Kobe Bussan : Monthly Performance for August 2023

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

KOBE BUSSAN CO., LTD.

	September 20, 2023
Company name:	Kobe Bussan Co., Ltd.
Securities code:	3038
Listing:	Prime Market of Tokyo Stock Exchange
Representative:	Hirokazu Numata,
	President and Representative Director
Contact:	Masahiro Sakamoto,
	Manager, Corporate Planning Department

Monthly Performance for August 2023

Kobe Bussan Co., Ltd. discloses its monthly performance for August 2023 on a non-consolidated basis.

1. Trends in net sales, gross profit, operating profit, and ordinary profit (non-consolidated)
	[Net sales]				(Upper: Millions of yen, Lower: YoY %)
	Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
	36,947		41,392	32,684	35,364	39,845	41,342	227,577
	111.1		112.6	110.5	113.8	109.6	112.5	111.7
	May		June	July	Aug.	Sept.	Oct.	H2		Full year
	40,175		39,372	39,552	40,285
	117.7		110.5	114.1	116.7
	[Gross profit]				(Upper: Millions of yen, Lower: YoY %)
	Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
	3,116		3,465	3,060	3,406	3,946	4,305	21,300
	91.2		95.2	100.8	103.9	114.8	114.2	103.5
	May		June	July	Aug.	Sept.	Oct.	H2		Full year
	4,363		4,178	3,928	3,873
	127.1		118.4	118.4	122.3
	[Operating profit]				(Upper: Millions of yen, Lower: YoY %)
	Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
	1,725		2,062	1,668	1,988	2,222	2,690	12,357
	77.7		85.1	97.5	93.9	108.0	114.5	95.9
	May		June	July	Aug.	Sept.	Oct.	H2		Full year
	2,861		2,700	2,229	2,319
	131.9		120.1	118.8	122.7
	[Ordinary profit]				(Upper: Millions of yen, Lower: YoY %)
	Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
	174		204	1,031	5,127	1,830	2,793	11,163
	7.8		7.7	59.3	229.7	63.3	97.1	76.2
	May		June	July	Aug.	Sept.	Oct.	H2		Full year
	2,914		2,253	2,974	2,170
	132.2		80.9	194.4	71.1

Note: This flash report is unaudited and the figures are subject to change. Accordingly, they are revised and updated as appropriate on a timely basis if differed from the quarterly or annual results. For the purpose of year-on-year comparison, buy-sell transactions with subsidiaries are not accounted for under the Accounting Standard for Revenue Recognition on a monthly basis. The figures under the Standard will be disclosed in the full-year financial results.

2. Trends in the number of Gyomu Super stores
					Nov.	Dec.	Jan.		Feb.			Mar.	Apr.	H1
		Directly		Opened	0	3	2		4		6	4	19
		managed		Closed	0	0	0		4		0	1	5
		areas
			Total	633	636	638		638		644	647	+14
		Indirectly		Opened	1	1	0		1		0	2	5
		managed		Closed	0	1	1		0		1	0	3
		areas
			Total	372	372	371		372		371	373	+2
		Total franchise stores	1,005	1,008	1,009		1,010		1,015	1,020	－
		Total directly operated stores	3	3	3		3		3	3	－
		Total stores	1,008	1,011	1,012		1,013		1,018	1,023	+16
					May	June	July		Aug.			Sept.	Oct.	H2	Full year
		Directly		Opened	3	3	1		3
		managed		Closed	1	0	0		0
		areas		Total	649	652	653		656
		Indirectly		Opened	0	2	1		2
		managed		Closed	0	0	0		2
		areas		Total	373	375	376		376
		Total franchise stores	1,022	1,027	1,029		1,032
		Total directly operated stores	3	3	3		3
		Total stores	1,025	1,030	1,032		1,035
		■ Directly managed areas (areas with franchise stores under general franchise contract)
		[Hokkaido area]	Hokkaido prefecture
		[Kanto area]	Tokyo, Chiba, Kanagawa, and Saitama prefectures
		[Kansai area]	Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara, Wakayama, and Shiga prefectures
		[Kyushu area]	Fukuoka, Saga, Nagasaki, Kumamoto, Oita, and Miyazaki prefectures

• Indirectly managed areas (areas with franchise stores under area franchise contract) Prefectures other than those listed above

[Stores opened during August 2023]

		Store name								Address
		[Directly managed areas]							―
		Sakai Hishiki			2-2225 Hishiki, Nishi-ku,Sakai-shi, Osaka
		Edogawadai			3-6-2 Edogawadai Higashi, Nagareyama-shi, Chiba
		Yame Motomura			100-1 Motomura, Yame-shi, Fukuoka
		[Indirectly managed areas]							―
		Ina			73-1 Misono, Ina-shi, Nagano
		Manno			566-1 Okashita, Kaita, Manno-cho,Nakatado-gun, Kagawa
3. Year-on-year changes in product shipments to Gyomu Super stores									(YoY %)
							Nov.	Dec.	Jan.		Feb.			Mar.		Apr.	H1
		Directly managed areas		Existing stores		105.6	107.2	103.9		106.8		103.2		106.8	105.6
			All stores		112.1	112.6	109.5		112.5		108.5		112.7	111.4
		Nationwide*		All stores		111.6	112.5	109.3		112.0		108.3		111.8	111.0
							May	June	July		Aug.			Sept.		Oct.	H2		Full year
		Directly managed areas		Existing stores		110.5	105.6	110.3		111.9
			All stores		116.5	111.1	115.5		117.1
		Nationwide*		All stores		116.6	110.3	115.3		117.3

* "Nationwide" represents the product shipments to the stores in both directly and indirectly managed areas.

4. Overview

For August 2023, we reported net sales of ¥40,285 million (up 16.7% year-on-year),gross profit of ¥3,873 million (up 22.3%), operating profit of ¥2,319 million (up 22.7%), and ordinary profit of ¥2,170 million (down 28.9%)on a non-consolidatedbasis.

During the period, Gyomu Super opened five stores, resulting in 1,035 stores in total, an increase of 53 stores from a year earlier. In addition, net sales also increased driven by the continued coverage on television programs and social media.

Our product shipments to Gyomu Super stores remained strong, with an increase of 11.9%from a year earlier to existing stores in directly managed areas, an increase of 17.1%to all stores in directly managed areas, and an increase of 17.3%to all stores nationwide.

Ordinary profit fell short of that for the same period of the previous fiscal year. This is because we recorded valuation loss on forward exchange contracts for August this year entered into to hedge risks of exchange rate fluctuations as contrasted by recording large valuation gain on the contracts for the same month last year.

In terms of our product trends, sales of conveniently available frozen vegetables have continued showing a strong positive trend. Also, we enjoyed strong performance in sales of summer season items such as beverages as well as sales of items for use at summer festivals and other events.

From Friday, September 1 to Tuesday, October 31, we are running a marketing campaign titled "Gyomu Super Stores Loaded with Bargains! Storewide Customer Appreciation Sale in Autumn 2023." Through this sale, we continue to spread Gyomu Super's attractiveness to more customers.

Details of the campaign can be found on our website https://www.gyomusuper.jp/sale/202309_10/(available in Japanese only).

5. Scheduled disclosure date

The flash report for September is scheduled to be released on Monday, October 23. Please note that the date of release may be changed for unavoidable reasons.