Worth reading
79Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
159.9
Hundred millions of yenWording
Conditional
How definitive the wording is.Contents of this document
Presentation materials on financial resultsFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales159.9 Hundred millions of yen+3.8%
Operating profit25.5 Hundred millions of yen-2.2%
Ordinary income29.8 Hundred millions of yen-8.5%
Net income20.9 Hundred millions of yen-11.3%
Operating profit margin15.9%, down 1.0 percentage point year on year
Results for the three months of the current quarterConsolidated net sales of ¥15.99 billion, operating profit of ¥2.55 billion, ordinary profit of ¥2.98 billion and net income of ¥2.09 billion. Standalone net sales were ¥11.40 billion, operating profit was ¥1.72 billion, ordinary profit was ¥2.67 billion and net income was ¥1.86 billion.
Full-year earnings forecast
Consolidated revenue692.3 Hundred millions of yen
Consolidated operating profit112.5 Hundred millions of yen
Consolidated ordinary income131.6 Hundred millions of yen
Consolidated net income95.5 Hundred millions of yen
Standalone sales491 Hundred millions of yen
Non-consolidated operating profit76 Hundred millions of yen
Non-consolidated ordinary income88.8 Hundred millions of yen
Non-consolidated net profit62 Hundred millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Consolidated net sales fell short of plan, while operating profit and the operating margin exceeded plan. On a standalone basis, net sales, operating profit, the operating margin and net income exceeded plan. Subsidiaries fell short of plan for net sales and operating profit.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Factors behind the decline in standalone operating profitMaterials: ¥25 million; packaging materials: ¥49 million; freight—Kurashiki: ¥33 million; other: ¥36 million; labor costs: ¥23 million; fixed costs: ¥3 million
Factors behind the increase in standalone ordinary profitLower derivative valuation losses: ¥103 million; interest on securities and other income: ¥46 million; dividends: ¥62 million
Factors behind the decline in standalone ordinary profitLower operating profit: ¥84 million; lower foreign exchange gains: ¥374 million; other: ¥4 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The full-year foreign exchange assumptions are EUR/JPY 184.33, CNY/JPY 22.36, TWD/JPY 4.98 and IDR/JPY 0.009. The budget incorporates a year-on-year increase of ¥400 million in annual raw-material purchasing costs for standalone Ariake Japan, and an annual ¥800 million year-on-year increase in packaging-material costs.New initiatives
The company plans to prepare a production line for its pet food business and begin manufacturing in October. Other initiatives include strengthening export sales to Singapore, sales initiatives based on an assumed food consumption tax cut, increasing the food-service sales team in France, plans for a new plant in the Netherlands scheduled to begin operations in 2028, and strengthening shareholder returns and conducting flexible share repurchases.Key KPIsA metric the company considers important as a management benchmark.
Standalone net sales by categoryFood service: +2.4%; B2C (B2B2C): +7.9%; exports: +32.0%; food manufacturers: -0.2%; convenience stores, ready-to-eat meals and supermarkets: ±0%
Committed sales in existing areas23% higher year on year
Achievement rate for profit improvement from price revisions and product renewals74% of the approximately ¥700 million contribution expected for the current fiscal year
Achievement rate for factory cost reductions and expense reductions40% of the ¥1.4 billion plan
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The 2.5% year-on-year increase in standalone net sales comprised a 1.6% increase in volume and a 0.9% increase in unit prices.Segment results
アリアケジャパン
Net Sales¥11.40 billion, up 2.5% year on year
Operating profit¥1.72 billion, down 4.7% year on year
Asia
Net Sales¥2.32 billion, up 2.1% year on year
Operating profit¥540 million, up 0.3% year on year
Europe
Net Sales¥2.20 billion, up 13.6% year on year
Operating profit¥300 million, up 15.5% year on year
Japan and other
Net Sales¥70 million, down 5.6% year on year
Operating profitLoss of ¥10 million, down year on year
Total subsidiaries
Net Sales¥4.59 billion, up 7.2% year on year
Operating profit¥830 million, up 3.6% year on year
Medium-term management plan targets
ROE of 8.1% in fiscal 2028, ROE above 9% in fiscal 2030, and consolidated net sales of ¥100 billion in fiscal 2030. Sales targets for additional initiatives are ¥3 billion for pet food, ¥4 billion for existing and adjacent products, ¥2 billion for China-related business, and ¥2 billion for Southeast Asia, all in fiscal 2030.Financial targets
ROE: 8.1% in fiscal 2028 and above 9% in fiscal 2030. Policy-held shares: 10% or less in fiscal 2028.Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The company expects standalone Ariake Japan's raw-material purchasing costs to increase by ¥400 million per year from the previous year due to yen depreciation, and packaging-material costs to increase by ¥800 million per year.Number of employees
786 standalone employees (606 men and 180 women), plus 178 temporary employees. This was an increase from 747 employees in the same quarter of the previous year.Capital expenditures
¥612 million consolidated, first quarter
Acquisition of treasury shares
The company referred to capital reduction through flexible share repurchases. The amount, number of shares and period of the repurchase authorization are Not disclosed.| Item | Details |
|---|---|
| Document type | Presentation materials on financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | 159.9 Hundred millions of yen (YoY +3.8%) |
| Operating profit | 25.5 Hundred millions of yen (YoY -2.2%) |
| Ordinary income | 29.8 Hundred millions of yen (YoY -8.5%) |
| Net income | 20.9 Hundred millions of yen (YoY -11.3%) |
| Operating profit margin | 15.9%, down 1.0 percentage point year on year |
| Results for the three months of the current quarter | Consolidated net sales of ¥15.99 billion, operating profit of ¥2.55 billion, ordinary profit of ¥2.98 billion and net income of ¥2.09 billion. Standalone net sales were ¥11.40 billion, operating profit was ¥1.72 billion, ordinary profit was ¥2.67 billion and net income was ¥1.86 billion. |
| Full-year earnings forecast | Consolidated revenue 692.3 Hundred millions of yen / Consolidated operating profit 112.5 Hundred millions of yen / Consolidated ordinary income 131.6 Hundred millions of yen / Consolidated net income 95.5 Hundred millions of yen / Standalone sales 491 Hundred millions of yen / Non-consolidated operating profit 76 Hundred millions of yen / Non-consolidated ordinary income 88.8 Hundred millions of yen / Non-consolidated net profit 62 Hundred millions of yen |
| Self-assessment against the plan | Consolidated net sales fell short of plan, while operating profit and the operating margin exceeded plan. On a standalone basis, net sales, operating profit, the operating margin and net income exceeded plan. Subsidiaries fell short of plan for net sales and operating profit. |
| Segment results | アリアケジャパン Net Sales ¥11.40 billion, up 2.5% year on year / Operating profit ¥1.72 billion, down 4.7% year on year / Asia Net Sales ¥2.32 billion, up 2.1% year on year / Operating profit ¥540 million, up 0.3% year on year / Europe Net Sales ¥2.20 billion, up 13.6% year on year / Operating profit ¥300 million, up 15.5% year on year / Japan and other Net Sales ¥70 million, down 5.6% year on year / Operating profit Loss of ¥10 million, down year on year / Total subsidiaries Net Sales ¥4.59 billion, up 7.2% year on year / Operating profit ¥830 million, up 3.6% year on year |
| Breakdown of Factors Affecting the Change | Factors behind the decline in standalone operating profit Materials: ¥25 million; packaging materials: ¥49 million; freight—Kurashiki: ¥33 million; other: ¥36 million; labor costs: ¥23 million; fixed costs: ¥3 million / Factors behind the increase in standalone ordinary profit Lower derivative valuation losses: ¥103 million; interest on securities and other income: ¥46 million; dividends: ¥62 million / Factors behind the decline in standalone ordinary profit Lower operating profit: ¥84 million; lower foreign exchange gains: ¥374 million; other: ¥4 million |
| Key KPIs | Standalone net sales by category Food service: +2.4%; B2C (B2B2C): +7.9%; exports: +32.0%; food manufacturers: -0.2%; convenience stores, ready-to-eat meals and supermarkets: ±0% / Committed sales in existing areas 23% higher year on year / Achievement rate for profit improvement from price revisions and product renewals 74% of the approximately ¥700 million contribution expected for the current fiscal year / Achievement rate for factory cost reductions and expense reductions 40% of the ¥1.4 billion plan |
| Unit price and quantity metrics | The 2.5% year-on-year increase in standalone net sales comprised a 1.6% increase in volume and a 0.9% increase in unit prices. |
| Number of employees | 786 standalone employees (606 men and 180 women), plus 178 temporary employees. This was an increase from 747 employees in the same quarter of the previous year. |
| Assumptions Underlying the Business Outlook | The full-year foreign exchange assumptions are EUR/JPY 184.33, CNY/JPY 22.36, TWD/JPY 4.98 and IDR/JPY 0.009. The budget incorporates a year-on-year increase of ¥400 million in annual raw-material purchasing costs for standalone Ariake Japan, and an annual ¥800 million year-on-year increase in packaging-material costs. |
| Risk amount incorporated into the outlook | The company expects standalone Ariake Japan's raw-material purchasing costs to increase by ¥400 million per year from the previous year due to yen depreciation, and packaging-material costs to increase by ¥800 million per year. |
| Medium-term management plan targets | ROE of 8.1% in fiscal 2028, ROE above 9% in fiscal 2030, and consolidated net sales of ¥100 billion in fiscal 2030. Sales targets for additional initiatives are ¥3 billion for pet food, ¥4 billion for existing and adjacent products, ¥2 billion for China-related business, and ¥2 billion for Southeast Asia, all in fiscal 2030. |
| Financial targets | ROE: 8.1% in fiscal 2028 and above 9% in fiscal 2030. Policy-held shares: 10% or less in fiscal 2028. |
| Acquisition of treasury shares | The company referred to capital reduction through flexible share repurchases. The amount, number of shares and period of the repurchase authorization are Not disclosed. |
| Capital expenditures | ¥612 million (consolidated, first quarter) |
| New initiatives | The company plans to prepare a production line for its pet food business and begin manufacturing in October. Other initiatives include strengthening export sales to Singapore, sales initiatives based on an assumed food consumption tax cut, increasing the food-service sales team in France, plans for a new plant in the Netherlands scheduled to begin operations in 2028, and strengthening shareholder returns and conducting flexible share repurchases. |
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsAnnual DividendPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Consolidated net sales fell short of plan because weak performance in China offset domestic sales, which were strong and exceeded plan. Although operating profit declined, it exceeded plan. The decline in net income was attributed to lower operating profit, lower foreign exchange gains and other factors, and the tax impact of dividends received from subsidiaries.
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