S Foods : Summary of Consolidated Financial Results for the Third Quarter

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended November 30, 2022

[Japanese GAAP]

Company name: S Foods Inc.	January 13, 2023
Stock exchange listing: Tokyo
Code number: 2292
URL: https://www.sfoods.co.jp
Representative: Shinnosuke Murakami	President and Representative Director
Contact: Yosuke Yuasa	Director Supervising Administration Group

Phone: [phone]

Scheduled date of filing quarterly securities report: January 16, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: No

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Nine Months Ended November 30, 2022 (March 01, 2022 to November 30, 2022)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
Nine months ended	Million yen	%		Million yen	%		Million yen	%		Million yen		%
November 30, 2022		295,375	12.6		10,626	(20.6)		11,913	(14.0)			7,041		(23.6)
November 30, 2021		262,238	8.1		13,376	41.2		13,852	42.8			9,220		8.7
(Note) Comprehensive income:	Nine months ended November 30, 2022:	¥		11,679 million	[	15.0%]
		Nine months ended November 30, 2021:	¥		10,158 million	[	20.0%]
		Basic earnings	Diluted earnings per
		per share		share
Nine months ended			Yen				Yen
November 30, 2022			222.70				-
November 30, 2021			291.67				-
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of			Million yen			Million yen				%
November 30, 2022			207,858			115,440				52.1
February 28, 2022			181,518			106,157				54.7
(Reference) Equity: As of	November 30, 2022:	¥	108,336 million
As of	February 28, 2022:	¥	99,256 million

2. Dividends

				Annual dividends
	1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end		quarter-end
	Yen		Yen		Yen		Yen	Yen
Fiscal year ended February 28, 2022	-		35.00		-		35.00	70.00
Fiscal year ending February 28, 2023	-		39.00		-
Fiscal year ending February 28, 2023							39.00	78.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023(March 01, 2022 to February 28, 2023)

(% indicates changes from the previous corresponding period.)

Profit

attributable

Basic earnings per

Net sales

Operating profit

Ordinary profit

to

owners

of

parent

share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

375,000

4.5

14,800

(15.1)

15,000

(16.7)

10,000

(16.3)

316.31

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the nine months ended November 30, 2022

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

New

-

(Company name:

)

Exclusion:

-

(Company name:

)

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

November 30, 2022:	32,267,721	shares
February 28, 2022:	32,267,721	shares
2) Total number of treasury shares at the end of the period:
November 30, 2022:	646,620	shares
February 28, 2022:	652,801	shares

3) Average number of shares during the period:
Nine months ended November 30, 2022:	31,618,566	shares
Nine months ended November 30, 2021:	31,612,416	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Million yen)
	As of February 28,2022	As of November 30,2022
Assets
Current assets
Cash and deposits	41,859	37,851
Notes and accounts receivable - trade	32,149	41,065
Merchandise and finished goods	25,207	35,390
Work in process	1,799	2,049
Raw materials and supplies	3,985	5,694
Other	6,321	9,605
Allowance for doubtful accounts	(38)	(54)
Total current assets	111,285	131,601
Non-current assets
Property, plant and equipment
Buildings and structures	57,186	58,743
Accumulated depreciation	(27,798)	(29,546)
Buildings and structures, net	29,387	29,196
Land	15,299	15,121
Other	36,576	45,011
Accumulated depreciation	(25,584)	(27,414)
Other, net	10,991	17,597
Accumulated impairment	(3,515)	(3,692)
Total property, plant and equipment	52,163	58,222
Intangible assets
Goodwill	257	212
Other	481	416
Total intangible assets	739	629
Investments and other assets
Investment securities	13,887	13,819
Retirement benefit asset	151	170
Other	3,494	3,611
Allowance for doubtful accounts	(202)	(194)
Total investments and other assets	17,331	17,405
Total non-current assets	70,233	76,257
Total assets	181,518	207,858

		(Million yen)
	As of February 28,2022	As of November 30,2022
Liabilities
Current liabilities
Notes and accounts payable - trade	22,475	34,065
Short-term borrowings	5,533	13,284
Income taxes payable	1,770	1,863
Provision for bonuses	1,054	1,678
Other	10,880	12,088
Total current liabilities	41,714	62,980
Non-current liabilities
Bonds payable	450	350
Long-term borrowings	28,779	24,817
Provision for retirement benefits for directors (and	174	135
other officers)
Retirement benefit liability	1,886	1,897
Other	2,357	2,237
Total non-current liabilities	33,647	29,437
Total liabilities	75,361	92,418
Net assets
Shareholders' equity
Share capital	4,298	4,298
Capital surplus	18,739	18,754
Retained earnings	72,631	77,332
Treasury shares	(410)	(407)
Total shareholders' equity	95,258	99,978
Accumulated other comprehensive income
Valuation difference on available-for-sale	2,956	2,917
securities
Deferred gains or losses on hedges	13	48
Foreign currency translation adjustment	989	5,363
Remeasurements of defined benefit plans	38	28
Total accumulated other comprehensive income	3,998	8,358
Non-controlling interests	6,900	7,104
Total net assets	106,157	115,440
Total liabilities and net assets	181,518	207,858

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Million yen)
	For the nine months	For the nine months
	ended November 30,2021	ended November 30,2022
Net sales	262,238	295,375
Cost of sales	219,913	256,347
Gross profit	42,325	39,027
Selling, general and administrative expenses	28,948	28,401
Operating profit	13,376	10,626
Non-operating income
Interest income	16	166
Dividend income	301	338
Rental income from buildings	98	160
Share of profit of entities accounted for using equity	7	8
method
Foreign exchange gains	-	478
Other	398	461
Total non-operating income	821	1,614
Non-operating expenses
Interest expenses	197	205
Foreign exchange losses	26	-
Rent cost	34	36
Other	88	86
Total non-operating expenses	346	327
Ordinary profit	13,852	11,913
Extraordinary income
Gain on sale of non-current assets	10	29
Gain on sale of investment securities	3	-
Subsidy income	710	222
Compensation income	1	-
Total extraordinary income	725	251
Extraordinary losses
Loss on disposal of non-current assets	240	96
Impairment losses	161	77
Loss on store closings	0	1
Loss on temporary store closings	363	39
Loss on tax purpose reduction entry of non-current	-	50
assets
Other	3	9
Total extraordinary losses	770	274
Profit before income taxes	13,807	11,890
Income taxes	4,261	4,568
Profit	9,545	7,321
Profit attributable to non-controlling interests	325	280
Profit attributable to owners of parent	9,220	7,041