Summary of Consolidated Financial Results
For the 1st Quarter Ended June 30, 2024 (Japanese Accounting Standards)
Company name:
Stock code:
Company Representative:
Contact person in charge:

July 31, 2024
Fuji Nihon Seito Corporation
Listing: Standard Market of Tokyo Stock Exchange2114
https://www.fnsugar.co.jp
Hidetoshi Soga, President and Chief Executive Officer
Shin Sugiyama, Executive Officer, Division Head of Administration
TEL.81-3-3667-7811

Planned date to start dividend payment:
Preparation of supplementary material for quarterly financial statements:
Briefing session for quarterly financial statements:

―
None
None
(Rounded down to millions of Japanese yen)

1. Consolidated Financial Results for the 1st Quarter of Fiscal Year 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated Results of Operations(Percentages are shown as year-on-year changes)
Profit attributable
Operating Profit
Ordinary Profit
to owners of parent

Net sales

The 1st quarter ended
Million yen%
Million yen%
June 30, 2024
6,747
12.0
824
77.2
June 30, 2023
6,026
12.9
465 (2.1)
Note: Comprehensive income
The 1st quarter ended June 30, 2024: 625 million yen (△50.7%)
The 1st quarter ended June 30, 2023: 1,267 million yen (132.9%)
Net Profit
per Share
The 1st quarter ended
June 30, 2024
June 30, 2023

Million yen%%

Million yen

720 (25.3)
963 100.4

980 (21.3)
1,251 105.8

Diluted Net
Profit per Share
Yen

27.06
35.90

―
―

(2) Consolidated Financial Position
Total Assets
Net Assets
Equity Ratio
Million yen
Million yen％
As ofJune 30, 2024
33,138
24,10972.5
March 31, 2024
32,41923,851
73.5(Reference) Shareholders’ Equity:
As of June 30, 2024: 24,032 million yen
As of March 31, 2024: 23,825 million yen
2. Cash Dividends
1Q

2Q

Cash Dividend per Share
3Q
4Q

Year ended
Yen
Yen
March 31, 2024
15.00―
March 31, 2024―
Year ending
15.00
March 31, 2024 (forecast)
Note: Revision of the dividend forecast announced most recently: None

Annual

Yen

Yen

Yen

―

17.00

32.00

―

17.00

32.00

3. Consolidated Business Forecasts for the Fiscal Year 2024 (from April 1, 2024 to March 31, 2025)

Net Sales
Million Yen(Percentages are shown as year-on-year changes)
Profit attributable
Net Profit
Operating Profit
Ordinary Profit
to owner of parent per Share% Million Yen%

Million Yen

Year ending March 31, 2024
27,700 7.0
2,000 (8.0)
2,300Note: Revision of the business forecasts announced most recently: None

% Million Yen(28.2)

1,700

%

Yen

(28.3)

63.31

※ Notes(1) Significant changes in subsidiaries during the period(Changes in specified subsidiaries resulting in changes of scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policy and accounting estimates and restatement(i) Changes in accounting policy due to any revision of accounting standards: Yes(ii) Changes in accounting policy other than (i) above:None(iii) Changes in accounting estimates:None(iv) Restatement:
None(4) Number of outstanding shares (common shares)(i) Number of outstanding shares at the end of
period (including Treasury Shares)(ii) Number of treasury shares at the end of
period(iii) Average number of shares during the period

Unit: 1 share
As of June 30,2024
As of June 30,2024
As of June 30,
20241

29,748,200
2,866,893
26,616,557

As of March 31,2024
As of March 31,2024
As of March 31,
2024

29,748,200
2,896,393
26,851,846※ Summary of Consolidated Financial Results is exempt from the audit review before this disclosure.
※ Explanation on appropriate use of business forecasts, and other special notes:(Caution regarding forward-looking statements)
Business forecasts and other forward-looking statements contained in this report and supplementary materials are
based on information currently available to the Company and on certain assumptions deemed as rational and are notintended to guarantee the achievements by the Company. Actual results may differ significantly from such forecasts
due to various factors. For assumptions used for business forecasts and notes in using such forecasts, please refer to“(3) Qualitative information regarding consolidated business forecasts” in “1. The Results for the Fiscal Year 2024” onpage 3 of the Appendix.

○Appendix
1. The Results for the Fiscal Year 2024…………………………………………………………………………………

2-3(1) Qualitative information regarding consolidated operating results …………………………………………….

2(2) Qualitative information regarding consolidated financial position …………………………………………….

3(3) Qualitative information regarding consolidated business forecasts ………………………………………….

3

2. Quarterly consolidated Financial Statements……………………………………………………………………….

4-10(1) Consolidated balance sheets……………………………………………………………………………………...

4-5(2) Consolidated statements of income and consolidated statements of comprehensive income ……………

6-7(Consolidated statements of income) ………………………………………………………………………….

6(Consolidated statements of comprehensive income) …….…………………………………………………

7(3) Notes on consolidated financial statements……………………………………………………………………..

8-10(Changes in accounting policy)…………………………………………………………………………………..

8(Segment information, etc.)………………………………………………………………………………………

8-10(Notes on occurrence of significant changes to shareholders’ equity)…………………………………….

10(Notes on assumptions of going concern)……………………………………………………………………...

10(Notes on statements of cash flows)…………………………………………………………………………….

10(Notes on occurrence of significant subsequent events)……………………………………………………..

10

1. The Results for the Fiscal Year 2024
(1) Qualitative information regarding consolidated operating results for the fiscal year 2024
In the 1st quarter of fiscal year 2024, the company has observed a recovery trend in the country's economy due to theimprovement in employment and income. However, the outlook for the economy is unclear because of the downside
risks in the overseas economy, inflation in the domestic market and fluctuation in the monetary market.
Under this economic environments, our Group has formulated and started to advance the five-year medium-term
management plan ”CHANGE 2028” with the following five key focus areas ①Expansion of our business in South East
Asia ②Create a new business in the food science area ③Growth investments centered on M&A ④Building a strongorganization to achieve our vision ⑤Enhancing IR and shareholder returns.
As a result of the above, our consolidated net sales increased by 12.0% year on year to 6,747 million yen. Operating
profit increased by 77.2% year on year to 824 million yen. Ordinary profit decreased by 21.3% year on year to 985
million yen due to receiving one -time dividend last year. Net profit attributable to owners of parent increased by 25.3%
year on year to 720 million yen.
Operating results of each segment are as follows. Furthermore, from this consolidated fiscal year, the company haschanged the report format from 4 segments “Sugar Business”, “Functional Materials Business”, “Real Estate Business”,
and “Other Food Business” to 3 segments “Sugar Business”, “Functional Materials Business”, and “Real EstateBusiness”. Regarding the comparative information by segment, the company is comparing the adjusted figures tochanged format above. The details on the reporting segments are described in (3) Notes on consolidated financial
statements (Segment information, etc.).
①

Sugar Business

The international raw sugar market began the period at 22.65 cents per pound on the New York Futures Market andhad continued to decline to 17.95 cents due to the positive outlook for sugar production in Brazil. After that, the market
experienced gradual rise to 20.31 cent at the end of June because of the speculative buying caused by announcementof the forecast for increased sugar demand due to climate problems in the key producing countries such as lack of rainin Brazil and Thailand, and extreme heat in India.
On the other hand, the domestic product market started at 249 yen to 251 yen per kilogram (quoted in the Nikkei
newspaper) for large-sized bags of refined sugar. The sales volume slightly decreased comparing to same period lastyear due to adverse weather conditions in June even though the sales of confectioneries for souvenirs were strong in
April. In terms of profit, despite the rise in prices of raw materials, energy, and logistics, the successful price adjustments
resulted in increased profits.
As a result of the above, the Sugar Business reported net sales of 3,320 million yen (up 7.5% year on year) andoperating profit of 609 million yen (up 69.0% year on year).
②Functional Materials Business

Regarding the sales of the functional dietary fiber “Inulin”, because of adoption of the new products released in springand summer, the domestic sales volume of “Inulin” increased compared to the same period last year. In overseas sales,
the company achieved increased revenue and profit as a result of not only the stable sales of health foods in Thailand,
but also the recovery of sales volume in Asian countries due to the expansion of new sales channels. In addition, thecompany commenced an online retail business to accumulate know-how through the sales of products acquired througha business transfer. Moreover, the company conducted new product development based on Inulin.
Regarding UNITEC FOODS Co. Ltd., a subsidiary under consolidation, the sales volume of its main product, pectin,
gelatin, and collagen saw significant increase, leading to higher revenue and profits.
As a result of the above, the Functional Materials Business reported net sales of 3,193 million yen (up 17.5% year onyear) and operating profit of 320 million yen (up 78.5% year on year).
③

Real Estate Business

The company has constructed and commenced the operation of the new business hotel “Toyoko Inn Tokyo KayabachoEki” at the former headquarters site as of September 1st. As a result, net sales of 163 million yen (up 14.3% year onyear) and operating profit of 149 million yen (up 12.2% year on year), and it has continued to contribute to stableearnings.

-2-

(2) Qualitative information regarding consolidated financial position
Total assets as of June 30, 2024 increased by 2.2% compared to the end of the previous fiscal year to 33,138 million
yen. The changes of financial position of the 1st quarter of fiscal year 2024 are as follows:①

AssetsCurrent assets increased by 5.0% compared to the end of previous fiscal year to 17,769 million yen. This was mainly
due to an increase of Inventories and so on.
Non-current assets decreased by 0.8% compared to the end of the previous fiscal year to 15,368 million yen. This was
mainly due to a decrease of investment securities and so on.
②

Liabilities

Current liabilities increased by 7.5% compared to the end of the previous fiscal year to 6,986 million yen. This was
mainly due to an increase of account payable and so on.
Non-current liabilities decreased by 1.3% compared to the end of the previous fiscal year to 2,042 million yen. Thiswas mainly due to a decrease of deferred tax liabilities and so on.
③

Net assets

Net assets increased by 1.1% compared to the end of the previous fiscal year to 24,109 million yen. This was mainly
due to an increase of retained earnings and so on.

(3) Qualitative information regarding consolidated business forecasts
The consolidated results for the 1st quarter of fiscal year 2024 are trending slightly upwards comparing to the original
business forecasts released on April 30, 2024. Given the underperformance risks such as the downturn in theoverseas economy and domestic inflation, and considering the rising costs of energy and logistics, the company has
decided not to revise the consolidated earnings forecast for the fiscal year 2024.
The financial forecasts are based on information available at the time of the above release. Actual results may differ
from such forecasts due to various volatile factors toward the end of fiscal year 2024.

-3-

2. Consolidated Financial Statements and Main Notes(1) Consolidated balance sheets(Thousand yen)

AssetsCurrent assets
Cash, cash equivalent and deposits
Notes and accounts receivable – trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Investments in leases
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment
Buildings and structures (net)
Machinery, equipment, and vehicles(net)Land
Construction in progress
Other non-current assets (net)Total property, plant, and equipment
Intangible assets
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term loans receivable from subsidiaries andassociates
Retirement benefit asset
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

FY 2023(As of March 31, 2023)

FY 2024(As of June 30, 2024)

5,274,800
4,145,574
3,835,520
152,729
1,475,543
954,138
1,085,800(3,103)
16,921,003

5,125,471
4,219,313
3,729,878
250,747
2,057,188952,210
1,436,802(2,086)
17,769,526

356,558
370,4022,527,435
4,083
167,0073,425,487

362,111368,4422,527,435
10,685167,087
3,435,762

55,59355,59350,89850,8989,654,764
2,163

9,535,163
2,267

1,902,500

1,902,500

126,532
344,185(13,112)
12,017,033
15,498,114
32,419,118

133,413
321,809(13,112)
11,882,040
15,368,701
33,138,227

FY 2023(As of March 31, 2023)

Current liabilities
Accounts payable - trade
Short-term loans payable
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other current liabilities
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

FY 2024(As of June 30, 2024)

2,053,131
3,096,800
349,434
37,678173,538
787,936
6,498,520

2,625,682
3,142,800
231,588
127,861
91,369767,120
6,986,423

1,412,885
92,047564,269
2,069,203
8,567,723

1,394,869
92,119555,195
2,042,184
9,028,607

1,524,460
2,102,408
17,608,463(717,401)
20,517,930

1,524,460
2,124,513
17,872,137(710,095)
20,811,015

3,280,889
5,591
20,9073,307,388
26,07623,851,394
32,419,118

3,177,618
22,50821,3583,221,484
77,11924,109,619
33,138,227

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

FY 2023(From April 1, 2023
to June 30, 2023)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Dismantlement expenses
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit for the period
Loss for the period attributable to non-controlling interests
Profit for the period attributable to owners of parent-6-(Thousand yen)
FY 2024(From April 1, 2024
to June 30, 2024)

6,026,078
4,652,424
1,373,654
908,469
465,184

6,747,258
4,900,128
1,847,130
1,022,608
824,5218,373
755,992
6,302

9,695
121,932-

16,057

46,891

8,084
794,810

10,081
188,601

8,541
8
8,550
1,251,444

10,40514,1403,378
27,924985,198

2,924
3,932
6,856
1,244,588
252,785
38,952291,737
952,850(11,016)
963,86722
22985,176
224,134
49,844273,979
711,197(8,957)
720,154

Consolidated statements of comprehensive income

FY 2023(From April 1,2023 to June30, 2023)(Thousand yen)
FY 2024(From April 1,2024 to June30, 2024)

952,850

711,197

315,994
177
882(103,270)
13,942450(2,497)

2,974

314,557
1,267,408(85,903)625,294

1,278,425(11,016)

634,251(8,957)

Profit for the period
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income for the year
Comprehensive income for the period
Comprehensive income for the period attributable to:
Owners of parent
Non-controlling interests-7-(3) Notes on consolidated financial statements(Changes in accounting policy)(Application of Accounting Standard for Current Income Taxes)
The Company has applied the “Accounting Standard for Current Income Taxes” (Accounting Standards Board ofJapan (“ASBJ”) Standard No. 27, October 28, 2022; the “Revised Accounting Standard of 2022”) from the beginningof the 1st quarter ended June 30, 2024.
Revisions to categories for recording Corporate Taxes, etc. (taxation on other comprehensive income) conform to thetransitional treatment outlined in the proviso of Paragraph 20-3 of the Revised Accounting Standard of 2022 and“Guidance on accounting Standard for Tax Effect Accounting” (ASBJ Guidance No.28, October 28, 2022; the “Revised
Application Guidance of 2022”) Paragraph 65-2. There is no impact on the quarterly consolidated financial statements
resulting from the change in accounting policies.
Moreover, the revision regarding review of treatment on consolidated financial statement when the company defers
for tax purposes the profit or loss resulting from the sale of subsidiary stock between consolidated companies, thecompany has applied the Revised Accounting Standard of 2022 from the beginning of the 1st quarter ended June 30,2024. The change in accounting policy has been applied retroactively, and this retroactive application also extends tothe previous quarterly and consolidated fiscal year financial statements. There is no impact on the previous quarterly
consolidated financial statements or the consolidated financial statements for the previous fiscal year due to thechange in accounting policies.
(Segment information, etc.)
1.

Notes on changes in Reporting Segment
The company has implemented a change in organization, and management division was changed. In line with this,“Flower Freshness Preservation Agent”, previously included in “Functional Food Materials”, has been recognized as
single business segment and transferred it to the “Other” segment. In addition, “Other Food Business”, previously
included in reporting segment, has been transferred to “Other” segment due to its insignificance.
Moreover, the segment information in the 1st quarter of Fiscal year 2023 is reported based on the updated
classification method.

-8-

2.

The 1st quarter of Fiscal year 2023 (from April 1, 2023 to June 30, 2023)
Information on amounts of net sales and profit/loss, and breakdown of profit by each reporting segment

Other(Note:1)

Adjustments(Note:2)

Amountrecorded inconsolidated
statements
of income(Note:3)

3,090,317――

3,090,317―

47,581――47,581

2,671,405―

2,671,405――

2,671,405

―

―

―

―

61,684―

61,684――――

11,700―11,7003,090,317

2,718,986―

5,809,304

73,384―

5,882,689――

143,389

143,389――

143,389

3,090,317

2,718,986

143,389

5,952,693

73,384―

6,026,078

3,541

―

1,499

5,040

9,932

(14,973)―

Total

3,093,859

2,718,986

144,888

5,957,734

83,317(14,973)

6,026,078

Segment profit (loss)

360,541

179,416

133,005

672,963

21,837(229,616)

465,184

Reporting Segment
Sugar
Business

Functional
Materials
BusinessReal
EstateBusiness

3,090,317――

Food Additives―

47,581

Functional Food Materials―

Flower Freshness
Preservation Agent
Baked goods, etc.

Total

Net sales
Sugar, Sugar related products,
etc.

Income generated byContracts with customers
Other income
Net sales to third-party
customers
Intersegment net sales andtransfer

Notes: 1. “Other” is the division which is not included in the report segment
2. Adjustments for segment profit of (229,616) thousand yen are general and administrative expenses ofadministrative department and research and development, which don’t belong to the reporting segment above.
3. Segment profits are adjusted against the operating profit recorded in consolidated statements of income.

-9-The 1st quarter of Fiscal year 2024 (from April 1, 2024 to June 30, 2024)
I
Reporting Segment
Other(Note:1)(Thousand yen)Amountrecorded in
Adjustments consolidated(Note:2)
statements
of income(Note:3)

Sugar
Business

Functional
Materials
BusinessReal
EstateBusiness

3,320,983――

3,320,983――

3,320,983

Food Additives―

57,014―57,014――57,014

Functional Food Materials―

3,136,455―

3,136,455――

3,136,455

Flower Freshness
Preservation Agent

―

―

―

―

66,930―66,930

Baked goods, etc.

―

―

―

―

1,976

―

1,976

3,320,983

3,193,469―

6,514,453

68,906―

6,583,359――

163,899

163,899――

163,899

3,320,983

3,193,469

163,899

6,678,352

68,906―

6,747,258

3,777

―

1,499

5,277

8,429

(13,707)―3,324,761

3,193,469

165,399

6,683,630

77,335(13,707)

6,747,258

609,391

320,181

149,245

1,078,818

21,672(275,969)

824,521Net sales
Sugar, Sugar related
products, etc.

Income generated byContracts with customers
Other income
Net sales to third-party
customers
Intersegment net sales andtransfer
Total
Segment profit (loss)

Total

Notes: 1. “Other” is the division which is not included in the report segment
2. Adjustments for segment profit of (275,969) thousand yen are general and administrative expenses ofadministrative department and research and development, which don’t belong to the reporting segment above.
3. Segment profits are adjusted against the operating profit recorded in consolidated statements of income.
(Notes on occurrence of significant changes to shareholders’ equity)
None(Notes on assumptions of going concern)
None(Notes on statements of cash flows)
The statements of cash flows have not been prepared in the 1st quarter of Fiscal year 2024. Also, the depreciation
expense (including amortization expense of intangible fixed assets, excluding goodwill) in the 1st quarter of Fiscal year
2024 are as follows.

FY 2023(From April 1,2023 to June30, 2023)(Thousand yen)
FY 2024(From April 1,2024 to June30, 2024)

47,41345,734

Depreciation expense(Notes on occurrence of significant subsequent events)
None- 10 -