Points of Business Performance
FY2021 Highlight (IFRS)
Million yen
2020/12
2021/12
YoY
YoY rate
Revenue
183,041
189,652
6,610
3.6%
Operating income
13,599
14,138
538
4.0%
Net income attributable to shareholders of parent
7,425
9,763
2,337
31.5%
【Revenue / Operating income】
The Company aimed to become a “strong company that can maintain sustainable growth by resolving social issues through food” under the three-year mid-term management plan starting from the fiscal year ended December 2019. The Company makes efforts to further enhance its corporate value by working on the basic strategies in the mid-term management plan, namely (1) continuous enhancement of earnings power and (2) growth by tackling new businesses and new domains.
Revenue in the fiscal year under review (January 1, 2021 to December 31, 2021) was up compared to the previous fiscal year. In Japan, food service demand recovered on the vaccine roll out and other factors while rising health-consciousness and strong eat-at-home demand continued amid growing number of COVID-19 infections. Given this environment, the domestic processed food business recorded an increase in revenue driven by demand-spurring effects of the “Let’s Eat Vegetables” campaign. In the international business, mainly Kagome Inc. (United States) saw an increase in revenue following a recovery in food service demand, which had been greatly downtrodden due to the impacts of the COVID-19 pandemic.
Core operating income increased year on year. This was driven by increased revenue mainly in the United States as mentioned above in the international business, in addition to the recoil from posting an impairment loss of 996 million yen related to the Company’s investment in equity method affiliate Ingomar Packing Company, LLC in the previous year, which offset a downturn in profits owing to higher advertising expenses and sales promotion costs for the “Let’s Eat Vegetables” campaign in the domestic processed food business.
【Net income attributable to shareholders of parent】
Operating income and net income increased significantly over the previous fiscal year attributed to the recoil from the impairment loss of 3,028 million yen on fixed assets owned by Holding da Industria Transformadora do Tomate, SGPS S.A., a subsidiary in Portugal, recorded in the previous fiscal year.
Forecast (IFRS)
FY2020 Earnings Forecast
Revenue
Core operating income
Operating income
Net income attributable to shareholders of parent
2022/12
199,000
13,300
13,300
8,800
・Consolidated revenue and core operating income in fiscal year 2022 are forecast to be 199.0 billion yen, up 9.3 billion yen year on year, and 13.3 billion yen, down 0.8 billion yen, respectively.
・The domestic business contributes to solutions to social issues by providing various vegetables to various markets using various degrees of processing and formats, with the aim of using the power of vegetables to pave the way for Japan’s future. The Company is implementing the “Let’s Eat Vegetables” campaign, which seeks to increase people’s awareness about the importance of eating vegetables by sharing important reasons to eat vegetables and the current situation of vegetable intake deficiencies. Additionally, the Company is working to expand plant-based products following growing interest in plant-based milk and plant-based foods among consumers.
・The international business aims to contribute to local communities by delivering the value and great taste of tomatoes and vegetables to markets around the world. In the international business, the Company is working to improve the tomato business’ ability to generate profits.
- 1. This forecast for 2020 is based on International Financial Reporting Standards (IFRS) because Kagome started using these standards in 2019.
- 2. Rebates involving sales are deducted directly from revenue. In prior years, rebates were included in selling, general and administrative expenses.
- 3. Core operating income is an indicator of earnings from continuing operations. This income is revenue minus the cost of sales and selling, general and administrative expenses and includes equity gains of affiliated companies.
