True to nature,the flavor of KAGOME


Points of Business Performance

FY2019 Highlight (IFRS)

Million yen




YoY rate






Operating income





Net income attributable to shareholders of parent





【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.During the consolidated year under review (January 1, 2019 to December 31, 2019), consolidated revenue declined year on year particularly in the domestic agriculture businesses and international business, and core operating income decreased.

【Net income attributable to shareholders of parent】

The Company also posted a 1,692 million yen gain on transfer of business as other income when Kagome Distribution Service Co., Ltd., a physical distribution subsidiary, was integrated with a new physical distribution company, F-LINE Corporation. In other expenses, the Company posted a disaster loss of 361 million yen due to significant damage caused to a subsidiary, Chiba Baby Leaf Garden CO., Ltd. By large typhoons that struck the area in September and October 2019.

Forecast (IFRS)

FY2020 Earnings Forecast


Core operating income

Operating income

Net income attributable to shareholders of parent






・In our forecasts for the full-year consolidated results for fiscal 2020, revenue will be revised to 181.4 billion yen. Our forecast for core operating income of 12.4 billion yen remains unchanged from our initial forecast.
・By segment, we will reduce our forecast for revenue from the domestic processed food business by 2.6 billion yen and raise our forecast for the core operating income from this business by 0.8 billion yen. Although we will work to offset a fall in sales revenue from products for institutional- and industrial- use by growth in sales revenue from products for consumer- use, we expect that the decline in sales revenue from products for institutional- and industrial-use will continue throughout the year.
・We will also make a downward revision of our forecast for the domestic agriculture business; however, we will offset a decrease in sales revenue in the first quarter during the second half, minimize the amount short of the target, and achieve a profit.
・Meanwhile we have lowered our forecasts for sales revenue and core operating income from the international business by 3.4 billion yen and 0.6 billion yen, respectively. In this segment, we expect that a decrease in sales revenue from Kagome Inc. will continue for some time.

  1. 1. This forecast for 2020 is based on International Financial Reporting Standards (IFRS) because Kagome started using these standards in 2019.
  2. 2. Rebates involving sales are deducted directly from revenue. In prior years, rebates were included in selling, general and administrative expenses.
  3. 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.