Fuji Nihon CorporationTSE: 2114

Consolidated Financial Resultsfor the Six Months Ended September 30, 2024 (Japanese GAAP)

Nov 20, 2024 at 9:19 AM UTC · Issued by Fuji Nihon Corporation

Consolidated Financial Results

for the Six Months Ended September 30, 2024 (Japanese GAAP)

								October 31, 2024
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 filing half-year securities report			: November 12, 2024
Scheduled date of commencing dividend payments			: December 6, 2024
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 Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)
(1) Consolidated Operating Results (Cumulative)				(Percentages indicate year-on-year changes)
	Net sales			Operating Profit	Ordinary Profit	Profit attributable to
			owners of parent

Six-month period ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
September 30, 2025	13,612		8.8	1,617	52.2	1,898	0.6	1,634	13.3
September 30, 2024	12,517	12.7	1,062	6.9	1,887	58.0	1,443	49.9
Note: Comprehensive income
Six-month period ended September 30, 2025: ¥1,035 million [(46.0)%]
Six-month period ended September 30, 2024: ¥1,917 million	[71.4%]
	Basic earnings		Diluted earnings
	per share			per share
Six-month period ended	Yen
September 30, 2025	60.82		―
September 30, 2024	53.74		―
(2) Consolidated Financial Position
Total Assets			Net Assets		Equity Ratio
As of	Million yen			Million yen		％
September 30, 2024	33,000			24,515		74.1
March 31, 2024	32,419			23,851		73.5
Reference: Shareholders' Equity:	As of September 30, 2024:	¥24,450 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
Fiscal year ended	Yen			Yen		Yen		Yen	Yen
March 31, 2024	―			15.00	―		17.00	32.00
Fiscal year ending
March 31, 2025	―			15.00
Year ending					―		17.00	32.00
March 31, 2025 (forecast)

Note: Revisions to the forecast most recently announced: No

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 owner of parent	per share

Fiscal year ending	Million Yen	%	Million Yen	%	Million Yen	%	Million Yen	%	Yen
March 31, 2025	27,700	7.0	2,400	10.4	3,000	(6.3)	2,400	1.3	89.28

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 six-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	As of	29,748,200	As of	29,748,200
period (including treasury shares)	September 30, 2024	March 31, 2024
(ii) Number of treasury shares at the end of	As of	2,866,893	As of	2,896,393
period	September 30, 2024	March 31, 2024
(iii) Average number of shares during the period	As of	26,872,878	As of	26,851,833
	September 30, 2024	September 30, 2024

Note: Based on the resolution of the Board of Directors meeting held on September 30, 2024, 2,800,000 treasury shares were canceled on October 11, 2024.

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-Looking Information Including Consolidated Financial Forecast" in "1. Overview of Financial Results" on page 3 of the Appendix.

○Appendix

1. Overview of Financial Results ……………………………………………………………………………………….	2-3
(1) Overview of Operating Results for the Six-Month Period …………………………………………………….	2
(2) Overview of Financial Position for the Six-Month Period ……………………………………………………..	3
(3) Explanation of Forward-Looking Information Including Consolidated Financial Forecast ……………..….	3
2. Consolidated Financial Statements and Significant Notes ……………………………………………………….	4-7
(1) Consolidated Balance Sheets …………………………………………………………………………………	4-5
(2) Consolidated Statements of Income and Comprehensive Income ………………………………………..…	6-7
Consolidated Statements of Income …………………………………………………………...………..…	6
Consolidated Six-Month Period …….………………………………………………………………..….….…	6
Consolidated Statements of Comprehensive Income …………………………………………….…....……	7
Consolidated Six-Month Period …….…………………………………………………..……..…...…….……	7
(3) Consolidated Statements of Cash Flows ………………………………………………………………………..	8-9
(4) Notes to Consolidated Financial Statements ……………………………………………………………………	10-12
(Changes in Accounting Policies) ………………………………………………………………….…………..	10
(Notes on Segment Information) ……………………..…………………………………………………..…….	10-12
(Notes on Significant Changes in Shareholders' Equity) ….………………………………………………..	12
(Notes on Going Concern Assumption) …………………………………………………………………..…...	12
(Significant Subsequent Events) ………………………………………………………………………..……...	12

1. Overview of Financial Results

(1) Overview of Operating Results for the Six-Month Period

During the consolidated six-month cumulative period, while there has been a pause in the recovery of personal consumption, the Japanese economy is expected to continue its moderate recovery. However, the economic outlook remains uncertain due to soaring resource and raw material prices, rising prices due to the weak yen, and fluctuations in financial markets.

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 has gotten off to a solid start and is progressing steadily.

For the consolidated six-month cumulative period, net sales were ¥13,612 million (up 8.8% year on year), operating profit was ¥1,617 million (up 52.2%), ordinary profit was ¥1,898 million (up 0.6%), and profit attributable to owners of parent was ¥1,634 million (up 13.3%), 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 Food Materials, Real Estate, and Other Food Products to three segments: Sugar Refining, Functional Food 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 (4) Notes to Consolidated Financial Statements (Notes on Segment Information)."

Sugar Refining

The overseas raw sugar market opened at 20.25 cents and declined due to the strong start of Brazil's 2024/25 sugar production, reaching 17.86 cents in mid-July. Subsequently, due to rainfall shortages and fires in Brazil at the end of August, 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 speculative buying trend continued, and the six-month period ended at 22.67 cents.

The domestic product market continued to trade between 249 and 251 yen (per kilogram for large bags of refined sugar) on the Tokyo spot market (as published in the Nikkei) from the beginning of the period, as in the previous six- month period. While confectionery-related demand remained steady amid increasing product movement due to continued growth in inbound demand, sales volume decreased year-on-year partly due to consumer restraint from price increases. However, 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 ¥6,754 million (up 4.4% year on year) and operating profit of ¥1,296 million (up 66.3% year on year), achieving increases in both revenue and earnings.

Functional Food Materials

Domestic sales of the functional food ingredient "Inulin" increased in volume year on year due to increased adoption in summer products, driven by improved physical properties and functional appeal. Consolidated subsidiary Fuji Nihon Thai Inulin Co., Ltd. achieved increased revenue and earnings due to recovery in Southeast Asian market conditions and steady sales in Thailand, its base of operations. 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 Food Materials segment recorded net sales of ¥6,387 million (up 13.9% year on year) and operating profit of ¥564 million (up 21.2% year on year), achieving increases in both revenue and earnings.

Real Estate

Following the construction and lease commencement of the Toyoko Inn Tokyo Kayabacho Eki business hotel on the former headquarters site in September last year, along with stable operation of other properties, the Real Estate segment recorded net sales of ¥327 million (up 13.2% year on year) and operating profit of ¥289 million (up 17.4% year on year), continuing to contribute to stable earnings.

- 2 -

(2) Overview of Financial Position for the Six-Month Period

Total assets at the end of the six-month consolidated period increased by 1.8% from the end of the previous consolidated fiscal year to ¥33,000 million. Changes in financial position during the consolidated six-month cumulative period were as follows:

Assets

Current assets increased by 8.6% from the end of the previous consolidated fiscal year to ¥18,370 million, primarily due to an increase in cash and deposits. Non-current assets decreased by 5.6% to ¥14,630 million, primarily due to a decrease in investment securities.

Liabilities

Current liabilities increased by 2.7% from the end of the previous consolidated fiscal year to ¥6,673 million, primarily due to an increase in accounts payable. Non-current liabilities decreased by 12.4% to ¥1,811 million, primarily due to a decrease in deferred tax liabilities.

Net Assets

Net assets increased by 2.8% from the end of the previous consolidated fiscal year to ¥24,515 million, primarily due to an increase in retained earnings from the recording of profit attributable to owners of parent.

(Status of Cash Flows)

Cash and cash equivalents (hereinafter "funds") during the consolidated six-month cumulative period increased by ¥1,278 million from the end of the previous consolidated fiscal year to ¥6,553 million.

The status and factors for each type of cash flow during the consolidated six-month cumulative period were as follows:

Cash Flows from Operating Activities

Net cash provided by operating activities during the consolidated six-month cumulative period was ¥1,702 million (compared with an outflow of ¥342 million in the previous corresponding period), primarily due to changes in inventories.

Cash Flows from Investing Activities

Net cash provided by investing activities was ¥275 million (compared with an outflow of ¥207 million in the previous corresponding period), primarily due to proceeds from sales and redemption of investment securities.

Cash Flows from Financing Activities

Net cash used in financing activities was ¥701 million (compared with an inflow of ¥343 million in the previous corresponding period), primarily due to changes in short-term borrowings.

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

Regarding the Group's performance for the consolidated six-month cumulative period, despite decreased sales volume in the Sugar Refining business, we have achieved better-than-expected profit growth compared to previous forecasts. This is due to efforts to reduce costs such as raw sugar procurement, recovery in Southeast Asian market conditions for the Inulin business within the Functional Food Materials segment, and increased sales volume of high-value-added products at consolidated subsidiary UNITEC FOODS Co., Ltd.

As a result, based on the consolidated six-month performance, we have revised our consolidated earnings forecast for the fiscal year ending March 31, 2025. For details, please refer to the "Notice Concerning Revision of Earnings Forecast" released today (October 31, 2024).

The earnings forecasts are based on information available to the Company as of the announcement date, and actual results may differ from these forecasts due to various factors.

- 3 -

2. Consolidated Financial Statements and Significant Notes

(1) Consolidated Balance Sheets

Assets

Current assets Cash and deposits

Notes and accounts receivable - trade, and contract assets

Merchandise and finished goods Work in process

Raw materials and supplies Lease investment assets Other current assets Allowance for doubtful accounts Total current assets

Non-current assets

Property, plant, and equipment Buildings and structures, net Machinery, equipment, and vehicles, net Land

Construction in progress Other non-current assets, net Total property, plant, and equipment

Intangible assets

Other intangible assets Total intangible assets Investments and other assets Investment securities

Long-term loans receivable

Long-term loans receivable from subsidiaries and affiliates

Retirement benefit asset Others

Allowance for doubtful accounts Total investments and other assets

Total non-current assets Total assets

	(Thousand yen)
FY2024	FY2025
(As of March 31, 2024) (As of September 30, 2024)
5,274,800	6,553,180
4,145,574	3,809,804
3,835,520	3,776,308
152,729	220,248
1,475,543	1,952,079
954,138	950,257
1,085,800	1,110,297
(3,103)	(2,074)
16,921,003	18,370,104
356,558	354,519
370,402	355,404
2,527,435	2,527,435
4,083	10,909
167,007	162,413
3,425,487	3,410,682
55,593	47,909
55,593	47,909
9,654,764	9,197,593
2,163	-
1,902,500	1,487,700
126,532	143,837
344,185	345,202
(13,112)	(2,798)
12,017,033	11,171,536
15,498,114	14,630,127
32,419,118	33,000,232

- 4 -

	FY2024	FY2025
	(As of March 31, 2024) (As of September 30, 2024)
Liabilities
Current liabilities
Notes and accounts payable - trade	2,053,131	2,310,238
Short-term borrowings	3,096,800	2,854,300
Income taxes payable	349,434	551,433
Accrued consumption taxes	37,678	153,605
Provision for bonuses	173,538	188,876
Other current liabilities	787,936	614,674
Total current liabilities	6,498,520	6,673,127
Non-current liabilities
Deferred tax liabilities	1,412,885	1,164,557
Asset retirement obligations	92,047	92,191
Other non-current liabilities	564,269	555,071
Total non-current liabilities	2,069,203	1,811,820
Total liabilities	8,567,723	8,484,947
Net assets
Shareholders' equity
Share capital	1,524,460	1,524,460
Capital surplus	2,102,408	2,123,447
Retained earnings	17,608,463	18,786,404
Treasury shares	(717,401)	(710,095)
Total shareholders' equity	20,517,930	21,724,216
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,280,889	2,683,998
Foreign currency translation adjustment	5,591	20,809
Remeasurements of defined benefit plans	20,907	21,808
Total accumulated other comprehensive income	3,307,388	2,726,616
Non-controlling interests	26,076	64,451
Total net assets	23,851,394	24,515,284
Total liabilities and net assets	32,419,118	33,000,232

- 5 -

(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

Net sales Cost of sales Gross profit

Selling, general and administrative expenses Operating profit

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 Total extraordinary losses

Profit before income taxes Income taxes-current Income taxes-deferred Total income taxes Profit for the period

Loss for the period attributable to non-controlling interests Profit for the period attributable to owners of parent

	(Thousand yen)
FY 2024	FY 2025
(From April 1, 2023	(From April 1, 2024
to September 30, 2023)	to September 30, 2024)
12,517,396	13,612,749
9,555,545	9,880,495
2,961,851	3,732,253
1,899,371	2,114,977
1,062,480	1,617,276
16,345	19,574
762,302	137,781
8,789	-
42,794	132,975
13,785	32,394
844,018	322,725
18,913	21,423
-	16,330
462	3,736
19,375	41,490
1,887,123	1,898,511
299	-
-	240,494
-	2,264
299	242,759
5,661	22
7,842	-
-	5,108
13,504	5,130
1,873,918	2,136,139
444,298	526,311
6,514	(6,253)
450,813	520,057
1,423,105	1,616,081
(20,058)	(18,339)
1,443,164	1,634,421

- 6 -

Consolidated Statements of Comprehensive Income

Profit for the period

Other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans

Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income Comprehensive income for the period Comprehensive income for the period attributable to:

Owners of parent Non-controlling interests

	(Thousand yen)
FY 2024	FY 2025
(From April 1,2023 to	(From April 1,2024 to
September 30, 2023)	September 30, 2024)
1,423,105	1,616,081
493,369	(596,890)
1,995	11,403
1,764	900
(2,684)	3,814
494,444	(580,772)
1,917,549	1,035,309
1,937,608	1,053,649
(20,058)	(18,339)

- 7 -

Consolidated Statements of Cash Flows

Cash flows from operating activities Profit before income taxes Depreciation

Increase (decrease) in provision for bonuses

Increase (decrease) in allowance for doubtful accounts Increase (decrease) in retirement benefit asset

Loss (gain) on sale of golf club memberships Interest and dividend income

Interest expenses

Foreign exchange losses (gains)

Share of loss (profit) of entities accounted for using equity method

Loss on retirement of non-current assets Loss (gain) on sale of non-current assets Loss (gain) on sale of investment securities Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in lease investment assets Decrease (increase) in other current assets Increase (decrease) in trade payables Increase (decrease) in other current liabilities Other

Subtotal

Interest and dividends received Interest paid

Income taxes paid Income taxes refund

Net cash provided by (used in) operating activities Cash flows from investing activities

Proceeds from sale and redemption of investment securities

Purchase of investment securities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Payments for demolition of property, plant and equipment Purchase of intangible assets

Payments for asset retirement obligations Proceeds from sale of golf club memberships Long-term loans made

Collection of long-term loans receivable

Net cash provided by (used in) investing activities

	(Thousand yen)
FY 2024	FY 2025
(From April 1,2023 to	(From April 1,2024 to
September 30, 2023)	September 30, 2024)
1,873,918	2,136,139
89,088	92,832
15,757	15,337
937	(11,343)
28,043	(18,978)
-	(2,264)
(778,648)	(157,355)
18,913	21,423
(11,691)	2,876
(42,794)	(132,975)
5,661	22
(299)	-
-	(235,385)
(579,650)	352,690
(1,595,494)	(452,725)
(953,535)	3,880
367,038	(37,766)
796,056	249,158
24,174	57,979
157,628	(13,098)
(584,895)	1,870,446
791,915	178,325
(20,492)	(21,709)
(528,582)	(323,280)
-	(1,485)
(342,055)	1,702,296
-	493,954
(12,759)	(531,031)
(185,770)	(73,578)
300	-
-	(86,775)
(1,595)	(1,702)
(3,300)	-
-	12,114
(460,000)	-
455,700	462,200
(207,425)	275,181

- 8 -

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