Consolidated Financial Results for the 2nd Quarter of the Year Ending March, 2022 Result by Business Segments and Balance Sheet (PDF: 233KB/12p)

Consolidated Financial Results for the

2nd quarter of the Year Ending March, 2022

Result by Business Segments and Balance Sheet

November 19, 2021

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1. Consolidated Statement of Income

			(JPY in Billions)
	Sep/21	Sep/20	Change
Net Sales	412.2	392.0	20.2
Cost of Sales	352.1	336.1	15.9
Gross profit	60.1	55.9	4.3
Expense	47.7	45.6	2.1
Operating Income	12.5	10.2	2.2
Non-operating Revenues	3.0	2.8	0.3
Non-operating Expenses	1.7	1.2	0.5
Ordinary Income	13.9	11.8	2.0
Extraordinary Income	0.4	0.0	0.4
Extraordinary Loss	0.8	4.3	-3.5
Income before Tax	13.5	7.6	5.9
Taxes	2.9	2.2	0.7
Profit attributable to non-controlling interests	1.2	1.8	-0.7
Profit attributable to owners of parent	9.4	3.6	5.9

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2. Net Sales / Operating Income by Business Segments

The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) has been applied from the first quarter of this current fiscal year.

As the said accounting standards are applied retrospectively, comparisons and analysis with the same period (1Q) of the previous FY and the previous consolidated FY are made based on figures after the retroactive application of the accounting standards.

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3-1. Marine Products Business

							(JPY in Billions)
				Net Sales		Operating Income
	Segment	Unit	(After applying revenue recognition)
			Sep/21	Sep/20	Change	Sep/21	Sep/20		Change
		Fishery Business	13.4	14.9	-1.5	-0.6	0.8		-1.4
		Aquaculture Business	6.8	5.2	1.6	-0.4	-0.9		0.5
	Marine Products
	Marine Products Trading	74.9	70.9	4.0	2.6	1.4		1.2
	Business
		Marine Products Wholesaling	84.8	79.9	5.0	0.3	-0.6		0.9
		Overseas Business	70.7	65.5	5.2	4.2	3.3		0.9
	Segment Sub Total	250.6	236.3	14.2	6.1	4.0		2.1
【Business Overview】

Fishery Business：Net sales and operating income decreased due to delayed shipment in New Zealand due to shortage of shipping containers and decreased sales in Australia due to reduced carry-over inventory of Patagonian toothfish, a highly profitable product.

Aquaculture Business: Net sales increased, and losses narrowed due to higher tuna sales volume to wholesalers, GMS and SM, and higher yellowtail market prices, despite continued sluggish sales to restaurants and food service businesses.

Marine Products Trading：Net sales and operating income increased due to solid sales to GMS, SM, home delivery services, medical institutions and elderly care facilities, as well as improved profit margins due to higher market prices of salmon, scallops and shrimp, etc.

Marine Products Wholesaling：Net sales and operating income increased mainly due to higher unit prices and improved profit margins of frozen products, despite sluggish sales of pricey products for institutional food businesses.

Overseas Business：N. America: Net sales and operating income increased due to the withdrawal from the salmon business in North America/ Europe: Net sales
increased due to the additional investment in our European sales company and increase in expected sales, post-COVID-19./Asia: Net sales increased due to the
acquisition of a processing and sales company in Vietnam. However, operating income decreased due to a decline in Thai factory operations caused by COVID-19.
Overall unit net sales and operating income increased.	4

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3-2. Processed Foods Business

						(JPY in Billions)
			Net Sales		Operating Income
Segment	Unit	(After applying revenue recognition)
		Sep/21	Sep/20	Change	Sep/21	Sep/20		Change
	Consumer Frozen Foods Business	26.7	25.7	1.0	1.1	0.9		0.2
	Consumer Processed Foods Business	17.5	18.2	-0.7	1.4	1.6		-0.2
Processed Foods
Institutional Foods Business	56.4	52.9	3.5	0.9	0.3		0.7
Business
	Meat and Products Business	37.9	35.2	2.7	0.4	0.6		-0.2
	Foods & Fine Chemicals	9.0	8.6	0.4	0.9	0.9		0.0
Segment Sub Total	147.5	140.7	6.8	4.8	4.3		0.5

【Business Overview】

Consumer Frozen Foods Business：Due to continued demand for at-home consumption, sales of rice, HMRs, and gratins grew, and the mainstay lunch box items also exceeded the previous year's level, due to the reopening of schools, resulting in an increase in net sales and operating income.

Consumer Processed Foods Business：Dessert: Net sales and operating income increased due to good weather in the summer and expansion of menus / Canned food: Net sales and operating income decreased due to reaction to increased demand in the previous year / Fish sausage: Net sales and operating income decreased due to intensified price competition and delayed sales in reaction to the increase in at-home consumption the previous year / Overall unit net sales and operating income decreased.

Institutional Foods Business：While the impact of COVID-19 remain significant, net sales and operating income increased due to steady sales of HMRs for GMS, SM, CVS, and home delivery services.

Meat and Products Business：Despite an increase in net sales due to the increase in handling of European pork, imported chicken and imported beef, operating income decreased due to lower profit margins caused by soaring market prices of North American pork.

Food & Fine Chemicals： Net sales increased due to strong sales of DHA/EPA and chondroitin, but operating income decreased due to the significant impact of freeze-dried products in reaction to the increased demand in the previous year.

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