Financial Book for the Year Ended March, 2025 [PDF: 660KB](Open in a separate window)

TSE code: 2229

Fiscal year ended March 31, 2025

Contents

11-Year Summary 2

Management's Discussion and Analysis 3

Business Risks 8

Material Contracts, etc 12

Research and Development Activities 14

Status of Shareholdings 15

Consolidated Balance Sheets 22

Consolidated Statements of Income 24

Consolidated Statements of Comprehensive Income 25

Consolidated Statements of Changes in Net Assets 26

Consolidated Statements of Cash Flows 28

Notes to Consolidated Financial Statements 30

Note : This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Note 1. U.S. dollar amounts are presented, for convenience only, at a conversion rate of ¥149.52 = US$1, the approximate Tokyo foreign exchange market rate as of March 31, 2025.

1. Working capital comprises current assets less current liabilities.

2. Interest-bearing debt includes long-and short-term debt, leasing obligations and other interest bearing debt.

3. Shareholders' equity as presented above consists of total net a sets exclusive of subscription rights and non-controlling interests.

4. The Company applied the "Accounting Standard for Revenue Recognition" (Business Accounting Standards No. 29) from the beginning of the fiscal year ended March 2022. Major consolidated management indicators, etc. for this fiscal year are indicators, etc. after applying such accounting standards.

1. Overview of business performance

   (All comparisons are with the same period of the previous fiscal year, unless stated otherwise.)

   During the fiscal year under review, the global economy continued to face uncertainties due to ongoing geopolitical risk resulting from conflicts and international disputes, as well as changes in monetary policy and administrations in various countries, but showed signs of a gradual recovery in the second half of the year, due in part to the calming of inflation in Europe and the United States and the Chinese economic downturn having been arrested. The Japanese economy has been on a recovery track due to an increase in corporate capital investment, a gradual recovery in personal consumption, and an increase in inbound tourism demand due to an increase in tourists from abroad, amid a continuing rise in prices. Furthermore, with regard to the social issues around our Group, as competition for resources intensifies on environmental changes such as global warming, there is a strong demand for greater consideration of environmental impact and human rights in the supply chain. Amid this business environment, Calbee Group has advanced a business restructuring aimed at achieving the next stage of growth based on our Vision for 2030 and Growth Strategy.

   In our domestic core businesses, we implemented balanced product development in line with changing consumer needs, strengthened fan marketing, and utilized DX to advance data-driven profit improvement initiatives. In January 2025, the Setouchi Hiroshima Factory began operations as a state-of-the-art mother factory with excellent green performance, higher productivity, and an improved working environment. In our overseas businesses, we are strengthening our regional portfolio structure by employing human resources with the expertise we have developed in Japan and proactively allocating other resources such as capital and facilities to growth areas, which is helping to build a foundation for sustainable growth. Additionally, in the new business area of food and health, we worked to increase awareness of Body Granola, a personal food program. And in collaboration with the Shiretoko Shari Agricultural Cooperative, to ensure a stable supply of potatoes, we have also decided to fully enter the frozen food agribusiness, which is a type of agribusiness.

   To further promote sustainability management, Calbee Group is identifying materiality and engaging in

   actions related to climate change, conservation of biodiversity, and respect for human rights. With the aim of disclosing TNFD for the fiscal year ending March 31, 2026, we have grasped the dependencies and impacts at the interface between our business and nature and clarified risks and opportunities over the past year. In addition, to improve agricultural sustainability, we will make efforts to reduce the use of phosphate fertilizer through appropriate fertilization in potato cultivation, contributing to preserve natural capital and mitigate climate change. As part of our efforts to reduce GHG emissions, we interviewed contract potato producers and worked with Japan's Ministry of Agriculture, Forestry and Fisheries to improve visibility, which is a key point in encouraging emissions reductions. Regarding Scope 1 and 2 GHG emissions, we have accelerated our reduction efforts across the group and completed the calculation of emissions in 2024 at all overseas facilities.

   Consolidated net sales for the fiscal year under review were ¥322,564 million (up 6.4%). In the domestic business, revenue increased on the effect of price and content revisions, as well as improved brand value through continued marketing, steady demand gained through sales activities, and increased demand for gift snack items. In the overseas business, sales rose due to sales growth in Europe, the US, Indonesia and other regions, despite continued sluggish performance in Greater China.

   Operating profit was ¥29,066 million (up 6.5%), and operating margin was 9.0%, on par with that of the previous fiscal year. In the domestic business, raw material prices continued to rise throughout the fiscal year, but this was offset by price and content revisions, and profit rose on higher sales volume. Ordinary profit was ¥29,844 million (down 4.2%) due to the recording of foreign exchange losses in non-operating expenses. Profit attributable to owners of parent was ¥20,874 million (up 5.0%) on factors including the application of tax benefits.

   Results by business are as follows.

   Millions of yen, rounded down

   		FY ended March 31, 2024	FY ended March 31, 2025
   		Amount	Amount	Growth (%)
   Domestic production and sale of snack and other foods business		229,887	243,202	+5.8
   	Domestic snack foods	214,642	225,398	+5.0
   	Domestic cereals	26,194	29,417	+12.3
   	Domestic, others	15,565	16,869	+8.4
   	Deduction of rebates, etc.	(26,515)	(28,483)	-
   Overseas production and sale of snack and other foods business		73,140	79,362	+8.5
   Total, production and sale of snack and other foods business		303,027	322,564	+6.4

   * Sales of "Domestic snack foods", "Domestic cereals" and "Domestic, others" are before deduction of rebates, etc.

   Production and sale of snack and other foods business

   Sales in the production and sale of snack and other foods business increased on growth in both the domestic and overseas businesses.

   Domestic production and sale of snack and other foods business

   ・Domestic snack foods:

   Domestic snack foods sales increased.

   Sales by product are as follows.

   Millions of yen, rounded down

   	FY ended March 31, 2024	FY ended March 31, 2025
   	Amount	Amount	Growth (%)
   Potato Chips	98,274	102,818	+4.6
   JagaRico	45,353	48,282	+6.5
   Other snacks	71,014	74,297	+4.6
   Total, domestic snack foods	214,642	225,398	+5.0

   * Net sales by product are before deduction of rebates, etc.

   • Sales of Potato Chips increased amid a sufficient Hokkaido potato harvest in 2024, driven primarily by sales of regular items such as Usu-Shio-Aji and Kataage Potato. The renewal of existing items Potato Chips The Atsugiri and Super Thin Potato, as sub-brands also contributed to higher sales.

   • Strong demand for JagaRico continued, especially for regular items. Even having expanded production capacity in 2023, we maintained a high utilization rate, resulting in higher sales.

   • As for other snacks, sales of Crisp, a fabricated potato chips that is a renewal of an existing product, grew. In addition, sales of gift snack items such as Jaga Pokkuru continued to rise due to an increase in domestic and international tourists. Sales of flour-based and corn/bean-based snacks were also strong overall.

     ・Domestic cereals:

     Sales of domestic cereals were ¥29,417 million (up 12.3%) due to various collaborative products with other companies, strengthened sales activities in conjunction with marketing activities and by growth in the cereal market.

     ・Domestic, others:

     Sales in other domestic businesses were ¥16,869 million (up 8.4%) due to growth in the sweet potato business and Body Granola, a personal food program that focuses on the intestinal microbiome.

     Overseas production and sale of snack and other foods business

     Sales increased in the overseas production and sale of snack and other foods business.

     Sales by region are as follows.

     Millions of yen, rounded down

     	FY ended March 31, 2024	FY ended March 31, 2025
     	Amount	Amount	Growth (%)	Growth on local currency basis (%)
     Europe/Americas	36,485	42,639	+16.9	+10.1
     North America	23,473	28,308	+20.6	+14.2
     Asia/Oceania	45,968	47,576	+3.5	(0.1)
     Greater China	18,568	17,075	(8.0)	(12.5)
     Deduction of rebates, etc.	(9,313)	(10,853)	-	-
     Total, overseas production and sale of snack and other foods business	73,140	79,362	+8.5	+3.5

     * Europe/Americas: North America and United Kingdom, etc.

     ** Asia/Oceania: Greater China, Indonesia, South Korea, Thailand, Singapore, Australia, etc.

     *** Greater China: China and Hong Kong

     **** Net sales by region are before deduction of rebates, etc.

   • In Europe/Americas, both North America and the UK saw growth. In North America, sales increased on expanded distribution of flagship bean-based snack Harvest Snaps and brands of Japanese origin. For brands of Japanese origin, this was due in part to the expanded product lineup, such as Takoyaki Ball, and localization of products. In the UK, sales rose due to expanded sales of Seabrook brand products at national retail chains.

   • In Asia/Oceania, sales grew in all regions except Greater China, where e-commerce channel sales remained sluggish due to the continued impact of the economic downturn and tightening customs regulations, resulting in lower sales. However, sales to retail stores, our focus segment, rose on higher sales of Jagabee produced locally on a contract basis, snack foods imported from surrounding factories, and Frugra exported from Japan. Sales grew in all other regions, particularly in Indonesia, where we expanded production capacity.

2. Financial Indices

The status of indices useful for evaluating the progress of our Group's management policies and strategies is as follows.

Total assets as of March 31, 2025 increased by ¥27,010 million to ¥319,169 million, mainly due to an increase in property, plant and equipment, primarily due to construction of the Setouchi Hiroshima Factory.

Liabilities increased by ¥13,028 million to ¥104,101 million on an increase in long-term borrowings. Net assets increased by ¥13,981 million to ¥215,067 million due to an increase in retained earnings.