Disclaimer: This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance
with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.
Summary of Financial Statements for the Second Quarter of Fiscal 2022 [Japanese Standards]
October 28, 2021 | ||
Listed Company Name: Nisshin Seifun Group Inc. | Registered on Tokyo Stock Exchange | |
Code: | 2002 | |
URL: | https://www.nisshin.com | |
Representative: | Nobuki Kemmoku, Representative Director and President | |
Contact: | Reiko Adachi, General Manager, Public Communications Department (General Administration Division) | |
Tel.: +81-3-5282-6650 | ||
Date to submit the Quarterly Securities Report: | November 8, 2021 | |
Date to start distributing dividends: | December 3, 2021 | |
Supplementary materials for this summary of financial statements: | Yes | |
Results briefing for financial results: | Yes (for analysts and institutional investors) |
(Figures shown are rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Second Quarter of Fiscal 2022 (April 1, 2021 to September 30, 2021)
- Consolidated Business Results
(The percentages indicate the rates of increase or decrease compared with the same period of the previous fiscal year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
First six months of | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
325,727 | (3.0) | 15,568 | 26.0 | 17,425 | 27.6 | 9,957 | 9.9 | |||
Fiscal 2022 | ||||||||||
First six months of | 335,944 | (3.1) | 12,356 | (12.5) | 13,652 | (9.7) | 9,057 | (33.0) | ||
Fiscal 2021 | ||||||||||
(Note) Comprehensive income: First six months of Fiscal 2022: ¥7,652 million (down | 66.1%) | |||||||||
First six months of Fiscal 2021: ¥22,551 million (up 620.2%) | ||||||||||
Earnings per share | Fully diluted earnings | |||||||||
per share | ||||||||||
First six months of | Yen | Yen | ||||||||
33.49 | 33.49 | |||||||||
Fiscal 2022 | ||||||||||
First six months of | 30.47 | 30.47 | ||||||||
Fiscal 2021 | ||||||||||
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the start of the fiscal year (April 1, 2021). All figures for the first six months of the fiscal year ending March 31, 2022 reflect the application of this accounting standard.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Millions of yen | Millions of yen | % | |
September 30, 2021 | 690,686 | 445,998 | 62.9 |
March 31, 2021 | 687,415 | 444,774 | 63.0 |
(Reference) Equity capital: September 30, 2021: ¥434,492 million March 31, 2021: ¥433,089 million
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the start of the fiscal year (April 1, 2021). All figures for the first six months of the fiscal year ending March 31, 2022 reflect the application of this accounting standard.
2. Dividends
Dividend per share | |||||||
1Q End | 2Q End | 3Q End | Year-End | Annual | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal 2021 | ― | 17.00 | ― | 20.00 | 37.00 | ||
Fiscal 2022 | ― | 19.00 | |||||
Fiscal 2022 (forecast) | ― | 20.00 | 39.00 | ||||
(Note) Revision to the latest | forecast of dividends: None | ||||||
(Note) Breakdown of year-end dividends for the fiscal year ended March 31, 2021 | |||||||
Dividend per share of common stock: ¥18.00 | Commemorative dividend: ¥2.00 (dividend commemorating 120th anniversary) |
3. Forecast of Consolidated Business Results for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)
(The percentages indicate the rates of increase or decrease compared with the previous fiscal year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings | |||||
owners of parent | per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 670,000 | (1.4) | 29,200 | 7.4 | 31,300 | 4.7 | 19,300 | 1.5 | 64.90 |
(Note) Revision to the latest forecast of business results: None
(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the start of the fiscal year (April 1, 2021). Figures for consolidated business forecasts reflect the application of this accounting standard.
* Notes
- Changes in important subsidiaries during the period under review (changes in specified subsidiaries involving a change in the scope of consolidation): None
- Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Related Notes (4) Notes on Quarterly Consolidated Financial Statements [Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statements]" on page 15 of the Attachment.
(3) | Changes in accounting policies, changes in accounting estimates and revisions restated | |
1) Changes in accounting policies associated with the revisions of accounting standards, etc.: Yes | ||
2) Changes in accounting policies other than the above: | None | |
3) Changes in accounting estimates: | None | |
4) Revisions restated: | None | |
(4) | Number of shares issued and outstanding (common stock) |
- Number of shares issued and outstanding (including treasury shares)
- Number of treasury shares
- Average number of shares outstanding
As of September | 304,357,891 | As of March 31, | 304,357,891 |
30, 2021 | 2021 | ||
As of September | 7,056,707 | As of March 31, | 6,983,147 |
30, 2021 | 2021 | ||
First six months | 297,345,165 | First six months | 297,255,131 |
of Fiscal 2022 | of Fiscal 2021 |
- Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent account auditors.
- Statement regarding the proper use of financial forecasts and other special remarks
- The statements contained in this document are based on various assumptions and do not constitute any guarantee or definite promise that projections of future performance or related business policies will actually be realized. For details of assumptions for financial forecasts and other related matters, please refer to "1. Qualitative Information for the Period under Review (3) Forecast of Consolidated Business Results and Other Forward- looking Information" on page 9 of the Attachment.
- Supplementary materials for this report and results briefing materials can be found on the Company's website.
Contents of the Attachment | ||
(2) | Financial Position ................................................................................................................ | 7 |
(3) | Forecast of Consolidated Business Results and Other Forward-looking Information............ | 9 |
2. Quarterly Consolidated Financial Statements and Related Notes ...................................... | 10 | |
(1) | Quarterly Consolidated Balance Sheets.............................................................................. | 10 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ....................... | 12 |
[Quarterly Consolidated Statements of Income]................................................................. | 12 | |
[Quarterly Consolidated Statements of Comprehensive Income]........................................ | 13 | |
(3) | Quarterly Consolidated Statements of Cash Flows............................................................. | 14 |
(4) | Notes on Quarterly Consolidated Financial Statements ...................................................... | 15 |
[Notes on the Premise of a Going Concern] ....................................................................... | 15 | |
[Notes on a Significant Change in Shareholders' Equity] ................................................... | 15 | |
[Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial | ||
Statements]........................................................................................................................ | 15 | |
[Changes in Accounting Policies] ...................................................................................... | 15 | |
[Segment Information, etc.] ............................................................................................... | 17 | |
[Material Subsequent Events] ............................................................................................ | 18 |
1
1. Qualitative Information for the Period under Review
(1) Business Performance
[Overview of the Period under Review]
During the first six months of the fiscal year ending March 31, 2022, economic and production activities in Japan continued to mount a turnaround as uptake of the novel coronavirus vaccine gained momentum; this despite the spread of the highly contagious delta variant of the virus prompted extension of the country's declared state of emergency. Nevertheless, the Japanese economy's future remained shrouded in uncertainty as the impact of the novel coronavirus pandemic on the business environment continued with no foreseeable end in sight.
Under these conditions, the Group strove to fulfill its corporate mission of ensuring the stable supply of foods involving wheat flour and the delivery of safe and reliable products in each business area, as well as the safety of the employees who support this mission. Additionally, the Group gave highest priority to achieving a swift recovery in sales and earnings capabilities in order to realize its long-term vision called "NNI 'Compass for the Future'" along with decisive steps for building the foundation for further growth.
As part of this effort, the Board of Directors at a meeting today opted to begin construction of a new flour milling plant in the Mizushima district of the City of Kurashiki (Okayama Prefecture, Japan), scheduled to begin operating in May 2025, coupled with the closure of the Okayama Plant and the Sakaide Plant. Along with enhancing cost competitiveness, this measure strengthens the Company's BCP readiness for coping with earthquakes and other potential sources of damage, making possible the stable provision of wheat flour as a key staple.
In a further move, the Board of Directors today decided to change the corporate name of processed food business subsidiary Nisshin Foods Inc. to Nisshin Seifun Welna Inc. from January 1, 2022. By capping the subsidiary's corporate name with "Welna," used as the Group's brand for overseas markets, we aim to become a company with global ambitions through a new brand strategy targeting domestic and overseas audiences.
Additionally, to promote the sustainable cyclical growth targeted in the Company's Long-term Vision, we have endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and clarified the Company's intent to participate in the TCFD Consortium. In conjunction with these moves, we formulated specific medium- to long-term objectives with respect to two of our "CSR Priorities (materiality)" - "prepare for climate change and water resource issues" and "efficiently handle product and packaging waste" - and are further accelerating efforts to this end.
With respect to performance, consolidated net sales for the first six months of the fiscal year ending March 31, 2022, decreased 3.0% year on year to ¥325,727 million. This result came as lower revenue due to effects from the application of an accounting standard regarding revenue recognition and the termination of outsourced production in the pet food business outweighed several positive developments. These included increased revenue from growth in wheat market prices and foreign currency translation effects in the overseas flour milling business, sales growth in the prepared dishes and other prepared foods business that is on a recovery trend from the novel coronavirus pandemic in the previous year, and revenue growth from progress in plant construction in the engineering business. Excluding the impact of application of the accounting standard regarding revenue recognition, sales actually increased 5.7% year on year. In terms of profits, operating profit increased 26.0% year on year to ¥15,568 million, ordinary profit was up 27.6% to ¥17,425 million, and profit attributable to owners of parent rose 9.9% to ¥9,957 million. These results were largely reflective of robust performance in the overseas flour milling business, higher sales prices for bran (a byproduct of the domestic flour milling business), and steady recovery in the prepared dishes and other prepared foods business.
2
(Year-on-year Comparison)
(Millions of yen) | ||||
First six months of | First six months of | Difference | Change | |
Fiscal 2021 | Fiscal 2022 | |||
Net sales | 335,944 | 325,727 | (10,216) | (3.0)% |
(Ref.) Net sales - | ||||
Estimated impact of | - | (29,300) | (29,300) | - |
change in accounting | ||||
standard | ||||
(Ref.) Net sales - | ||||
Excluding impact of | 335,944 | 355,027 | 19,083 | 5.7% |
change in accounting | ||||
standard | ||||
Operating profit | 12,356 | 15,568 | 3,211 | 26.0% |
Ordinary profit | 13,652 | 17,425 | 3,772 | 27.6% |
Profit attributable to | 9,057 | 9,957 | 899 | 9.9% |
owners of parent | ||||
3
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Nisshin Seifun Group Inc. published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2021 08:29:06 UTC.