Fuji Nihon CorporationTSE: 2114

Consolidated Financial Resultsfor the Nine Months Ended December 31, 2024 (Japanese GAAP)

Feb 21, 2025 at 9:11 AM UTC · Issued by Fuji Nihon Corporation

Consolidated Financial Results

for the Nine Months Ended December 31, 2024 (Japanese GAAP)

	January 31, 2025
Company name	: Fuji Nihon Corporation
Stock exchange listing	: Tokyo Stock Exchange Standard Market
Stock code	: 2114
URL	: https://www.fuji-nihon.com
Representative	: Hidetoshi Soga, President and Chief Executive Officer
Contact	: Shin Sugiyama, Executive Officer, Planning & Administrative
	Division General Manager
Phone	: 81-3-3667-7811
Scheduled date of commencing dividend payments	: -
Supplemental materials prepared on financial results	: No
Financial results briefing session scheduled	: No
	(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 to December 31, 2024)

(1) Consolidated Operating Results (Cumulative)

(Percentages indicate year-on-year changes)

Net sales

Operating Profit

Ordinary Profit

Profit attributable to

owners of parent

Nine months ended

Million yen

December 31, 2024

21,188

9.4

2,559

46.2

2,953

10.5

2,401

19.9

December 31, 2023

19,368

12.7

1,750

9.6

2,671

42.1

2,003

34.4

Note: Comprehensive income

Nine months ended December 31, 2024: ¥1,886 million [(20.3)%]

Nine months ended December 31, 2023: ¥2,365 million [38.7%]

Basic earnings

Diluted earnings

per share

Nine months ended

Yen

December 31, 2024

89.76

―

December 31, 2023

74.60

―

(2) Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

As of

Million yen

％

December 31, 2024

32,036

23,729

73.9

March 31, 2024

32,419

23,851

73.5

Reference: Shareholders' equity: As of December 31, 2024: ¥23,671 million

As of March 31, 2024: ¥23,825 million

2. Cash Dividends

Cash dividend per share

1st Quarter

2nd Quarter

3rd Quarter

Year-End

Total

Yen

Fiscal year ended

―

15.00

―

17.00

32.00

March 31, 2024

Fiscal year ending

―

15.00

―

March 31, 2025

Year ending

19.00

34.00

March 31, 2025 (forecast)

Note: Revisions to the forecast most recently announced: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025) (Percentages indicate year-on-year changes)

	Net Sales		Operating Profit	Ordinary Profit	Profit attributable	Basic earnings
		to owners of parent	per share

Fiscal year ending	Million Yen		%	Million Yen	%	Million Yen	%	Million Yen	%	Yen
March 31, 2025	28,000		8.2	2,850	31.1	3,250	1.5	2,550	7.6	96.23

Note: Revisions to the forecast most recently announced: Yes

*Notes

Significant changes in subsidiaries during the period: No
Application of special accounting for preparing the nine-month consolidated financial statements: No
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards: Yes

(ii) Changes in accounting policies other than (i) above:	No
(iii) Changes in accounting estimates:		No
(iv) Restatement:		No
(4) Number of issued shares (common shares)			Unit: 1 share
(i) Number of issued shares at the end of
FY2024 3Q	25,718,700	FY2023	29,748,200
period (including treasury shares)

(ii) Number of treasury shares at the end of
FY2024 3Q	66,893	FY2023	2,896,393
period

(iii) Average number of shares during the period
FY2024 3Q	26,752,457	FY2023 3Q	26,851,828
(cumulative from the beginning of the fiscal year)

* Consolidated Financial Results for the period is exempt from the audit review by certified public accountants or an audit firm.

* Proper use of earnings forecasts, and other special matters: (Caution concerning forward-looking statements)

Business forecasts and other forward-looking statements contained in this report and supplementary materials are based on information currently available to the Company and on certain assumptions deemed as rational and are not intended to guarantee the achievements by the Company. Actual results may differ significantly from such forecasts due to various factors. For assumptions used for business forecasts and notes in using such forecasts, please refer to "(3) Explanation of Forward-LookingInformation Including Consolidated Financial Forecast" in "1. Overview of Financial Results" on page 3 of the Appendix.

Appendix

1. Overview of Financial Results ……………………………………………………………………………………….	2
(1)	Overview of Operating Results for the Nine-Month Period ………………………………………………….	2
(2)	Overview of Financial Position for the Nine-Month Period …………………………………………………….. 3
(3)	Explanation of Forward-Looking Information Including Consolidated Financial Forecast ……………..….	3
2. Consolidated Financial Statements and Significant Notes ……………………………………………………….	4
(1)	Consolidated Balance Sheets …………………………………………………………………………………	4
(2)	Consolidated Statements of Income and Comprehensive Income ………………………………………..…	6
	Consolidated Statements of Income …………………………………………………………...………..…	6
	Nine Months Ended December 31, 2024 …………………………………………………………..….….…	6
	Consolidated Statements of Comprehensive Income …………………………………………….…....……	7
	Nine Months Ended December 31, 2024 ……………………………………………..……..…...…….……	7
(3) Notes to Consolidated Financial Statements ……………………………………………………………………	8
	(Changes in Accounting Policies) ………………………………………………………………….…………..	8
	(Notes on Segment Information) ……………………..…………………………………………………..…….	8
	(Notes on Significant Changes in Shareholders' Equity) ….………………………………………………..	9
	(Notes on Going Concern Assumption) …………………………………………………………………..…...	9
	(Notes on Consolidated Statements of Cash Flows) …………………………………………………..…...	9
	(Significant Subsequent Events) ………………………………………………………………………..……...	9

1. Overview of Financial Results

Overview of Operating Results for the Nine-Month Period

During the consolidated nine-month period, while there have been signs of recovery in the Japanese economy, with improvements in employment, increases in nominal wages, and a bottoming out of personal consumption, uncertainties still remain. These include heightened geopolitical risks overseas and a slowdown in consumer sentiment due to rising prices domestically, among other factors affecting the economic outlook.

Amid such conditions, the Group formulated its medium-term management plan CHANGE 2028 in April 2024, establishing five key themes: 1. Business expansion in Southeast Asia, 2. Creation of food science business, 3. Growth investment centered on M&A, 4. Building a strong organization to realize our vision, and 5. Enhancement of IR and shareholder returns. The plan is currently being implemented.

For the consolidated nine-month period, net sales were ¥21,188 million (up 9.4% year on year), operating profit was ¥2,559 million (up 46.2%), ordinary profit was ¥2,953 million (up 10.5%), and profit attributable to owners of parent was ¥2,401 million (up 19.9%), resulting in increased revenue and earnings.

The performance by segment is as follows. Note that from this consolidated fiscal year, we have changed our reportable segments from the previous four segments of Sugar Refining, Functional Materials, Real Estate, and Other Food Products to three segments: Sugar Refining, Functional Materials, and Real Estate.

Segment comparison information has been prepared using figures reclassified according to the new segment categories. For details on reportable segments, please refer to "2. Consolidated Financial Statements and Significant Notes (3) Notes to Consolidated Financial Statements (Notes on Segment Information)."

Sugar Refining

The overseas raw sugar market opened at 22.65 cents (per pound) and declined due to the strong start of Brazil's 2024/25 sugar production, reaching 17.95 cents in May. Subsequently, due to rainfall shortages in Brazil and Thailand, and heatwaves in India, along with the International Sugar Organization (ISO) announcing an outlook for increased demand, the market temporarily turned upward, recovering to the 20-cent range. However, in mid-July, it peaked and declined again as Brazil's sugar production continued to be steady, reaching 17.52 cents in August. At the end of August, due to rainfall shortages and large-scale disasters in Brazil, statistical agencies downwardly revised Brazil's sugar production estimates. This led to large-scale speculative buying, causing the market to surge, reaching 23.71 cents in September. The market then fluctuated in the 20-23 cent range. In mid-December, China implemented import suspension measures on Thai sugar products, causing a decline in the white sugar market. Additionally, the strengthening dollar and weakening real increased selling pressure, pushing the price below 20 cents. The third quarter ended at 19.26 cents.

The domestic product market started and ended the third quarter between 249 and 251 yen (per kilogram for large bags of refined sugar) on the Tokyo spot market (as published in the Nikkei). Product movement was strong, with high tourist traffic including inbound tourists, leading to good performance in tourist souvenirs, confectionery, and frozen desserts due to the intense heat. In December, the food service industry performed well due to increased inbound demand from a record number of foreign tourists visiting Japan. However, sales volume decreased year-on-year partly due to consumer restraint from price increases. Nevertheless, we enhanced our sales structure, improved customer satisfaction through thorough quality control and stable product supply, secured steady and stable raw material procurement, and worked to reduce costs.

As a result, the Sugar Refining segment recorded net sales of ¥10,519 million (up 4.8% year on year) and operating profit of ¥2,082 million (up 56.7% year on year), achieving increases in both revenue and earnings.

Functional Materials

Domestic sales of the functional food ingredient "Inulin" increased in volume year on year due to strong performance in products for mass retailers and functional foods. Overseas sales increased in revenue and earnings as sales to Southeast Asian countries continued to perform well at the consolidated subsidiary Fuji Nihon Thai Inulin Co., Ltd. Consolidated subsidiary UNITEC FOODS Co., Ltd. also achieved increased revenue and earnings as sales volumes grew significantly for its main products: pectin, gelatin, and collagen.

As a result, the Functional Materials segment recorded net sales of ¥9,968 million (up 15.1% year on year) and operating profit of ¥948 million (up 27.0% year on year), achieving increases in both revenue and earnings.

Real Estate

The Real Estate business achieved increased revenue and earnings with net sales of ¥491 million (up 7.5% year on year) and operating profit of ¥439 million (up 9.3% year on year). This was due to the construction and lease commencement of the Toyoko Inn Tokyo Kayabacho Eki on the former headquarters site in September 2023, which contributed to revenue, along with stable operation of other properties. The segment continued to contribute to stable earnings.

- 2 -

Overview of Financial Position for the Nine-Month Period

Total assets at the end of the nine-month consolidated period decreased by 1.2% from the end of the previous consolidated fiscal year to ¥32,036 million. Changes in financial position during the consolidated nine-month cumulative period were as follows:

Assets

Current assets increased by 0.7% from the end of the previous consolidated fiscal year to ¥17,045 million. This was primarily due to an increase in notes and accounts receivable - trade, and contract assets.

Non-current assets decreased by 3.3% from the end of the previous fiscal year to ¥14,991 million, primarily due to a decrease in long-term loans receivable from subsidiaries and affiliates.

Liabilities

Current liabilities decreased by 3.3% from the end of the previous consolidated fiscal year to ¥6,282 million. This was primarily due to a decrease in short-term borrowings.

Non-current liabilities decreased by 2.2% to ¥2,024 million, primarily due to a decrease in deferred tax liabilities.

Net Assets

Net assets decreased by 0.5% from the end of the previous fiscal year to ¥23,729 million, primarily due to a decrease in valuation difference on available-for-sale securities.

(3) Explanation of Forward-Looking Information Including Consolidated Financial Forecast

Based on the performance for the consolidated nine-month period announced today, we have revised the full-year earnings forecast previously announced. In the Sugar Refining business, in addition to steady and stable raw material procurement, various cost reductions have contributed significantly. In the Functional Materials business, the Inulin business has seen growth in Southeast Asian market conditions, and the consolidated subsidiary UNITEC FOODS Co., Ltd. has maintained strong sales volumes of high-value-added products. As a result, we are progressing with increased revenue and earnings compared to the previous forecast.

Based on these consolidated nine-month results, we have revised our consolidated earnings forecast for the fiscal year ending March 31, 2025.

- 3 -

2. Consolidated Financial Statements and Significant Notes

(1) Consolidated Balance Sheets

		(Thousand yen)
	FY2023	FY2024 3Q
	(Ended March 31, 2024) (Ended December 31, 2024)

Assets
Current assets

Cash and deposits	5,274,800	5,310,597
Notes and accounts receivable - trade, and contract	4,145,574	4,751,511
assets

Merchandise and finished goods	3,835,520	3,496,513
Work in process	152,729	108,886
Raw materials and supplies	1,475,543	1,303,965
Lease investment assets	954,138	948,281
Other current assets	1,085,800	1,187,051
Allowance for doubtful accounts	(3,103)	(3,277)
Total current assets	16,921,003	17,103,529
Non-current assets
Property, plant and equipment
Buildings and structures, net	356,558	360,019
Machinery, equipment, and vehicles, net	370,402	365,732
Land	2,527,435	2,527,435
Construction in progress	4,083	22,822
Other non-current assets, net	167,007	167,075
Total property, plant, and equipment	3,425,487	3,443,085
Intangible assets
Other intangible assets	55,593	43,844
Total intangible assets	55,593	43,844
Investments and other assets
Investment securities	9,654,764	9,480,739
Long-term loans receivable	2,163	-
Long-term loans receivable from subsidiaries	1,902,500	1,487,700
and affiliates

Retirement benefit asset	126,532	153,571
Others	344,185	326,887
Allowance for doubtful accounts	(13,112)	(2,798)
Total investments and other assets	12,017,033	11,446,101
Total non-current assets	15,498,114	14,933,032
Total assets	32,419,118	32,036,560

- 4 -

	FY2023	FY2024 3Q
	(Ended March 31, 2024) (Ended December 31, 2024)

Liabilities
Current liabilities

Notes and accounts payable - trade	2,053,131	1,997,258
Short-term borrowings	3,096,800	2,487,200

Income taxes payable	349,434	593,144
Accrued consumption taxes	37,678	282,460

Provision for bonuses	173,538	91,743
Other current liabilities	787,936	830,785

Total current liabilities	6,498,520	6,282,591
Non-current liabilities

Long-term borrowings	-	176,000
Deferred tax liabilities	1,412,885	1,200,710

Asset retirement obligations	92,047	92,263
Other non-current liabilities	564,269	555,149
Total non-current liabilities	2,069,203	2,024,123
Total liabilities	8,567,723	8,306,715
Net assets
Shareholders' equity

Share capital	1,524,460	1,524,460
Capital surplus	2,102,408	2,048,412
Retained earnings	17,608,463	17,298,321
Treasury shares	(717,401)	(16,591)
Total shareholders' equity	20,517,930	20,854,602
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,280,889	2,721,440
Foreign currency translation adjustment	5,591	73,135
Remeasurements of defined benefit plans	20,907	22,258
Total accumulated other comprehensive income	3,307,388	2,816,835
Non-controlling interests	26,076	58,408
Total net assets	23,851,394	23,729,845
Total liabilities and net assets	32,419,118	32,036,560

- 5 -

Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

Nine Months Ended December 31, 2024

		(Thousand yen)
	FY2023 3Q	FY2024 3Q
	(From April 1, 2023	(From April 1, 2024
	to December 31, 2023)	to December 31, 2024)

Net sales	19,368,358	21,188,445
Cost of sales	14,665,508	15,320,918
Gross profit	4,702,850	5,867,527
Selling, general and administrative expenses	2,952,641	3,308,018

Operating profit	1,750,209	2,559,509

Non-operating income

Interest income

Dividend income

Foreign exchange gains

Share of profit of entities accounted for using equity method

Other non-operating income

Total non-operating income

Non-operating expenses

Interest expenses

Foreign exchange losses

Other non-operating expenses

Total non-operating expenses

Ordinary profit

Extraordinary income

Gain on sale of non-current assets

Gain on sale of investment securities

Gain on sale of golf club memberships

Total extraordinary losses

Extraordinary losses

Loss on retirement of non-current assets Demolition expenses

Loss on sale of investment securities

25,380	28,810
815,065	201,492
32,143	-
60,311	153,346

19,687	45,445
952,589	429,095


30,908	31,134
-	817
56	3,315
30,964	35,267
2,671,833	2,953,336

299	-
-	298,687
-	2,264

299	300,951

5,662	4,809
-	5,108
37,069	-

Total extraordinary losses	42,732	9,918
Profit before income taxes	2,629,400	3,244,369
Income taxes-current	611,672	837,527

Income taxes-deferred	43,452	30,011
Total income taxes	655,125	867,538
Profit for the period	1,974,275	2,376,831
Loss for the period attributable to non-controlling interests	(28,897)	(24,383)
Profit for the period attributable to owners of parent	2,003,173	2,401,215

- 6 -

Consolidated Statements of Comprehensive Income

Nine Months Ended December 31, 2024

		(Thousand yen)
	FY 2023 3Q	FY 2024 3Q
	(From April 1,2023	(From April 1,2024
	to December 31, 2023)	to December 31, 2024)
Profit for the period	1,974,275	2,376,831
Other comprehensive income

Valuation difference on available-for-sale securities	387,296	(559,448)
Foreign currency translation adjustment	3,383	59,363
Remeasurements of defined benefit plans	4,197	1,350
Share of other comprehensive income of entities	(3,717)	8,180
accounted for using equity method


Total other comprehensive income	391,159	(490,552)
Comprehensive income for the period	2,365,435	1,886,278

Comprehensive income for the period attributable to:
Owners of parent	2,394,333	1,910,662
Non-controlling interests	(28,897)	(24,383)

- 7 -

Notes to Consolidated Financial Statements

(Changes in Accounting Policies)

(Application of Accounting Standard for Current Income Taxes and Other Standards)

The Company has applied the "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022, hereinafter "2022 Revised Accounting Standard") and related standards from the beginning of the nine-month consolidated period.

Regarding the revision related to the recording of income taxes (taxation on other comprehensive income), the Company follows the transitional treatment prescribed in the proviso to Paragraph 20-3 of the 2022 Revised Accounting Standard and the proviso to Paragraph 65-2(2) of the "Implementation Guidance on Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022, hereinafter "2022 Revised Implementation Guidance"). This change in accounting policies has no impact on the consolidated nine-monthfinancial statements.

Additionally, for the revision related to the revised accounting treatment for consolidated financial statements when gains or losses on sale of shares in subsidiaries resulting from transactions between consolidated companies were deferred for tax purposes, the 2022 Revised Implementation Guidance has been adopted from the beginning of the nine-month period. This change in accounting policies was applied retrospectively. Therefore, the consolidated financial statements for the same period of the previous fiscal year and the consolidated financial statements for the previous fiscal year have been modified retrospectively. This change in accounting policies has no impact on the consolidated financial statements for the same period of the previous fiscal year and the consolidated financial statements for the previous fiscal year.

(Notes on Segment Information)

1. Changes in Reportable Segments

The Company implemented organizational changes on April 1, 2024, and changed its management classification. Accordingly, from the beginning of the current consolidated period, Flower Freshness Preservation Agents, which was previously included in the Functional Materials business, has been recognized as a single business segment and transferred to the Other segment. In addition, the Other Food Products business, which was previously included in reportable segments, has been classified as Other and not included in reportable segments due to its low materiality.

The segment information for the previous consolidated nine-month period has been prepared based on the new classification method.

2. Information about Net Sales and Profit or Loss by Reportable Segment and Breakdown of Revenue I. Previous consolidated nine-monthperiod (April 1, 2023 to December 31, 2023)

						(Thousand yen)

		Reportable Segments				Amount
							recorded in
	Sugar	Functional	Real		Other	Adjustments	consolidated
	Total	(Note:1)	(Note:2)	statements
	Refining	Materials	Estate
				of income

							(Note:3)
Net sales
Sugar and related products	10,033,482	―	―	10,033,482	―	―	10,033,482
Food additives	―	150,204	―	150,204	―	―	150,204
Functional food materials	―	8,511,877	―	8,511,877	―	―	8,511,877
Flower freshness	―	―	―	―	192,882	―	192,882
preservation agents

Baked goods, etc.	―	―	―	―	22,483	―	22,483

Revenue from contracts with	10,033,482	8,662,082	―	18,695,564	215,366	―	18,910,931
customers


Other revenue	―	―	457,427	457,427	―	―	457,427

Sales to third-party customers	10,033,482	8,862,082	457,427	19,152,992	215,366	―	19,368,358
Intersegment sales or transfers	10,608	―	4,498	15,106	20,060	(35,167)	―

Total	10,044,090	8,662,082	461,926	19,168,099	235,426	(35,167)	19,368,358

Segment profit	1,328,811	746,654	401,817	2,477,283	57,366	(784,440)	1,750,209

Notes: 1. "Other" category consists of business segments not included in reportable segments.

2. Adjustment to segment profit of ¥(784,440) thousand represents general and administrative expenses related to the parent company's management department and research and development not attributable to reportable segments.

3. Segment profit corresponds to operating profit in the consolidated statements of income.

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