Consolidated Financial Statements for the
First Half of the Fiscal Year
Ending March 31, 2025
April 1, 2024 to September 30, 2024
This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements based on a number of assumptions and beliefs made by management in light of information currently available. Actual financial results may differ materially depending on a number of factors, including changing economic conditions, legislative and regulatory developments, delay in new product launches, and pricing and product initiatives of competitors.
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SUMMARY OF FINANCIAL STATEMENTS (consolidated) | |
Calbee, Inc. | First Half Results for the Fiscal Year Ending March 31, 2025 |
November 1, 2024 |
Stock exchange listings: Prime Market of Tokyo, code number 2229
URL: https://www.calbee.co.jp/en/Contact: Kazuhiro Tanabe Executive Officer & CFO Telephone: +81-3-5220-6222
Representative: Makoto Ehara, President & CEO, Representative Director
Scheduled date for distribution of dividends: --
Availability of supplementary explanatory material for the first half results: Available
Quarterly results presentation meeting: Yes (conference call for institutional investors and analysts)
- Consolidated results for the first six months (April 1, 2024 to September 30, 2024) of the fiscal year ending March 31, 2025
(1) Consolidated Operating Results | Millions of yen, rounded down | |||||
Six months ended | Six months ended | |||||
September 30, 2023 | September 30, 2024 | |||||
% change | % change | |||||
............................................................Net sales | 147,071 | 10.4 | 157,070 | 6.8 | ||
Operating profit | 13,514 | 31.9 | 14,926 | 10.5 | ||
Ordinary profit | 16,635 | 30.9 | 14,801 | (11.0) | ||
Profit attributable to owners of parent | 10,864 | 30.7 | 10,633 | (2.1) | ||
Earnings per share (¥) | 86.97 | 85.13 | ||||
Earnings per share (diluted) (¥) | － | － |
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year.
2. Comprehensive income: Six months ended September 30, 2024: ¥9,806 million (-38.0%) Six months ended September 30, 2023: ¥15,804 million (22.4)
(2) Consolidated Financial Position | Millions of yen, rounded down | ||
As of March 31, 2024 | As of September 30, 2024 | ||
Total assets | 292,158 | 300,779 | |
Net assets | 201,086 | 203,988 | |
Shareholders' equity/total assets (%) | 65.6 | 64.6 | |
Shareholders' equity: As of September 30, 2024: ¥194,369 million | |||
As of March 31, 2024: ¥191,751 million | |||
2) Dividends | |||
Yen | |||
FY ended | FY ending | ||
March 31, 2024 | March 31, 2025(forecast) | ||
Interim period per share | 0.00 | 0.00 | |
Year-end dividend per share | 56.00 | 58.00 | |
Annual dividend per share | 56.00 | 58.00 |
Note: Changes from the most recently announced dividend forecast: None
3) Consolidated forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)
Millions of yen
Net sales | 323,000 |
Operating profit | 29,500 |
Ordinary profit | 29,000 |
Profit attributable to owners of parent | 19,500 |
Earnings per share (¥) | 156.10 |
% change
6.6
8.0
(6.9)
(1.9)
Notes: 1. The percentages shown above are a comparison with the same period in the previous fiscal year. 2. Changes from the most recently announced results forecast: Yes
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Notes
(1) Significant changes in the scope of consolidation during the period: None New companies: None Excluded companies: None
- Use of special accounting procedures: None
- Changes in accounting policy, changes in accounting estimates, and restatements:
- Changes in accounting policies following revisions of accounting standards: Yes
- Changes in accounting policies other than 1: None
- Changes in accounting estimates: None
- Restatements: None
- Number of outstanding shares (common stock)
As of March 31, 2024: | As of September 30, 2024: | ||
1. | Number of outstanding shares | 133,929,800 shares | 133,929,800 shares |
(including treasury shares) | |||
2. | Number of treasury shares | 9,050,500 shares | 8,992,716 shares |
Six months to September 30, | Six months to September | ||
2023: | 30, 2024: | ||
3. | Average number of shares during the period | 124,919,826 shares | 124,899,101 shares |
Note: Regarding Calbee stock held in trust as treasury stock within shareholders' equity, the number of treasury shares includes 230,145 of these shares as of September 30, 2024 and 288,055 of these shares as of March 31, 2024, and the average number of shares excludes 268,212 treasury shares in the six months to September 30, 2024, and 247,566 treasury shares in the six months to September 30, 2023.
Financial Statements are not subject to audit by a certified public accountant or audit firm
Appropriate use of financial forecasts and other items
- Forecasts, etc., recorded in this document include forward-looking statements that are based on management's estimates, assumptions and projections at the time of publication. A number of factors could cause actual results to differ materially from expectations. For details of forecasts, please see Page 8, 1. Operating results (3) Consolidated forecasts for the fiscal year ending March 31, 2025.
- The earnings per share forecast for the fiscal year ending March 31, 2025 is calculated using 124,918,041 shares as the expected average number of shares for the period.
- Calbee, Inc. has scheduled a financial results conference for institutional investors and analysts for November 1, 2024. An audio recording of the conference will be made available on our Japanese website after the conference.
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Contents
1. Operating results ……………………………………………………………………………………….…... 5
- Summary of business performance………………………………………………………………………. 5
- Analysis of financial position………………………………………………………………………………. 7
- Consolidated forecasts…………………………………………………………………………………….. 8
2. Consolidated financial statements and key notes……………………………………………….…. 9
- Consolidated balance sheets……………………………………………………………………………... 9
- Consolidated statements of income and comprehensive income…………………………………….. 11
- Consolidated statements of cash flows………………………………………………………………….. 13
(4) Notes to consolidated financial statements……………………………………………………………… | 15 |
Notes related to going concern assumption……………………………………………………………. | 15 |
Notes on occurrence of significant changes to shareholders' equity………………………………… | 15 |
Changes in accounting policies…………………………………… | 15 |
Notes of segment Information, etc.………………………… | 15 |
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1. Operating results
(1) Summary of business performance
(All comparisons are with the same period of the previous fiscal year, unless stated otherwise.)
Net sales during the first six months of the current fiscal year totaled ¥157,070 million (up 6.8%) due to growth in both the domestic and overseas businesses. Sales in the domestic business were ¥117,623 million (up 6.6%), rising on the effects of price and content revisions and growth in snack foods and cereals. Sales in the overseas business were ¥39,447 million (up 7.3%), growing in Europe/Americas and Asia/Oceania despite being sluggish in Greater China.
Operating profit was ¥14,926 million (up 10.5%), and operating margin was 9.5% (up 0.3 percentage points). In the domestic business, we implemented price and content revisions in response to rising costs including higher logistics costs and others linked to the depreciation of the yen, while marketing investment led to higher sales volume, resulting in increased profit. Furthermore, the overseas business saw increased profit, primarily in Indonesia, resulting in an overall increase in profit. Ordinary profit was ¥14,801 million (down 11.0%) due to a decrease in foreign exchange gains from the weak yen, and profit attributable to owners of parent was ¥10,633 million (down 2.1%).
Results by business are as follows.
Millions of yen, rounded down
H1 FY ended | H1 FY ending | |||
March 31, 2024 | March 31, 2025 | |||
Amount | Amount | Growth (%) | ||
Domestic production and sale of snack | 110,315 | 117,623 | ＋6.6 | |
and other foods business | ||||
Domestic snack foods | 102,908 | 108,960 | ＋5.9 | |
Domestic cereals | 13,182 | 15,173 | ＋15.1 | |
Domestic, others | 6,419 | 6,799 | ＋5.9 | |
Deduction of rebates, etc. | (12,194) | (13,310) | － | |
Overseas production and sale of snack | 36,755 | 39,447 | ＋7.3 | |
and other foods business | ||||
Total, production and sale of snack and | 147,071 | 157,070 | ＋6.8 | |
other foods business | ||||
- 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
H1 FY ended | H1 FY ending | ||
March 31, 2024 | March 31, 2025 | ||
Amount | Amount | Growth (%) | |
Potato Chips | 46,096 | 49,367 | ＋7.1 |
JagaRico | 21,363 | 23,209 | ＋8.6 |
Other snacks | 35,448 | 36,383 | ＋2.6 |
Total, domestic snack foods | 102,908 | 108,960 | ＋5.9 |
- Net sales by product are before deduction of rebates, etc.
- Sales of Potato Chips rose due to sales being driven by staple products such as Usu-Shio-Aji, as well as the launch of Potato Chips The Atsugiri and Super Thin Potato, which are rebrands of existing products.
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- Sales of JagaRico increased by focusing on regular items amid continued strong demand.
- Sales of other snacks increased due to continued growth in gift snack items such as Jaga-Pokkuru and the molded snack Potato Chip Crisp which was relaunched in March.
・Domestic cereals:
Sales of domestic cereals were ¥15,173 million (up 15.1%) due to the growth of regular items such as original Frugra and Frugra Less Carbohydrates and the launch of a project item.
・Domestic, others:
Sales in other domestic businesses were ¥6,799 million (up 5.9%) due to increased sales of Body Granola, a service launched in April 2023, and others.
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
H1 FY ended | H1 FY ending | ||||||||
March 31, | |||||||||
March 31, 2025 | |||||||||
2024 | |||||||||
Growth on local | |||||||||
Amount | Amount | Growth (%) | currency basis | ||||||
(%) | |||||||||
Europe/Americas | 17,693 | 21,389 | ＋20.9 | ＋11.3 | |||||
＋22.0 | |||||||||
North America | 11,563 | 14,111 | ＋13.2 | ||||||
2.3) | |||||||||
Asia/Oceania | 23,986 | 23,431 | 7.5) | ||||||
Greater China | 10,275 | 8,350 | 18.7) | 24.1) | |||||
ሺ | ሺ | ሺ | ሺ | ||||||
Deduction of rebates, etc. | 4,924) | 5,374) | － | － | |||||
ሺ36,755 | ሺ39,447 | ||||||||
Total, overseas production and sale | ＋7.3 | 0 | .3 | ||||||
of snack and other foods business |
- Europe/Americas: North America and United Kingdom
- Asia/Oceania: Greater China, Indonesia, South Korea, Thailand, Singapore and Australia, etc.
- Greater China: China and Hong Kong
- Net sales by region are before deduction of rebates, etc.
- In Europe/Americas, there was growth in both North America and the UK. In North America, although contract manufacturing sales of snack foods decreased, sales rose due to sustained sales growth of mainstay product bean-based snack Harvest Snaps and brands of Japanese origin such as JagaRico and Kappa-Ebisen. In the UK, sales rose on the expansion of sales channels for Seabrook brand potato chips and increased sales of pellet snacks.
- In Asia/Oceania, sales increased in Indonesia and other regions, but fell overall due to sluggish performance in Greater China. In Greater China, we made progress in stabilizing supply and expanding distribution of Jagabee, which is produced in China through outsourced manufacturing, but sales decreased on the continued impact of worsening economic sentiment and stricter customs regulations. In Indonesia, sales rose due to strong sales of potato chips and the increased production capacity of pellet snacks achieved in the prior fiscal year.
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(2) Analysis of financial position
(All comparisons are with the end of the previous fiscal year, unless stated otherwise.)
-
Overview of assets, liabilities and net assets
Total assets as of September 30, 2024 increased by ¥8,620 million to ¥300,779 million, mainly due to a decrease in notes and accounts receivable-trade and an increase in tangible fixed assets. The decrease in notes and accounts receivable-trade was due to delayed collection until the following month as the last day of March was a bank holiday. The increase in tangible fixed assets was primarily due to construction of the new Setouchi-HiroshimaFactory.
Liabilities increased by ¥5,718 million to ¥96,790 million on an increase in long-term borrowings. Net assets increased by ¥2,901 million to ¥203,988 million mainly due to an increase in retained earnings from the recognition of net income attributable to owners of parent.
As a result, the shareholders' equity ratio was 64.6%, down 1.0 percentage points. - Overview of cash flows
Cash and cash equivalents as of September 30, 2024 were ¥46,719 million, an increase of ¥9,000 million.
Cash flows from operating activities
Operating activities resulted in a net cash inflow of ¥27,393 million, an increase of ¥22,074 million. The increase was mainly due to an increase in trade receivables resulting from a delay in receipt of payments at the end of the same period of the previous fiscal year as it was a bank holiday.
Cash flows from investing activities
Investing activities resulted in a net cash outflow of ¥21,344 million, a decrease of ¥11,092 million, mainly due to an increase in expenditures for the purchase of property, plant and equipment including the Setouchi-HiroshimaFactory.
Cash flows from financing activities
Financing activities resulted in a net cash inflow of ¥3,330 million, a decrease of ¥3,843 million, mainly due to a net decrease in short-term borrowings.
Information pertaining to financial resources and capital liquidity
- Developments in capital requirements
Calbee Group's capital requirements for operating activities include expenditures for costs related to manufacturing, such as raw materials, labor and production expenses, and for sales activities, such as selling, labor, distribution, etc. Expenditures for investing activities are primarily for capital investment and growth investment and expenditures for financing activities are primarily for capital requirements related to the payment of dividends by the parent company.
In response to these capital requirements, based on our Change 2025 growth strategy we plan to allocate cash flows from operating activities to be generated over the three-year period from the fiscal year ended March 31, 2024 to the fiscal year ending March 31, 2026, cash on hand, and borrowings.
Details of capital requirements
Growth investment: Capital investment for growing domestic and overseas business, investment in new areas, M&A for strengthening overseas bases, etc.
Efficiency investment: Support for ESG, capital investment in areas including automation/labor- saving, to raise productivity
Shareholder returns: Aim for total return ratio over 50% and DOE 4% on a consolidated basis
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The status of cash outlays as of September 30, 2024 is as follows.
Millions of yen, rounded down
FY ended | H1 FY ending | 3-year plan | Progress | |
March 31, 2024 | March 31, 2025 | (%) | ||
Growth | 10,779 | 4,650 | 80,000 | 19.3 |
investment | ||||
Efficiency | 22,118 | 18,916 | 60,000 | 68.4 |
investment | ||||
Shareholder | 6,504 | 7,002 | 25,000 | 54.0 |
returns | ||||
Total | 39,402 | 30,569 | 165,000 | 42.4 |
* 3-year plan: period from FY ended March 31, 2024 to FY ending March 31, 2026
・Fund-raising methods
In principle, Calbee Group raises funds by using borrowings from financial institutions in addition to cash provided by operating activities. We and our domestic consolidated subsidiaries have introduced a cash management system (CMS) to centrally manage funds within the Group, thereby centrally managing surplus funds, securing liquidity and improving funding efficiency. In addition, Calbee has entered into overdraft agreements with several financial institutions with the aim of further supplementing our liquidity, and we recognize that we have sufficient liquidity to fund our business operations.
(3) Consolidated forecasts
The consolidated forecasts for the fiscal year ending March 31, 2025 have been revised as follows, in accordance with the results for the six-month period under review and the latest performance trends.
Net sales and operating profit are expected to exceed the initial forecasts, mainly due to increased domestic sales and increased profit both domestically and overseas during the six-month period under review. Based on these factors, ordinary profit and profit attributable to owners of parent are both expected to exceed the initial forecasts.
The exchange rate assumed for this forecast is 1USD=¥142, which remains unchanged from the previous forecast.
Millions of yen | ||||
Revised forecast | Previous forecast | Change (A-B) | Change (%) | |
(A) | (B) | |||
Net sales | 323,000 | 320,000 | ＋3,000 | ＋0.9 |
Operating profit | 29,500 | 28,900 | ＋600 | ＋2.1 |
Ordinary profit | 29,000 | 28,000 | ＋1,000 | ＋3.6 |
Profit attributable to | 19,500 | 18,000 | ＋1,500 | ＋8.3 |
owners of parent | ||||
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2. Consolidated financial statements and key notes
(1) Consolidated balance sheets
Millions of yen, rounded down | |||||
As of March 31, | As of September 30, | ||||
2024 | 2024 | ||||
Assets | |||||
Current assets | |||||
Cash and deposits | 44,295 | 51,538 | |||
Notes and accounts receivable - trade | 54,118 | 37,804 | |||
Inventories | 22,208 | 26,947 | |||
Other | 7,309 | 5,553 | |||
Allowance for doubtful accounts | (78) | (152) | |||
Total current assets | 127,853 | 121,690 | |||
Non-current assets | |||||
Property, plant and equipment | 38,670 | 37,976 | |||
Buildings and structures, net | |||||
Machinery, equipment and vehicles, net | 36,500 | 35,271 | |||
Land | 16,265 | 16,235 | |||
Construction in progress | 29,851 | 49,732 | |||
Other, net | 2,370 | 2,497 | |||
Total property, plant and equipment | 123,657 | 141,714 | |||
Intangible assets | 22,650 | 21,284 | |||
Goodwill | |||||
Other | 2,620 | 2,673 | |||
Total intangible assets | 25,271 | 23,958 | |||
Investments and other assets | 15,377 | 13,416 | |||
Investments and other assets, gross | |||||
Allowance for doubtful accounts | (1) | (1) | |||
Total investments and other assets | 15,376 | 13,415 | |||
Total non-current assets | 164,305 | 179,088 | |||
Total assets | 292,158 | 300,779 |
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Millions of yen, rounded down | |||
As of March 31, | As of September 30, | ||
2024 | 2024 | ||
Liabilities | |||
Current liabilities | 12,535 | 16,631 | |
Notes and accounts payable - trade | |||
Short-term borrowings | 1,433 | 1,917 | |
Income taxes payable | 6,743 | 3,208 | |
Provision for bonuses | 6,606 | 4,748 | |
Provision for bonuses for directors (and other officers) | 116 | 83 | |
Provision for share-based remuneration | 98 | 44 | |
Other | 26,941 | 23,654 | |
Total current liabilities | 54,475 | 50,290 | |
Non-current liabilities | |||
Long-term borrowings | 25,000 | 35,000 | |
Provision for retirement benefits for directors (and other | 100 | 77 | |
officers) | |||
Provision for share-based remuneration for directors (and | 280 | 245 | |
other officers) | |||
8,017 | 7,889 | ||
Retirement benefit liability | |||
Asset retirement obligations | 755 | 756 | |
Other | 2,443 | 2,531 | |
Total non-current liabilities | 36,596 | 46,500 | |
Total liabilities | 91,072 | 96,790 | |
Net assets | |||
Shareholders' equity | 12,046 | 12,046 | |
Share capital | |||
Capital surplus | 2,514 | 2,514 | |
Retained earnings | 191,706 | 195,330 | |
Treasury shares | (24,972) | (24,783) | |
Total shareholders' equity | 181,293 | 185,107 | |
Accumulated other comprehensive income | 796 | 721 | |
Valuation difference on available-for-sale securities | |||
Foreign currency translation adjustment | 9,751 | 8,582 | |
Remeasurements of defined benefit plans | (89) | (42) | |
Total accumulated other comprehensive income | 10,457 | 9,261 | |
Non-controlling interests | 9,335 | 9,619 | |
Total net assets | 201,086 | 203,988 | |
Total liabilities and net assets | 292,158 | 300,779 |
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