Consolidated operating results (cumulative)
| Q1 FY11/2024 | Q1 FY11/2025 |
YoY Change |
|
|---|---|---|---|
| Net sales | 39,720 million yen | 45,984 million yen | 15.8% |
| Ordinary profit | 1,116 million yen | 1,598 million yen | 43.3% |
| Foreign exchange impact on ordinary profit |
16 million yen | 134 million yen | － |
|
Ordinary profit after |
1,099 million yen | 1,464 million yen | 33.1% |
| Profit attributable to owners of parent |
819 million yen | 1,202 million yen | 46.7% |
Q1 FY11/2025 (December 2024 to February 2025)
| Net sales | ：30,653 million yen (up 9.0% year on year) |
| Sales volume | ：43,972 tons (down 3.5% year on year) |
Supply and demand trends in Japan
- Milk production in the first quarter of the current fiscal year was higher than in the same period of the previous year.
- The amount of domestic skim milk powder in stock remains stable at around 50,000 tons.
- The consumption of ice cream and protein products is strong, and demand for related dairy ingredients is brisk.
- Continuing from the previous quarter, demand for various foods, especially for commercial use, remained strong.
The Company’s situation
- Demand for imported dairy ingredients has increased due to the stable inventory levels of domestic skim milk powder.
- Even in winter, demand for ice cream is high, and sales of related dairy ingredients are strong.
- Sales of high protein ingredients and infant formula ingredients are all performing well.
- As a result of progress in adjusting the inventory of skim milk powder, sales of powdered milk mixtures have shown a recovery trend.
- Although the price increase of cheese had some impact on the final product, demand related to the food service industry was strong.
- In addition, the sales volume exceeded the initial forecast due to factors such as the increase in our share of existing customers.
Topics
- The international market price for fatty milk ingredients such as butter and cream, as well as high protein ingredients derived from milk, has remained high due to increasing global demand.
- Although the production of raw milk is on the rise in Japan, the number of dairy cows under two years old is decreasing, so there is a possibility that the production of raw milk will once again start to decline.
Q1 FY11/2025 (December 2024 to February 2025)
| Net sales | ：5,024 million yen (down 1.7% year on year) |
| Sales volume | ：6,993 tons (down 10.0% year on year) |
Supply and demand trends in Japan
- The impact of a weak yen has caused a rise in the cost of purchasing, and the gap between domestic and overseas prices has narrowed.
- Due to the price increase of final products, demand for beef, pork and chicken for home use was sluggish. On the other hand, demand for food services is on a recovery trend.
The Company’s situation
- Sales of North American pork, our company's main product, declined.
- Due to the effects of the sharp increase in local market prices in the United States and the depreciation of the yen, demand has shifted to other production areas.
- On the other hand, sales volumes of processed foods such as processed chicken products increased.
Topics
- The price of pork from North America and Europe is rising, and there is a move to shift to procurement from other regions such as South America, so it is necessary to pay close attention to trends in supply and demand and sales destinations.
- We expect demand for processed foods to continue to increase, and we will focus on expanding sales of related products.
Q1 FY11/2025 (December 2024 to February 2025)
| Net sales | ：1,744 million yen (up 134.1% year on year) |
| Sales volume | ：1,293 tons (up 121.4% year on year) |
Supply and demand trends in Japan
- International prices have risen due to the increasing global demand for high protein raw materials.
- The domestic protein-related market continues to grow.
- In addition to traditional protein applications, the product lineup is expanding to include chilled beverages and other products that contain high protein ingredients, outside of the sports nutrition field.
- The diversification of sales channels, such as supermarkets, convenience stores, and online, is also contributing to market expansion.
- The international market price for high protein ingredients derived from milk continues to remain high, and there is a growing trend towards demand for other relatively inexpensive protein ingredients such as soy protein and collagen peptides.
The Company’s situation
- Continuing from the previous quarter, demand for protein ingredients in Japan remained high, and sales volumes were favorable.
- Sales to brand owners were strong.
- The business of coordinating everything from raw material procurement to manufacturing and sales is progressing, and the business development through the provision of added value is steadily bearing fruit and contributing to the performance of this division.
Topics
- In addition to high protein ingredients derived from milk, we are also focusing on expanding sales of soy protein and collagen.
- We are also strengthening our proposals for high protein ingredients to food manufacturers for uses other than sports nutrition.
Q1 FY11/2025 (December 2024 to February 2025)
| Net sales | ：6,064 million yen (up 44.1% year on year) |
| Sales volume | ：9,830 tons (up 18.6% year on year) |
Supply and demand trends in Southeast Asia and China
- In the Asian region excluding China and Hong Kong, the volume of imported milk ingredients is returning to the level it was at before the Corona vortex.
The Company’s situation
- As demand for powdered milk mixtures in Japan is on the rise, sales of raw materials to local manufacturers producing powdered milk mixtures for the Japanese market are also on the rise.
- Sales to existing customers, mainly in the Philippines and Thailand, are progressing favorably.
- The agency business is progressing smoothly in Indonesia. (The supplier is a dairy manufacturer in Oceania)
- Although price competition for sales to local companies is becoming more intense, our meticulous response has been highly evaluated, and sales volume is steadily increasing.
Topic
- To strengthen the sales system of our group in the Asian region, we are focusing on strengthening cooperation between our overseas bases, and we expect to see further expansion of business in the future.
Q1 FY11/2025 (December 2024 to February 2025)
| Net sales | ：1,639 million yen (up 29.6% year on year) |
| Sales volume | ：1,444 tons (up 17.5% year on year) |
Supply and demand trends in Southeast Asia and China
- Demand for food service and bakery products is recovering, mainly in Malaysia and Singapore, supported by travel and tourism-related consumption.
- Consumption of both processed and natural cheese is on the rise.
The Company’s situation
- Sales volumes increased, particularly for confectionery, bakery and processed food manufacturers, at local companies in Singapore and Malaysia.
- Continuing from the previous quarter, sales to Japanese restaurant companies have been strong.
- Expand business by developing and proposing process cheese that meets the quality requirements of each customer.
- In addition to the fact that the price of cheese ingredients has eased, production costs have fallen due to increased production efficiency, and the profit margin has improved.
Topics
- The construction of the new plant in Singapore was delayed slightly due to the time required to obtain various permits and approvals.
- The plant is scheduled to be completed in December 2025. Preparations are underway for the plant to begin operations in November 2026.
Our business model, as a rule, avoids foreign exchange risk
In our basic transactions, we conclude sales contracts in yen with domestic customers at the same time we conclude purchase contracts in foreign currencies with overseas suppliers. We hedge against foreign exchange risk by entering into forward contracts to cover the amounts we purchase in foreign currencies.
However, the Company uses the principle method under the accounting standards for foreign currency transactions. For this reason, our accounting presentation is unique.
Foreign exchange gains and losses may occur during a business transaction. This is because the exchange rate used for accounting purposes differs depending on the stage of the business transaction.
As a result, even if the foreign exchange risk is hedged at the time of the purchase contract , foreign exchange gains and losses are recorded separately in the cost of sales and non-operating expenses or income during the course of the transaction. Therefore, foreign exchange rates may affect not only non-operating expenses or income but also gross profit and operating profit.
For transactions that span fiscal years, foreign exchange gains and losses may be recorded in advance for accounting purposes.
For transactions that span fiscal years (in which items are sold in the following year or later), even if the purchase is settled and recorded as inventory, the sales will not be recorded until the following fiscal year . Only the foreign exchange gains or losses on the purchase settlement will be recorded in advance and reflected in ordinary profit for that year.
