True to nature,the flavor of KAGOME


Points of Business Performance

FY2020 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.
Revenue rose, thanks chiefly to the strong performance of beverages and food for consumer use and direct marketing in the domestic business. Core operating income increased as a result of a decrease in promotion expenses and cost reductions in the domestic business, although impairment losses were posted in the United States.

【Net income attributable to shareholders of parent】

Operating income and net income decreased chiefly due to a gain on sale of businesses of a logistics subsidiary in fiscal year 2019 and impairment losses on fixed assets at HIT in Portugal in fiscal year 2020.

Forecast (IFRS)

FY2020 Earnings Forecast


Core operating income

Operating income

Net income attributable to shareholders of parent






・Consolidated revenue and core operating income in fiscal year 2021 are forecast to be 186.0 billion yen, up 3.0 billion yen year on year, and 13.1 billion yen, down 0.5 billion yen, respectively. Compared with the revised forecasts announced after the first six months of fiscal year 2020, revenue will be on a par with the revised forecast, and core operating income will be 0.6 billion yen higher.
・The top line of the domestic processed food business will grow because of the "Let's Eat Vegetables" campaign. Revenue is expected to rise 3.2 billion yen. Core operating income is expected to fall 2.0 billion yen, reflecting an increase in promotion expenses for sales growth and a rise in expenses that were reduced temporarily in fiscal year 2020 due to the COVID-19 pandemic.
・Core operating income in the domestic agriculture business is anticipated to increase 0.4 billion yen chiefly due to the strengthening of gross profit management at KAF and an improvement in profitability at green farms.
・Revenue in the international business is forecast to fall 0.4 billion yen due to the optimization of the scale of the primary processing domain, and core operating income is expected to rise 1.4 billion yen. Excluding impairment losses of 1.0 billion yen in fiscal year 2020, core operating income is forecast to rise 0.4 billion yen.

  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.