Consolidated Financial Results for the Three Months Ended June 30, 2021
(Prepared pursuant to Japanese GAAP)
August 12, 2021 | |
Company name: | MEGMILK SNOW BRAND Co., Ltd. |
Stock exchange listing: | Tokyo Stock Exchange (First Section), Sapporo Securities Exchange |
Stock code: | 2270 |
URL: | https://www.meg-snow.com/english |
Representative: | Keiji Nishio, Representative Director and President |
Contact: | Fumi Hatamoto, General Manager, Public Relations & Investor |
Relations Department | |
Phone: | +81 3-3226-2124 |
(Amounts rounded down to the nearest million yen) |
1. Consolidated Results for the First Three Months of the Fiscal Year Ending March 31, 2022 (April 1, 2021 - June 30, 2021)
(1) Consolidated Operating Results | (Percentages indicate year-on-year changes) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Three months ended | millions of yen | % | millions of yen | % | millions of yen | % | millions of yen | % | ||
142,820 | - | 6,523 | 29.8 | 7,242 | 32.3 | 4,800 | 51.1 | |||
June 30, 2021 | ||||||||||
Three months ended | 156,298 | 1.0 | 5,026 | (0.8) | 5,474 | (7.1) | 3,176 | (16.9) | ||
June 30, 2020 | ||||||||||
Note: Comprehensive income: Three months ended June 30, 2021 : 4,059 million yen (9.1%) | ||||||||||
Three months ended June 30, 2020 : 3,721 million yen (17.0%) | ||||||||||
Profit | Profit | |||||||||
per share - basic | per share - diluted | |||||||||
yen | yen | |||||||||
Three months ended | 71.08 | - | ||||||||
June 30, 2021 | ||||||||||
Three months ended | 46.93 | - | ||||||||
June 30, 2020 | ||||||||||
Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending March 31, 2022. As a result, the Company has omitted year-on-year change in net sales for the first quarter of the previous fiscal year, as this was prior to application of the above accounting standard.
Assuming, however, that the above accounting standard, etc. had been applied effective from the first quarter of the fiscal year ended March 31, 2021, the year-on year change would be 2.1%.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net asset | |
per share | ||||
millions of yen | millions of yen | % | yen | |
June 30, 2021 | 398,798 | 198,457 | 49.1 | 2,899.99 |
March 31, 2021 | 398,650 | 198,255 | 49.0 | 2,890.65 |
For reference:
Equity: June 30, 2021: 195,842 million yen
March 31, 2021: 195,213 million yen
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2. Dividends
Cash dividends per share | |||||
Record date or period | End-Q1 | End-Q2 | End-Q3 | Year-end | Total |
yen | yen | yen | yen | yen | |
Year ended March 31, 2021 | - | - | - | 40.00 | 40.00 |
Year ending March 31, 2022 | - | ||||
Year ending March 31, 2022 | - | - | 50.00 | 50.00 | |
(forecast) | |||||
Note: Revisions from the latest release of dividend forecasts: None
3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages indicate year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit per | ||||||||
owners of parent | share | |||||||||||
millions of yen | % | millions of yen | % | millions of yen | % | millions of yen | % | yen | ||||
Second quarter- | 288,000 | 1.8 | 10,800 | (2.6) | 11,400 | (4.8) | 6,800 | (5.5) | 100.69 | |||
end (Cumulative) | ||||||||||||
Full Year | 570,000 | 2.8 | 20,500 | 3.6 | 21,500 | (0.8) | 12,500 | (16.2) | 185.10 | |||
Note 1: | Revisions from the latest release of dividend forecasts: None | |||||||||||
Note 2: | As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement | |||||||||||
No. 29, March 31, 2020), etc. effective from the beginning of the first quarter of the fiscal year ending | ||||||||||||
March 31, 2022, the said accounting standard, etc. have been applied to the figures in the abovementioned | ||||||||||||
consolidated forecast. Note that year-on-year change is calculated assuming that the above | ||||||||||||
accounting standard, etc. were applied effective from the fiscal year ended March 31, 2021. |
Notes
(1) Material reclassifications of subsidiaries during the period: None
(2) Accounting methods specific to quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement 1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Note: For further details, please refer to "(4) Notes to the Quarterly Consolidated Financial Statements (Changes in Accounting Policies)", under "2. Quarterly Consolidated Financial Statements and Key Notes" on page 14 of the Attachments.
(4) Common stock issued
1) Issued shares as of period-end (including treasury stock)
June 30, 2021 | 70,751,855 shares | ||
March 31, 2021 | 70,751,855 shares | ||
2) Treasury stock as of period-end | |||
June 30, 2021 | 3,219,600 shares | ||
March 31, 2021 | 3,219,054 shares | ||
3) Average number of shares (during the respective period) | |||
Three months ended June 30, 2021 | 67,532,559 shares | ||
Three months ended June 30, 2020 | 67,693,013 shares |
*This summary of financial statements is not subject to audit by certified public accountant and auditing firm.
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*Appropriate Use of Earnings Forecasts and Other Important Information
(Earnings Forecasts)
Business forecasts contained in this report are based on the assumptions of management in the light of information available as of the release of this report. MEGMILK SNOW BRAND makes no assurances as to the actual results, which may differ from forecasts due to various factors such as changes in the business environment.
(Supplementary materials and presentation handouts) Supplementary materials are attached to this report.
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Table of Contents for Attachments
1. Operating Results …………………………………………………………………………………………………… 5
- Overview of Operating Results………………………………………………………………………………… 5
- Analysis of Financial Condition ………………………………………………………………………………… 7
(3) Explanation of Forward-Looking Statements, including the Forecast of Consolidated Results………… 7
2. Quarterly Consolidated Financial Statements and Key Notes ………………………………………………… 8
- Quarterly Consolidated Balance Sheets ……………………………………………………………………… 8
- Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income……………………………………………………………………………………………………………… 10 Quarterly Consolidated Statements of Income………………………………………………………………… 10 Quarterly Consolidated Statements of Comprehensive Income……………………………………………… 11
- Quarterly Consolidated Statements of Cash Flows ………………………………………………………… 12
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Notes to the Quarterly Consolidated Financial Statements ………………………………………………… 14 (Notes on the Assumption of a Going Concern) ……………………………………………………………… 14 (Notes Concerning Significant Changes in Shareholders' Equity (if any))…………………………………… 14 (Changes in Accounting Policies)………………………………………………………………………………… 14
(Segment and Other Information) ……………………………………………………………………………… 15 (Revenue Recognition)…………………………………………………………………………………………… 15
(Supplementary Information)
Supplementary Information for the Three Months Ended June 30, 2021
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1. Operating Results
Forward-looking statements included in the following text are based on the judgments of the Group's management as of June 30, 2021.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the three months ended June 30, 2021.
With the application of this accounting standard, etc. net sales in the three months ended June 30, 2021 declined significantly compared to net sales in the three months ended June 30, 2020.
Therefore, in the explanations about operating results in the three months ended June 30, 2021, year-on-year comparisons of net sales usually presented as percentages (% YoY), have been replaced with "(-- YoY)". For further details please refer to "(Changes in Accounting Policies)" under (4) Notes to the Quarterly Consolidated Financial Statements" in "2. Quarterly Consolidated Financial Statements and Key Notes".
(1) Overview of Operating Results
In the three months ended June 30, 2021, conditions in the Japanese economy remained challenging due to the impacts of the COVID-19 pandemic. Although there were signs of recovery in certain sectors, the future outlook remains uncertain.
In the food industry, the increased demand for home-cooked meals in the previous fiscal year caused by the COVID-19 pandemic is settling down in the current fiscal year, while dining out demand remains sluggish.
In this business environment, the MEGMILK SNOW BRAND Group pursued initiatives to "Establish earnings bases in four business sectors (Dairy Products; Beverage & Dessert; Nutrition; and Feedstuffs
-
Seed)" in accordance with the Group Medium-term Management Plan 2022. In the three months ended June 30, 2021, the Group undertook: (1) strategic expansion and further product mix improvement of yogurt, cheese, and other mainstay products, centered on functionality; (2) simultaneous pursuit of scale expansion and profit generation through continuation of marketing investment in the nutrition business field; (3) strategic expansion and development of an earnings base in the seed products business; and
(4) bolstering of the Group's overall strengths by making full use of the Group's management resources and by improving the productivity of the value chain.
Amid the spread of COVID-19, the Group also took steps to prevent COVID-19 infections among Group employees and endeavored to provide a stable supply of safe and reliable products to customers.
As a result, in the three months ended June 30, 2021, consolidated net sales were ¥142,820 million (-- YoY), operating profit was ¥6,523 million (up 29.8% YoY), ordinary profit was ¥7,242 million (up 32.3%), and profit attributable to owners of parent was ¥4,800 million (up 51.1%).
Operating results by business segment for the three months ended June 30, 2021, were as follows. Net sales by segment are sales to outside customers. Comparisons of net sales with those of the three months ended June 30, 2020, are not shown, due to the fact that figures have been calculated assuming the application of the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020).
1) Dairy Products
This segment comprises the manufacture and sale of dairy products (cheese, butter, powdered milk), margarine, nutrition business products (functional foods and infant formula),
and other products.
Net sales were ¥58,201 million (-- YoY), and operating profit was ¥3,551 million (up 9.2%).
Sales of butter and margarine declined year on year due to the settling down of the increased demand for home-cooked meals seen last year caused by the COVID-19 pandemic.
Sales of cheese declined year on year overall as the rise in demand for home-cooked meals in the prior fiscal year settled down this fiscal year, despite a year-on-year increase in sales of natural cheeses due to factors including continued strong demand for cheese as an at-home snack item. Sales of functional food products continued to grow, owing to continued marketing investment in the e-commerce business which is performing well amid the COVID-19 pandemic, as well as increasing health-consciousness among consumers.
Operating profit increased due to factors including changes in product composition.
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MEGMILK Snow Brand Co. Ltd. published this content on 31 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2021 05:01:01 UTC.