Briefing Session on Business Results for the Fiscal Year Ended March 31, 2023 (FY2023)
May 23, 2023
NIPPN CORPORATION
https://www.nippn.co.jp
Contents
Overview of Business Results for
1
FY2023 and FY2024 Performance
Forecasts
p. 3 -
2
Progress of NIPPN Group FY2023-2027
Medium-term Targets
p.16 -
3
Toward Sustainable Management
p.45 -
2
Overview of Business Results for FY2023 and FY2024 Performance Forecasts
3
Statements of Income
Net sales increased, reflecting the implementation of sales price revisions in each business in response to rising prices of wheat and other raw materials, as well as recovery in demand, following the relaxation of restrictions on activities, and the growth of the frozen foods business.
Despite an increase in strategic costs and soaring prices of raw materials and energy and various other costs, profit increased owing to the implementation of sales price revisions in line with costs, the impact of increased shipments reflecting the recovery in demand from the restaurant sector and demand for ready-made meals, and cost reduction thanks to improvement of productivity.
FY2022
FY2023
YoY
Result
% of net
Result
% of net
Change
Change (%)
(Millions of yen)
sales
sales
Flour Milling
96,934
30.2%
117,604
32.2%
20,669
21.3%
Net
Food
185,911
57.9%
204,796
56.0%
18,885
10.2%
sales
Other
38,471
12.0%
43,123
11.8%
4,652
12.1%
Total
321,317
100.0%
365,525
100.0%
44,208
13.8%
Flour Milling
6,211
6.4%
7,528
6.4%
1,316
21.2%
Operating income
Food
4,068
2.2%
3,449
1.7%
(619)
(15.2)%
Other
1,000
2.6%
1,308
3.0%
307
30.8%
Total
11,282
3.5%
12,288
3.4%
1,006
8.9%
Ordinary income
14,270
4.4%
14,816
4.1%
545
3.8%
Profit attributable to owners
9,327
2.9%
10,260
2.8%
932
10.0%
of parent
4
Trend of Raw Materials Prices, Energy Prices, etc.
Although the wheat market has become more stable compared with the instability following the Russian invasion of Ukraine, wheat prices remain high. The Japanese government revised sales prices of imported wheat in April 2023 for the first time in 12 months and government sales prices of imported wheat were increased by 5.8% on average for the five key products.
We will proceed with sales price revisions to reflect increases in prices of raw materials and energy, logistics costs, etc., while securing the understanding of customers.
Trends of Price Index, Wheat Price, etc.
Consumer Price Index (index for the
quarterly month-end with the index
for CY2020 as 100)
Index
Government's selling price of
imported wheat (weighted average of
prices for 5 brands including tax)
Producer Price Index (index for the quarterly month-end with the index for CY2020 as 100)
US dollar/yen (period-end rate)
Power cost per unit (index with
FY2021 as 100)
Wheat selling
price (yen/t)
2Q FY2022
4Q FY2022
2Q FY2023
4Q FY2023
Source for Consumer Price Index: Ministry of Internal Affairs and Communications; Source for Producer Price Index and Exchange Rate: The Bank of Japan
5
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Disclaimer
Nippn Corporation published this content on 07 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 July 2023 05:41:01 UTC.
Nippn Corp, formerly Nippon Flour Mills Co Ltd, is a Japan-based company mainly engaged in the flour milling business and the food business. The Company operates in two business segments. The Flour Milling segment is mainly engaged in the manufacture and sale of wheat flour, bran, buckwheat flour and premix products. The Food segment is mainly engaged in the manufacture and sale of household wheat flour, premix, pasta, frozen food, prepared food and rice flour products. The Company is also engaged in the leasing of real estate, the manufacture and sale of pet food products, the design, manufacture and installation of equipment for food industry, the freight transportation business, the development of information processing systems, the sale of health food products, as well as the operation of donut shops.