Business
Fuji Oil : Financial Results 4Q （April 1, 2024 - March 31, 2025）
Fuji Oil : Financial Results 4Q （April 1, 2024 - March 31,
About this update from Fuji Oil Co. Ltd.
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. May 12, 2025 Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (Under Japanese GAAP) Company name: FUJI OIL CO., LTD. Listing: Tokyo Stock Exchange Securities code: 2607 URL: https://www.fujioil.co.jp/en/ Representative: Mikio Sakai, Representative Director Inquiries: Masaaki Nakanishi, General Manager, Finance and Accounting Department Telephone: +81-72-463-1511 Scheduled date for ordinary general meeting of shareholders: June 27, 2025 Scheduled date to commence dividend payments: June 30, 2025 Scheduled date to file annual securities report: June 27, 2025 Preparation of supplementary material on consolidated financial results: Yes Holding of consolidated financial results briefing: Yes (For institutional investors and analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) Consolidated financial results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 - March 31, 2025) (Note) Comprehensive income For the Fiscal year ended March 31, 2025: ¥ △ 4,681 million [ － %] For the Fiscal year ended March 31, 2024: ¥37,273 million [98.1%] Consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % March 31, 2025 671,211 19.0 9,895 △ 45.7 5,304 △ 68.4 2,230 △ 65.8 March 31, 2024 564,087 1.2 18,213 66.5 16,791 73.3 6,524 6.5 Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended Yen Yen % % % March 31, 2025 25.95 - 1.0 1.0 1.5 March 31, 2024 75.90 - 3.0 3.6 3.2 (Note) Share of profit (loss) of entities accounted for using equity method For the Fiscal year ended March 31, 2025: ¥1,315 million For the Fiscal year ended March 31, 2024: ¥996 million Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen March 31, 2025 596,564 214,524 35.3 2,448.40 March 31, 2024 470,221 244,291 49.4 2,700.95 (Reference) Shareholder's equity As of March 31, 2025: ¥210,498 million As of March 31, 2024: ¥232,185 million Consolidated Cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of fiscal year Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen March 31, 2025 △ 50,631 △ 21,738 114,931 69,846 March 31, 2024 48,242 8,803 △ 50,007 27,480 Cash dividends Annual dividends per share Total dividends (annual) Payout ratio (consolidated) Ratio of dividends to net assets (consolidated) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Millions of yen % % Fiscal year ended March 31, 2024 - 26.00 - 26.00 52.00 4,475 68.5 2.1 Fiscal year ended March 31, 2025 - 26.00 - 26.00 52.00 4,475 200.4 2.0 Fiscal year ending March 31, 2026 (Forecast) - 26.00 - 26.00 52.00 27.1 Consolidated forecasts for the fiscal year ending March 31, 2026 (April 1, 2025 - March 31, 2026) (Percentages indicate year-on-year changes.) Net sales Business profit Profit attributable to owners of parent Profit per share Fiscal year ending March 31, 2026 Millions of yen % Millions of yen % Millions of yen % Yen 800,000 - 29,500 - 16,500 - 191.92 (Note) The Company has decided to voluntarily adopt International Financial Reporting Standards ("IFRS") for its consolidated financial statements from the first three months of the fiscal year ending March 31, 2026. The Percentages indicate year-on-year changes from the results of the fiscal year ending March 31, 2025 under Japanese GAAP are not shown because consolidated forecasts for the fiscal year ending March 31, 2026 have been prepared in accordance with IFRS. Business profit is calculated by adding share of profit (loss) of entities accounted for using equity method to operating profit and excluding gains and losses due to non-recurring factors. From the fiscal year ending March 31, 2026, only the earnings forecast for the full year is disclosed because the company evaluates its business performance on an annual basis. * Notes Changes in significant subsidiaries during the period None Changes in accounting policies, changes in accounting estimates, and restatement Changes in accounting policies due to revisions to accounting standards and other regulations: None Changes in accounting policies due to other reasons: None Changes in accounting estimates: None Restatement: None Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of March 31, 2025 87,569,383 shares As of March 31, 2024 87,569,383 shares Number of treasury shares at the end of the period As of March 31, 2025 1,595,432 shares As of March 31, 2024 1,604,957 shares Average number of shares outstanding during the period Fiscal Year Ended March 31, 2025 85,970,724 shares Fiscal Year Ended March 31, 2024 85,964,620 shares Consolidated financial results reports are exempt from review conducted by certified public accountants or an audit corporation. Explanations and other special notes concerning the appropriate use of business results forecasts The forward-looking statements included in this document are based on the information available at the time of this announcement. The actual results may differ from the forecasts in this report due to various factors. Please refer "1. Qualitative Information on Results for the Fiscal Year Ended March 31, 2025 (4) Future Outlook" on page 4 for details. Accompanying Materials - Contents 1. Qualitative Information on Results for the Fiscal Year Ended March 31, 2025………………………………………..…… 2 (1) Details of Operating Results……………………………………………………………………………………………… 2 (2) Details of Financial Position……………………………………………………………………………………………… 3 (3) Details of Cash flows……………………………………………………………………………………………………... 4 (4) Future Outlook.………………………………………………..…………………………………………………………. 4 (5) Basic Policy on the Payment of Dividends and Dividends for the Fiscal Year under Review and Next Fiscal Year……. 4 2. Basic Concept concerning the Selection of Accounting Standards………………………………………………………….. 4 3. Consolidated Financial Statements and Key Notes……………………………………………………………….………….. 5 (1) Consolidated Balance Sheets………………………………………………………………………………….……….…. 5 (2) Consolidated Statements of Income and Comprehensive Income……………………………………………..………… 7 Consolidated Statements of Income……………………………………….………………..………...……..………….. 7 Consolidated Statements of Comprehensive Income…………………………………………………………………… 8 (3) Consolidated Statements of Changes in Equity………………………………………………………………………...... 9 (4) Consolidated Statements of Cash flows……………………………………………………………………….…………. 11 (5) Notes to Consolidated Financial Statements……………………………………………………………………………… 13 (Notes Relating to Assumptions for the Going Concern) …………………………………………………….………… 13 (Additional Information) ……………………………………………………………………………………….………. 13 (Business Combinations, etc.) ………………………………………………………………………………….………. 13 (Segment Information) ………………………………………………………………………………………….………. 14 (Per Share Information) ……………………………………………………………………………………….………... 16 (Significant Subsequent Events) ……………………………………………………………………………………….. 17 Qualitative Information on Results for the Fiscal Year Ended March 31, 2025 Details of Operating Results During the current consolidated fiscal year, despite concerns over the U.S. tariff policies, the economic impact of security issues and economic trends in China, business conditions remained firm, particularly in Europe and America, against a backdrop of solid employment and income conditions. In Japan, although the price index continued to rise, personal consumption continued to expand gradually due to factors such as improvements in the employment and income conditions. Raw material prices remain trending unstably. Particularly palm oil has been traded at a higher price recently compared to the first half of 2024. The prices for cocoa beans, which had skyrocketed again in December 2024, are trending to fall after January 2025, but trending unstably. We view the soaring cocoa bean prices as an opportunity to expand sales of vegetable fats for chocolate and compound chocolate, for which we have expertise and technical strengths, and are strengthening our proposals and sales activities to customers. In Blommer Chocolate Company, LLC (USA, hereinafter "Blommer"), the structural reforms announced on March 22, 2024, are currently underway, and some positive effects such as a reduction in fixed costs have been seen; however, due to higher procurement prices for cocoa beans and increased related costs, it incurred an operating loss in the current consolidated fiscal year. The fiscal year ended March 31, 2025 is the final year of our three-year Mid-term Management Plan, Reborn 2024, which was announced in 2022. Due to the impact of external environmental changes, including the sharp rise in cocoa bean prices, the financial KPIs of our Mid-term Management Plan were not achieved. However, we believe that the key policies of the Mid-term Management Plan "Strengthening of business foundation," "Strengthening global management," and "Enhancing sustainability" have achieved tangible results. In terms of "Strengthening of business foundation," we have made progress in improving profitability, particularly in the Vegetable Oils and Fats business, and sales volume of compound chocolate has steadily increased. In terms of "Strengthening global management," we have improved asset efficiency through the introduction of FUJI ROIC and strengthened raw material position management for palm oil and other materials throughout the group. Furthermore, in "Enhancing sustainability," we are advancing a differentiation strategy through sustainable procurement, and we expect to achieve non-financial KPIs such as traceability. As a result of the above, the operating results for the fiscal year ended March 31, 2025 were as follows. Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Millions of yen Millions of yen Millions of yen Millions of yen March 31, 2025 671,211 9,895 5,304 2,230 March 31, 2024 564,087 18,213 16,791 6,524 Change +107,124 (+19.0%) △ 8,318 ( △ 45.7%) △ 11,487 ( △ 68.4%) △ 4,293 ( △ 65.8%) Net sales increased due to higher sales prices to reflect rising raw material prices in the Industrial Chocolate segment, steady sales in the Vegetable Oils and Fats segment and the effect of yen depreciation. Operating profit decreased significantly due to the deterioration of profitability in Blommer attributed to higher procurement prices for cocoa beans and increased related costs, despite its structural reforms achieving certain results through steady progress, while profitability improved responding to price revisions in Japan and Southeast Asia in the Vegetable Oils and Fats segment, and in Japan, Southeast Asia and Brazil in the Industrial Chocolate segment. Profit attributable to owners of parent decreased due to an increase in interest expenses resulting from higher financing costs i n addition to the decrease in operating profit. The operating results by reported segment are shown below. Net sales Operating profit Year-on-year change Year-on-year change Millions of yen Millions of yen % Millions of yen Millions of yen % Vegetable Oils and Fats 207,274 +21,923 +11.8% 26,270 +10,831 +70.2% Industrial Chocolate 334,696 +81,287 +32.1% △ 15,833 △ 17,674 - Emulsified and Fermented Ingredients 94,175 +4,320 +4.8% 3,444 △ 349 △ 9.2% Soy-based Ingredients 35,065 △ 407 △ 1.1% 656 △ 383 △ 36.9% Adjustment - - - △ 4,642 △ 742 - Total 671,211 +107,124 +19.0% 9,895 △ 8,318 △ 45.7% (Vegetable Oils and Fats) Net sales increased due to an increase in sales volume in Southeast Asia and the effect of yen depreciation despite a decrease in sales volume in Americas. Operating profit increased mainly due to an increase in sales of vegetable fats for chocolate in Southeast Asia and Japan in spite of increased fixed costs such as labor costs. (Industrial Chocolate) Net sales increased due to higher sales prices to reflect rising raw material prices, an increase in sales volume in Japan and Southeast Asia and the effect of yen depreciation. Operating profit decreased due to the deterioration of profitability in Blommer attributed to higher procurement prices for cocoa beans and increased related costs although profitability improved through price revisions in Japan, Southeast Asia and China. (Emulsified and Fermented Ingredients) Net sales increased mainly due to steady sales to bakery in Japan, an increase in sales volume in Southeast Asia and the effect of yen depreciation. Operating profit decreased mainly due to increased fixed costs such as labor costs and deterioration in profitability attributed to rising raw material prices in China. (Soy-based Ingredients) Net sales decreased mainly due to lower sales volume of soy protein foods. Operating profit decreased due to a decrease in sales volume. Details of Financial Position The consolidated financial position at the end of the consolidated fiscal year under review is as follows. ( Millions of yen ) As of March 31, 2024 As of March 31, 2025 Change Current assets 236,858 354,830 +117,972 Property, plant and equipment 150,750 156,505 +5,755 Intangible assets 55,221 51,185 △ 4,036 Other 27,390 34,042 +6,652 Assets 470,221 596,564 +126,343 Interest-bearing debt 130,286 283,975 +153,689 Other 95,643 98,064 +2,421 Liabilities 225,929 382,040 +156,110 Net assets 244,291 214,524 △ 29,767 (Assets) At the end of the consolidated fiscal year under review, current assets increased mainly due to an increase in cash and deposits in addition to an increase in accounts receivable and inventories attributable to rising prices of raw material such as cocoa beans. Additionally, other assets increased due to an increase in deferred tax assets. As a result, assets increased by 126,343 million yen from the end of the previous consolidated fiscal year to 596,564 million yen. (Liabilities) Liabilities increased by 156,110 million yen from the end of the previous consolidated fiscal year to 382,040 million yen due to increases in interest-bearing debt such as short-term borrowings along with an increase in working capital. (Net assets) Net assets decreased by 29,767 million yen from the end of the previous consolidated fiscal year to 214,524 million yen mainly due to a decrease in foreign currency translation adjustments associated with the yen appreciation against the US dollar and real and a decrease in retained earnings. Net assets per share decreased by 252.56 yen from the end of the previous consolidated fiscal year to 2,448.40 yen. Equity ratio decreased by 14.1 points from the end of the previous consolidated fiscal year to 35.3%. Details of Cash flows The consolidated Cash flows at the end of the consolidated fiscal year under review are as follows. ( Millions of yen ) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Change Cash flows from operating activities 48,242 △ 50,631 △ 98,873 Cash flows from investing activities 8,803 △ 21,738 △ 30,541 Free Cash flows 57,045 △ 72,369 △ 129,415 Cash flows from financing activities △ 50,007 114,931 +164,938 Cash and cash equivalents at end of period 27,480 69,846 +42,365 (Cash flows from operating activities) Cash flows from operating activities for the current consolidated fiscal year resulted in expenditures of 50,631 million yen, decreasing by 98,873 million yen compared to the previous consolidated fiscal year mainly due to an increase in working capital. (Cash flows from investing activities) Cash flows from investing activities for the current consolidated fiscal year resulted in expenditures of 21,738 million yen mainly due to purchase of property, plant and equipment, increasing by 30,541 million yen compared to the previous consolidated fiscal year in which proceeds from sale of property, plant and equipment had been recognized in Fuji Oil New Orleans, LLC (USA). (Cash flows from financing activities) Cash flows from financing activities for the current consolidated fiscal year resulted in income of 114,931 million yen, increasing by 164,938 million yen compared to the previous consolidated fiscal year mainly due to an increase in short-term borrowings. Future Outlook We will voluntarily adopt International Financial Reporting Standards ("IFRS") for its consolidated financial statements from the first three months of the fiscal year ending March 31, 2026. For the next fiscal year, we expect consolidated net sales of 800,000 million yen, consolidated business profit of 29,500 million yen, and profit attributable to owners of parent of 16,500 million yen in accordance with IFRS. Business profit is calculated by adding share of profit (loss) of entities accounted for using equity method to operating profit and excluding gains and losses due to non-recurring factors. Our business faces to effects of global economic and social environment change and geopolitical risk, such as the sharp rise of cocoa bean prices due to the decreased crop attributed to climate change, foreign exchange rate fluctuation due to each countries interest rate policy. In such an environment, we recognize the necessity of implementing actions across the entire group with considering to the circumstances of each company and the overall optimization by the respective business divisions at the group headquarters, rather than addressing issues on an individual company basis. Therefore, the Company has shifted to a business holding company structure from pure holding company through an absorption-type merger of a wholly owned subsidiary FUJI OIL CO., LTD., on April 1, 2025 with the aim of optimally allocating human resources and other management resources, shifting to a more profitable portfolio, and building a structure, in which our business strategy for our value chain is implemented based on the business axis, while continuing to strengthen business management on the functional axes such as financial accounting and ESG management which the Company has developed over the years. Under new our corporate structure, we also continue strengthening our profitability of existing assets and business. We view the risks in our business environment, such as current global supply-demand gap for cocoa beans and other raw material, and the increasing population of person holding health issue in developed countries, as an opportunity to expand our business for the group which has strength in our problem-solving business. Basic Policy on the Payment of Dividends and Dividends for the Fiscal Year under Review and Next Fiscal Year The Company regards the stable payment, aiming for a dividend payout ratio of 30% to 40% after taking into consideration the internal reserves necessary for investment in future growth and business development, as an important policy of return to shareholders. Based on the policy, we plan to pay a year-end dividend of 26 yen per share for the current fiscal year, bringing the total annual dividend to 52 yen per share, in order to respond to the support of our shareholders. For the next fiscal year, we plan to pay an annual dividend of 52 yen per share. Basic Concept concerning the Selection of Accounting Standards We will voluntarily adopt International Financial Reporting Standards ("IFRS") for its consolidated financial statements from the first three months of the fiscal year ending March 31, 2026. Consolidated Financial Statements and Key Notes Consolidated Balance Sheets (Millions of yen) As of March 31, 2024 As of March 31, 2025 Assets Current assets Cash and deposits 27,490 70,616 Notes and accounts receivable - trade 90,024 112,520 Merchandise and finished goods 51,724 72,946 Raw materials and supplies 57,277 88,081 Other 10,579 10,871 Allowance for doubtful accounts △ 238 △ 206 Total current assets 236,858 354,830 Non-current assets Property, plant and equipment Buildings and structures, net 47,780 45,349 Machinery, equipment and vehicles, net 62,851 59,628 Land 20,057 19,705 Right-of-use assets, net 7,655 7,287 Construction in progress 9,273 21,334 Other, net 3,131 3,200 Total property, plant and equipment 150,750 156,505 Intangible assets Goodwill 21,840 18,602 Customer-related intangible assets 19,035 17,287 Other 14,345 15,295 Total intangible assets 55,221 51,185 Investments and other assets Investment securities 16,002 16,631 Retirement benefit asset 7,064 6,638 Deferred tax assets 669 7,336 Other 3,683 3,299 Allowance for doubtful accounts △ 60 △ 47 Total investments and other assets 27,359 33,859 Total non-current assets 233,332 241,550 Deferred assets Bond issuance costs 30 183 Total deferred assets 30 183 Total assets 470,221 596,564 (Millions of yen) As of March 31, 2024 As of March 31, 2025 Liabilities Current liabilities Notes and accounts payable - trade 42,321 46,075 Short-term borrowings 33,151 175,284 Current portion of bonds payable 35,000 - Commercial papers 10,000 20,000 Income taxes payable 4,310 7,571 Provision for bonuses 3,354 3,941 Provision for bonuses for directors (and other officers) 40 47 Other 18,758 20,284 Total current liabilities 146,936 273,204 Non-current liabilities Bonds payable 6,000 31,000 Long-term borrowings 46,135 57,691 Deferred tax liabilities 17,223 10,873 Retirement benefit liability 2,022 1,851 Lease liabilities 5,110 4,805 Other 2,500 2,613 Total non-current liabilities 78,993 108,835 Total liabilities 225,929 382,040 Net assets Shareholders' equity Share capital 13,208 13,208 Capital surplus 14,757 8,503 Retained earnings 163,810 155,205 Treasury shares △ 1,947 △ 1,919 Total shareholders' equity 189,828 174,998 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,868 1,305 Deferred gains or losses on hedges 726 △ 560 Foreign currency translation adjustment 39,122 34,898 Remeasurements of defined benefit plans 639 △ 143 Total accumulated other comprehensive income 42,357 35,499 Non-controlling interests 12,105 4,025 Total net assets 244,291 214,524 Total liabilities and net assets 470,221 596,564 Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Millions of yen) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Net sales 564,087 671,211 Cost of sales 481,228 591,984 Gross profit 82,858 79,227 Selling, general and administrative expenses 64,644 69,332 Operating profit 18,213 9,895 Non-operating income Interest income 1,017 961 Dividend income 79 98 Foreign exchange gains 30 - Share of profit of entities accounted for using equity method 996 1,315 Other 632 892 Total non-operating income 2,756 3,267 Non-operating expenses Interest expenses 3,314 6,534 Foreign exchange losses - 287 Other 863 1,036 Total non-operating expenses 4,178 7,858 Ordinary profit 16,791 5,304 Extraordinary income Gain on sale of non-current assets 13,281 64 Gain on sale of shares of subsidiaries and associates - 291 Gain on sale of investment securities 46 634 Refunded taxes 77 - Total extraordinary income 13,405 990 Extraordinary losses Loss on sale of non-current assets 5 21 Loss on retirement of non-current assets 697 281 Amortization of goodwill 6,467 - Impairment losses 3,716 113 Restructuring expenses of subsidiaries and affiliates 898 18 Loss on disposal of inventories 312 - Loss on sale of investment securities - 8 Loss on valuation of investment securities 84 - Total extraordinary losses 12,182 443 Profit before income taxes 18,015 5,850 Income taxes - current 10,214 12,654 Income taxes - deferred △ 1,841 △ 10,586 Total income taxes 8,373 2,067 Profit 9,641 3,783 Profit attributable to non-controlling interests 3,117 1,552 Profit attributable to owners of parent 6,524 2,230 Consolidated Statements of Comprehensive Income (Millions of yen) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Profit 9,641 3,783 Other comprehensive income Valuation difference on available-for-sale securities 274 △ 563 Deferred gains or losses on hedges 1,270 △ 1,283 Foreign currency translation adjustment 23,797 △ 6,254 Remeasurements of defined benefit plans, net of tax 1,297 △ 783 Share of other comprehensive income of entities accounted for using equity method 991 420 Total other comprehensive income 27,631 △ 8,464 Comprehensive income 37,273 △ 4,681 Comprehensive income attributable to Comprehensive income attributable to owners of parent 33,177 △ 5,983 Comprehensive income attributable to non-controlling interests 4,096 1,302 Consolidated Statements of Changes in Equity Previous Consolidated Fiscal Year (April 1, 2023 - March 31, 2024) (Millions of yen) Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders' equity Balance at beginning of period 13,208 14,757 161,305 △ 1,946 187,324 Hyperinflation adjustments 456 456 Restated balance reflecting hyperinflation adjustments 13,208 14,757 161,761 △ 1,946 187,780 Changes during period Dividends of surplus △ 4,475 △ 4,475 Profit attributable to owners of parent 6,524 6,524 Purchase of treasury shares △ 0 △ 0 Disposal of treasury shares - - Net changes in items other than shareholders' equity Total changes during period - - 2,048 △ 0 2,047 Balance at end of period 13,208 14,757 163,810 △ 1,947 189,828 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 1,593 △ 547 15,108 △ 657 15,496 8,163 210,983 Hyperinflation adjustments 207 207 664 Restated balance reflecting hyperinflation adjustments 1,593 △ 547 15,315 △ 657 15,703 8,163 211,648 Changes during period Dividends of surplus △ 4,475 Profit attributable to owners of parent 6,524 Purchase of treasury shares △ 0 Disposal of treasury shares - Net changes in items other than shareholders' equity 274 1,274 23,806 1,297 26,653 3,942 30,595 Total changes during period 274 1,274 23,806 1,297 26,653 3,942 32,643 Balance at end of period 1,868 726 39,122 639 42,357 12,105 244,291 Consolidated Fiscal Year under Review (April 1, 2024 - March 31, 2025) (Millions of yen) Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders' equity Balance at beginning of period 13,208 14,757 163,810 △ 1,947 189,828 Effect of changes in accounting period of subsidiaries △ 6,359 △ 6,359 Restated balance reflecting Effect of changes in accounting period of subsidiaries 13,208 14,757 157,450 △ 1,947 183,469 Changes during period Dividends of surplus △ 4,475 △ 4,475 Profit attributable to owners of parent 2,230 2,230 Purchase of treasury shares △ 0 △ 0 Disposal of treasury shares 28 28 Change in ownership interest of parent due to transactions with non- controlling interests △ 6,253 △ 6,253 Net changes in items other than shareholders' equity Total changes during period - △ 6,253 △ 2,245 27 △ 8,470 Balance at end of period 13,208 8,503 155,205 △ 1,919 174,998 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 1,868 726 39,122 639 42,357 12,105 244,291 Effect of changes in accounting period of subsidiaries 1,356 1,356 △ 5,002 Restated balance reflecting Effect of changes in accounting period of subsidiaries 1,868 726 40,479 639 43,714 12,105 239,288 Changes during period Dividends of surplus △ 4,475 Profit attributable to owners of parent 2,230 Purchase of treasury shares △ 0 Disposal of treasury shares 28 Change in ownership interest of parent due to transactions with non- controlling interests △ 6,253 Net changes in items other than shareholders' equity △ 563 △ 1,286 △ 5,580 △ 783 △ 8,214 △ 8,079 △ 16,293 Total changes during period △ 563 △ 1,286 △ 5,580 △ 783 △ 8,214 △ 8,079 △ 24,764 Balance at end of period 1,305 △ 560 34,898 △ 143 35,499 4,025 214,524 Consolidated Statements of Cash flows (Millions of yen) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Cash flows from operating activities Profit before income taxes 18,015 5,850 Depreciation 17,918 17,991 Amortization of goodwill 9,091 2,225 Decrease (increase) in retirement benefit asset △ 398 △ 733 Increase (decrease) in retirement benefit liability 34 △ 82 Interest and dividend income △ 1,097 △ 1,059 Interest expenses 3,314 6,534 Impairment losses 3,716 113 Share of loss (profit) of entities accounted for using equity method △ 996 △ 1,315 Loss (gain) on sale of investment securities △ 46 △ 626 Loss (gain) on disposal of non-current assets △ 12,579 239 Loss (gain) on sale of shares of subsidiaries and associates - △ 291 Decrease (increase) in trade receivables 10,036 △ 22,970 Decrease (increase) in inventories 4,804 △ 53,618 Increase (decrease) in trade payables △ 1,244 7,057 Decrease (increase) in advance payments to suppliers △ 450 4,240 Other, net 7,217 △ 354 Subtotal 57,336 △ 36,799 Interest and dividends received 1,679 1,476 Interest paid △ 3,417 △ 6,174 Income taxes refund (paid) △ 7,356 △ 9,134 Net cash provided by (used in) operating activities 48,242 △ 50,631 Cash flows from investing activities Purchase of property, plant and equipment △ 14,950 △ 21,187 Proceeds from sale of property, plant and equipment 25,815 529 Purchase of intangible assets △ 2,229 △ 3,165 Purchase of investment securities △ 5 △ 5 Proceeds from sale of investment securities 124 1,111 Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation - 1,819 Purchase of shares of subsidiaries and associates - △ 583 Payments for investments in capital △ 79 △ 82 Proceeds from collection of long-term loans receivable 3 11 Other, net 125 △ 185 Net cash provided by (used in) investing activities 8,803 △ 21,738 (Millions of yen) Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025 Cash flows from financing activities Net increase (decrease) in short-term borrowings △ 35,705 125,537 Net increase (decrease) in commercial papers - 10,000 Proceeds from long-term borrowings 8,000 17,629 Repayments of long-term borrowings △ 16,723 △ 6,635 Proceeds from issuance of bonds - 24,788 Redemption of bonds - △ 35,000 Dividends paid △ 4,475 △ 4,475 Dividends paid to non-controlling interests △ 174 △ 2,699 Purchase of shares of subsidiaries not resulting in change in scope of consolidation - △ 12,936 Other, net △ 927 △ 1,277 Net cash provided by (used in) financing activities △ 50,007 114,931 Effect of exchange rate change on cash and cash equivalents 1,450 △ 250 Net increase (decrease) in cash and cash equivalents 8,488 42,311 Cash and cash equivalents at beginning of period 18,991 27,480 Increase (decrease) in cash and cash equivalents resulting from change in accounting period of subsidiaries - 54 Cash and cash equivalents at end of period 27,480 69,846 Notes to Consolidated Financial Statements (Notes Relating to Assumptions for the Going Concern) Not applicable. (Additional Information) (Changes in Fiscal Years of Subsidiaries) The accounting period of Blommer Chocolate Company, LLC and 4 other consolidated subsidiaries was 52 weeks, and their closing date was the Sunday closest to May 31. The subsidiaries had used to prepare financial statements as of their own closing date in January with making necessary adjustments for consolidation for significant transactions occurring between the date and the consolidated closing date. From the current consolidated fiscal year, their closing date has been changed to March 31 to promote unified group management through a unified management cycle and to further increase transparency through timely and appropriate disclosure of results and other business information. Related to this change, the accounting period of the consolidated subsidiaries was 12 months from April 1, 2024 to March 31, 2025 for the current consolidated fiscal year. The profit and loss from January 22, 2024 to March 31, 2024 was adjusted as a decrease in retained earnings of 6,359 million yen. It was mainly due to loss on valuation of futures contracts aimed to hedge the risk for changes of prices for cocoa beans associated with the rising cocoa bean prices from February 2024 to March 2024. (Business Combinations, etc.) (Transaction Under Common Control) Acquisition of additional shares of a subsidiary Outline of business combination Name and business of the combined company Name of acquired company: Fuji Oil International Inc. Nature of Business: Area headquarters for the Vegetable Oils and Fats Business in North America Date of business combination March 14, 2025 Legal form of business combinations Acquisition of shares from non-controlling shareholders Name of the company after the business combination No change Supplementary information The additional shares acquired represent 20% of the voting rights, and the transaction made Fuji Oil International Inc. a wholly owned subsidiary of our consolidated subsidiary, FUJI SPECIALTIES, INC. Overview of accounting treatment applied The combination was treated as a transaction with non-controlling shareholders under transactions under common control, etc. in accordance with the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, January 16, 2019) and the "Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures" (ASBJ Guidance No. 10, September 13, 2024) Matters related to acquisition of additional shares of a subsidiary Acquisition cost and breakdown by type of consideration Consideration for acquisition (Cash) 12,936 million yen Acquisition Cost 12,936 million yen Matters related to changes in the Company's equity due to transactions with non-controlling shareholders Main factor for changes in capital surplus Acquisition of additional shares of a subsidiary Amount of capital surplus decreased by transactions with non-controlling shareholders 6,253 million yen (Segment Information) Previous Consolidated Fiscal Year (April 1, 2023 - March 31, 2024) Overview of reported segment The Company's reportable segments are the constituent units of the Company for which separate financial information is available and which are subject to periodic review by the Board of Directors in order to determine the allocation of management resources and evaluate performance. The Group is mainly engaged in the manufacture and sale of vegetable oils and fats products, industrial chocolate products, emulsified and fermented ingredients products and soy-based ingredients products, and is engaged in business activities in Japan and overseas for each product group handled. Therefore, the Group is composed of business segments based on product groups, and the four reportable segments are "vegetable oils and fats business", "industrial chocolate business", "emulsified and fermented ingredients business" and "soy-based ingredients business." "The vegetable oils and fats business" manufactures and sells edible processed oils and fats, edible oils and fats for chocolates, etc., using palm oil, palm kernel oil, etc. as basic materials. "The industrial chocolate business" manufactures and sells chocolate, compounds and cocoa products. "The emulsified and fermented ingredients business" manufactures and sells cream, margarine, fillings and other products. "The soy-based ingredients business" manufactures and sells soy protein ingredients, soy protein foods and water-soluble soy polysaccharides. How to calculate net sales, profit or loss, assets, and other items by reported segment Profits of reportable segments are based on operating profit. Intersegment profits and transfers are based on prevailing market prices. Information on net sales, profit or loss, assets, and other items by reported segment (Millions of yen) Reported segments Adjustment (Note 1, 2) Amounts on consolidated statements of income (Note 3) Vegetable Oils and Fats Industrial Chocolate Emulsified and Fermented Ingredients Soy-based Ingredients Total Net Sales Sales to external customers 185,350 253,408 89,855 35,472 564,087 - 564,087 Transactions with other segments 22,934 3,231 3,935 190 30,292 △ 30,292 - Total 208,285 256,639 93,790 35,663 594,379 △ 30,292 564,087 Segment profit 15,439 1,840 3,793 1,040 22,113 △ 3,900 18,213 Segment asset 127,603 212,939 59,067 45,248 444,859 25,361 470,221 Others Depreciation and amortization 4,535 7,124 3,394 2,864 17,918 - 17,918 Amortization of goodwill 17 9,074 - - 9,091 - 9,091 Impairment losses 1 3,709 4 1 3,716 - 3,716 Investment in affiliates accounted for by equity method 10,821 - - - 10,821 - 10,821 Increase in tangible and intangible fixed assets 4,522 7,303 3,220 2,486 17,533 - 17,533 (Notes) 1. Adjustment of segment profit △ 3,900 million yen includes corporate expense and other, which are not allocated to each reported segment. Corporate expenses are expenses related to group management at the submitting company and management companies. Adjustment of segment asset 25,361 million yen includes corporate assets which do not belong to each reported segment such as cash and cash deposit, investment securities and other assets of the submitting company and management companies. Segment profit is adjusted with operating profit in the consolidated statements of income. Consolidated Fiscal Year under Review (April 1, 2024 - March 31, 2025) Overview of reported segment The Company's reportable segments are the constituent units of the Company for which separate financial information is available and which are subject to periodic review by the Board of Directors in order to determine the allocation of management resources and evaluate performance. The Group is mainly engaged in the manufacture and sale of vegetable oils and fats products, industrial chocolate products, emulsified and fermented ingredients products and soy-based ingredients products, and is engaged in business activities in Japan and overseas for each product group handled. Therefore, the Group is composed of business segments based on product groups, and the four reportable segments are "vegetable oils and fats business", "industrial chocolate business", "emulsified and fermented ingredients business" and "soy-based ingredients business." "The vegetable oils and fats business" manufactures and sells edible processed oils and fats, edible oils and fats for chocolates, etc., using palm oil, palm kernel oil, etc. as basic materials. "The industrial chocolate business" manufactures and sells chocolate, compounds and cocoa products. "The emulsified and fermented ingredients business" manufactures and sells cream, margarine, fillings and other products. "The soy-based ingredients business" manufactures and sells soy protein ingredients, soy protein foods and water-soluble soy polysaccharides. How to calculate net sales, profit or loss, assets, and other items by reported segment Profits of reportable segments are based on operating profit. Intersegment profits and transfers are based on prevailing market prices. Information on net sales, profit or loss, assets, and other items by reported segment (Millions of yen) Reported segments Adjustment (Note 1, 2) Amounts on consolidated statements of income (Note 3) Vegetable Oils and Fats Industrial Chocolate Emulsified and Fermented Ingredients Soy-based Ingredients Total Net Sales Sales to external customers 207,274 334,696 94,175 35,065 671,211 - 671,211 Transactions with other segments 27,509 3,877 5,594 152 37,134 △ 37,134 - Total 234,784 338,573 99,770 35,217 708,345 △ 37,134 671,211 Segment profit 26,270 △ 15,833 3,444 656 14,537 △ 4,642 9,895 Segment asset 151,794 311,049 60,346 41,697 564,888 31,676 596,564 Others Depreciation and amortization 4,689 7,065 3,627 2,815 18,198 - 18,198 Amortization of goodwill 18 2,206 - - 2,225 - 2,225 Impairment losses - - - 113 113 - 113 Investment in affiliates accounted for by equity method 12,138 - - - 12,138 - 12,138 Increase in tangible and intangible fixed assets 5,469 17,161 3,083 3,147 28,861 - 28,861 (Notes) 1. Adjustment of segment profit △ 4,642 million yen includes corporate expense and other, which are not allocated to each reported segment. Corporate expenses are expenses related to group management at the submitting company and management companies. Adjustment of segment asset 31,676 million yen includes corporate assets which do not belong to each reported segment such as cash and cash deposit, investment securities and other assets of the submitting company and management companies. Segment profit is adjusted with operating profit in the consolidated statements of income. (Per Share Information) Fiscal Year Ended March 31, 2024 Fiscal Year Ended March 31, 2025 Net assets per share Yen Yen 2,700.95 2,448.40 Profit per share 75.90 25.95 (Notes) 1. Since no residual securities exist, per-share profit after residual securities adjustments is omitted. The Company is applying stock remuneration system for its directors (excluding outside directors and directors serving as audit and supervisory committee member). The number of common shares at the end of the consolidated fiscal year under review and the average number of shares during the consolidated fiscal year under review, which are the basis for calculating "Net assets per share" and "Profit per share," include the Company shares held by the Trust in treasury stock, which are deducted in the calculation of them. The number of such treasury shares at the end of the period deducted for the calculation of Net assets per share is 100,300 shares for the consolidated fiscal year under review, and the average number of such treasury shares during the period deducted for the calculation of Profit per share is 103,709 shares for the consolidated fiscal year under review. The basis for calculating profit per share is as follows. Fiscal Year Ended March 31, 2024 Fiscal Year Ended March 31, 2025 Millions of yen Millions of yen Profit attributable to owners of parent 6,524 2,230 Amount not allocable to common shareholders - - Profit attributable to owners of parent available for common stock 6,524 2,230 Average number of shares of common stock outstanding during the term Thousand shares Thousand shares 85,964 85,970 The basis for calculating net assets per share is as follows. Fiscal Year Ended March 31, 2024 Fiscal Year Ended March 31, 2025 Millions of yen Millions of yen Total net assets 244,291 214,524 Amount deducted from total net assets 12,105 4,025 (Of which are non-controlling interests) △ 12,105 △ 4,025 Net assets at end of year available for common stock 232,185 210,498 Number of shares of common stock at end of year used for calculating net assets per share Thousand shares Thousand shares 85,964 85,973 (Significant Subsequent Events) (Absorption Type Merger of a Subsidiary) The Company's Board of Directors decided to proceed an absorption-type merger of a wholly owned subsidiary FUJI OIL CO., LTD., at its meeting held on May 23, 2024, and the merger was completed on April 1, 2025. On the same date, the trade name of the Company was changed to "FUJI OIL CO., LTD.," from "FUJI OIL HOLDINGS INC." Outline of business combination Name and business of the combined company Name of acquired company: FUJI OIL CO., LTD. Nature of Business: Development, manufacture, and sale in the business of vegetable oils & fats, industrial chocolate, emulsified & fermented ingredients and soy-based ingredients. Date of business combination April 1, 2025 Method of business combination The Company will be the surviving company and FUJI OIL CO., LTD. will be absorbed in an absorption type merger. Name of the company after the business combination FUJI OIL CO., LTD. The trade name of the company was changed to "FUJI OIL CO., LTD.," from "FUJI OIL HOLDINGS INC." on April 1, 2025. Purpose for the business combination The Company has decided to shift to a business holding company structure with the aim of promoting and strengthening our business strategy by centrally managing and optimally allocating human resources and other management resources on the business axes, while continuing to strengthen business management on the functional axes such as finance and accounting and ESG, which the Company has developed over the years. Allocation related to the Merger There will be no allocation of shares or other monetary assets upon the merger because it is an absorption-type merger of a wholly owned subsidiary. Overview of accounting treatment applied The combination will be treated as a transaction under common control in accordance with the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, January 16, 2019) and the "Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures" (ASBJ Guidance No. 10, September 13, 2024) (Business Combination through Acquisition) Outline of business combination Name and business of the acquired company Name of acquired company: PROVENCE HUILES S.A.S and the other 1 company Nature of Business: Manufacture and sale of vegetable oils and fats Main reason for the business combination The acquired company mainly handles highly functional vegetable oils such as high-oleic sunflower oil, which is an important part of our Vegetable Oils and Fats business. By acquiring the shares, we will be able to add new value added products to our group's product portfolio, and we will also be able to build a group supply chain for high-quality high-oleic sunflower oil from France, which will contribute to the stable supply of high value added oils and fats in the future. We will maximize synergies within the group, respond to diversifying needs globally, and aim to further expand our Vegetable Oils and Fats business. Date of business combination April 28, 2025 Legal form of business combination Acquisition in exchange for cash Name of the company after the business combination No change Ratio of voting rights acquired 100% Main basis for determining the acquiring company Because it was an acquisition in exchange for the Company's cash Acquisition cost of the acquired company and breakdown by type of consideration Consideration for acquisition (Cash) 17,137 million yen Acquisition Cost 17,137 million yen Major acquisition related costs Advisory fees and others: 63 million yen Amount of goodwill incurred, reason for incurring goodwill, amortization method and amortization period Not finalized. Details of assets acquired and liabilities assumed as of the acquisition date Not finalized.