Consolidated Financial Statements for the
Third Quarter of the Fiscal Year
Ending March 31, 2025
April 1, 2024 to December 31, 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. | Third Quarter Results for the Fiscal Year Ending March 31, 2025 |
February 6, 2025 |
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 third quarter results: Available
Quarterly results presentation meeting: Yes (conference call for institutional investors and analysts)
- Consolidated results for the first nine months (April 1, 2024 to December 31, 2024) of the fiscal year ending March 31, 2025
(1) Consolidated Operating Results | Millions of yen, rounded down | |||||
Nine months ended | Nine months ended | |||||
December 31, 2023 | December 31, 2024 | |||||
% change | % change | |||||
............................................................Net sales | 227,339 | 9.0 | 243,777 | 7.2 | ||
Operating profit | 23,715 | 31.3 | 25,249 | 6.5 | ||
Ordinary profit | 26,031 | 36.6 | 26,395 | 1.4 | ||
Profit attributable to owners of parent | 17,165 | 37.0 | 18,352 | 6.9 | ||
Earnings per share (¥) | 137.43 | 146.92 | ||||
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: Nine months ended December 31, 2024: ¥21,364 million (4.4%) Nine months ended December 31, 2023: ¥20,471 million (40.5%)
(2) Consolidated Financial Position | Millions of yen, rounded down | ||
As of March 31, 2024 | As of December 31, 2024 | ||
Total assets | 292,158 | 316,591 | |
Net assets | 201,086 | 215,546 | |
Shareholders' equity/total assets (%) | 65.6 | 64.9 | |
Shareholders' equity: As of December 31, 2024: ¥205,412 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: No
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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 December 31, 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 |
Nine months to December | Nine months to December | ||
31, 2023: | 31, 2024: | ||
3. | Average number of shares during the period | 124,906,279 shares | 124,911,808 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 December 31, 2024 and 288,055 of these shares as of March 31, 2024, and the average number of shares excludes 255,477 treasury shares in the nine months to December 31, 2024, and 261,112 treasury shares in the nine months to December 31, 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 124,918,041 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 February 6, 2025. 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 nine months of the current fiscal year totaled ¥243,777 million (up 7.2%) due to growth in both the domestic and overseas businesses. Sales in the domestic business were ¥183,582 million (up 6.5%), rising on the effect of price revisions, as well as growth in snack foods and cereals. Sales in the overseas business were ¥60,194 million (up 9.4%), due to growth in Europe/Americas.
Operating profit increased in both the domestic and overseas businesses to ¥25,249 million (up 6.5%), and operating margin was 10.4% (down 0.1 percentage points). In the domestic business, price and content revisions were implemented in response to rising costs linked to factors including the depreciation of the yen, while the effective marketing measures have succeeded in maintaining firm sales. In the overseas business, profits were driven by the Asia/Oceania, particularly Greater China. Ordinary profit was ¥26,395 million (up 1.4%), and profit attributable to owners of parent was ¥18,352 million (up 6.9%).
Results by business are as follows.
Millions of yen, rounded down
Q3 FY ended | Q3 FY ending | |||
March 31, 2024 | March 31, 2025 | |||
Amount | Amount | Growth (%) | ||
Domestic production and sale of snack | 172,333 | 183,582 | ＋6.5 | |
and other foods business | ||||
Domestic snack foods | 160,252 | 169,289 | ＋5.6 | |
Domestic cereals | 19,483 | 22,721 | ＋16.6 | |
Domestic, others | 11,468 | 12,223 | ＋6.6 | |
Deduction of rebates, etc. | (18,870) | (20,651) | － | |
Overseas production and sale of snack | 55,005 | 60,194 | ＋9.4 | |
and other foods business | ||||
Total, production and sale of snack and | 227,339 | 243,777 | ＋7.2 | |
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 | |||
Q3 FY ended | Q3 FY ending | ||
March 31, 2024 | March 31, 2025 | ||
Amount | Amount | Growth (%) | |
Potato Chips | 73,728 | 77,403 | ＋5.0 |
JagaRico | 33,276 | 35,917 | ＋7.9 |
Other snacks | 53,247 | 55,967 | ＋5.1 |
Total, domestic snack foods | 160,252 | 169,289 | ＋5.6 |
- Net sales by product are before deduction of rebates, etc.
- Sales of Potato Chips increased due to firm sales of staple products such as Usushio-Aji and Kataage Potato, as well as contributions from sub-brands Potato Chips The Atsugiri and Super Thin Potato.
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- Sales of JagaRico rose by focusing on regular items amid continued strong demand.
- Sales of other snacks increased due to growth in gift snack items such as Jaga Pokkuru due to factors including an increase in tourists from overseas, and the molded Potato Chips Crisp which was relaunched in March 2024. In addition, sales of Kappa Ebisen, which celebrated its 60th anniversary in 2024, also increased steadily.
・Domestic cereals:
Sales of domestic cereals were ¥22,721 million (up 16.6%), rising year on year on the growth of regular items such as original Frugra and Frugra Less Carbohydrates, as well as the contribution of a project item.
・Domestic, others:
Sales in other domestic businesses were ¥12,223 million (up 6.6%) on growth of Body Granola, a service launched in April 2023.
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
Q3 FY ended | Q3 FY ending | ||||||
March 31, | |||||||
March 31, 2025 | |||||||
2024 | |||||||
Growth on local | |||||||
Amount | Amount | Growth (%) | currency basis | ||||
(%) | |||||||
Europe/Americas | 26,689 | 32,308 | ＋21.1 | ＋12.2 | |||
＋24.1 | |||||||
North America | 17,241 | 21,395 | ＋15.9 | ||||
＋2.3 | |||||||
Asia/Oceania | 35,158 | 35,950 | 2.7) | ||||
Greater China | 14,378 | 13,355 | 7.1) | 12.8) | |||
ሺ | |||||||
ሺ － | ሺ | ||||||
Deduction of rebates, etc. | 6,841) | 8,064) | － | ||||
ሺ55,005 | ሺ60,194 | ||||||
Total, overseas production and sale | ＋9.4 | | 2.9 | ||||
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, both North America and the UK saw growth. In North America, sales rose on growth of mainstay product bean-based snack Harvest Snaps, brands of Japanese origin such as Kappa Ebisen and Takoyaki Ball, as well as increased contract manufacturing sales of snack foods. In the UK, sales increased due to increased sales of pellet snacks.
- In Asia/Oceania, sales increased on higher sales in Indonesia, Australia/New Zealand, Thailand, etc., despite continued sluggish performance in Greater China. In Greater China, sales of both snack foods and cereal foods rose at retail stores where we have been enhancing sales, but fell overall due to a decline in e-commerce sales caused by the impact of worsening economic sentiment and stricter customs regulations. In Indonesia, sales remained firm, mainly around Guribee, whose production line was expanded in October, while in Thailand, sales increased due to an enhanced sales structure and higher domestic sales following the renewal of Kappa Ebisen in July.
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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 December 31, 2024 increased by ¥24,432 million to ¥316,591 million, mainly due to an increase in property, plant and equipment. The main factor in the rise in property, plant and equipment was the construction of the new Setouchi Hiroshima Factory.
Liabilities increased by ¥9,972 million to ¥101,044 million on an increase in long-term borrowings. Net assets increased by ¥14,460 million to ¥215,546 million, mainly due to an increase in retained earnings for the recognition of net income attributable to owners of the parent.
As a result, the shareholders' equity ratio was 64.9%, down 0.8 percentage points. - Overview of cash flows
Cash and cash equivalents as of December 31, 2024 were ¥27,637 million, a decrease of ¥10,081 million.
Cash flows from operating activities
Operating activities resulted in a net cash inflow of ¥8,922 million, an increase of ¥5,278 million compared to the same period of the previous fiscal year. This was mainly due to a decrease in trade receivable from a delay in receipt of payments as the end of the previous fiscal year was a bank holiday, while there were increases in inventories and in income taxes paid.
Cash flows from investing activities
Investing activities resulted in a net cash outflow of ¥31,028 million, an increase of ¥2,495 million compared to the same period of the previous fiscal year, mainly due to an increase in expenditures for the acquisition of property, plant and equipment such as the Setouchi Hiroshima Factory.
Cash flows from financing activities
Financing activities resulted in a net cash inflow of ¥11,264 million, a decrease of ¥9,473 million compared to the same period of the previous fiscal year, mainly due to a net decrease in 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
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The status of cash outlays as of December 31, 2024 is as follows.
Millions of yen, rounded down | ||||
FY ended | Q3 FY ending | 3-year plan | Progress (%) | |
March 31, 2024 | March 31, 2025 | |||
Growth | 10,779 | 6,926 | 80,000 | 22.1 |
investment | ||||
Efficiency | 22,118 | 22,897 | 60,000 | 75.0 |
investment | ||||
Shareholder | 6,504 | 7,004 | 25,000 | 54.0 |
returns | ||||
Total | 39,402 | 36,828 | 165,000 | 46.2 |
* 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
There is no change in the consolidated forecasts for the fiscal year ending March 31, 2025 announced on November 1, 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, | As of December 31, | |||
2024 | 2024 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 44,295 | 36,155 | ||
Notes and accounts receivable - trade | 54,118 | 60,072 | ||
Inventories | 22,208 | 27,649 | ||
Other | 7,309 | 9,878 | ||
Allowance for doubtful accounts | (78) | (164) | ||
Total current assets | 127,853 | 133,591 | ||
Non-current assets | ||||
Property, plant and equipment | 38,670 | 39,419 | ||
Buildings and structures, net | ||||
Machinery, equipment and vehicles, net | 36,500 | 37,162 | ||
Land | 16,265 | 16,380 | ||
Construction in progress | 29,851 | 49,360 | ||
Other, net | 2,370 | 2,785 | ||
Total property, plant and equipment | 123,657 | 145,107 | ||
Intangible assets | 22,650 | 21,585 | ||
Goodwill | ||||
Other | 2,620 | 2,857 | ||
Total intangible assets | 25,271 | 24,442 | ||
Investments and other assets | 15,377 | 13,451 | ||
Investments and other assets, gross | ||||
Allowance for doubtful accounts | (1) | (1) | ||
Total investments and other assets | 15,376 | 13,450 | ||
Total non-current assets | 164,305 | 182,999 | ||
Total assets | 292,158 | 316,591 |
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Millions of yen, rounded down
As of March 31, | As of December 31, | ||
2024 | 2024 | ||
Liabilities | |||
Current liabilities | 12,535 | 14,378 | |
Notes and accounts payable - trade | |||
Short-term borrowings | 1,433 | 9,941 | |
Income taxes payable | 6,743 | 1,927 | |
Provision for bonuses | 6,606 | 4,214 | |
Provision for bonuses for directors (and other officers) | 116 | 119 | |
Provision for share-based remuneration | 98 | 67 | |
Other | 26,941 | 23,289 | |
Total current liabilities | 54,475 | 53,937 | |
Non-current liabilities | |||
Long-term borrowings | 25,000 | 35,000 | |
Provision for retirement benefits for directors (and other | 100 | 86 | |
officers) | |||
Provision for share-based remuneration for directors (and | 280 | 276 | |
other officers) | |||
8,017 | 8,020 | ||
Retirement benefit liability | |||
Asset retirement obligations | 755 | 773 | |
Other | 2,443 | 2,949 | |
Total non-current liabilities | 36,596 | 47,106 | |
Total liabilities | 91,072 | 101,044 | |
Net assets | |||
Shareholders' equity | 12,046 | 12,046 | |
Share capital | |||
Capital surplus | 2,514 | 2,514 | |
Retained earnings | 191,706 | 203,049 | |
Treasury shares | (24,972) | (24,783) | |
Total shareholders' equity | 181,293 | 192,826 | |
Accumulated other comprehensive income | 796 | 716 | |
Valuation difference on available-for-sale securities | |||
Foreign currency translation adjustment | 9,751 | 11,887 | |
Remeasurements of defined benefit plans | (89) | (18) | |
Total accumulated other comprehensive income | 10,457 | 12,585 | |
Non-controlling interests | 9,335 | 10,134 | |
Total net assets | 201,086 | 215,546 | |
Total liabilities and net assets | 292,158 | 316,591 |
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