Consolidated Financial Statements for the
First Quarter of the Fiscal Year
Ending March 31, 2025
April 1, 2024 to June 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 Quarter Results for the Fiscal Year Ending March 31, 2025 |
August 2, 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 quarter results: Available
Quarterly results presentation meeting: Yes (conference call for institutional investors and analysts)
- Consolidated results for the first three months (April 1, 2024 to June 30, 2024) of the fiscal year ending March 31, 2025
(1) Consolidated Operating Results | Millions of yen, rounded down | |||||
Three months ended | Three months ended | |||||
June 30, 2023 | June 30, 2024 | |||||
% change | % change | |||||
............................................................Net sales | 73,156 | 12.0 | 77,656 | 6.2 | ||
Operating profit | 7,244 | 35.1 | 7,674 | 5.9 | ||
Ordinary profit | 9,444 | 35.8 | 9,327 | (1.2) | ||
Profit attributable to owners of parent | 6,252 | 37.3 | 7,071 | 13.1 | ||
Earnings per share (¥) | 50.05 | 56.63 | ||||
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: Three months ended June 30, 2024: ¥10,672 million (6.7%) Three months ended June 30, 2023: ¥9,999 million (26.9%)
(2) Consolidated Financial Position | Millions of yen, rounded down | ||
As of March 31, 2024 | As of June 30, 2024 | ||
Total assets | 292,158 | 308,222 | |
Net assets | 201,086 | 204,719 | |
Shareholders' equity/total assets (%) | 65.6 | 63.1 | |
Shareholders' equity: As of June 30, 2024: ¥194,558 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 | 320,000 |
Operating profit | 28,900 |
Ordinary profit | 28,000 |
Profit attributable to owners of parent | 18,000 |
Earnings per share (¥) | 144.14 |
% change
5.6
5.8
(10.1)
(9.5)
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: None
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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 June 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 | 9,050,500 shares |
Three months to June 30, | Three months to June 30, | ||
2023: | 2024: | ||
3. | Average number of shares during the period | 124,926,999 shares | 124,879,300 shares |
Note: Regarding Calbee stock held in trust as treasury stock within shareholders' equity, the number of treasury shares includes 288,055 of these shares as of June 30, 2024 and 288,055 of these shares as of March 31, 2024, and the average number of shares excludes 288,055 treasury shares in the three months to June 30, 2024, and 240,396 treasury shares in the three months to June 30, 2023.
Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)
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 124,879,300 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 August 2, 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 three-month period of the current fiscal year totaled ¥77,656 million (up 6.2%). Sales in the domestic business were ¥58,055 million (up 5.2%), increasing on the effects of price and content revisions implemented in the previous fiscal year and in June, as well as due to strong sales of cereals and growth in snack foods such as gift snack items. Sales in the overseas business were ¥19,600 million (up 9.2%), growing in North America, the UK, and Indonesia despite being sluggish in Greater China.
Operating profit was ¥7,674 million (up 5.9%), and operating margin was 9.9%, the same level year on year. In the domestic business, profits decreased due to rising costs, ongoing marketing investments and other investments, despite the effect of price and content revisions. However, profits grew in the overseas business, mainly in North America, resulting in an increase in profits overall. Ordinary profit was ¥9,327 million (down 1.2%) due to a decrease in foreign exchange gains from the weak yen year on year, and profit attributable to owners of parent was ¥7,071 million (up 13.1%).
Results by business are as follows.
Millions of yen, rounded down
Q1 FY ended | Q1 FY ending | |||
March 31, 2024 | March 31, 2025 | |||
Amount | Amount | Growth (%) | ||
Domestic production and sale of snack | 55,201 | 58,055 | ＋5.2 | |
and other foods business | ||||
Domestic snack foods | 51,146 | 53,206 | ＋4.0 | |
Domestic cereals | 6,655 | 7,735 | ＋16.2 | |
Domestic, others | 3,262 | 3,423 | ＋4.9 | |
Deduction of rebates, etc. | (5,862) | (6,309) | － | |
Overseas production and sale of snack | 17,955 | 19,600 | ＋9.2 | |
and other foods business | ||||
Total, production and sale of snack and | 73,156 | 77,656 | ＋6.2 | |
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
Q1 FY ended | Q1 FY ending | ||
March 31, 2024 | March 31, 2025 | ||
Amount | Amount | Growth (%) | |
Potato Chips | 22,920 | 23,663 | ＋3.2 |
JagaRico | 10,489 | 11,240 | ＋7.2 |
Other snacks | 17,736 | 18,302 | ＋3.2 |
Total, domestic snack foods | 51,146 | 53,206 | ＋4.0 |
- Net sales by product are before deduction of rebates, etc.
- Sales of Potato Chips increased due in part to launch of new product Potato Chips The Atsugiri.
- Sales of JagaRico increased by focusing on regular items amid continued strong demand.
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- Sales of other snacks increased due to continued growth in gift snack items such as Jaga-Pokkuru as well as strong sales of Kappa Ebisen, which celebrated its 60th anniversary this year.
・Domestic cereals:
Sales of domestic cereals were ¥7,735 million (up 16.2%) 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 ¥3,423 million (up 4.9%) due to increased sales of Body Granola, a service launched in April of the previous year and so on.
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
Q1 FY ended | Q1 FY ending | |||||||
March 31, | ||||||||
March 31, 2025 | ||||||||
2024 | ||||||||
Growth on local | ||||||||
Amount | Amount | Growth (%) | currency basis | |||||
(%) | ||||||||
Europe/Americas | 8,634 | 10,968 | ＋27.0 | ＋11.6 | ||||
＋26.9 | ||||||||
North America | 5,669 | 7,196 | ＋12.0 | |||||
3.1) | ||||||||
Asia/Oceania | 11,711 | 11,345 | 10.9) | |||||
21.6) | ||||||||
Greater China | 5,108 | 4,005 | ሺ | 29.2) | ||||
ሺ | ||||||||
ሺ | ሺ | |||||||
Deduction of rebates, etc. | 2,390) | 2,714) | － | － | ||||
ሺ17,955 | ሺ19,600 | |||||||
Total, overseas production and sale | ＋9.2 | ሺ | 1.7) | |||||
of snack and other foods business |
- Europe/Americas: North America and United Kingdom
- Asia/Oceania: Greater China, Indonesia, South Korea, Thailand, Singapore and Australia
- 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, although contract manufacturing sales of snack foods are still recovering, increased sales of bean-based snack Harvest Snaps and brands of Japanese origin such as JagaRico and Kappa-Ebisen led to higher sales. In the UK, steady sales of Seabrook brand potato chips and increased sales of pellet snacks contributed.
- In Asia/Oceania, sales grew in Indonesia, South Korea and Australia, but declined in Greater China. The decline in Greater China reflected the impact of deteriorating business confidence and stricter customs regulations continuing from the second half of the previous year, even amid the start of outsourced local production of part of certain products. In Indonesia, sales increased due to strong sales of potato chips and increase in production capacity of pellet snacks implemented in last 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 June 30, 2024 increased by ¥16,063 million to ¥308,222 million, mainly due to an increase in property, plant and equipment on the construction of a new plant in Hiroshima. Liabilities increased by ¥12,430 million to ¥103,502 million on an increase in long-term borrowings. Net assets increased by ¥3,632 million to ¥204,719 million due to an increase in foreign currency translation adjustments resulting from the weaker yen.
As a result, the shareholders' equity ratio was 63.1%, down 2.5 percentage points. - Overview of cash flows
Cash and cash equivalents as of June 30, 2024 were ¥34,998 million, a decrease of ¥2,720 million.
Cash flows from operating activities
Operating activities resulted in a net cash inflow of ¥1,541 million, a decrease of ¥6,255 million. This was mainly due to a decrease in accounts payable - other.
Cash flows from investing activities
Investing activities resulted in a net cash outflow of ¥7,605 million, a decrease of ¥1,273 million, mainly due to an increase in payments into time deposits.
Cash flows from financing activities
Financing activities resulted in a net cash inflow of ¥2,559 million, a decrease of ¥1,577 million, mainly due to a net decrease in short-term borrowings, despite an increase in proceeds from long- 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
The status of cash outlays as of June 30, 2024 is as follows.
Millions of yen, rounded down | ||||
FY ended | Q1 FY ending | 3-year plan | Progress (%) | |
March 31, 2024 | March 31, 2025 | |||
Growth | 10,779 | 1,991 | 80,000 | 16.0 |
investment | ||||
Efficiency | 22,118 | 4,111 | 60,000 | 43.7 |
investment | ||||
Shareholder | 6,504 | 6,884 | 25,000 | 53.6 |
returns | ||||
Total | 39,402 | 12,987 | 165,000 | 31.8 |
* 3-year plan: period from FY ended March 31, 2024 to FY ending March 31, 2026
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・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
There is no change in the consolidated forecasts for the fiscal year ending March 31, 2025 announced on May 9, 2024.
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2. Consolidated financial statements and key notes
(1) Consolidated balance sheets
Millions of yen, rounded down | ||||
As of March 31, 2024 | As of June 30, 2024 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 44,295 | 44,612 | ||
Notes and accounts receivable - trade | 54,118 | 51,861 | ||
Inventories | 22,208 | 24,786 | ||
Other | 7,309 | 7,588 | ||
Allowance for doubtful accounts | (78) | (114) | ||
Total current assets | 127,853 | 128,734 | ||
Non-current assets | ||||
Property, plant and equipment | 38,670 | 39,238 | ||
Buildings and structures, net | ||||
Machinery, equipment and vehicles, net | 36,500 | 36,185 | ||
Land | 16,265 | 16,383 | ||
Construction in progress | 29,851 | 45,264 | ||
Other, net | 2,370 | 2,552 | ||
Total property, plant and equipment | 123,657 | 139,623 | ||
Intangible assets | 22,650 | 22,847 | ||
Goodwill | ||||
Other | 2,620 | 2,671 | ||
Total intangible assets | 25,271 | 25,519 | ||
Investments and other assets | 15,377 | 14,346 | ||
Investments and other assets, gross | ||||
Allowance for doubtful accounts | (1) | (1) | ||
Total investments and other assets | 15,376 | 14,345 | ||
Total non-current assets | 164,305 | 179,487 | ||
Total assets | 292,158 | 308,222 |
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Millions of yen, rounded down
As of March 31, | As of June 30, | ||
2024 | 2024 | ||
Liabilities | |||
Current liabilities | 12,535 | 12,859 | |
Notes and accounts payable - trade | |||
Short-term borrowings | 1,433 | 985 | |
Income taxes payable | 6,743 | 1,936 | |
Provision for bonuses | 6,606 | 2,521 | |
Provision for bonuses for directors (and other officers) | 116 | 64 | |
Provision for share-based remuneration | 98 | 121 | |
Other | 26,941 | 38,269 | |
Total current liabilities | 54,475 | 56,758 | |
Non-current liabilities | |||
Long-term borrowings | 25,000 | 35,000 | |
Provision for retirement benefits for directors (and other | 100 | 67 | |
officers) | |||
Provision for share-based remuneration for directors (and | 280 | 310 | |
other officers) | |||
8,017 | 7,779 | ||
Retirement benefit liability | |||
Asset retirement obligations | 755 | 755 | |
Other | 2,443 | 2,831 | |
Total non-current liabilities | 36,596 | 46,743 | |
Total liabilities | 91,072 | 103,502 | |
Net assets | |||
Shareholders' equity | 12,046 | 12,046 | |
Share capital | |||
Capital surplus | 2,514 | 2,514 | |
Retained earnings | 191,706 | 191,769 | |
Treasury shares | (24,972) | (24,972) | |
Total shareholders' equity | 181,293 | 181,356 | |
Accumulated other comprehensive income | 796 | 751 | |
Valuation difference on available-for-sale securities | |||
Foreign currency translation adjustment | 9,751 | 12,516 | |
Remeasurements of defined benefit plans | (89) | (65) | |
Total accumulated other comprehensive income | 10,457 | 13,201 | |
Non-controlling interests | 9,335 | 10,160 | |
Total net assets | 201,086 | 204,719 | |
Total liabilities and net assets | 292,158 | 308,222 |
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