Investor Relations

Message from the President

Shareholder inverstor's To everyone

Let me begin by taking this opportunity to express my gratitude for your continued support.

FY2017 financial results
Business conditions in Japan gradually recovered in the fiscal year ended March 31, 2018, and economic recovery is expected to continue. However, there is concern about uncertainties in overseas economies and instability centered on financial markets.
The food industry continued to see a trend towards consumer conservatism but we also saw strong demand for products with functional benefits. New demand is being created as consumer values diversify.

In this business environment, in accordance with Group Medium-term Management Plan 2019, the MEGMILK SNOW BRAND Group endeavored to strengthen our earnings base and maximize cash flow.
We focused on product mix improvement through sales growth for high-value-added products. For example, in the Dairy Products Business Sector we strengthened mainstay brands for cheese and other products and in the Beverages and Desserts Sector we expanded sales of functional yogurt.

To further expand sales of the Lactobacillus gasseri SBT2055 Yogurt product line, in March of this year we expanded production capacity for small plastic bottle type products and relaunched individual serving-type products as FOSHU (Food for Specified Health Use) products. We implemented various initiatives aimed at strengthening our income platform for future growth. In the Nutrition Business Sector, we expanded into new markets and in the Feedstuffs and Seed Products Business Sector we promoted new product development through research at the New Research Institute.

As a result of these developments, consolidated net sales were \596.1 billion (up 1.4% over the previous fiscal year), consolidated operating profit was \19.3 billion (up 3.3%), consolidated ordinary profit was \20.9 billion (up 3.6%), and profit attributable to owners of parent was \13.3 billion (up 3.1%). This represents increased sales and profits, and a smooth start as the first year of the Group Medium-term Management Plan.

Outlook for the fiscal year ending March 2019
Our consolidated earnings forecast for fiscal year ending March 2019 is net sales of \605.0 billion (up 1.5% over the previous fiscal year) and operating profit of \19.0 billion (down 1.9%). Amid a changing operating environment that is trending towards higher costs for raw materials, logistics, and labor, we will respond accordingly by expanding sales of cheese and yogurt, and through improvements to our product mix.
We will achieve the goals of the Group Medium-term Management Plan by further pursuing benefits from initiatives and investments implemented thus far.

Shareholder dividends
As per initial plans, the dividend for fiscal year ended March 2018 will be 40 yen per share. We also are planning on 40 yen per share for fiscal year ending March 2019.

I also want to take this opportunity to apologize for the great inconvenience and concern caused by our consolidated subsidiary SNOW BRAND SEED Co., Ltd. in relation to violations of the Plant Variety Protection and Seed Act.
We will work towards reoccurrence prevention and further strengthen compliance for our entire Group.

I sincerely thank you for your continued support and understanding.

June 2018
Keiji Nishio
Keiji Nishio
Representative Director and President