Warabeya Nichiyo Holdings Co., Ltd. · TSE:2918
Warabeya Nichiyo — 1H FY2/2024 Earnings Presentation
24 slides from Warabeya Nichiyo's earnings presentation, Oct 11, 2023
Slide 1: Financial Results Briefing 1H FY2/2024
First Half of the Fiscal Year Ended February 2024 (1H FY2/2024) (From March 1, 2023 to August 31, 2023) Financial Results Briefing October 11, 2023 (2918; Tokyo Stock Exchange, Prime Market)
Slide 2: Group Philosophy and Management Principles
Group Philosophy We contribute to the healthy, abundant dietary lives of our customers by providing “safety” together with “products and services of value.” Management Principles We pursue customer needs and encourage innovation. We aspire to a company that earns the trust of society by practicing c
Slide 3: Overview of Financial Results for 1H FY2/2024
■ Overview of Financial Results for 1H FY2/2024 ■ Financial Forecast for FY2/2024 ■ Initiatives for Sustainable Growth
Slide 4: Consolidated Financial Results: 1H FY2/2024
Consolidated Financial Results: 1H FY2/2024 Achieved record highs for each level of profit 1H FY2/2023 1H FY2/2024 1H FY2/2024 (Millions of yen) YoY Vs. Forecast Result Forecast Result 97,858 101,000 103,011 +5,152 +2,011 Net sales 100.0% 100.0% 100.0% +5.3% +2.0% 3,376 3,650 4,491 +1,115 +841 Opera
Slide 5: Business Segments: 1H FY2/2024
Business Segments: 1H FY2/2024 Net sales and profit increased year on year in each business segment YoY change 1H 1H (Millions of yen) Percentage Main factors FY2/2023 FY2/2024 Amount change Sales [Domestic] 84.0 billion (YoY +4.6 billion) Net sales 85,390 Recovery from adverse impact of COVID-19 90
Slide 6: Operating profit: Analysis of changes
Operating profit: Analysis of changes Rising raw material prices and personnel expenses were offset by a revision of product specifications (Billions of yen) 1H Group 1H Food Production Business +0.94 FY2/2023 Business, etc. FY2/2024 Domestic +0.88 Overseas +0.06 ±0.00 1H FY2/2023 Rise in raw Person
Slide 7: Difference from financial forecast
Difference from financial forecast Forecasts for net sales and operating profit were achieved in each business segment Difference between business segment forecasts and actual results (Billions of yen) (Billions of yen) Net sales +2.01 Operating profit +0.84 Food Production Business +1.94 Food Produ
Slide 8: Non-operating profit/expenses and extraordinary income/losses
Non-operating profit/expenses and extraordinary income/losses 1H FY2/2023 1H FY2/2024 YoY change (Millions of yen, %) Percentage Amount Sales ratio Amount Sales ratio Amount change Operating profit 3,376 3.4 4,491 4.4 +1,115 +33.0 Non-operating income 499 0.5 626 0.6 +126 +25.4 Non-operating expense
Slide 9: Balance Sheets and Statements of Cash Flows
Balance Sheets and Statements of Cash Flows Increases in property, plant and equipment, and debt are mainly due to investment in the U.S. Consolidated Balance Sheets End of End of 1H End of End of 1H (Millions of yen) Change Change FY2/2023 FY2/2024 FY2/2023 FY2/2024 Current assets 32,344 34,689 +2,
Slide 10: Financial Forecast for FY2/2024
■ Overview of Financial Results for 1H FY2/2024 ■ Financial Forecast for FY2/2024 ■ Initiatives for Sustainable Growth
Slide 11: Consolidated financial forecast for FY2/2024
Consolidated financial forecast for FY2/2024 Record highs are forecast in each level of profit FY2/2023 FY2/2024 FY2/2024 Vs. Initial (Millions of yen) YoY Result Initial forecast Revised forecast forecast 194,416 204,000 208,000 +13,583 +4,000 Net sales 100.0% 100.0% 100.0% +7.0% +2.0% 4,985 5,200
Slide 12: Operating profit forecast: Analysis of changes
Operating profit forecast : Analysis of changes Cost increases will be absorbed through revisions to product specifications (Billions of yen) Group FY2/2023 Food Production Business +0.70 Business, etc. FY2/2024 Revised forecast Domestic +1.10 Overseas (0.40) FY2/2023 Rise in raw Personnel Utility c
Slide 13: Initiatives for Sustainable Growth
■ Overview of Financial Results for 1H FY2/2024 ■ Financial Forecast for FY2/2024 ■ Initiatives for Sustainable Growth
Slide 14: Medium-term issues
Medium-term issues Food Production Business - Improving profits [Domestic] - Pursuing consumer demand Food Production Business - Business expansion [Overseas] Group Business - Profitability improvement 13
Slide 15: Improving profits/pursuing consumer demand [1]
Food Production Business [Domestic] Improving profits/pursuing consumer demand [1] Changing Sales Portfolio - Expanded profit due to new manufactured product lines - Work to supply highly unique products utilizing development and manufacturing capabilities for a diverse range of product lines Summer
Slide 16: Improving profits/pursuing consumer demand [2]
Food Production Business [Domestic] Improving profits/pursuing consumer demand [2] Change expected from the expansion of chilled products - Increase in products utilizing the characteristics of food ingredients - Improved production efficiency due to the reorganization of production lines and plants
Slide 17: Improving profits/pursuing consumer demand [3]
Food Production Business [Domestic] Improving profits/pursuing consumer demand [3] Onigiri Rice Ball Demand - Balance increased volume with unit price increases through an approach of high, mid and low pricing - Roll out wide range of products to meet needs Resurgence of Onigiri Sales 千ドル Net sales
Slide 18: Business expansion [1]: Virginia Plant
Food Production Business [Overseas] Business expansion [1] Virginia Plant - Deliveries to stores began on September 12, 2023 - Aiming for net sales of 10 billion yen by the final year of the Medium-term Management Plan (fiscal year ending February 29, 2028) Location Stafford, Virginia, U.S.A Virgini
Slide 19: Business expansion [2]
Food Production Business [Overseas] Business expansion [2] Pizza Slider Sweet Bread Sandwich Ramen Salad Slider Tacos Open house (briefing) Staple product in Texas In the delivery area, tacos have In August we held presentations, plant tours and taste not been sold previously testing sessions for ow
Slide 20: Business expansion [3]: Focus on the United States
Food Production Business [Overseas] Business expansion [3] Focus on the United States - Invest management resources in the U.S., where market size is continuing to expand - Utilize over 40 years of overseas business expertise Development of Business Hawaii Operations Virginia No. of stores 66 stores
Slide 21: Group Business: Profitability improvement
Group Business Profitability improvement Investing management resources on the basis of selection and concentration - Expansion and cultivation of existing business domains based on market needs - Developing new businesses for the future Food Materials Logistics Working to boost profitability throug
Slide 22: Shareholder return
Shareholder return Revision of dividend forecast - In response to the revised financial forecast, the dividend forecast has been revised based on our dividend policy - Increase of 20 yen from the initial forecast for the full year (initial forecast: interim dividend of 35 yen + year-end dividend of
Slide 23: Sustainability
Sustainability Contribute to a Provide the joy of food circular society Animal and plant residues Development of products for local production and local consumption In August this year, the Iwate Plant installed equipment to break Work to instill flavors and culture in products while making effectiv
Slide 24: Forward-looking statements
This document contains “forward-looking statements” based on the Company’s plans, forecast, business strategies and policies at the time of preparation. These statements include the Company’s managerial judgments and assumptions made based on information available before its announcement, and actual
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