·

Consolidated Financial Results for the Third Quarter of FY2024 [J-GAAP]
February 6, 2024
Listed company name:
NIPPN CORPORATION
Listing:
The Prime Market of Tokyo Stock Exchange
Code number:2001 URL https://www.nippn.co.jp
Representative:
Toshiya Maezuru, President and Chief Operating Officer
Contact:
Koichiro Fukuyama, General Manager of Corporate Communications Group
Filing date of quarterly financial report:
February 7, 2024
Scheduled start of cash dividend payments:―
Supplementary quarterly materials prepared:
None
Quarterly results information meeting held:
None

TEL 03-3511-5307*Amounts less than one million yen have been rounded down.
1. Consolidated financial results for the third quarter of FY2024 (From April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)(Millions of yen, percentage figures show the rate of change compared to the same period of the previous year.)
Profit Attributable to
Net Sales
Operating Income
Ordinary Income
Owners of the Parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Third quarter of FY2024
304,974
11.0
18,00088.2
20,70474.5
14,307
77.0
Third quarter of FY2023
274,681
13.6
9,564
10.1
11,865
4.3
8,084
5.9
(Note) Comprehensive income: Third quarter of FY2024: ¥25,734 million (86.7%)
Third quarter of FY2023: ¥13,779 million (61.5%)
Fully Diluted Profit per
Share (Yen)Profit per Share (Yen)
Third quarter of FY2024
Third quarter of FY2023

183.52104.27160.2991.03(2) Consolidated financial position

Third quarter of FY2024
FY2023(Reference) Equity capital:

Total Assets
Millions of yen

Net Assets
Millions of yen

371,940
344,606

214,424
192,613

Third quarter of FY2024
FY2023Equity Ratio
%
56.5
54.8

¥210,285 million¥188,687 million

2. Dividends
Dividends per Share (Yen)
1Q-end2Q-end3Q-endYear-end

FY2023

－

19.00

－

FY2024

－

28.00

－

FY2024 (Forecast)

Full Year
21.00

40.00

28.00

56.00

(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 change compared to the same period of the previous year.)
Profit Attributable to Profit per ShareNet Sales
Operating Income
Ordinary Income
Owners of the Parent(Yen)
Millions of yen%

Millions of yen% Millions of yen%

Millions of yen%

Full year
400,000
9.4
19,00054.6
21,50045.1
24,500138.8(Note) Adjustment for the most recent forecast of the consolidated financial results in the current term: Yes

314.26

* Notes(1) Significant changes in subsidiaries during the current quarter (changes in specified subsidiaries in accordance with changes
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: None2) 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
3Q of FY2024
78,824,009 shares FY2023
of each period (including treasury
3Q of FY2024
847,884 shares FY2023
shares):2) Number of treasury shares at the end of
3Q of FY2024
77,961,316 shares 3Q of FY2023
each period:3) Average number of shares (quarterly consolidated cumulative period):

78,824,009 shares
860,850 shares
77,536,670 shares(Note) The number of shares at the end of the period includes the Company’s shares (240,000 shares at the end of the third
quarter of FY2024) held by Custody Bank of Japan, Ltd. (Trust E Account). The number of treasury shares deducted in
calculating the average number of shares during the period includes the Company’s shares (133,333 shares at the end of
the third quarter of FY2024) held by Custody Bank of Japan, Ltd. (Trust E Account).
* These consolidated financial results are outside the scope of quarterly review procedures conducted 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 the forecast for 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 Third Quarter Months of FY2024

Contents
1. Qualitative Information on Quarterly Consolidated Financial Results ........................................................ 2(1) Overview of business results ................................................................................................................. 2(2) Overview of financial position .............................................................................................................. 4(3) Information on the forecast for the consolidated financial results ........................................................ 5
2. Quarterly Consolidated Financial Statements .............................................................................................. 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 Third Quarter Months of FY2024

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of business results(Millions of yen)
Third quarter of
FY2023274,681

Third quarter of
FY2024
304,974

Operating income

9,564

Ordinary income
Profit attributable toowners of the parent

Net sales

Difference

Change30,292111.0%

18,0008,436

188.2%

11,86520,704

8,838

174.5%

8,084

14,307

6,222

177.0%

During the third quarter of the fiscal year ending March 31, 2024, the Japanese economy benefited from a
recovery in both personal consumption and inbound consumption, reflecting the relaxation of restrictions on
activities. Although manufacturing and logistics costs remained high against a backdrop of soaring prices ofraw materials and energy, grain prices, which had soared following Russia’s invasion of Ukraine, have subsided
and remained stable. Although the outlook remains uncertain due to unstable international conditions and the
yen's continued depreciation in foreign exchange markets, the business environment surrounding us has been
gradually improving as economic activities have normalized.
In these circumstances, in accordance with our management philosophy of “Contributing to realization of asustainable society by pursuing the well-being (happiness, health, and smiles) of people,” we worked tostrengthen our business foundation while expanding the scope of business through vigorous investment inJapan and overseas. At the same time, in order to fulfill our corporate social responsibility, we stepped up our
initiatives to address sustainability issues, such as reducing our environmental impacts and investing in humancapital. Through these initiatives we strove to achieve sustainable enhancement of corporate value.
In Japan, a ground-breaking ceremony was held in October last year to mark the start of construction of a
new flour mill in Chita City, Aichi Prefecture. The mill is scheduled to start operating in February 2026 as astate-of-the-art flour mill that will be a smart factory utilizing ⅮX. It will be resistant to natural disasters andconsider SDGs, including energy conservation and the environment. In addition to building the new mill, we
have been steadily making investments, including the expansion of equipment at the Kobe-Konan Mill and the
Isesaki Plant.
Overseas, in May last year we invested in Utah Flour Milling, LLC, a US flour mill company, to expand ourbusiness in North America, and in September we installed solar power generation equipment at NIPPN(Thailand) Co. Ltd.’s premix and frozen dough factory. In addition, construction of a premix plant for PT
NIPPN PRODUCTS INDONESIA was completed in October, and we continue to work on business expansion
in the ASEAN region.
Consolidated net sales for the third quarter of fiscal 2024 increased by 11.0% year on year to ¥304,974
million. This reflected an increase in demand due to recovery of personal consumption and inboundconsumption as well as the implementation of sales price revisions in response to rising raw-material costs andvarious other expenses. In terms of profit, despite these higher costs and an increase in strategic costs related
to generating sales, operating income increased by 88.2% to ¥18,000 million, ordinary income rose by 74.5%
to ¥20,704 million, and profit attributable to owners of the parent grew by 77.0% to ¥14,307 million owing toa rise in the sales volume of frozen foods and robust performance of the Nakashoku (Ready-made meal)
Business, cost reductions through productivity improvement, and other factors.
The performance of individual business segments was as follows.

2

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

1) Flour Milling

Net sales
Operating income

Third quarter of
FY2023
87,972

Third quarter of
FY2024
96,342

5,889

7,965

Difference(Millions of yen)
Change8,369

109.5%

2,075

135.2%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 averagefor the five key products in April 2023 and the decrease of 11.1% in October of the same year, we revised theprices of wheat flour products for professional use from June 2023 and January 2024.
As a result, net sales in the Flour Milling segment increased by 9.5% year on year to ¥96,342 million, andoperating income increased by 35.2% to ¥7,965 million.
2) Food(Millions of yen)
Third quarter of
FY2023

Third quarter of
FY2024

Net sales

154,949

172,601

17,652111.4%

Operating income

2,857

8,059

5,201

282.0%

Difference

ChangeIn 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 were higher than thelevel for the same period of the previous year.
In the home-use product category, we continued price revisions from the previous year in line with cost
increases, such as for raw materials, logistics, and energy. As a result, sales of products in this category werehigher than the level for the same period of the previous year.
In the frozen foods category, the "Oh’ My Premium" series, which marked the 20th anniversary of its launch,
was launched as a new lineup of the "SHIGOKU" series, which aims for the highest level of taste, and efforts
were made to expand sales of high value-added products. Sales also increased year-on-year due to strong salesof frozen foods for home use, such as the "One Plate Meal" series of single-serving ready-to-eat meals, as wellas the implementation of a price revision.
In the Nakashoku (Ready-made meal) Business, sales were higher than the level for the same period of theprevious year because demand increased as more people were out and about, resuming their normal lifestyles,
and also owing to price revisions.
As a result, net sales in the Food segment increased by 11.4% year on year to ¥172,601 million, and operating
income rose by 182.0% to ¥8,059 million.
3) Other(Millions of yen)
Third quarter of
FY2023

Third quarter of
FY2024

Net sales

31,75936,0304,270

113.4%

Operating income

782

1,976

1,193

252.6%

Difference

ChangeSales in the Pet Food business were higher than the level for the same period of the previous year becauseof price revisions in line with cost increases, such as for raw materials, in addition to an increase in the volume
of products shipped.
Sales in the Food service 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 and about,resuming their normal lifestyles.
As a result, net sales for the Other segment increased by 13.4% year on year to ¥36,030 million, andoperating income increased by 152.6% to ¥1,976 million.

3

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

Current assets

As of December 31,
FY20232023
143,021
151,342

Difference
8,320

Non-current assets

201,557

220,581

19,023

Deferred assets
Total assets

26
344,606

16
371,940(9)27,334Current liabilities

78,613

82,8344,220

Non-current liabilities

73,37874,682

1,303

Total liabilities

151,992

157,516

5,523

Net Assets
Total liabilities andnet assets

192,613214,424

21,810344,606

371,940

27,334

Total assets at the end of the third quarter of fiscal 2024 increased by ¥27,334 million from the previous
fiscal year end (March 31, 2023) to ¥371,940 million. This was mainly because investment securities; notes
and accounts receivable - trade and contract assets; property, plant and equipment; and merchandise andfinished goods, rose by ¥16,351 million, ¥12,030 million, ¥3,057 million, and ¥1,459 million, respectively, andcash and deposits; and raw materials and supplies, declined by ¥3,251 million and ¥2,400 million, respectively.
Total liabilities increased by ¥5,523 million from the previous fiscal year end to ¥157,516 million. This was
mainly because other non-current liabilities; other current liabilities; and notes and accounts payable - trade,increased by ¥3,832 million, ¥2,010 million, and ¥1,957 million respectively, and long-term loans payable
decreased by ¥2,374 million.
Net assets increased by ¥21,810 million from the previous fiscal year end to ¥214,424 million. This was
mainly because retained earnings, unrealized holding gain (loss) on securities, and foreign currency translation
adjustment increased by ¥10,472 million, ¥9,888 million, and ¥1,231 million, respectively.

4

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter Months of FY2024(3) Information on the forecast for 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. To achieve this goal, we will endeavor to grow our core businessesof flour milling, food ingredients, 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 promoting
improvement and expansion of supply bases as well as acquisitions and alliances to enhance sales and profit.
In addition, based on the intent of the Corporate Governance Code, we are examining the significance ofholding our cross-shareholdings on an individual stock-by-stock basis with an awareness of the cost of capital.
As a result, we resolved to sell a portion of our investment securities in the fourth quarter of FY2024. In orderto improve capital efficiency and strengthen our financial position to enhance corporate value, we aim to reduce
our policy shareholdings to less than 20% of consolidated net assets by FY2026. For details, please refer to the"Notice Regarding Expected Posting of Gain on Sales of Investment Securities (Extraordinary Income)"released today (February 6, 2024).
We have revised upward our earnings forecast for FY2024. This is due to the trend in consolidated operating
results in the third quarter of the year, as well as the anticipated gain on the sale of investment securities(extraordinary income). We are maintaining our plan to pay an annual dividend of 56 yen per share at the endof the fiscal year, but if an upward revision is necessary, we will announce it promptly. For details, please referto the "Notice Regarding Revisions to the Consolidated Financial Results Forecast for the Fiscal Year Ending
March 31, 2024" released today (February 6, 2024).
Revision of the forecast for the consolidated financial results for FY2024 (From April 1, 2023 to March 31,
2024)
ProfitOperating
Ordinary attributable toProfit per
Net sales
incomeincomeowners of theshareparentMillions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

400,000
400,000

17,50019,00020,00021,50014,50024,500186.00314.26

Difference (B-A)

0

1,500

1,500

10,000Rate of change (%)

0.0

8.6

7.5

69.0

365,525

12,28814,816

10,260Previous forecast (A)Revised forecast (B)(Ref.) Results for
FY2023(Fiscal year ended March
31, 2023)

132.16

We have the shareholder benefit program for further understanding our products. To further express our
gratitude to our shareholders and to encourage their continued support, we have decided to partially expand
the contents of our shareholder special benefit program listed or recorded in our shareholder registry as ofMarch 31, 2024.

5

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

2. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Millions of yen)
FY2023(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
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
LandConstruction in progress
Other, net
Total property, plant, and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

6

Third quarter of FY2024(As of December 31, 2023)

36,81533,564

54,11966,14920,918222
26,4004,607(61)
143,021

22,378136
23,9995,172(58)
151,342

46,745
21,17041,027
1,741
2,782
113,467

47,29921,937
41,198
3,063
3,025
116,524

1,179
996
2,175

1,045
1,484
2,530

77,2548,979(320)
85,914
201,55726
344,606

93,606
8,225(305)
101,526
220,58116
371,940

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter Months of FY2024(Millions of yen)
FY2023(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bond-type bonds with subscription
rights to shares
Long-term loans payable
Retirement benefit liability
Accrued retirement benefits for directors
Provision for share awards for directors (and otherofficers)
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Deferred gain (loss) on hedges
Foreign currency translation adjustment
Retirement benefit liability adjustments
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

7

Third quarter of FY2024(As of December 31, 2023)

36,66917,572
221
2,645
764
20,74078,61338,627
17,543
306
3,259
347
22,75082,834

128－

25,03825,024

21,1753,881
406

18,801
3,872
361

－

40

22,74873,378151,992

26,581
74,682
157,516

12,2409,693
128,965(1,287)
149,612

12,240
9,762
139,438(1,317)160,123

36,462
(23)
2,161
473
39,074
226
3,699
192,613344,606

46,351
(42)
3,393
460
50,162
221
3,916
214,424
371,940

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter Months of FY2024(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Third quarter of FY2024)(Millions of yen)
Third quarter of FY2023(From April 1, 2022 to
December 31, 2022)

Third quarter of FY2024(From April 1, 2023 to
December 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses

274,681214,250
60,43050,8669,564

304,974
232,782
72,192
54,191
18,000

51
1,891
258
864
3,066

59
2,051
180
677
2,968

152

Share exchange related expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of investment securities

222
390
765
11,865137－

Gain on sale of businesses
Total extraordinary income
Extraordinary expenses
Loss on sale and disposal of fixed assets
Loss on sale of shares of subsidiaries and associates
Impairment losses
Loss of valuation of investment securities
Other
Total extraordinary expenses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of the parent

8

128
265
20,704

9
129
－

48
91
350

139

490

134
－

126
245

－

25

84
32
250
11,753
2,987
597
3,584
8,168
84
8,084

96
41
534
20,660
5,444
667
6,112
14,547240
14,307

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter Months of FY2024(Quarterly consolidated statements of comprehensive income)(Third quarter of FY2024)(Millions of yen)
Third quarter of FY2023(From April 1, 2022 to December
31, 2022)
ProfitOther comprehensive income
Unrealized holding gain (loss) on securities
Deferred gain (loss) on hedges
Foreign currency translation adjustment
Retirement benefit liability adjustments
Share of other comprehensive income of entities
accounted for using the equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of theparentComprehensive income (loss) attributable to noncontrolling interests

8,168

14,547

4,195
(187)
1,664
(73)
13

9,967
(19)
1,134
(13)
118

5,611
13,77911,18625,734

13,68325,47296261(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

Third quarter of FY2024(From April 1, 2023 to
December 31, 2023)

NIPPN CORPORATION (2001) Consolidated Financial Results for the Third Quarter Months of FY2024(Segment information, etc.)[Segment information]
Ⅰ
Third quarter of FY2023 (From April 1, 2022 to December 31, 2022)
1.
Information on sales and income (loss) by reportable segment and composition of revenue(Millions of yen)
Reportable segments

Flour Milling

Other(Note 1)

Total

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

Food

Total

87,972

154,914242,887

31,041

273,929－

273,929

－

34

34

718

752

－

752

87,972

154,949

242,92131,759274,681－274,681

2,036

520

2,557

1,469

4,027

(4,027)－

Total

90,009155,470

245,479

33,229278,709(4,027)

274,681

Segment income

5,889

2,857

8,747

782

9,529

34

9,564

Net sales
Revenue from contracts
with customers
Other revenue
Net sales to externalcustomers
Internal sales or transfers
between segments(Note)

1. The “Other” column indicates businesses not included in the reportable segments, including pet food, health food,engineering, food service business, and real estate business.
2. Segment income adjustment of ¥34 million includes elimination of inter-segment transactions and corporate expenses.
3. Segment income is adjusted to reconcile total segment income with 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.
1.

Third quarter of FY2024 (From April 1, 2023 to December 31, 2023)
Information on sales and income (loss) by reportable segment and composition of revenue
Reportable segments

Flour Milling

Other(Note 1)

Total

(Millions of yen)Amounts
recorded inquarterly
Adjustments
consolidated(Note 2)
financialstatements(Note 3)

Food

Total

96,342

172,566

268,90935,310304,220－304,220

－

34

34

719

754

－

754

96,342

172,601

268,943

36,030304,974－

304,974

2,328

931

3,260

3,919

7,179

(7,179)－Total

98,671

173,533

272,204

39,949312,154(7,179)304,974

Segment income

7,965

8,059

16,024

1,976

18,0000

18,000Net sales
Revenue from contracts
with customers
Other revenue
Net sales to externalcustomers
Internal sales or transfers
between segments(Note) 1. The “Other” column indicates businesses not included in the reportable segments, including pet food, health food,engineering, food service business, and real estate business.
2. Segment income adjustment of ¥0 million includes elimination of inter-segment transactions and corporate expenses.
3. Segment income is adjusted to reconcile total segment income with operating income in the quarterly consolidated financial
statements.
2.

Information about impairment loss on fixed assets and about goodwill, etc. by reportable segment(Material impairment loss pertaining to fixed assets)
In the “Other” segment, impairment loss on fixed assets is a recorded investment that is no longer recoverable. The amountof impairment loss recorded amounted to ¥25 million for the third quarter of fiscal 2024.

10