August 06, 2021
Consolidated Financial Results (Japanese Accounting Standards)
for the Three Months Ended June 30, 2021 (Q1 FY 2021)
Company name: | Itoham Yonekyu Holdings Inc. |
Stockexchange listing: | Tokyo Stock Exchange |
Stock code: | 2296 |
URL: | https://www.itoham-yonekyu-holdings.com/ |
Representative: | Isao Miyashita, President and Representative Director |
Contact: | Kenji Uchiyama, Manager, Investor Relations Section |
Tel. +81-3-5723-6885 | |
Scheduled date for filing of securities report: | August 12, 2021 |
Scheduled date of commencement of dividend payment: | - |
Supplementary documents for financial results: | Yes |
Quarterly results briefing: | No |
(Amounts of less than one million yen are truncated) |
1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021-June 30, 2021)
(1) Consolidated Results of Operations (Accumulated Total) | (% figures show year-on-year change) | ||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||
owners of parent | |||||||||
Three months ended | Million Yen | % | Million Yen | % | Million Yen | % | Million Yen | % | |
June 30, 2021 | 202,607 | ― | 7,554 | ― | 8,425 | ― | 5,908 | ― | |
June 30, 2020 | 204,992 | -2.8 | 5,028 | 5.4 | 5,516 | 5.6 | 3,657 | 5.4 | |
(Note) Comprehensive income: | Three months ended June 30, 2021 | 6,560 | million Yen (－%) | ||||||
Three months ended June 30, 2020 | 2,441 | million Yen (-4.1%) | |||||||
Net income per share | Fully diluted net | ||||||||
income | |||||||||
Three months ended | Yen | Yen | |||||||
June 30, 2021 | 20.18 | 20.17 | |||||||
June 30, 2020 | 12.42 | 12.41 |
(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29 ), etc. has been applied since the beginning of the first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue differs from that of the first three months of the previous fiscal year. Therefore, Consolidated Financial Results is provided without stating the amount of the year-on-year comparison (%) .
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | ||||
Million Yen | Million Yen | % | ||||
As of June 30, 2021 | 414,856 | 247,869 | 59.6 | |||
As of March 31, 2021 | 394,086 | 247,648 | 62.7 | |||
(Reference) Shareholders' equity: | As of June 30, 2021 | 247,165 | million Yen | |||
As of March 31, 2021 | 246,931 | million Yen |
(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29 ), etc. has been applied since the beginning of the first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue differs from that of the first three months of the previous fiscal year.
2. Dividends
First | Second | Third | Fiscal | Total | ||
For the fiscal year ended | Yen | Yen | Yen | Yen | Yen | |
March 31, 2021 | － | 0.00 | － | 21.00 | 21.00 | |
March 31, 2022 | － | |||||
For the fiscal year ending | ||||||
March 31, 2022 | 0.00 | － | 22.00 | 22.00 | ||
(Forecast) |
(Note) Changes to most recent dividend forecast: None
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)
(% figures show year-on-year change)
Net Sales | Operating income | Ordinary income | Profit attributable to | Net income per share | ||||||||
owners of parent | ||||||||||||
Million Yen | % | Million Yen | % | Million Yen | % | Million Yen | % | Yen | ||||
Second quarter-end | 410,000 | ― | 12,000 | ― | 12,500 | ― | 8,500 | ― | 29.04 | |||
(Cumulative) | ||||||||||||
Full year | 820,000 | ― | 23,000 | ― | 25,000 | ― | 16,000 | ― | 54.66 |
(Note) Changes to most recent financial results forecast: None
(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29 ), etc. has been applied since the beginning of the first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue differs from that of the first three months of the previous fiscal year. Therefore, the Forecast of Consolidated Financial Results is provided without stating the amount of the year-on-year comparison (%) .
Itoham Yonekyu Holdings Inc.
- Accompanying Materials - Contents
1. Qualitative Information on Consolidated Operating Results for the Three Months Ended June 30, 2021 .............. | 2 | |
(1) | Description of operating results.......................................................................................................................... | 2 |
(2) | Description of financial position ........................................................................................................................ | 3 |
(3) | Description of future outlook, including consolidated operating results forecasts ............................................. | 3 |
2. Quarterly Consolidated Financial Statements and Major Notes .............................................................................. | 4 | |
(1) | Quarterly consolidated balance sheets ................................................................................................................ | 4 |
(2) | Quarterly consolidated statements of income and comprehensive income ......................................................... | 6 |
(3) | Notes on the quarterly consolidated financial statements ................................................................................... | 8 |
(Notes on going concern assumptions)............................................................................................................... | 8 | |
(Notes in the case of significant changes in shareholders' equity) ..................................................................... | 8 | |
(Changes in accounting policies) ....................................................................................................................... | 8 | |
(Segment information) ....................................................................................................................................... | 9 |
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Itoham Yonekyu Holdings Inc.
1. Qualitative Information on Consolidated Operating Results for the Three Months Ended June 30, 2021
The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued on March 31, 2020; hereinafter the "Revenue Recognition Accounting Standard"), etc. has been applied since the beginning of the first three months of the consolidated fiscal year under review. As a result, the accounting treatment of revenue differs from that of the first three months of the previous fiscal year. Therefore, the explanation is provided without stating the amount of change or the year-on-year comparison (%) in the following (1) Description of operating results. For the amount of change corrected to the same accounting standards and the comparison with the same quarter of the previous year, please refer to the supplementary materials for quarterly operating results.
(1) Description of operating results
During the first three months of the consolidated fiscal year under review, the Japanese economy continued to face a challenging situation given the restrictions imposed on socioeconomic activities by the impact of COVID-19. The outlook is also likely to remain uncertain until the impact of COVID-19 is contained by vaccination and other means.
In the industry where Itoham Yonekyu Holdings Inc. (the "Company") and its subsidiaries (collectively the "Group") operate, consumer needs and values are rapidly changing and diversifying with changes in their purchasing behavior and the acceleration of digitalization in society, reflecting the impact of COVID-19 as well as growing interest in ESG and SDGs. To fulfill its supply responsibilities as a food manufacturer, the Group operated based on a system that allows each employee to practice a variety of work styles in a safe and secure manner. It did so by commencing vaccinations at the workplace, in addition to continuing thorough countermeasures against COVID-19, and by working to strengthen its foundations to adapt to changes in the environment and demonstrate its strengths.
In this environment, the Group has developed the Medium-Term Management Plan 2023 for the period of three years starting from fiscal 2021. Setting the Group philosophy "We will contribute to achieving a sound and affluent society through business" and the vision of becoming "a leading food company that emphasizes the spirit of fairness, rises to the challenge of transformation and achieves sustainable growth with its employees," the Group will increase its competitiveness and growth potential by taking on challenges such as strengthening its management base, strengthening its earnings base, pursuing initiatives for new businesses and markets and taking initiatives for sustainability. In doing so, it will aim to achieve new breakthroughs and growth by defying stereotypes and reaffirming its strengths. Focusing on return on invested capital (ROIC) as a quantitative indicator, the Group aims to improve it to 6.8% during the applicable period. The Group has also decided to implement shareholder return policies in consideration of financial soundness and capital efficiency and has a dividend policy of increasing dividends steadily, with the payout ratio ranging from 30% to 50%, aiming for a payout ratio of around 40%.
As a result of improving production efficiency and responding to changes in consumer needs linked to the impact of COVID-19 based on the policies above, the Group recorded net sales of 202,607 million yen and operating income of 7,554 million yen in its financial results for the first three months under review. Ordinary income stood at 8,425 million yen, and profit attributable to owners of parent was 5,908 million yen.
The operating results by reportable segment are as outlined below.
With regard to hams and sausages, net sales declined mainly due to the impact of reviewing unprofitable products to improve profitability, although sales of the main products such as The Grand Alt Bayern, Asano Fresh Series and Pork Bits remained firm due to the launch of TV commercials and implementation of consumer campaigns.
In cooked and processed food, net sales increased due to growth in products that responded to consumer preferences for convenience and health consciousness, such as Salad Chicken and Umazutsumi Volume Rich Hamburg, in addition to the solid performance of Pizza products such as La Pizza and Pizza Garden.
As a result, the processed food business recorded net sales of 72,525 million yen and operating income of 3,614 million yen as a consequence of working to improve production efficiency.
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Itoham Yonekyu Holdings Inc.
In domestic businesses, imported meat was affected by delays in vessel arrival in port due to global congestion in marine container transport. However, looking at the overall sales situation, while a rise in demand for home cooking food has slowed compared to the same quarter of the previous year, sales of products for the food service industry and processed food products were recovering. As a result, net sales increased slightly, combined with the improving market environment. On the profit front, although market price fluctuations had some impact on procurement costs, steps were taken to improve the profit margin by fully enforcing profitability management through inventory optimization. Consequently, profits increased.
As for overseas businesses, while ANZCO Foods Ltd. increased production volumes, net sales in foreign currency terms declined slightly, reflecting the impact of delays in shipments due to global congestion in marine container transport. However, profits increased as a result of a sales focus on profitability, in addition to the improvement of procurement costs.
As a result, the meat business recorded net sales of 129,016 million yen and operating income of 4,384 million yen.
(2) Description of financial position
(Assets, liabilities and net assets)
Total assets at the end of the first three months under review increased 20,769 million yen from the end of the previous fiscal year, to 414,856 million yen. This mainly reflects an increase in inventories.
Liabilities totaled 166,986 million yen, an increase of 20,547 million yen from the end of the previous fiscal year. This was mainly due to increases in notes and accounts payable - trade and short-term loans payable.
Net assets increased 221 million yen from the end of the previous fiscal year, to 247,869 million yen. This was primarily attributable to an increase in foreign currency translation adjustment and a decrease in retained earnings associated with the payment of dividends. Due to the application of the Accounting Standard for Revenue Recognition, etc., the beginning balance of retained earnings decreased 155 million yen.
(3) Description of future outlook, including consolidated operating results forecasts
There are no changes to the consolidated results forecasts for the first half and the full year of the fiscal year ending December 31, 2022 that were announced on May 10, 2021.
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Consolidated Financial Statements | Itoham Yonekyu Holdings Inc. | |
(1) Consolidated Balance Sheets | ||
(Million Yen) | ||
As of March 31, 2021 | As of June 30, 2021 | |
ASSETS | ||
Current assets | ||
Cash and deposits | 50,952 | 46,391 |
Notes and account receivable - trade | 86,591 | 85,952 |
Merchandise and finished goods | 63,313 | 75,955 |
Work in process | 1,745 | 1,832 |
Raw materials and supplies | 17,174 | 22,889 |
Other | 6,617 | 13,958 |
Allowance for doubtful accounts | (10) | (10) |
Total current assets | 226,384 | 246,969 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 36,433 | 36,846 |
Machinery, equipment and vehicles, net | 28,919 | 29,684 |
Tools, furniture & fixtures, net | 1,468 | 1,547 |
Land | 25,745 | 25,945 |
Leased assets, net | 2,758 | 2,698 |
Others, net | 2,269 | 1,275 |
Total property, plant and equipment | 97,595 | 97,998 |
Intangible assets | ||
Goodwill | 19,573 | 19,223 |
Other | 2,150 | 2,551 |
Total intangible assets | 21,724 | 21,775 |
Investments and other assets | ||
Investment securities | 29,331 | 28,885 |
Net defined benefit assets | 12,162 | 12,506 |
Other | 6,993 | 6,824 |
Allowance for doubtful receivables | (105) | (105) |
Total investments and other assets | 48,382 | 48,112 |
Total non-current assets | 167,702 | 167,886 |
Total Assets | 394,086 | 414,856 |
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