit: ¥ million) | |||||
Three Months ended | Three Months ended | YoY | ||||
Change | Change | |||||
June 30, 2019 | June 30, 2020 | |||||
(amount) | (%) | |||||
Net sales | 23,501 | 24,837 | 1,335 | 5.7 | ||
Domestic Rice Cracker Business | 19,142 | 19,240 | 97 | 0.5 | ||
Overseas Business *1 | 1,716 | 2,248 | 531 | 31.0 | ||
Food Business *2 | 879 | 1,633 | 754 | 85.8 | ||
Other (Freights transport etc.) *3 | 1,763 | 1,714 | (48) | (2.8) | ||
Operating income | 424 | 893 | 469 | 110.6 | ||
Operating income margin | 1.8% | 3.6% | ||||
Domestic Rice Cracker Business | 818 | 608 | (210) | (25.7) | ||
Overseas Business *1,4 | (280) | (18) | 262 | - | ||
Food Business *2 | (143) | 216 | 359 | - | ||
Other (Freights transport etc.) *3,4 | 29 | 86 | 57 | 197.3 | ||
*1. Overseas business includes domestic import and export transactions in addition to those of overseas subsidiaries.
*2. Food business is mainly comprised of long-term preserved foods and plant origin lactic acid bacteria as well as bread made from brown rice and vegetarian meat substitutes.
*3. "Other" consists mainly of the subsidiary's logistic business.
*4. Restructuring charges of Overseas business are reclassified to Other (Freights transport etc.)
3
-
Explanation of Consolidated Financial Position (Assets)
Current assets stood at ¥22,042 million at the end of the first quarter, a decline of ¥1,939 million from the end of the previous fiscal year. This was mainly due to increases of ¥908 million in "Cash and deposits" and ¥198 million in "Merchandise and finished goods," which were partly offset by a ¥3,026 million decline in "Notes and accounts receivable-trade." Fixed assets stood at ¥63,253 million, an increase of ¥1,410 million from the end of the previous fiscal year. This was mainly attributable to increases of ¥489 million in "Buildings and structures," ¥611 million in "other" under the Property, plant and equipment, ¥573 million in "Goodwill" and ¥283 in "Other" under the Investments and other assets which were partially offset by decrease of ¥426 million in "Investment securities."
As a result, total assets stood at ¥85,296 million, a decrease of ¥529 million from the end of the previous fiscal year.
(Liabilities)
Current liabilities stood at ¥23,629 million at the end of the first quarter, a decline of ¥567 million from the end of the previous fiscal year. This was mainly due to increases of ¥716 million in "Short-term loans payable" and ¥820 million in "Provision for bonuses," which were offset by respective decreases of ¥479 million in "Notes and accounts payable-trade," ¥208 million in "Income taxes payable," ¥316 million in "Other provisions" and ¥1,049 million in "Other". Long-term liabilities stood at ¥7,284 million, a decrease of ¥441 million from the end of the previous fiscal year. This was mainly due to a ¥486 million decrease in "Long-term loans payable."
As a result, total liabilities stood at ¥30,914 million, a decline of ¥1,009 million from the end of the previous fiscal year.
(Net assets)
Total net assets stood at ¥54,382 million at the end of the first quarter, an increase of ¥479 million from the end of the previous fiscal year. This mainly reflected increases of ¥91 million in "Valuation difference on available for sale securities" and ¥610 million in "Non-controlling interests" which partly offset by decreases of ¥93 million in "Retained earnings" and ¥151 million in "Foreign currency translation adjustments" resulting from ¥686 million in "Quarterly net income attributable to owners of the parent" and ¥780 million in "Dividends from surplus."
As a result, the equity ratio was 61.9%, up from 61.6% at the end of the previous fiscal year. - Explanation of Future Estimates, including Consolidated Forecasts
The Group's consolidated earnings forecasts for the first half and full-year of FY2020 remain unchanged from the
earnings forecasts disclosed on May 11, 2020.
4
2. Consolidated Financial Statements and Primary Notes
(1) Consolidated Balance Sheet
(¥ million) | |||
As of March 31, 2020 | As of June 30, 2020 | ||
Assets | |||
Current assets | |||
Cash and deposits | 4,586 | 5,494 | |
Notes and accounts receivable-trade | 12,586 | 9,560 | |
Merchandise and finished goods | 1,966 | 2,165 | |
Work in process | 685 | 736 | |
Raw materials and supplies | 3,215 | 3,306 | |
Other | 966 | 813 | |
Allowance for doubtful accounts | (24) | (33) | |
Total current assets | 23,982 | 22,042 | |
Fixed assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 15,370 | 15,859 | |
Machinery, equipment and vehicles, net | 16,117 | 16,044 | |
Other, net | 11,714 | 12,326 | |
Total property, plant and equipment | 43,201 | 44,230 | |
Intangible assets | |||
Goodwill | 495 | 1,068 | |
Customer assets | 784 | 768 | |
Trademark assets | 637 | 625 | |
Technology assets | 395 | 387 | |
Other | 1,042 | 1,030 | |
Total intangible assets | 3,354 | 3,880 | |
Investments and other assets | |||
Investment securities | 11,898 | 11,471 | |
Other | 3,432 | 3,716 | |
Allowance for doubtful accounts | (45) | (45) | |
Total investments and other assets | 15,286 | 15,142 | |
Total fixed assets | 61,842 | 63,253 | |
Total assets | 85,825 | 85,296 | |
5
(¥ million) | |||
As of March 31, 2020 | As of June 30, 2020 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable-trade | 4,032 | 3,553 | |
Electronic-recording liabilities | 2,637 | 2,613 | |
Short-term loans payable | 7,483 | 8,200 | |
Income taxes payable | 725 | 516 | |
Provision for bonuses | 1,401 | 2,221 | |
Provision for loss on closing plants | 155 | 129 | |
Other provisions | 969 | 652 | |
Asset retirement obligations | 70 | 71 | |
Other | 6,719 | 5,670 | |
Total current liabilities | 24,197 | 23,629 | |
Long-term liabilities | |||
Long-term loans payable | 5,397 | 4,910 | |
Net defined benefit liability | 455 | 452 | |
Asset retirement obligations | 188 | 254 | |
Reserve for retirement benefits for officers | 53 | 53 | |
Other | 1,632 | 1,614 | |
Total long-term liabilities | 7,726 | 7,284 | |
Total liabilities | 31,923 | 30,914 | |
Net assets | |||
Shareholders' equity | |||
Capital stock | 1,946 | 1,946 | |
Capital surplus | 170 | 170 | |
Retained earnings | 51,853 | 51,760 | |
Treasury stock | (1,899) | (1,900) | |
Total shareholders' equity | 52,071 | 51,976 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale | 617 | 709 | |
Securities | |||
Deferred gains (losses) on hedges | 4 | 1 | |
Foreign currency translation adjustment | 1,332 | 1,180 | |
Remeasurements of defined benefit plans | (1,137) | (1,110) | |
Total accumulated other comprehensive income | 818 | 781 | |
Non-controlling interests | 1,012 | 1,623 | |
Total net assets | 53,902 | 54,382 | |
Total liabilities and net assets | 85,825 | 85,296 | |
6
-
Consolidated Income Statement and Consolidated Comprehensive Income Statement (Consolidated Income Statement)
(Cumulative First Quarter)
(¥ million) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Net sales | 23,501 | 24,837 |
Cost of sales | 13,631 | 14,341 |
Gross profit | 9,870 | 10,495 |
Selling, general and administrative expenses | 9,445 | 9,602 |
Operating income | 424 | 893 |
Non-operating income | ||
Interest income | 2 | 1 |
Dividend income | 21 | 21 |
Equity in earnings of affiliates | 147 | 122 |
Other | 43 | 53 |
Total non-operating income | 214 | 199 |
Non-operating expenses | ||
Interest expenses | 39 | 26 |
Other | 19 | 12 |
Total non-operating expenses | 59 | 39 |
Ordinary income | 579 | 1,052 |
Extraordinary losses | ||
Loss on disposal of noncurrent assets | 48 | 53 |
Total extraordinary losses | 48 | 53 |
Income before income taxes | 530 | 998 |
Income taxes-current | 419 | 560 |
Income taxes-deferred | (167) | (241) |
Total income taxes | 252 | 319 |
Quarterly net income | 277 | 678 |
Net income (loss) attributable to non-controlling | ||
(31) | (7) | |
interests | ||
Net income attributable to owners of the parent | 309 | 686 |
7
(Consolidated Comprehensive Income Statement)
(Cumulative First Quarter)
(¥ million) | ||
Three months ended | Three months ended | |
June 30, 2019 | June 30, 2020 | |
Quarterly net income | 277 | 678 |
Other comprehensive income | ||
Valuation difference on available-for-sale | (180) | 91 |
securities | ||
Deferred gains (losses) on hedges | (12) | (3) |
Foreign currency translation adjustment | 32 | (49) |
Adjustment for retirement benefits | 0 | 26 |
Share of other comprehensive income of | (216) | (101) |
associates accounted for using equity method | ||
Other comprehensive income | (376) | (36) |
Comprehensive income | (98) | 642 |
(Breakdown) | ||
Quarterly comprehensive income attributable to owners of parent
Quarterly comprehensive income attributable to non-controlling interests
(66) | 650 |
(31) | (7) |
8
- Notes to the Quarterly Consolidated Financial Statements (Notes to the Assumption of a Going Concern)
Not applicable.
(Notes Concerning Significant Changes in the Amount of Shareholder Equity) Not applicable.
(Changes in Important Subsidiaries during the Period)
During the first quarter of the current accounting period, Singha Kameda (Thailand) Co., Ltd. and its subsidiary Singha Kameda Trading (Thailand) Co., Ltd. have been included in the scope of consolidation by underwriting of third-party allocation of shares.
(Segment Information)
-
Three months ended June 30, 2019(April 1, 2019 - June 30, 2019)
1. Information regarding the amount of net sales, income and loss by reportable segment
(¥ | million) | ||||||||||
Reportable segment | The amount | ||||||||||
stated in | |||||||||||
Other | Adjustment | quarterly | |||||||||
Domestic | Total | consolidated | |||||||||
(Note) 1 | (Note) 2 | ||||||||||
Rice | Overseas | Food | Total | income | |||||||
Cracker | statement | ||||||||||
(Note) 3 | |||||||||||
Net sales | |||||||||||
Net sales | |||||||||||
to outside | 19,412 | 1,716 | 879 | 21,738 | 1,763 | 23,501 | - | 23,501 | |||
customers | |||||||||||
Internal sales | |||||||||||
or transfers | 0 | 258 | 2 | 261 | 1,327 | 1,588 | (1,588) | - | |||
between | |||||||||||
segments | |||||||||||
Total | 19,143 | 1,974 | 881 | 21,999 | 3,090 | 25,090 | (1,588) | 23,501 | |||
Segment income | 818 | (280) | (143) | 394 | 26 | 420 | 3 | 424 | |||
(loss) | |||||||||||
(Note) | 1. | "Other" refers to business segments not included in the reportable segments, which includes Freights | |||||||||
transport business etc. |
- ¥3 million of adjustment of segment income (loss) is ¥3 million of elimination of intersegment transactions.
- Segment income (loss) is adjusted with operating income reported on quarterly consolidated income statement.
9
-
Three months ended June 30, 2020(April 1, 2020 - June 30, 2020)
1. Information regarding the amount of net sales, gain and loss by reportable segment
(¥ million) | ||||||||
Reportable segment | The amount stated | |||||||
in quarterly | ||||||||
Other | Adjustment | |||||||
Domestic | Total | consolidated | ||||||
(Note) 1 | (Note) 2 | |||||||
Rice | Overseas | Food | Total | income statement | ||||
Cracker | (Note) 3 | |||||||
Net sales | ||||||||
Net sales to | ||||||||
outside | 19,240 | 2,248 | 1,633 | 23,122 | 1,714 | 24,837 | - | 24,837 |
customers | ||||||||
Internal sales | ||||||||
or transfers | 1 | 262 | 14 | 278 | 1,366 | 1,644 | (1,644) | - |
between | ||||||||
segments | ||||||||
Total | 19,241 | 2,510 | 1,648 | 23,400 | 3,080 | 26,481 | (1,644) | 24,837 |
Segment income | 608 | (18) | 216 | 806 | 84 | 890 | 2 | 893 |
(loss) | ||||||||
(Note) 1. "Other" refers to business segments not included in the reportable segments, which includes Freights transport business etc.
- ¥2 million of adjustment of segment income (loss) is ¥2 million of elimination of intersegment transactions.
- Segment income (loss) is adjusted with operating income reported on quarterly consolidated income statement.
2. Notes relating to changes in reportable segments etc.
However our management has determined that the Group has one reportable segment, we clarified to further drive autonomous business operations by the three pillars of our Domestic Rice Cracker Business, Overseas Business and Food Business and to strengthen the group management including the affiliates as the direction of medium-term strategy in the update of medium-term management plan.
In light of these circumstances, the reportable segment will be split into three segments from this first consolidated quarter under review hereafter as a result of re-examination about reportable segment from the viewpoint of the Group's business development, allocation of its management resources and the status of business administrative structure etc.
Note that the segment information from the previous year's consolidated first quarter is disclosed based on the reportable segments as classified following the changes that were made to the Company structure.
3. Information on goodwill and impairment loss on noncurrent assets for each reportable segment (Material Change in the Amount of Goodwill)
As shares of Singha Kameda (Thailand) Co., Ltd, were acquired and the deemed acquisition date was included in the scope of consolidation at the end of the first consolidated quarter under review, the "Overseas Business" segment increased by ¥589 million in goodwill compared to the end of the previous consolidated fiscal year.
The amount of goodwill is calculated on a provisional basis, as the allocation of the acquisition cost has not yet been completed for the first consolidated quarter under review.
10
(Additional Information)
(Accounting Estimates in Relation to the Impact of the Spread of COVID-19)
For the first consolidated quarter under review, no new additional information has arisen and there have been no significant changes to the information contained in the previous fiscal year's securities report.
(Business Combinations)
Business combination by acquisition 1. Overview of business combination
(i) Name of acquired enterprise and its business activities
Name of acquired enterprise | Singha Kameda (Thailand) Co., Ltd. |
Business activities | Manufacturing and selling rice crackers |
(ii) Main reasons for business combination
By combining our expertise in rice cracker-related manufacturing technology and our knowledge of safe and secure product development learned through the business in Japan with the sales and marketing capabilities of Singha Corporation Co., Ltd., we aim to strengthen the Company as a global base that has both high quality and cost competitiveness, and is expected to contribute to enhance the corporate value of Group by expanding our overseas business.
(iii) Date of business combination
June 29, 2020 (date of share acquisition) June 30, 2020 (regarded as acquisition date)
- Legal form of business combination Underwriting of third-party allocation of shares
- Name of acquired company after the acquisition No change
- Share of voting rights acquired
50.0%
(vii) Main reasons leading to decision of acquiring enterprise
Through an underwriting of third-party allocation of shares, the Company acquired a 50.00% share of outstanding shares in Singha Kameda (Thailand) Co., Ltd.
2. Period during which performance of the acquired company is included in the quarterly consolidated income statement As the acquisition was deemed completed on June 30, 2020, the acquired company's results were not included
in the first quarter of the current fiscal year.
3. Acquisition cost and consideration paid, by type, for the acquired company
(million) | ||
Consideration for acquisition | Consideration for common stock of Singha | 1,202 |
Kameda (Thailand) Co., Ltd. acquired on the | ||
date of the business combination | ||
Direct cost required for the acquisition | Advisory expenses, etc. | 76 |
Acquisition cost | 1,279 |
4. Amount of goodwill, reason for its occurrence, and amortization method and period
- Amount of goodwill that occurred
¥589 million
As the allotment of the acquisition price is not yet complete, this is a provisional calculation.
-
Reason for its occurrence
Business activities are expected to generate excess profitability in the future. - Amortization method and period
Goodwill is amortized using the straight-line method over the period in which the goodwill is expected to have an effect. The amortization period is in the process of being calculated.
11
Attachments
- Original document
- Permalink
Disclaimer
KAMEDA SEIKA Co. Ltd. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 04:33:08 UTC