Kobe Bussan : Monthly Performance for March 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.

	April 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 March 2023

Kobe Bussan Co., Ltd. discloses its monthly performance for March 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
	111.1	112.6	110.5	113.8	109.6
	May	June	July	Aug.	Sept.	Oct.	H2		Full year

[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
91.2	95.2	100.8	103.9	114.8
May	June	July	Aug.	Sept.	Oct.	H2	Full year

[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
77.7		85.1	97.5	93.9	108.0
May		June	July	Aug.	Sept.	Oct.	H2		Full year

[Ordinary profit]					(Upper: Millions of yen, Lower: YoY %)
Nov.		Dec.		Jan.	Feb.	Mar.	Apr.	H1
174			204	1,031	5,127	1,830
7.8			7.7	59.3	229.7	63.3
May		June		July	Aug.	Sept.	Oct.	H2		Full year

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
		managed		Closed	0	0	0		4		0
		areas		Total	633	636	638		638		644
		Indirectly		Opened	1	1	0		1		0
		managed		Closed	0	1	1		0		1
		areas		Total	372	372	371		372		371
		Total franchise stores	1,005	1,008	1,009		1,010		1,015
		Total directly operated stores	3	3	3		3		3
		Total stores	1,008	1,011	1,012		1,013		1,018
					May	June	July		Aug.		Sept.		Oct.	H2	Full year
		Directly		Opened
		managed		Closed
		areas
			Total
		Indirectly		Opened
		managed		Closed
		areas
			Total
		Total franchise stores
		Total directly operated stores
		Total stores
		■ 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 March 2023]

Store name

Address

[Directly managed areas]

―

Asoda

3-7-1 Shimizu Shinchi, Kita-ku,Kumamoto-shi, Kumamoto

Imari

42-3 Hieda, Otsubo-cho Otsu, Imari-shi, Saga

Yachimata

285-1 Yachimata Ni, Yachimata-shi, Chiba

Asahikawa Midorimachi

18-3034-1Midori-machi,Asahikawa-shi, Hokkaido

Omuta

3-3-25Asahi-machi,Omuta-shi, Fukuoka

Omiya Horinouch

3-158-1Horinouchi-cho,Omiya-ku,Saitama-shi, Saitama

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

All stores

112.1

112.6

109.5

112.5

108.5

Nationwide*

All stores

111.6

112.5

109.3

112.0

108.3

May

June

July

Aug.

Sept.

Oct.

H2

Full year

Directly managed areas

Existing stores

All stores

Nationwide*

All stores

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

4. Overview

For March 2023, we reported net sales of ¥39,845 million (up 9.6% year-on-year),gross profit of ¥3,946 million (up 14.8%), operating profit of ¥2,222 million (up 8.0%), and ordinary profit of ¥1,830 million (down 36.7%)on a non-consolidatedbasis.

During the period, Gyomu Super opened 6 stores, resulting in 1,018 stores in total, an increase of 54 stores from a year earlier. As such, net sales increased driven by the continued coverage on television programs and social media.

Ordinary profit fell short of that for the same period of the previous fiscal year. This is primarily because we recorded valuation loss on forward exchange contracts for March this year due to the further soaring of yen as contrasted by recording valuation gain on the contracts due to the weakening of yen for the same month last year.

However, operating profit, which indicates profit from our core business, exceeded that for the same period of the previous fiscal year.

Our product shipments to Gyomu Super stores remained strong, with an increase of 3.2%from a year earlier to existing stores in directly managed areas, an increase of 8.5%to all stores in directly managed areas, and an increase of 8.3%to all stores nationwide.

In terms of our product trends, sales of conveniently available frozen vegetables have continued showing a strong positive trend, and on-sale items also followed this trend, contributing to sales growth.

Through Sunday, April 30, we are running a marketing campaign titled "Gyomu Super 1,000 Stores Celebration Sale." On 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/202303_04/(available in Japanese only).

5. Scheduled disclosure date

The flash report for April is scheduled to be released on Thursday, May 18. Please note that the date of release may be changed for unavoidable reasons.