Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
[Based on Japanese GAAP]
May 18, 2021 | ||||||||||||||
Name of Listed Company: | Meiji Holdings Co., Ltd. | Listed exchange: 1st Section, Tokyo Stock Exchange | ||||||||||||
Code Number: | 2269 | URL: www.meiji.com | ||||||||||||
Representative: | Kazuo Kawamura, CEO, President and Representative Director | |||||||||||||
Inquiries: | Yoichiro Yamagata, General Manager of PR&IR Dept. | |||||||||||||
Telephone: +81-3-3273-3917 | ||||||||||||||
Annual shareholders meeting: June 29, 2021 | ||||||||||||||
Submission of the securities report: June 29, 2021 | ||||||||||||||
Dividend payment commencement: June 7, 2021 | ||||||||||||||
Preparation of explanatory materials for full-term financial results: Yes | ||||||||||||||
Holding of a briefing on full-term financial results: Yes (a briefing for analysts and institutional investors) | ||||||||||||||
(Amounts are rounded down to the nearest million yen.) | ||||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended March 2021 | ||||||||||||||
(April 1, 2020 to March 31, 2021) | ||||||||||||||
1) Consolidated operating results | (% of change from the previous fiscal year) | |||||||||||||
Net Sales | Operating Profit | Ordinary Profit | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
For the fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
March 31, 2021 | 1,191,765 | -4.9 | 106,061 | 3.3 | 110,176 | 6.6 | 65,655 | -2.5 | ||||||
March 31, 2020 | 1,252,706 | -0.1 | 102,710 | 4.4 | 103,326 | 3.6 | 67,318 | 8.8 | ||||||
(Note) Comprehensive income: Fiscal year ended March 31, 2021: JPY 85,304 million (43.7%) | ||||||||||||||
Fiscal year ended March 31, 2020: JPY 59,364 million (-3.5%) | ||||||||||||||
Diluted Profit | Return on | Ordinary | Operating | |||||||||||
Profit per Share | Profit/Total | |||||||||||||
per Share | Equity | Profit/Net Sales | ||||||||||||
Assets | ||||||||||||||
For the fiscal year ended | Yen | Yen | % | % | % | |||||||||
March 31, 2021 | 452.52 | - | 11.1 | 10.7 | 8.9 | |||||||||
March 31, 2020 | 464.08 | - | 12.4 | 10.3 | 8.2 |
(Reference) Share of profit of entities accounted for using equity method: Fiscal year ended March 31, 2021: JPY 1,578 million Fiscal year ended March 31, 2020: JPY -793 million
(Note) In the first quarter of FYE March 2021, we finalized provisional accounting related to corporate consolidation. Figures for FYE March 2020 reflect the finalized provisional accounting treatments.
2) Consolidated financial position
Total Assets | Net Assets | Equity Ratio | Net Assets per Share | |
Millions of yen | Millions of yen | % | Yen | |
As of March 31, 2021 | 1,067,000 | 659,358 | 58.2 | 4,282.80 |
As of March 31, 2020 | 998,920 | 597,573 | 56.3 | 3,879.18 |
(Reference) Shareholders' equity: As of March 31, 2021: JPY 621,428 million As of March 31, 2020: JPY 562,753 million
(Note) In the first quarter of FYE March 2021, we finalized provisional accounting related to corporate consolidation. Figures for FYE March 2020 reflect the finalized provisional accounting treatments.
Disclaimer: These financial statements have been prepared in accordance with generally accepted accounting principles in Japan.
This English translation is prepared for the reader's convenience. When there are any discrepancies between the original Japanese version and English translation version, the original Japanese version always prevails.
3) Consolidated cash flows
Cash Flows from | Cash Flows from | Cash Flows from | Cash and Cash | |||||||||||||||||||
Equivalents | ||||||||||||||||||||||
Operating Activities | Investing Activities | Financing Activities | ||||||||||||||||||||
at Year-End | ||||||||||||||||||||||
For the fiscal year ended | Millions of yen | Millions of yen | Millions of yen | Millions of yen | ||||||||||||||||||
March 31, 2021 | 123,683 | -93,110 | -28,293 | 39,011 | ||||||||||||||||||
March 31, 2020 | 114,103 | -70,811 | -30,287 | 37,110 | ||||||||||||||||||
2. Dividends | ||||||||||||||||||||||
Cash Dividends Per Share | Total Cash | Dividends to | ||||||||||||||||||||
Payout Ratio | Net Assets | |||||||||||||||||||||
Financial | Dividends | |||||||||||||||||||||
1Q | 2Q | 3Q | Annual | (Consolidated) | Ratio | |||||||||||||||||
year end | (Annual) | |||||||||||||||||||||
(Consolidated) | ||||||||||||||||||||||
For the fiscal year ended | Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | ||||||||||||||
March 31, 2020 | - | 70.00 | - | 80.00 | 150.00 | 21,760 | 32.3 | 4.0 | ||||||||||||||
March 31, 2021 | - | 75.00 | - | 85.00 | 160.00 | 23,215 | 35.4 | 3.9 | ||||||||||||||
March 31, 2022 | - | 80.00 | - | 80.00 | 160.00 | 34.6 | ||||||||||||||||
(Projected) | ||||||||||||||||||||||
3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 | ||||||||||||||||||||||
(April 1, 2021 to March 31, 2022) | (% of change from the previous fiscal year) | |||||||||||||||||||||
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 | ||||||||||||||
1st half | 505,000 | -13.7 | 51,000 | 1.2 | 52,000 | 2.7 | 31,000 | 7.9 | 213.66 | |||||||||||||
Full year | 1,024,000 | -14.1 | 107,500 | 1.4 | 109,000 | -1.1 | 67,000 | 2.0 | 461.79 |
(Note) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) is applied from the beginning of FYE March 2022. As such, the above forecasts are calculated based on the assumption of accounting treatment changes related to revenue recognition.
Notes
-
Changes in significant subsidiaries during the current fiscal year under review (Changes in subsidiaries affecting the scope of consolidation): Yes
Added to scope of consolidation (1 company): Meiji Food (Guangzhou) Co., Ltd.
Removed from scope of consolidation: None - Changes in accounting policy, changes in accounting estimates, restatements
- Changes in accounting policy due to revisions of accounting standards: None
- Other changes in accounting policy: None
- Changes in accounting estimates: None
- Restatements: None
- Number of shares outstanding (common stock)
- Number of shares outstanding at end of period (including treasury stock)
- Number of treasury stock at end of period
- Average number of shares during period
As of Mar. 31, 2021 | 152,683,400 shares | As of Mar. 31, 2020 | 152,683,400 shares |
As of Mar. 31, 2021 | 7,584,887 shares | As of Mar. 31, 2020 | 7,613,416 shares |
As of Mar. 31, 2021 | 145,089,108 shares | As of Mar. 31, 2020 | 145,058,299 shares |
2
(Reference) Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)
1) | Non-consolidated operating results | (% of change from the previous fiscal year) | ||||||||||
Net Sales | Operating Profit | Ordinary Profit | Profit | |||||||||
For the fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
March 31, 2021 | 25,537 | 9.7 | 22,295 | 9.1 | 22,924 | 8.8 | 22,354 | 5.8 | ||||
March 31, 2020 | 23,290 | 7.9 | 20,428 | 5.8 | 21,065 | 6.0 | 21,133 | 6.6 | ||||
Profit per Share | Diluted Profit per | |||||||||||
Share | ||||||||||||
For the fiscal year ended | Yen | Yen | ||||||||||
March 31, 2021 | 154.07 | - | ||||||||||
March 31, 2020 | 145.69 | - | ||||||||||
2) | Non-consolidated financial position | |||||||||||
Total Assets | Net Assets | Equity Ratio | Net Assets per Share | |||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||
As of March 31, 2021 | 386,119 | 266,121 | 68.9 | 1,834.08 | ||||||||
As of March 31, 2020 | 378,754 | 262,229 | 69.2 | 1,807.60 |
(Reference) Shareholders' equity: As of March 31, 2021: JPY 266,121 million As of March 31, 2020: JPY 262,229 million
- The earnings summary is not subject to audit.
- Forward-lookingstatements and other special notes
(Notice concerning forward-looking statements)
The forward-looking statements described in this document, such as business forecasts, are based on information available at the time of the release of these materials and reasonable assumptions made by the Company, and do not represent a commitment from the Company that they will be achieved. For earnings forecasts assumptions and other related items, refer to page 11 of 1. Qualitative Information 3) Forecasts for the Fiscal Year ending March 31, 2022
(Explanatory material for financial results)
Explanatory materials for financial results are disclosed through TDnet together with these financial statements. This information also is posted on our website on the same day.
(Presentation material for conference call)
The online briefing for analysts and institutional investors is scheduled on May 18, 2021. An audio recording and presentation materials of the briefing will be posted on our website.
3
1. Qualitative Information
-
Explanation Concerning Operating Results
Based on our basic concept of our 2020 Medium-Term Business Plan for FYE March 2019-2021,Address strategic issues continuously and Challenge for the further growth, the Meiji Group promoted our growth strategy for Expand share and achieve high revenues in core businesses, Expand aggressively in overseas markets and establish growth platform, Propose new value in health care domain, Continue structural reforms and resolve specific business issues in each business, and Enhance Meiji Group management platform and promote Sustainability.
During FYE March 2021, the Meiji Group faced a difficult operating environment due to the novel coronavirus disease (COVID-19) pandemic. The food segment confronted uncertainty in personal consumption trends and the pharmaceutical segment struggled due to a significant decline in patient numbers at medical institutions. Additionally, the pharmaceutical segment was impacted significantly by NHI pricing revision. Amid such conditions, our Group worked diligently to ensure the stable provision of essential food and pharmaceutical products while also working to reinforcing efficiency in Group expenditures. In line with our Medium-Term Business Plan, we concentrated management resources on core and growth domains while also worked to improve productivity.
These factors resulted in net sales of JPY 1,191.765 billion (down 4.9%, year on year), operating profit of JPY 106.061 billion (up 3.3%, year on year), and ordinary profit of JPY 110.176 billion (up 6.6%, year on year) during FYE March 2021. Profit attributable to owners of parent was JPY 65.655 billion (down 2.5%, year on year). ROE was 11.1%, EPS was JPY 452.52.
FYE March 2021 marked the final year of our 2020 Medium-Term Business Plan. During this fiscal year, we worked to achieve goal indicators we set for net sales, operating profit (margin), overseas net sales, and ROE. While we did increase and improve on certain indicators during the three years of the Medium-Term Business Plan, we did not achieve goals due to stagnant growth for yogurt and chocolate, as well as due to the struggles domestic pharmaceuticals faced because of dramatic changes in our operating environment.
(Billions of yen) | ||||||||||||
For the fiscal year ended | 2020 | 2021 | Change | Main factors for Change | ||||||||
March 31 | ||||||||||||
Net sales | 1,252.7 | 1,191.7 | -60.9 | Details indicated on segment-specific overview | ||||||||
Operating profit | 102.7 | 106.0 | 3.3 | Details indicated on segment-specific overview | ||||||||
Non-operating profit | 4.9 | 6.9 | 1.9 | - Share of profit of entities accounted for using | ||||||||
equity method (+1.5) | ||||||||||||
Non-operating expenses | 4.3 | 2.8 | -1.5 | - Share of loss of entities accounted for using | ||||||||
equity method (-0.7) | ||||||||||||
- Foreign exchange losses (-0.5) | ||||||||||||
Ordinary profit | 103.3 | 110.1 | 6.8 | - | ||||||||
Extraordinary income | 2.0 | 2.1 | 0.1 | - Gain on sales of shares of subsidiaries and | ||||||||
associates (+0.9) | ||||||||||||
- Gain on sales of non-current assets (-0.6) | ||||||||||||
Extraordinary losses | 7.6 | 9.1 | 1.5 | - Loss on abandonment of non-current assets (+0.4) | ||||||||
- Impairment loss (+0.3) | ||||||||||||
Profit before income taxes | 97.7 | 103.1 | 5.4 | - | ||||||||
Income taxes-total | 27.9 | 33.1 | 5.1 | - Income taxes - current (+6.5) | ||||||||
- Income taxes - deferred (-1.4) | ||||||||||||
Profit (loss) attributable to | 2.4 | 4.4 | 1.9 | - | ||||||||
non-controlling interests | ||||||||||||
Profit attributable to | 67.3 | 65.6 | -1.6 | - | ||||||||
owners of parent | ||||||||||||
4
To contribute to preventing the global threat of COVID-19, the Meiji Group is engaged in the following initiatives for development and supply of potential vaccines.
Currently, Group subsidiary KM Biologics is collaborating on research and development activities with the National Institute of Infectious Diseases, the Institute of Medical Science at the University of Tokyo, and the National Institutes of Biomedical Innovation, Health, and Nutrition to develop an inactivated vaccine for COVID-19. In May 2020, KM Biologics was selected from the initial public call for proposals for the COVID-19 Vaccine Development (Corporate-led) Project, the open R&D project being conducted as part of the Drug Discovery Support Promotion Project overseen by the Japan Agency for Medical Research and Development (AMED). In August 2020, KM Biologics was also selected for the second public call for proposals. We began conducting non-clinical trials in September 2020, and domestic clinical trials on March 22, 2021. In July 2020, KM Biologics was also selected to participate in the MHLW Vaccine Production Structure Emergency Development Project (initial public call). We are organizing a production structure that will enable rapid provision in Japan for the inactivated vaccine currently in development.
In June 2020, Group subsidiaries Meiji Seika Pharma and KM Biologics agreed with AstraZeneca PLC to hold discussions regarding the stable provision of the COVID-19 vaccine, AZD1222, allocated for Japan. In February 2021, Meiji Seika Pharma and KM Biologics individually concluded business consignment agreements with AstraZeneca. KM Biologics received active ingredient from AstraZeneca and started formulation and commercialization (vial filling and packaging) from March 19, 2021, utilizing a production system for pandemic influenza vaccines. Meiji Seika Pharma handles product storage and transport, utilizing its own supply system for vaccines. As total, Meiji Seika Pharma will supply 120 million doses of AZD1222 in Japan, including vaccines which KM Biologics are preparing. Meiji Seika Pharma will conduct information dissemination and collect safety management information when needed.
Below is an overview by segment.
(1) Food segment
- Net sales decreased year on year. Net sales of nutrition business and overseas business increased. Net sales of processed food business were largely unchanged. On the other hand, net sales of fresh and fermented dairy business and confectionery business decreased. Sales of other domestic subsidiaries decreased significantly due to the exclusion of three subsidiaries from the scope of consolidation as a result of a stock transfer.
- Operating profit was largely unchanged year on year. The impact of decreased net sales was covered by controlling promotion expenses and other costs.
(Billions of yen) | |||||||
For the fiscal year ended | 2020 | 2021 | % Change | ||||
March 31 | |||||||
Net sales | 1,049.5 | 999.6 | -4.8% | ||||
Operating profit | 87.3 | 87.4 | 0.1% | ||||
Analysis of Consolidated Operating Profit | (Billions of yen) | |||
Results - FYE March 2020 | 87.3 | |||
Due to increased/decreased sales | -7.9 | |||
Changes in costs of goods sold | +7.6 | |||
Changes in other SG&A expenses | -0.4 | |||
Other (incl. change in results of | +0.8 | |||
subsidiaries) | ||||
Results - FYE March 2021 | 87.4 | |||
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Meiji Holdings Co. Ltd. published this content on 18 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 May 2021 06:52:04 UTC.