Mitsubishi Shokuhin : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Japanese GAAP)

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2022 (Japanese GAAP)

		May 9, 2022
Company name:	Mitsubishi Shokuhin Co., Ltd.	Listing Stock Exchange: Tokyo
Stock code:	7451	URL: https://www.mitsubishi-shokuhin.com/en/
Representative:	Yutaka Kyoya, Representative Director
Contact:	Takeru Aiba, Group Manager, Investor Relations Office
Tel:	[phone]

Annual general meeting of shareholders: Scheduled date for dividend payment: Scheduled date to file securities report: Preparation of supplemental explanatory materials: Results briefing to be held:

June 27, 2022

June 28, 2022

June 28, 2022 Yes

Yes (For securities analysts and institutional investors)

(Amounts less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)

(1) Consolidated operating results

(Percentages indicate YoY changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Fiscal year ended	1,955,601		―	19,036	21.9	20,371	20.5	13,949	25.9
March 31, 2022
Fiscal year ended	2,577,625		-2.9	15,621	1.6	16,912	1.4	11,077	-2.9
March 31, 2021

Note: Comprehensive income for the fiscal year ended March 31, 2022 was 11,499 million yen (-27.4% YoY). Comprehensive income for the fiscal year ended March 31, 2021 was 15,840 million yen (47.0%).

	Earnings per	Diluted earnings	Ratio of profit to		Ratio of ordinary	Operating profit
		profit to total
	share	per share	equity capital		margin
		assets
	Yen	Yen	%		%	%
Fiscal year ended	292.31	―	7.6		3.0	1.0
March 31, 2022
Fiscal year ended	193.87	―	5.8		2.5	0.6
March 31, 2021
Reference: Equity in earnings of affiliates Fiscal year ended 316 million yen	Fiscal year ended	280 million yen
	March 31, 2022:			March 31, 2021:

Note: The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of FY03/22, and net sales for FY03/22 reflect the new accounting standard. As such, no YoY changes are shown.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
Fiscal year ended	665,177	170,291	25.6	3,908.32
March 31, 2022
Fiscal year ended	684,280	197,006	28.8	3,445.70
March 31, 2021

Reference: Equity capital amounted to 170,156 million yen as of March 31, 2022 and 196,877 million yen as of March 31, 2021.

Note: The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of FY03/22, and the figures for FY03/22 reflect the new accounting standard.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
	Million yen	Million yen	Million yen	Million yen
Fiscal year ended	19,284	(11,831)	(39,649)	63,963
March 31, 2022
Fiscal year ended	23,828	(6,256)	(5,198)	96,135
March 31, 2021

2. Dividends

		Annual dividend per share		Total	Payout ratio	Dividend-on-
						dividends	(consolidated)	equity ratio
	End of Q1	End of Q2	End of Q3	Year-end	Total	(consolidated)
	Yen	Yen	Yen	Yen	Yen	Million yen	％	%
Fiscal year ended	―	25.00	―	25.00	50.00	2,856	25.8	1.5
March 31, 2021
Fiscal year ended	―	35.00	―	45.00	80.00	3,482	27.4	2.2
March 31, 2022
Fiscal year ending	―	45.00	―	45.00	90.00		28.0
March 31, 2023 (forecast)

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentages indicate YoY change)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per

owners of parent

share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full-year

1,990,000

1.8

19,900

4.5

21,500

5.5

14,000

0.4

321.57

*Notes

(1) Changes in significant subsidiaries during the period under review:

None

(Transfers of specified subsidiaries associated with changes in the Company's scope of consolidation)

Newly added subsidiaries:

None

Subsidiaries excluded:

None

(2) Changes in accounting policies and accounting estimates and retrospective restatements
1.	Accounting policy changes due to accounting standard revisions, etc.:	Yes
2.	Other accounting policy changes:	None
3.	Changes in accounting estimates:	None
4.	Retrospective restatements:	None

Note: For details, please refer to "3. Consolidated Financial Statements and Key Notes (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)" on page 18 of the attached document.

(3) Number of shares outstanding (common stock)

1. Shares outstanding (including treasury stock)
2. Treasury shares outstanding
3. Average number of shares outstanding

As of March 31,	43,537,200	As of March 31,	58,125,490
2022	2021
As of March 31,	347	As of March 31,	988,361
2022	2021
Fiscal year ended	47,721,660	Fiscal year ended	57,137,170
March 31, 2022	March 31, 2021

*Summaries of financial statements are not subject to audit through certified public accountants or auditing corporations.

*Appropriate use of earnings forecast and other special notes

(Notes on forward-looking statements, etc.)

The above forecast is based on information available as of the date of publication of this document, and actual results may differ from the forecast due to various factors that may arise in the future. Please refer to "1. Overview of Operating Results, etc. (4) Outlook" on page 5 of the attached materials for the assumptions used in the earnings forecast and precautionary notes regarding the use of the earnings forecast.

(How to access supplementary materials for financial results)

Supplementary materials for financial results will be posted on the Company's website on May 9, 2022.

Accompanying Materials ― Contents
1. Overview of Operating Results, etc. ..............................................................................................................................	2
(1)	Overview of operating results for the fiscal year under review .....................................................................................	2
(2)	Overview of financial position for the fiscal year under review .....................................................................................	3
(3)	Overview of cash flows for the fiscal year under review ...............................................................................................	3
(4)	Outlook .........................................................................................................................................................................	4
(5)	Business risks related to the COVID-19 pandemic.......................................................................................................	4
2. Basic Views on Selection of Accounting Standards .......................................................................................................	4
3. Consolidated Financial Statements and Primary Notes.................................................................................................	5
(1)	Consolidated Balance Sheet ........................................................................................................................................	5
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income......................................	7
Consolidated Statement of Income ................................................................................................................................	7
Consolidated Statement of Comprehensive Income ......................................................................................................	8
(3)	Consolidated Statement of Changes in Equity .............................................................................................................	9
(4)	Consolidated Statement of Cash Flows ......................................................................................................................	11
(5)	Notes to Consolidated Financial Statements..............................................................................................................	13
(Notes to going concern assumptions).........................................................................................................................	13
(Significant matters that serve as the basis for preparation of the consolidated financial statements).........................	13
(Changes in accounting policies) .................................................................................................................................	15
(Consolidated balance sheet).......................................................................................................................................	16
(Consolidated statement of income).............................................................................................................................	17
(Consolidated statement of changes in equity) ............................................................................................................	19
(Consolidated statement of cash flows) .......................................................................................................................	21
(Segment information, etc.) ..........................................................................................................................................	21
(Per share information) ................................................................................................................................................	25
(Significant subsequent events) ...................................................................................................................................	25
4. Other............................................................................................................................................................................	26
(1)	Sales by product category ..........................................................................................................................................	26
(2)	Sales by business format ...........................................................................................................................................	26

1

1. Overview of Operating Results, etc.

(1) Overview of operating results for the fiscal year under review

During the consolidated fiscal year under review (April 1, 2021 to March 31, 2022), economic activity slowed and recovered repeatedly due to the intermittent declaration of a state of emergency and the implementation of semi- emergency measures to prevent the spread of COVID-19. In addition, the outlook remained uncertain, as rising geopolitical risks began to cause energy price hikes, raw material shortages and price hikes, and a variety of other effects.

Under these circumstances, the Group formulated the "Medium-term Management Plan 2023," ending in the fiscal year 2023, as a new management policy starting in the fiscal year 2021, and newly defined its purpose as "contributing to the realization of a sustainable society through the food business." At the same time, the Group set its medium-term vision as "Evolving into a next-generation food distributor (solving key sustainability issues)," and has been working toward making this vision a reality.

In the consolidated fiscal year under review, net sales amounted to ¥1,955,601 million despite signs of recovery in some business formats as restrictions on economic activities eased due to a decrease in COVID-19 infections, due to the falloff of demand for food for at-home consumption seen in the previous fiscal year and review of transactions. Operating profit rose 21.9% year-on-year to ¥19,036 million owing to a decrease in SG&A expenses including logistics costs, while ordinary profit increased 20.5% year-on-year to ¥20,371 million and profit attributable to owners of parent grew 25.9% year-on-year to ¥13,949 million.

The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of the fiscal year under review. As a result, net sales decreased by ¥621,023 million, cost of sales decreased by ¥585,588 million, and SG&A expenses decreased by ¥35,434 million during the fiscal year under review. However, there was no impact on operating profit, ordinary profit, profit before income taxes, and retained earnings at the beginning of the fiscal year under review. Net sales for the fiscal year under review reflect the new accounting standard. As such, no YoY changes are shown. For details, please refer to "3. Consolidated Financial Statements and Primary Notes (5) Notes to Consolidated Financial Statements (Changes in accounting policies)".

Results by segment are as follows.

• Processed foods business

Sales in the processed foods business decreased mainly to supermarkets and drugstores due to a drop-off in food demand for at-home consumption seen in the previous fiscal year and review of transactions. Operating profit rose year-on-year thanks to an improvement in SG&A expenses, including logistics costs, despite a decrease in gross profit stemming from the decline in sales.

As a result, the processed foods business achieved sales of ¥670,106 million and operating profit of ¥4,691 million (+27.5% year-on-year).

• Frozen and chilled foods business

Sales in the frozen and chilled foods business fell despite signs of recovery in some business formats centering on commercial-use products, mainly due to review of transactions. Operating profit was higher year-on-year due to streamlined logistics resulting from the recovery in some business formats and improved logistics costs resulting from review of transactions.

As a result, the frozen and chilled foods business posted sales of ¥542,182 million and operating profit of ¥9,197 million (+27.2% year-on-year).

• Alcoholic beverages business

Sales in the alcoholic beverages business rose mainly driven by expanded transactions with discount stores. Operating profit fell year-on-year due to a decline in profit margin stemming from a change in product sales mix.

As a result, the alcoholic beverages business reported sales of ¥471,109 million and operating profit of ¥3,745 million (-4.3%year-on-year).

2