Semi-Annual Report 2023
For the Six-Month Period Ended 30th September 2023

PROFILE
Since its establishment in 1958, MARUDAI FOOD CO., LTD. has been dedicated tooffering delicious, high-quality meat products. In order to understand the latest
consumer trends and to meet the needs of modern lifestyles, we have continuously
strengthened our research, sales and production operations. Intending to become
Japan’s leading food company, we successfully listed our stock on the First Section of
the Tokyo Stock Exchange in 1972.
Starting as a ham and sausage producer, Marudai Food has steadily expanded its
range of products to include heat-processed, vacuum-packed food, dessert and beverage
products and fresh meats. Ham and sausage, however, remain an integral part of our
product line and continue to account for almost a third of our sales.
While pursuing a leading position in the ham and sausage market, Marudai Food waseager to explore new avenues by developing precooked and processed foods, which
went on sale in 1973. This long shelf-life food was developed to meet the specific needfor fast meal preparation. Containing absolutely no preservatives and requiring only
several minutes to prepare, Marudai precooked and processed foods have established astrong foothold in the market. Building on this success, we will make even greater
efforts to create new products that satisfy the increasingly discriminating tastes ofconsumers.

CONTENTSTO OUR SHAREHOLDERS .............................................................................. 1
PRODUCTS ......................................................................................................... 2
CONSOLIDATED BALANCE SHEETS ........................................................... 3
CONSOLIDATED STATEMENTS OF INCOME ............................................. 5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME .......... 6
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS ............ 7
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................... 8
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS ........................... 9
DIRECTORS AND STATUTORY AUDITORS .............................................. 10
OUTLINE OF THE COMPANY ...................................................................... 11b

MARUDAI FOOD CO., LTD.

TO OUR SHAREHOLDERS

In the industry in which the Marudai Food Group operates,
the environment has remained severe despite signs of recovery
in personal consumption and demand of foreign tourists. A
series of price increases for daily necessities as a result of rises
in raw material, energy, logistics and other costs have madeconsumers even more budget-conscious.
Regarding the meat market, while the market prices ofdomestic beef were below the previous year’s level as demanddecreased due primarily to the rises in selling prices resulting
from the rising prices, those of U.S. beef were considerably
higher than they were in the previous year owing to the decline
in production. Meanwhile, the market prices of both domestic
and imported pork have remained high due chiefly to thesoaring feed prices and the shift in demand from beef to pork
against the backdrop of the rising prices. In addition, theimport prices have remained elevated due largely to the impactof the foreign exchange rates.
In this situation, the Group, a comprehensive food
manufacturer that supplies consumers with safer and healthierfood products, has pushed ahead with its corporate operations,aiming to be a company whose own value is thoroughly
recognized in society.

First of all, we would like to express our profound gratitude forthe continued support of our shareholders.
We hereby would like to announce the business results for the
first six-month period of the company’s 76th fiscal year.
During the first six-month period ended 30th September
2023, the Japanese economy showed a gradual recovery. The
reclassification of COVID-19 as a Class V Infectious Disease
prompted further relaxation of restrictions and resulted in arecovery trend in demand of foreign tourists. There were also
signs of improvement in the employment and income
environment. However, the outlook for the economy still
remains unclear due mainly to the risk of a downturn inoverseas economies attributable to the impact of global
monetary tightening and concerns over the future of theChinese economy, among other factors, which could put
downward pressure on the Japanese economy, as well as rising
prices and fluctuations in financial and capital markets.

1

As a result, consolidated net sales for the first six-month
period increased by 3.2% year on year to ¥114,118 million.
Operating profit was ¥1,483 million (compared to operating
loss of ¥754 million in the same period of the previous year)
and profit attributable to owners of parent was ¥983 million(compared to loss attributable to owners of parent of ¥576
million in the same period of the previous year).
Once again, we would like to express our gratitude to ourshareholders and to ask for your continued support of ourbusiness in the future.
December 2023.

Yuji Sato
President and Representative Director

MARUDAI FOOD CO., LTD.

PRODUCTS

Processed Food Products
The Ham & Sausage Products operations conducted sales activities including the release of the “Kunseiya-Ripened Pork Sausage
with Chilli Peppers from Southern Islands of Okinawa” in a limited quantity. This was newly introduced from our mainstay
product “Kunseiya-Ripened Pork Sausage” series as the second collaborative product with another company in an effort toexpand sales. As for midyear gifts, sales declined as the midyear gift market shrank. However, “BT21 One Bite Carpas” and“Haikyu!! Fish Sausage,” among others, featuring popular characters were newly introduced in order to expand sales. With these
efforts, together with the effects of price revisions, sales in the Ham & Sausage Products operations increased by 1.4% year-onyear.
In the Precooked & Processed Foods operations, sales of products for convenience stores and products in the dessert category
remained strong. In addition, sales of the “Salad Chicken” series were robust. We also made efforts to expand sales of ourmainstay product, the “Bistro Club Rich Curry” series. As a result, sales in the Precooked & Processed Foods operations
increased by 5.3% year on year.
As a result, sales in the Processed Food Products segment amounted to ¥76,104 million, an increase of 3.7% year on year.
Segment income of ¥1,147 million was recorded (compared to segment loss of ¥768 million in the same period of the previous
fiscal year) owning mainly to the effects of price revisions and the rationalization and other efforts to reduce costs despite soaring
raw material prices and other factors to increase costs.
Meat Products
With regard to beef, sales to mass retailers were stagnant as consumers became more budget-conscious. However, overall beef
sales remained on par with the sales in the same period of the previous fiscal year due principally to the solid demand for
products for restaurants. Regarding pork, sales of both domestic and imported meat exceeded the previous year’s level as sales ofimported pork for mass retailers remained robust and demand for products for restaurants was beginning to show signs ofrecovery.
As a result, sales in the Meat Products segment increased by 2.4% year on year to ¥37,958 million. Segment income was ¥322
million (compared to segment loss of ¥6 million in the same period of the previous fiscal year).
Other
Sales in the Other business decreased by 16.6% year on year to ¥56 million and Segment income decreased by 26.2% to ¥14
million.

2

MARUDAI FOOD CO., LTD.

CONSOLIDATED BALANCE SHEETS
30th September 2023 and 2022
(Unaudited)

Millions of yen
2023
2022

ASSETS
Current assets:
Cash and time deposits ........................................................................
Receivables:
Trade notes and accounts receivable ...............................................
Other ...............................................................................................
Allowance for doubtful accounts ....................................................
Inventories ...........................................................................................
Advances and other current assets .......................................................
Total current assets ..........................................................................
Investments and other assets:
Investment securities
Affiliates .........................................................................................
Other ...............................................................................................
Retirement benefit asset ......................................................................
Deferred tax assets ..............................................................................
Other ....................................................................................................
Allowance for doubtful accounts .........................................................
Total investments and other assets ..................................................
Property, plant and equipment, at cost:
Land .....................................................................................................
Buildings and structures ......................................................................
Machinery and equipment ...................................................................
Lease assets .........................................................................................
Construction in progress ......................................................................
Less accumulated depreciation ............................................................
Net property, plant and equipment ..................................................
Intangible assets .....................................................................................
Total assets ..........................................................................................
See the accompanying note.

3

Thousands of
U.S. dollars (Note)2023¥8,649¥7,384$57,822

28,443568(14)
21,130699
59,47524,045836(10)20,233798
53,286

190,152
3,797(94)
141,262
4,674
397,613312
13,894
2,024
323
2,452
(131)
18,874247
11,552
2,306
330
2,436
(119)
16,752

2,086
92,887
13,531
2,159
16,393(876)
126,180

18,136
63,59180,5189,375
427
172,047(116,168)
55,8791,223¥ 135,451

18,66563,491
79,492
9,737
764
172,149(111,963)
60,186
1,908¥ 132,132

121,246
425,130
538,294
62,6762,855
1,150,201(776,628)
373,5738,176$905,542

Millions of yen
2023
2022

LIABILITIES AND NET ASSETS

Thousands of
U.S. dollars (Note)
2023

Current liabilities:
Payables:Trade notes and accounts payable ...................................................
Other ...............................................................................................
Short-term borrowings ........................................................................
Long-term debt due within one year ...................................................
Short-term lease obligations ................................................................
Accrued income taxes .........................................................................
Allowance for bonuses ........................................................................
Provision for restructuring ...................................................................
Other current liabilities ........................................................................
Total current liabilities ....................................................................

¥24,087
5,596
14,765
2,622
1,013
516
875
150
2,063
51,687¥22,955
6,283
12,251
2,446
1,103
169
863
–
1,593
47,663$ 161,031
37,411
98,71017,529
6,772
3,450
5,850
1,003
13,791
345,547

Long-term liabilities:
Long-term debt due after one year ......................................................
Long-term lease obligations ................................................................
Deferred tax liabilities .........................................................................
Liabilities for retirement benefits ........................................................
Provision for restructuring ...................................................................
Other long-term liabilities ...................................................................
Total long-term liabilities ................................................................

4,090
3,656
2,586
1,492
275
638
12,737

3,510
4,215
818
1,412
–
662
10,617

27,34324,442
17,288
9,975
1,838
4,266
85,152

Shareholders’ equity:
Common stock
Authorised — 40,000,000 shares in 2023 (40,000,000 shares in 2022)
Issued — 26,505,581 shares in 2023 (26,505,581 shares in 2022) ......
Capital surplus .....................................................................................
Retained earnings ................................................................................
Treasury stock, at cost .........................................................................
Total shareholders’ equity ...............................................................

6,716
22,08638,872(3,620)64,054

6,716
22,08642,801(3,342)
68,26144,899147,653259,875(24,201)
428,226

Accumulated other comprehensive income:Unrealised gains on securities .............................................................
Deferred gains on hedges ....................................................................
Foreign currency translation adjustments ............................................
Adjustments for retirement benefits ....................................................
Total accumulated other comprehensive income ............................

6,656
40
75
(505)
6,266

4,864
101
61
(98)
4,928

44,498268
501(3,376)41,891

Noncontrolling interests ........................................................................
Total net assets .....................................................................................
Total liabilities and net assets ..............................................................

707
71,027¥ 135,451

663
73,852¥ 132,132

4,726
474,843$ 905,542

NET ASSETS

See the accompanying note.

4

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF INCOME
Six months ended 30th September 2023 and 2022
(Unaudited)Thousands of
U.S. dollars (Note)
2023

Millions of yen
2023
2022
Net sales ..................................................................................................
Cost of sales ............................................................................................

¥ 114,118
96,902¥ 110,558
95,365$ 762,923
647,827

Gross profit ..........................................................................................
Selling, general and administrative expenses ......................................

17,216
15,733

15,193
15,947

115,096
105,181

Operating profit (loss) .........................................................................

1,483

(754)

9,915

Other income (expenses):
Interest and dividend income ..............................................................
Real estate rent ....................................................................................
Interest expense ...................................................................................
Loss on disposal of property, plant and equipment, net ......................
Loss on impairment of assets ..............................................................
Restructuring expenses ........................................................................
Other, net .............................................................................................

174
72
(118)
(32)
(4)
(439)
128

171
76
(113)
(83)
(9)
–
104

1,163
481
(789)
(214)
(27)
(2,935)
856

(219)

146

(1,465)

Profit (loss) before income taxes ............................................................

1,264

(608)

8,450

Income taxes:
Current .................................................................................................
Deferred ...............................................................................................

390
(138)

110
(151)

2,607
(923)

252

(41)

1,684

Profit (loss) ..............................................................................................
Profit attributable to noncontrolling interests ......................................

1,012
(29)

(567)
(9)

6,766
(194)

Profit (loss) attributable to owners of parent .......................................

¥983¥(576)$6,572

U.S. dollars (Note)

Yen
Profit (loss) attributable to owners of parent per share .......................
See the accompanying note.

5¥39.34¥(22.87)$0.26MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended 30th September 2023 and 2022
(Unaudited)

Millions of yen
2023
2022

Thousands of
U.S. dollars (Note)
2023

Profit (loss) ..............................................................................................
Other comprehensive income:Unrealised gains on securities .............................................................
Deferred gains on hedges ....................................................................
Adjustments for retirement benefits ....................................................
Share of other comprehensive income of associates accounted for using equity method ....
Total other comprehensive income .................................................
Comprehensive income ..........................................................................

¥ 1,012¥ (567)$6,766

1,703
40
22
18
1,783
¥ 2,795

(126)
30
35
27
(34)
¥ (601)

11,385268
147
120
11,920$ 18,686

Comprehensive income attributable to:
Owners of the parent ...........................................................................
Noncontrolling interests ......................................................................

¥ 2,766¥29¥ (610)¥9$ 18,492$194

See the accompanying note.

6

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 30th September 2023 and 2022
(Unaudited)

Millions of yen
2023
2022

Thousands of
U.S. dollars (Note)
2023

Common stock:
Balance at beginning and end of period .............................................

¥6,716¥6,716$44,899

Capital surplus:
Balance at beginning and end of period .............................................

¥ 22,086¥ 22,086$ 147,653

Retained earnings:
Balance at beginning of period ...........................................................
Cash dividends paid ...........................................................................
Profit (loss) attributable to owners of parent ......................................
Balance at end of period .....................................................................

¥ 38,389(500)
983¥ 38,872¥ 44,133
(756)
(576)
¥ 42,801$ 256,646(3,343)
6,572$ 259,875

Treasury stock, at cost:
Balance at beginning of period ...........................................................
Purchase of treasury stock ..................................................................
Balance at end of period .....................................................................

¥(3,342)(278)¥(3,620)¥(3,066)(276)¥(3,342)$(22,343)(1,858)$(24,201)

Unrealised gains on securities:
Balance at beginning of period ...........................................................
Increase (decrease) for period ............................................................
Balance at end of period .....................................................................

¥4,953
1,703¥6,656¥4,990(126)¥4,864$33,113
11,385$44,498

Deferred gains on hedges:
Balance at beginning of period ...........................................................
Increase for period ..............................................................................
Balance at end of period .....................................................................

¥0
40
¥40

¥71
30
¥101

$0
268
$268

Foreign currency translation adjustments:
Balance at beginning of period ...........................................................
Increase for period ..............................................................................
Balance at end of period .....................................................................

¥57
18
¥75

¥34
27
¥61

$381
120
$501

Adjustments for retirement benefits:
Balance at beginning of period ...........................................................
Increase for period ..............................................................................
Balance at end of period .....................................................................

¥(527)22¥(505)¥(133)35¥(98)$(3,523)147$(3,376)

Noncontrolling interests:
Balance at beginning of period ...........................................................
Increase for period ..............................................................................
Balance at end of period .....................................................................

¥682
25
¥707

¥658
5
¥663

$4,559167$4,726

See the accompanying note.

7

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended 30th September 2023 and 2022
(Unaudited)

Millions of yen
2023
2022
Cash flows from operating activities:
Profit (loss) before income taxes .........................................................
Depreciation and amortisation ............................................................
Loss on impairment of assets ..............................................................
Restructuring expenses ........................................................................
Increase (decrease) in allowance for doubtful accounts .....................
Decrease in liabilities for retirement benefits ......................................
Interest and dividend income ..............................................................
Interest expense ...................................................................................
Loss on disposal of property, plant and equipment,net .......................
Increase in receivables .........................................................................
Increase in inventories .........................................................................
Increase in trade notes and accounts payable ......................................
Increase (decrease) in consumption tax payable ................................
Other, net .............................................................................................
Subtotal ...........................................................................................
Interest and dividends received ...........................................................
Interest paid .........................................................................................
Income taxes paid ................................................................................
Income taxes refund ............................................................................
Payments for special retirement expenses ...........................................
Net cash provided by operating activities .......................................

$8,450
23,566
27
2,935
74
(729)
(1,163)789
214(30,459)(12,682)
22,282
267
5,997
19,5681,163(782)(1,658)

(34)
2,963

¥(608)
3,768
9
–
(11)
(94)
(171)
113
83
(602)
(3,345)
2,055
(56)
(82)
1,059
195
(112)
(144)
159
(20)
1,137

Cash flows from investing activities:
Purchase of short-term investments and investment securities ...........
Purchase of property, plant and equipment .........................................
Proceeds from sale of property, plant and equipment .........................
Other, net .............................................................................................
Net cash used in investing activities ...............................................

(19)(3,355)10(40)(3,404)(18)(3,013)154(52)(2,929)(127)(22,429)67(268)(22,757)

Cash flows from financing activities:
Net increase in short-term borrowings ................................................
Repayment of long-term debt ..............................................................
Repayment of lease obligations ...........................................................
Cash dividends paid .............................................................................
Purchase of treasury shares .................................................................
Other, net .............................................................................................
Net cash provided by financing activities .......................................

4,907(1,462)
(490)
(500)
(277)
(4)
2,174

4,151
(1,413)
(518)
(755)
(276)
(4)
1,185

32,805(9,774)(3,276)(3,343)(1,852)(26)
14,534

Net increase (decrease) in cash and cash equivalents .........................
Cash and cash equivalents at beginning of period ..............................
Cash and cash equivalents at end of period .........................................

1,733
6,916
¥ 8,649

(607)
7,991
¥ 7,384

11,586
46,236$ 57,822

See the accompanying note.

8¥ 1,264
3,525
4
439
11
(109)
(174)
118
32
(4,556)(1,897)
3,333
40
897
2,927
174
(117)
(248)

Thousands of
U.S. dollars (Note)
2023

261

1,745

(227)
19,809MARUDAI FOOD CO., LTD.

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

Basis of financial statements
MARUDAI FOOD CO., LTD. (the “Company”) and its consolidated domestic subsidiaries maintain their official
accounting records in Japanese yen and in accordance with the provisions set forth in the Japanese Company Law andaccounting principles and practices generally accepted in Japan (“Japanese GAAP”). The accounts of overseas
affiliated companies are based on their accounting records maintained in conformity with generally accepted
accounting principles and practices prevailing in the respective countries of domicile. Certain accounting principles
and practices generally accepted in Japan are different from International Accounting Standards and standards inother countries in certain respects as to application and disclosure requirements. Accordingly, the accompanying
financial statements are intended for use by those who are informed about Japanese accounting principles andpractices. These financial statements should be read along with the Annual Report to Shareholders for the year ended
31st March 2023.
The translation of the Japanese yen amounts into U.S. dollar amounts is included solely for the convenience ofreaders outside Japan, using the prevailing exchange rate at 30th September 2023, which was ¥149.58 to U.S. $1.00.
These translations should not be construed as representations that the Japanese yen amounts have been, could havebeen, or could in the future be converted into U.S. dollars at this or any other rate of exchange.

9

DIRECTORS AND STATUTORY AUDITORS(As of 30th September 2023)

President andRepresentative Director:

Yuji Sato

Director and Chairman:

Tokuo Kudara

Managing Director:

Shigeki Fukushima

Director:

Toshio Tanaka

Outside Directors:

Masahiro Fuchizaki
Keiko Kaneko

Statutory Auditor:

Toru Miyachi

Outside Statutory Auditors:

Takashi Matsuzawa
Motoaki Nishimura

10

OUTLINE OF THE COMPANY(As of 30th September 2023)

Established:

Major Subsidiaries:

10th June 1958

Hokkaido Marudai Food Co., Ltd.
Stated Capital:

Tohoku Marudai Food Co., Ltd.

¥6,716 million

Shin-etsu Marudai Food Co., Ltd.
Chubu Marudai Food Co., Ltd.

Number of Employees: 1,990

Chu-Shikoku Marudai Food Co., Ltd.
Head Office:21-3 Midori-cho, Takatsuki-shi,

Kyushu Marudai Food Co., Ltd.

Osaka, Japan

Toda Foods Co., Ltd.
Azumino Food Co., Ltd.

Branch Office:4-7-5 Tsukiji, Chuou-ku,

Toraku Foods Co., Ltd.

Tokyo, Japan

Marushin Foods Co., Ltd.
Pioneer Foods Co., Ltd.

Sales Offices:

The sales headquarters at the

Umeya Co., Ltd.

Company’s head office in Osaka

Yahata Food Co., Ltd.

controls 8 distribution centers andHornmeier Co., Ltd.

6 regional sales departments which

Marudaifood Co., Ltd.

service 23 local outlets.

Marudaifood Supply Co., Ltd.
Marudai Meat Co., Ltd.

Plants:Hokkaido, Iwate,

Meat Supply Co., Ltd.

Niigata, Kanto,

Marbest Trading Co., Ltd.

Ibaraki, Yokosuka, Shonan,

Marudai Service Co., Ltd.

Shizuoka, Matsusaka,

4 Other subsidiaries

Takatsuki, Okayama,
Associated Company:

Hiroshima, Karatsu

Betagro MF Deli Co., Ltd.

11

Head Office: 21-3 Midori-cho, Takatsuki-shi, Osaka, Japan
Telephone: 81-726-61-2518 Fax: 81-726-61-5006