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.
Consolidated Financial Results
for the Six Months Ended August 31, 2024
[Japanese GAAP]
Company name: S Foods Inc. | October 11, 2024 |
Listing: Tokyo | |
Securities code: 2292 | |
URL: https://www.sfoods.co.jp | |
Representative: Shinnosuke Murakami | President and Representative Director |
Inquiries: Kenji Unoki | Corporate Officer Supervising Administration Group |
Telephone: +81-798(43)1065 |
Scheduled date to file semi-annual securities report: October 15, 2024
Scheduled date to commence dividend payments: October 31, 2024
Preparation of supplementary material on financial results: None
Holding of financial results briefing: None
(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Six Months Ended August 31, 2024 (March 1, 2024 to August 31, 2024)
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes.) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
August 31, 2024 | 218,900 | 4.7 | 2,643 | (68.3) | 3,471 | (63.2) | 1,215 | (83.0) | ||
August 31, 2023 | 208,986 | 7.8 | 8,333 | (3.0) | 9,426 | (2.9) | 7,166 | 25.2 |
(Note) Comprehensive income: | Six months ended August 31, 2024: |
Six months ended August 31, 2023: |
¥ | 6,969 million | [ | (41.7) %] |
¥ | 11,952 million | [ | 34.2%] |
Basic earnings | Diluted earnings per | ||||
per share | share | ||||
Six months ended | Yen | Yen | |||
August 31, 2024 | 38.41 | - | |||
August 31, 2023 | 226.61 | - | |||
(2) Consolidated Financial Position | |||||
Total assets | Net assets | Capital adequacy ratio | |||
As of | Millions of yen | Millions of yen | % | ||
August 31, 2024 | 239,082 | 132,159 | 52.0 | ||
February 29, 2024 | 224,240 | 126,576 | 53.0 | ||
(Reference) Equity: As of | August 31, 2024: | ¥ | 124,221 million | ||
As of | February 29, 2024: | ¥ | 118,783 million |
2. Dividends
Annual dividends | ||||||||
1st | 2nd | 3rd | Year-end | Total | ||||
quarter-end | quarter-end | quarter-end | ||||||
Yen | Yen | Yen | Yen | Yen | ||||
Fiscal year ended February 29, 2024 | - | 42.00 | - | 42.00 | 84.00 | |||
Fiscal year ending February 28, 2025 | - | 44.00 | ||||||
Fiscal year ending February 28, 2025 | - | 45.00 | 89.00 | |||||
(Forecast) | ||||||||
(Note) Revision to the forecast for dividends | announced most | recently: | None |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2025(March 1, 2024 to February 28, 2025) (Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | ||||||||
owners of parent | per share | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
Full year | 445,000 | 4.7 | 7,300 | (42.4) | 8,300 | (42.3) | 4,200 | (53.7) | 132.70 | |||
(Note) Revision to the financial results forecast announced most recently: | Yes | |||||||||||
* Notes: | ||||||||||||
(1) Significant changes in the scope of consolidation during the period: | None | |||||||||||
Newly included: | - | (Company name: | ) | |||||||||
Excluded: | - | (Company name: | ) |
- Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes
- 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):
August 31, 2024: | 32,267,721 | shares |
February 29, 2024: | 32,267,721 | shares |
2) Number of treasury shares at the end of the period: | ||
August 31, 2024: | 617,567 | shares |
February 29, 2024: | 632,484 | shares |
3) Average number of shares outstanding during the period: | ||
Six months ended August 31, 2024: | 31,641,039 | shares |
Six months ended August 31, 2023: | 31,626,854 | shares |
Semi-annual Consolidated Financial Statements
Semi-annual Consolidated Balance Sheets
(Millions of yen) | ||
As of February 29, 2024 | As of August 31, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 49,858 | 38,708 |
Notes and accounts receivable - trade | 40,216 | 51,006 |
Securities | - | 1,000 |
Merchandise and finished goods | 27,382 | 31,396 |
Work in process | 9,529 | 8,948 |
Raw materials and supplies | 4,845 | 4,268 |
Other | 4,328 | 5,977 |
Allowance for doubtful accounts | (46) | (130) |
Total current assets | 136,114 | 141,174 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 61,128 | 61,897 |
Accumulated depreciation | (31,105) | (32,267) |
Buildings and structures, net | 30,023 | 29,630 |
Land | 15,814 | 15,899 |
Construction in progress | 15,007 | 24,587 |
Other | 38,149 | 39,143 |
Accumulated depreciation | (29,830) | (31,246) |
Other, net | 8,319 | 7,897 |
Accumulated impairment | (2,796) | (2,803) |
Total property, plant and equipment | 66,369 | 75,211 |
Intangible assets | ||
Goodwill | 253 | 210 |
Other | 306 | 292 |
Total intangible assets | 559 | 503 |
Investments and other assets | ||
Investment securities | 16,611 | 16,582 |
Retirement benefit asset | 200 | 204 |
Other | 4,576 | 5,882 |
Allowance for doubtful accounts | (193) | (476) |
Total investments and other assets | 21,196 | 22,192 |
Total non-current assets | 88,125 | 97,907 |
Total assets | 224,240 | 239,082 |
(Millions of yen) | ||
As of February 29, 2024 | As of August 31, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 25,803 | 33,058 |
Short-term borrowings | 7,866 | 11,090 |
Income taxes payable | 1,989 | 2,160 |
Provision for bonuses | 1,363 | 1,216 |
Other | 17,858 | 17,036 |
Total current liabilities | 54,881 | 64,561 |
Non-current liabilities | ||
Bonds payable | 250 | 200 |
Long-term borrowings | 35,516 | 35,666 |
Provision for retirement benefits for directors (and | 128 | 102 |
other officers) | ||
Retirement benefit liability | 1,818 | 1,779 |
Other | 5,069 | 4,612 |
Total non-current liabilities | 42,782 | 42,361 |
Total liabilities | 97,664 | 106,923 |
Net assets | ||
Shareholders' equity | ||
Share capital | 4,298 | 4,298 |
Capital surplus | 18,792 | 18,828 |
Retained earnings | 85,994 | 85,881 |
Treasury shares | (397) | (390) |
Total shareholders' equity | 108,688 | 108,618 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale | 5,155 | 5,208 |
securities | ||
Deferred gains or losses on hedges | (70) | (42) |
Foreign currency translation adjustment | 4,930 | 10,364 |
Remeasurements of defined benefit plans | 79 | 72 |
Total accumulated other comprehensive income | 10,095 | 15,603 |
Non-controlling interests | 7,792 | 7,938 |
Total net assets | 126,576 | 132,159 |
Total liabilities and net assets | 224,240 | 239,082 |
Semi-annual Consolidated Statements of Income and Comprehensive Income
(Millions of yen) | ||
For the six months | For the six months | |
ended August 31, 2023 | ended August 31, 2024 | |
Net sales | 208,986 | 218,900 |
Cost of sales | 181,036 | 196,177 |
Gross profit | 27,949 | 22,723 |
Selling, general and administrative expenses | 19,616 | 20,080 |
Operating profit | 8,333 | 2,643 |
Non-operating income | ||
Interest income | 199 | 345 |
Dividend income | 345 | 366 |
Rental income from buildings | 75 | 111 |
Share of profit of entities accounted for using equity | 1 | 2 |
method | ||
Foreign exchange gains | 428 | 2 |
Other | 423 | 212 |
Total non-operating income | 1,473 | 1,041 |
Non-operating expenses | ||
Interest expenses | 151 | 133 |
Arrangement fee | 100 | - |
Rent cost | 20 | 25 |
Other | 108 | 53 |
Total non-operating expenses | 380 | 212 |
Ordinary profit | 9,426 | 3,471 |
Extraordinary income | ||
Gain on sale of non-current assets | 52 | 4 |
Gain on sale of shares of subsidiaries and associates | 1,388 | - |
Gain on sale of investment securities | 4 | 180 |
Subsidy income | 1,584 | - |
Total extraordinary income | 3,028 | 184 |
Extraordinary losses | ||
Loss on disposal of non-current assets | 24 | 27 |
Impairment losses | 21 | 4 |
Loss on store closings | 1 | 0 |
Loss on tax purpose reduction entry of non-current | 1,583 | - |
assets | ||
Loss on sale of investment securities | 4 | - |
Loss on valuation of investment securities | 374 | - |
Provision of allowance for doubtful accounts | - | 274 |
Loss on transfer of subsidiary | - | 215 |
Total extraordinary losses | 2,010 | 522 |
Profit before income taxes | 10,444 | 3,133 |
Income taxes | 2,979 | 1,655 |
Profit | 7,465 | 1,478 |
Profit attributable to non-controlling interests | 298 | 263 |
Profit attributable to owners of parent | 7,166 | 1,215 |
(Millions of yen) | ||
For the six months | For the six months | |
ended August 31, 2023 | ended August 31, 2024 | |
Profit | 7,465 | 1,478 |
Other comprehensive income |
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
1,628 | 38 |
142 | 28 |
2,713 | 5,433 |
3 | (9) |
4,487 | 5,491 |
11,952 | 6,969 |
11,6336,722
319 | 246 |
Semi-annual Consolidated Statements of Cash Flows
(Millions of yen) | ||
For the six months | For the six months | |
ended August 31, 2023 | ended August 31, 2024 | |
Cash flows from operating activities | ||
Profit before income taxes | 10,444 | 3,133 |
Depreciation | 2,280 | 2,121 |
Impairment losses | 21 | 4 |
Amortization of goodwill | 30 | 42 |
Increase (decrease) in provision for bonuses | 225 | (146) |
Decrease (increase) in retirement benefit asset | (14) | (4) |
Increase (decrease) in retirement benefit liability | (10) | (57) |
Interest and dividend income | (545) | (712) |
Interest expenses | 151 | 133 |
Loss (gain) on sale of non-current assets | (52) | (4) |
Decrease (increase) in trade receivables | (8,600) | (10,394) |
Decrease (increase) in inventories | (5,977) | (1,966) |
Increase (decrease) in trade payables | 1,118 | 7,184 |
Loss (gain) on sale of shares of subsidiaries and | (1,388) | - |
associates | ||
Subsidy income | (1,584) | - |
Loss on tax purpose reduction entry of non-current | 1,583 | - |
assets | ||
Increase (decrease) in accrued consumption taxes | 30 | (876) |
Other, net | (1,896) | (73) |
Subtotal | (4,180) | (1,616) |
Interest and dividends received | 698 | 712 |
Interest paid | (150) | (125) |
Income taxes paid | (2,948) | (1,723) |
Subsidies received | 0 | - |
Net cash provided by (used in) operating activities | (6,581) | (2,752) |
Cash flows from investing activities | ||
Net decrease (increase) in time deposits | (0) | (1,019) |
Purchase of property, plant and equipment | (7,013) | (6,030) |
Proceeds from sale of property, plant and equipment | 108 | 7 |
Purchase of intangible assets | (14) | (23) |
Purchase of investment securities | (273) | (4) |
Proceeds from sale of investment securities | 132 | 250 |
Payments for sales of shares of subsidiaries and | ||
associates resulting in change in scope of | (3,120) | - |
consolidation | ||
Purchase of shares of subsidiaries | - | (2) |
Loan advances | (421) | (2,351) |
Proceeds from collection of loans receivable | 417 | 449 |
Subsidies received | 1,583 | - |
Other, net | (77) | 109 |
Net cash provided by (used in) investing activities | (8,677) | (8,614) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | (258) | 3,222 |
Proceeds from long-term borrowings | 11,000 | 3,500 |
Repayments of long-term borrowings | (3,335) | (5,629) |
Redemption of bonds | (50) | (50) |
Dividends paid | (1,231) | (1,327) |
Dividends paid to non-controlling interests | (75) | (94) |
Other, net | (24) | (42) |
Net cash provided by (used in) financing activities | 6,024 | (421) |
Effect of exchange rate change on cash and cash | 1,475 | 1,619 |
equivalents | ||
Net increase (decrease) in cash and cash equivalents | (7,759) | (10,169) |
Cash and cash equivalents at beginning of period | 46,601 | 49,597 |
Increase in cash and cash equivalents from newly | 96 | - |
consolidated | ||
Cash and cash equivalents at end of period | 38,939 | 39,428 |