Kobe Bussan : Monthly Performance for June 2022

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.

	July 25, 2022
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 June 2022

Kobe Bussan Co., Ltd. discloses its monthly performance for June 2022 on a non-consolidated basis. Note that 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.

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
33,248	36,745	29,582	31,075	36,369	36,733	203,754
119.2	111.3	112.9	108.8	113.7	110.9	112.7
	May	June	July	Aug.	Sept.	Oct.	H2		Full year
34,131	35,638

110.8 114.9

[Gross profit]				(Upper: Millions of yen, Lower: YoY %)
Nov.	Dec.	Jan.	Feb.	Mar.	Apr.	H1
3,415	3,640	3,035	3,278	3,436	3,770	20,576
120.9	109.7	114.6	110.0	109.2	115.1	113.1
May	June	July	Aug.	Sept.	Oct.	H2	Full year
3,432	3,528

113.0 115.5

[Operating profit]				(Upper: Millions of yen, Lower: YoY %)
Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
2,220		2,423	1,711	2,116	2,057	2,349	12,879
118.4		103.8	99.5	103.2	105.4	110.2	106.7
May		June	July	Aug.	Sept.	Oct.	H2			Full year
2,169		2,248

108.0 120.3

[Ordinary profit]				(Upper: Millions of yen, Lower: YoY %)
Nov.		Dec.	Jan.	Feb.	Mar.	Apr.	H1
2,236		2,672	1,739	2,231	2,894	2,876	14,652
125.1		113.6	94.4	95.7	119.8	129.9	113.2
May		June	July	Aug.	Sept.	Oct.	H2		Full year
2,204		2,785

103.6 145.5

2. Trends in the number of Gyomu Super stores
					Nov.	Dec.	Jan.		Feb.		Mar.	Apr.	H1
		Directly		Opened	3	9	2		3		5	4	26
		managed		Closed	1	0	1		0		2	0	4
		areas		Total	581	590	591		594		597	601	+22
		Indirectly		Opened	2	2	1		2		0	1	8
		managed		Closed	9	1	1		0		0	0	11
		areas		Total	361	362	362		364		364	365	-3
		Total franchise stores	942	952	953		958		961	966	－
		Total directly operated stores	3	3	3		3		3	3	－
		Total stores	945	955	956		961		964	969	+19
					May	June	July		Aug.		Sept.	Oct.	H2	Full year
		Directly		Opened	2	1
		managed		Closed	1	0
		areas		Total	602	603
		Indirectly		Opened	0	3
		managed		Closed	1	1
		areas		Total	364	366
		Total franchise stores	966	969
		Total directly operated stores	3	3
		Total stores	969	972
		■ 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 June 2022]

		Store name										Address
		[Directly managed areas]										―
		Yanagawa Mitsuhashi			885-1 Yanagawa, Mitsuhashi-machi,Yanagawa-shi, Fukuoka
		[Indirectly managed areas]
		Miyako			7-7Tateai-cho,Miyako-shi, Iwate
		Ogaki Sunomata			1098-1 Sunomata, Sunomata-cho,Ogaki-shi, Gifu
		Espot Shinfuji-eki Minami			177 Kawanarijima, Fuji-shi, Shizuoka
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		110.2	102.4	103.1		101.1		105.3		102.9		104.1
			All stores		116.6	108.8	109.3		107.5		111.9		108.6		110.4
		Nationwide*		All stores		118.6	110.3	111.2		108.6		113.2		110.5		112.0
							May		June		July		Aug.		Sept.		Oct.		H2			Full year
		Directly managed areas		Existing stores		103.1		105.5
			All stores		108.5		111.7
		Nationwide*		All stores		110.3		113.6

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

4. Overview

For June 2022, we reported net sales of ¥35,638 million (up 14.9% year-on-year),gross profit of ¥3,528 million (up 15.5%), operating profit of ¥2,248 million (up 20.3%), and ordinary profit of ¥2,785 million (up 45.5%)on a non-consolidatedbasis.

During the period, Gyomu Super opened four stores, resulting in 972 stores in total, an increase of 44 stores from a year earlier. As such, net sales increased driven by the continued coverage on many television programs and social media as well as successful pricing strategies that have created customer satisfaction.

Our product shipments to Gyomu Super stores remained strong, with an increase of 5.5%from a year earlier to existing stores in directly managed areas, an increase of 11.7%to all stores in directly managed areas, and an increase of 13.6%to all stores nationwide.

In terms of our product trends, conveniently available frozen vegetables have continued showing a positive trend. Also, we saw a significant growth in sales of bulk items for commercial use such as restaurants and processed chicken products that come in great demand at the time of various events partly due to the easing of movement restrictions as well as no request for restaurants to temporarily close or shorten opening hours as measures against the spread of COVID-19.

5. Scheduled disclosure date

The flash report for July is scheduled to be released on Wednesday, August 24. Please note that the date of release may be changed for unavoidable reasons.