Consolidated Financial Results for the First Quarter of FY2024 [J-GAAP]
August 4, 2023
Listed company name:
NIPPN CORPORATION
Listing:
The Prime Market of Tokyo Stock Exchange
Code number: 2001
URL:
https://www.nippn.co.jp/
TEL:03-3511-5307
Representative:
Toshiya Maezuru, President and Chief Operating Officer
Contact:
Koichiro Fukuyama, General Manager of Corporate Communications Group
Filing date of quarterly financial report:
August 7, 2023
Start of cash dividend payments:―
Supplementary quarterly materials prepared:
None
Quarterly results information meeting held:
None*Amounts less than one million yen have been rounded down.

1. Consolidated financial results for the first quarter of FY2024 (From April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)(Millions of yen, percentage figures show the rate of change from the same period of the previous year.)

Net Sales

Operating Income

Profit Attributable to
Owners of Parent

Ordinary Income

1Q of FY2024

98,631

14.4%

5,447

117.8%

6,687

74.7%

4,479

64.3%

1Q of FY2023

86,205

10.6%

2,500

(5.1)%

3,828

0.6%

2,726

4.6%

(Note) Comprehensive income:1Q of FY2024:
1Q of FY2023:¥11,684 million (165.6%)¥4,399 million (114.6%)

Fully Diluted Profit
per Share (Yen)Profit per Share (Yen)
1Q of FY2024

57.47

50.19

1Q of FY2023

35.52

30.98

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

1Q of FY2024

352,619

202,572

56.3%

FY2023

344,606

192,613

54.8%(Reference) Equity capital:

1Q of FY2024:
FY2023:¥198,602 million¥188,687 million

2. Dividends
Dividends per Share (Yen)
1Q-endFY2023—

FY2024—2Q-endFY2024 (Forecast)

3Q-endYear-end

Full Year

19.00

—

21.00

40.00

20.00

—

20.00

40.00

(Note) Adjustment for the most recent forecast of the dividends in the current term: None

3. Forecast of the consolidated financial results for FY2024 (From April 1, 2023 to March 31, 2024)(Millions of yen, percentage figures show the rates of changes from the same period of the previous year.)

Net Sales

Operating Income

Ordinary Income

Profit Attributableto Owners of
ParentProfit per Share(Yen)

Half year

191,000

8.2%

6,300

8.1%

7,400

2.6%

5,100

2.8%

65.45

Full year

387,000

5.9%

12,5001.7%

14,600(1.5)%

10,8005.3%

138.60(Note) Adjustment for the most recent forecast of the consolidated financial results in the current term: None

* Notes(1) Significant changes in subsidiaries during the current quarter (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial information: None
(3) Changes in accounting policies, accounting estimates and retrospective restatements
1) Changes in accounting policies due to revisions of accounting standards: None
2) Changes other than 1):
None3) Changes in accounting estimates:
None4) Retrospective restatements:
None(4) Number of shares issued and outstanding (common stock)1) Number of shares outstanding at
the end of each period (including
treasury shares):
2) Number of treasury shares at theend of each period:3) Average number of shares(quarterly consolidated
cumulative period):

1Q of FY2024

78,824,009

shares FY2023

78,824,009

shares1Q of FY2024

847,659

shares FY2023

860,850

shares1Q of FY2024

77,939,275

76,762,585

sharesshares 1Q of FY2023* These consolidated financial results are outside the scope of quarterly review procedures by certified public accountants
or an audit corporation.
* Explanation regarding the appropriate use of projected financial results and other special instructions
Descriptions regarding the future, including the financial outlook contained in this material, are based on certain
information currently available to the Company and particular assumptions, which are, at the discretion of the Company,
deemed reasonable, and actual financial results may significantly vary due to various factors. Please refer to “1.
Qualitative Information on Quarterly Consolidated Financial Results, (3) Information on forecast of the consolidated
financial results” on page 5 for information on preconditions underlying the above outlook and other related
information.

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024

Contents
1.

Qualitative Information on Quarterly Consolidated Financial Results ..................................................... 2(1) Overview of business results ................................................................................................................. 2(2) Overview of financial position .............................................................................................................. 5(3) Information on forecast of the consolidated financial results ................................................................ 5
2. Quarterly Consolidated Financial Statements and Primary Notes............................................................. 6(1) Quarterly consolidated balance sheets ................................................................................................... 6(2) Quarterly consolidated statements of income and comprehensive income ........................................... 8(Quarterly consolidated statements of income) ..................................................................................... 8(Quarterly consolidated statements of comprehensive income) ............................................................ 9(3) Notes on quarterly consolidated financial information ............................................................................ 9(Notes on going concern assumption) ................................................................................................... 9(Notes to significant changes in the amount of shareholders’ equity) ................................................... 9(Segment information, etc.) ................................................................................................................. 101

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of business results(Millions of yen)First three months of
Fiscal 2023

First three months of
Fiscal 2024

Difference

ChangeNet sales

86,20598,631

12,425114.4%

Operating income

2,500

5,447

2,946

217.8%

Ordinary income

3,828

6,687

2,858

174.7%

Profit attributableto owners of parent

2,726

4,479

1,752

164.3%

During the first three months of the fiscal year ending March 31, 2024, the Japanese economy benefited
from a recovery of both personal consumption and inbound consumption, reflecting the relaxation of
restrictions on activities. On the other hand, manufacturing and logistics costs remained high, against a
backdrop of soaring prices of raw materials and energy due to the Russo-Ukraine situation as well as
instability elsewhere internationally. Thus, the outlook remained uncertain.
In these circumstances, in accordance with our management philosophy of “contributing to therealization of a sustainable society by pursuing the well-being (happiness, health, and smiles) of people,”
we promoted initiatives to create future-focused value, working with our customers, employees,
shareholders, society, and other stakeholders. In addition to cost reductions through operational
improvements, we strove to strengthen our business foundation by further bolstering sales of mainstay
products through upfront investments to expand sales and by enhancing our competitive advantage throughthe provision of high-value-added products and services.
In May 2023, the Company invested in Utah Flour Milling, LLC, a flour milling company in the U.S.,in order to achieve business expansion in North America and promote the inorganic growth strategy.
Through direct engagement in the flour milling business in the U.S. we aim to enhance the Group’s overall
strength as a flour miller and accelerate business growth in the U.S. by leveraging synergy with the Group’s
two existing sites in the U.S., namely, NIPPN California Inc., a California-based premix sales company,
and Pasta Montana, L.L.C., a Montana-based pasta production and sales company, with a view to further
expanding the global business.
Consolidated net sales for the first three months of fiscal 2024 increased by 14.4% year on year to¥98,631 million, reflecting an increase in demand due to recovery of personal consumption and inboundconsumption and the implementation of sales price revisions in stages in response to rising raw material
costs and various other costs. In terms of profit, despite these higher costs and an increase in strategic costs
for sales expansion, operating income increased by 117.8% to ¥5,447 million, ordinary income increased
by 74.7% to ¥6,687 million, and profit attributable to owners of parent increased by 64.3% to ¥4,479
million owing to growth of the sales volume of frozen foods and robust performance of the ready-mademeal business.
The performance of individual business segments was as follows.

2

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024

1) Flour Milling(Millions of yen)First three months of
Fiscal 2023

First three months of
Fiscal 2024

Difference

ChangeNet sales

28,003

31,466

3,463

112.4%

Operating income

1,512

2,199

687

145.4%In the Flour Milling business, sales were higher than the level for the same period of the previous
year, mainly because of the wheat flour price revision and a robust trend in sales prices of wheat bran,
a by-product.
In line with the increase of government sales prices (tax inclusive) of imported wheat by 5.8% on
average for the five key products in April 2023, we revised the prices of wheat flour products for
professional use from June 2023.
As a result, net sales of the Flour Milling segment increased by 12.4% year on year to ¥31,466 million,
and operating income increased by 45.4% to ¥2,199 million.
2) Food(Millions of yen)First three months of
Fiscal 2023

First three months of
Fiscal 2024

Difference

ChangeNet sales

48,34655,5407,193

114.9%

Operating income

858

2,765

1,906

322.0%In the professional-use category, demand increased mainly from restaurants owing to recovery of
personal consumption and inbound consumption, and as a result, sales of products in this category werehigher than the level for the same period of the previous year.
In the home-use product category, we continued price revisions from the previous year in line withcost increases, such as for raw materials, logistics, and energy, and as a result, sales of products in thiscategory were higher than the level for the same period of the previous year.
In the frozen foods category, sales of home-use frozen foods, centering on the One Plate Meal seriesof complete meals consisting of a main dish and staples, were buoyant in response to increasing needs
for “quick and easy” meals. Sales of products in this category were higher than the level for the same
period of the previous year, also reflecting price revisions.
In the ready-made meals business, sales were higher than the level for the same period of the previous
year because demand increased as more people were out and about, resuming their normal lifestyles.
As a result, net sales of the Food segment increased by 14.9% year on year to ¥55,540 million, andoperating income increased by 222.0% to ¥2,765 million.

3

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024

3) Other(Millions of yen)First three months of
Fiscal 2023

First three months of
Fiscal 2024

Difference

ChangeNet sales

9,854

11,6241,769

118.0%

Operating income

117

489

372

416.2%

Sales of the pet food business were higher than the level for the same period of the previous year
because of price revisions in line with cost increases, such as for raw materials, in addition to an increasein the volume of products shipped.
Sales of the restaurant business were higher than the level for the same period of the previous year,
reflecting buoyant sales of products in addition to an increase in demand as more people were out andabout, resuming their normal lifestyles.
As a result, net sales for the Other segment increased by 18.0% year on year to ¥11,624 million, andoperating income increased by 316.2% to ¥489 million.

4

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024(2) Overview of financial position(Millions of yen)

As of March 31, 2023

As of June 30, 2023

Difference

Current assets

143,021

139,272(3,749)Non-current assets

201,557

213,281

11,7242664

38344,606

352,619

8,013

Current liabilities

78,61375,147(3,466)

Non-current liabilities

73,37874,8991,520

Total liabilities

151,992

150,046(1,945)

Total net assets

192,613202,572

9,959

Total liabilities and net assets

344,606

352,619

8,013

Deferred assets
Total assets

Total assets at the end of the first three months of fiscal 2024 increased by ¥8,013 million from theprevious fiscal year end (March 31, 2023) to ¥352,619 million. This was mainly because investment
securities, merchandise and finished goods, and notes and accounts receivable - trade and contract assets
increased by ¥11,939 million, ¥995 million, and ¥938 million, respectively, and cash and deposits decreasedby ¥5,657 million.
Total liabilities decreased by ¥1,945 million from the previous fiscal year end to ¥150,046 million. Thiswas mainly because other non-current liabilities and short-term loans payable increased by ¥2,686 millionand ¥1,391 million, respectively, and notes and accounts payable - trade, income taxes payable and longterm loans payable decreased by ¥3,264 million, ¥1,395 million, and ¥1,023 million, respectively.
Net assets increased by ¥9,959 million from the previous fiscal year end to ¥202,572 million. This was
mainly because unrealized holding gain (loss) on securities and retained earnings increased by ¥6,688
million and ¥2,837 million, respectively.
(3) Information on forecast of the consolidated financial results
In its long-term vision, the Group aims to grow to a scale of ¥500 billion in net sales and ¥25 billion in
operating income on a consolidated basis. As a milestone on the path to achieving this goal, we aim toachieve ¥400 billion in net sales and ¥15 billion in operating income by fiscal 2027.
In order to achieve this goal, we will endeavor to grow our core businesses of flour milling, foodingredients, and processed foods by strengthening our brand power, developing differentiated products,
and increasing production capacity. We position frozen foods, ready-made meals, healthcare, and overseas
business, which are growth businesses, as priority fields and are focusing management resources on thesepriority fields while promoting improvement and expansion of supply bases as well as acquisitions andalliances to enhance sales and profit.
In accordance with the management philosophy, the Group will strive to further enhance its corporate
value by sincerely addressing the issues confronting society such as climate change and otherenvironmental issues, the need for effective use of food resources, population issues, and the extension ofhealthy life expectancy.
The forecasts of consolidated business results for the first six months and the full year of fiscal 2024
announced on May 12, 2023, are unchanged.
With regard to dividends, the Company plans to pay total cash dividends of ¥40 per share for the fullyear ending March 31, 2024, unchanged from the forecast.

5

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly consolidated balance sheets(Millions of yen)

FY2023(As of March 31, 2023)

First quarter of FY2024(As of June 30, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade andcontract assets

36,81531,157

54,11955,057

Merchandise and finished goods

20,91821,914222

314

Raw materials and supplies

26,40025,046

Other current assets
Allowance for doubtful accounts

4,607
(61)

5,830
(48)

143,021

139,272

Buildings and structures, net
Machinery, equipment and vehicles, net

46,745
21,17046,94021,029Land

41,02740,759Construction in progress

1,741

2,381

Other, net

2,782

2,962

113,467

114,072

1,179

1,132

996

952

Total intangible assets

2,175

2,084

Investments and other assets
Investment securities

77,25489,194

Other assets

8,979

8,290

Allowance for doubtful accounts

(320)

(317)

Total investments and other assets

85,914

97,167

201,557

213,32426

22344,606

352,619

Work in process

Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Goodwill
Other

Total non-current assets
Deferred assets
Total assets

6

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024(Millions of yen)

FY2023(As of March 31, 2023)

First quarter of FY2024(As of June 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade

36,66933,405

Short-term loans payable
Current portion of bonds

17,572
221

18,963
221

Income taxes payable

2,645

1,250

Provision for bonuses

764

688

Other current liabilities

20,74020,617

Total current liabilities

78,61375,147

128

128

25,03825,033Long-term loans payable

21,175

20,152Retirement benefit liability
Accrued retirement benefits for directors

3,881
406

3,784
365

Other non-current liabilities

22,74825,434

Total non-current liabilities

73,37874,899151,992

150,046

Shareholders’ equity
Capital stock

12,24012,240Capital surplus

9,693

9,709

Retained earnings

128,965

131,803

Treasury shares(1,287)(1,265)

Total shareholders’ equity

149,612

152,487

36,462

43,151(23)

81

Foreign currency translation adjustments

2,161

2,413

Retirement benefit liability adjustments

473

469

39,074

46,114

Subscription rights to shares

226

221

Non-controlling interests

3,699

3,747

192,613202,572

344,606

352,619

Non-current liabilities
Bonds payable
Convertible bond-type bonds with
subscription rights to shares

Total liabilities
Net assets

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Deferred gain (loss) on hedges

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

7

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Millions of yen)First quarter of FY2023(From April 1, 2022
to June 30, 2022)

First quarter of FY2024(From April 1, 2023
to June 30, 2023)

Net sales

86,20598,631

Cost of sales

66,93775,650Gross profit

19,26722,980

Selling, general and administrative expenses

16,766

17,532

Operating income

2,500

5,447

Interest income

15

17

Dividend income

1,019

1,012

449

295

1,484

1,325

Interest expenses
Other

49
107

45
40

Total non-operating expenses

156

86

3,828

6,687

Gain on sales of fixed assets

936Gain on sales of investment securities

18

13

Total extraordinary income

28

49

Loss on sales and disposal of fixed assets
Loss on sale of shares of subsidiaries andassociates

16

44

–

239

Other

1

46

Total extraordinary expenses

17

331

Profit before income taxes

3,839

6,406

Income taxes - current
Income taxes - deferred

463
694

1,160
690

Total income taxes

1,157

1,851

Profit

2,681

4,554

(45)

75

2,726

4,479

Non-operating income

Other
Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary expenses

Profit (loss) attributable to non-controllinginterests
Profit attributable to owners of parent

8

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024(Quarterly consolidated statements of comprehensive income)(Millions of yen)First quarter of FY2023(From April 1, 2022
to June 30, 2022)
ProfitFirst quarter of FY2024(From April 1, 2023
to June 30, 2023)

2,681

4,554

Unrealized holding gain (loss) on securities

905

6,772

Deferred gain (loss) on hedges

88

104

Foreign currency translation adjustments

738

268

Retirement benefit liability adjustments
Share of other comprehensive income ofentities accounted for using equity method

(23)

(4)

8

(11)

Total other comprehensive income (loss)

1,718

7,129

4,399

11,684

4,439

11,597(39)

86

Other comprehensive income (loss)

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable toowners of parent
Comprehensive income (loss) attributable tonon-controlling interests(3) Notes on quarterly consolidated financial information(Notes on going concern assumption)
Not applicable.
(Notes to significant changes in the amount of shareholders’ equity)
Not applicable.

9

NIPPN CORPORATION (2001) Consolidated Financial Results for the First Quarter of FY2024(Segment information, etc.)[Segment information]
I. First Quarter of FY2023 (From April 1, 2022 to June 30, 2022)
1. Information on sales and income (loss) by reportable segment and composition of revenue(Millions of yen)
Reportable segments
Flour
Milling

Other
Food

Total

(Note 1)

Total

Amounts
recorded in
Adjustments
quarterly(Note 2)
consolidated
financialstatements(Note 3)

Net sales
Revenue from contracts with
28,003
48,33576,338
9,615
85,954—85,954
customers
Other revenue
—
11
11
239
251
—
251
Net sales to external customers
28,003
48,34676,3509,854
86,205—86,205Internal sales or transfers between
550
166
716
401
1,118
(1,118)—segments
Total
28,55348,51377,067
10,25687,323(1,118)86,205
Segment income
1,512
858
2,371
117
2,489
11
2,500
Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, healthcare, engineering,
restaurant, and real estate leasing.
2. Segment income adjustment of ¥11 million includes elimination of inter-segment transactions and corporate expenses.
3. Segment income is adjusted to reconcile total segment income to operating income in the quarterly consolidated financial statements.

2. Information about impairment loss on fixed assets and about goodwill etc. by reportable segment
Not applicable.
II. First Quarter of FY2024 (From April 1, 2023 to June 30, 2023)
1. Information on sales and income (loss) by reportable segment and composition of revenue(Millions of yen)
Reportable segments
Flour
Milling

Other
Food

Total

(Note 1)

Total

Amounts
recorded in
Adjustments
quarterly(Note 2)
consolidated
financialstatements(Note 3)

Net sales
Revenue from contracts with
31,46655,52886,995
11,384
98,380—98,380
customers
Other revenue
—
11
11
239
250
—
250
Net sales to external customers
31,46655,54087,006
11,624
98,631—
98,631
Internal sales or transfers between
689
266
955
851
1,806
(1,806)—segments
Total
32,15555,80687,962
12,475 100,438(1,806)
98,631
Segment income
2,199
2,765
4,965
489
5,455
(7)
5,447
Notes: 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, healthcare, engineering,
restaurant, and real estate leasing.
2. Segment income adjustment of ¥(7) million includes elimination of inter-segment transactions and corporate expenses.
3. Segment income is adjusted to reconcile total segment income to operating income in the quarterly consolidated financial statements.

2. Information about impairment loss on fixed assets and about goodwill etc. by reportable segment
Not applicable.

10