FY2023 Full Year Results
Supplementary Briefing Materials
Fuji Seal International, Inc.
May 13, 2024
Copyright 2024 Fuji Seal Group
Table of Contents
- Consolidated Results for FY2023
- Consolidated Forecasts for FY2024
- Our vision
●Trend over the past quarter century (Consolidated Net sales and Operating income) ●Review of the previous Mid-Term Management plan
●New Management Plan | - FSG.30 |
●FSG.30 - Growth strategy |
- Growth investment
- KPI Targets
- Financial strategy ・Current market valuation analysis ・ROE Improvement ➀②③
- Business strategy ・Existing 4 businesses ・Americas
・Matrix management + Customer-oriented decision making ・Pharmaceutical business ・Deep IS ・Environment
- Human resorces strategy
- Initiatives to enhance corporate value
2
1. Consolidated result FY2023 (Ended March 31, 2024)
- Consolidated net sales is increased. Profits at each stage exceeded the revised forecasts, partly due to the effects of measures in each region and the impact of foreign exchange rates.
- Operating income exceeded the revised forecast by approximately 300M yen due to favorable shrink and pouch sales in the Japan region, which were boosted by good weather, and by approximately 100 million yen from improved shrink earnings in the ASEAN region.
- Net income was higher than the revised announced figure due to the absence of some of the impairments that were initially expected to occur.
(Millions of yen)
FY2022 Full year
FY2023 Full year
Increase/Decrease
(Amount) | (%) |
FY2022 (February Annoucement Revision)
Increase/Decr
ease
(Amount)
Net sales | 184,035 | 196,624 | +12,589 | +6.8% | 196,000 | +624 | |
Operating profits | 8,194 | 13,309 | +62.4% | 12,600 | |||
(Operating Profit | +5,115 | +709 | |||||
Margin) | (4.5%) | (6.8% ) | (+2.3pt) | (6.4%) | |||
Ordinary profits | 8,426 | 14,732 | +74.8% | 13,800 | |||
(Ordinary Profit | +6,305 | +932 | |||||
Margin) | (4.6%) | (7.5% ) | (+2.9pt) | (7.0%) | |||
Net profits | 6,869 | 10,277 | +49.6% | 9,000 | |||
(Net Profit | +3,408 | +1,277 | |||||
Margin) | (3.7%) | (5.2% ) | (+1.5pt) | (4.6%) | |||
Foreign Currency | USD |
Translation | |
Rate (average) | EUR |
131.62 | 140.67 | +6.9% | 140.34 |
138.14 | 152.11 | +10.1% | 151.63 |
Note: For the fourth quarter results, Japan and Fuji Seal Packaging (Thailand)Co., Ltd.(FSPT) are for the period from April to March,
Americas, Europe, and ASEAN (excluding FSPT) are for January through December.
Copyright 2024 Fuji Seal Group
3
1. Consolidated result FY2023 (1) Net sales by region
- Consolidated net sales increased 2.6% from the previous year on a local currency basis, impacted by Japan and the Americas.
FY2022 | FY2023 | Year-on-year | ||||
(Millions of yen) | Full year | Full year | change | |||
Consolidated | 184,035 | 196,624 | +12,589 | |||
net sales | ||||||
Japan | 97,135 | 98,861 | +1,726 | |||
Americas | 50,149 | 57,882 | +7,733 | |||
Europe | 28,118 | 31,140 | +3,022 | |||
ASEAN | 17,460 | 18,089 | +629 | |||
Eliminations | △8,828 | △9,350 | △522 | |||
Excluding forex impact
+4,840 | +2.6% |
+1,726 +1.8%
+4,009 +8.0%
+162 +0.6%
△535 △3.1%
△522-
FY2022
Full year
Japan
Americas
Europe
ASEAN
Eliminations
Forex impact
FY2023
Full year
~ | 184,035 |
Increase(Decrease)
Excluding forex impact
+4,840
~ | 196,624 |
1,726
4,009
162
△535
△522
7,749
Copyright 2024 Fuji Seal Group
4
1. Consolidated result FY2023 (2) Net sales by Product by Region
FY2022 | FY2023 | Year-on-year change | |||
(Millions of yen) | Full year | Full year | Change | Rate of change | Excluding forex impact |
Rate of change | |||||
Japan | 97,135 | 98,861 | 1,726 | +1.8% | - |
Shrink label | 47,906 | 50,223 | 2,316 | +4.8% | - |
PS label | 9,178 | 8,370 | 808 | 8.8% | - |
△ | △ | ||||
Soft pouch | 20,386 | 20,565 | 179 | +0.9% | - |
Machinery | 6,831 | 6,648 | 182 | 2.7% | - |
△ | △ | ||||
Others | 12,832 | 13,053 | +220 | +1.7% | - |
Americas | 50,149 | 57,882 | 7,733 | +15.4% | +8.0% |
Shrink label | 41,832 | 47,312 | 5,479 | +13.1% | +5.8% |
PS label | 1,790 | 1,865 | 74 | +4.2% | 2.5% |
Soft pouch | △ | ||||
368 | 245 | 122 | 33.3% | 37.6% | |
△ | △ | △ | |||
Machinery | 5,211 | 7,331 | 2,120 | +40.7% | +31.6% |
Others | 945 | 1,127 | 182 | +19.3% | +11.6% |
Europe | 28,118 | 31,140 | 3,021 | +10.7% | +0.6% |
Shrink label | 15,123 | 16,694 | 1,571 | +10.4% | +0.3% |
PS label | 5,528 | 5,611 | 83 | +1.5% | 7.8% |
△ | |||||
Soft pouch | 149 | - | - | - | - |
Machinery | 7,318 | 8,834 | 1,515 | +20.7% | +9.6% |
ASEAN | 17,460 | 18,089 | 629 | +3.6% | △3.1% |
Shrink label | 8,175 | 8,782 | 607 | +7.4% | +0.5% |
PS label | 220 | 186 | 34 | 15.5% | 20.9% |
Soft pouch | 7,920 | 8,374 | △ | △ | △ |
453 | +5.7% | 1.1% | |||
△ | |||||
Machinery | 628 | 677 | 49 | +7.9% | +0.9% |
Others | 515 | 69 | 446 | 86.6% | 87.4% |
△ | △ | △ | |||
Eliminations | △8,828 | △9,350 | △521 | +5.9% | |
Consolidated net | 184,035 | 196,624 | 12,589 | +6.8% |
Japan
Americas
Europe
ASEAN
Shrink Sleeve Label sales increased due to further price revisions, although volume was on a par with last
year.
Pressure Sensitive Label sales declined due to continued low demand for sales promotions,
In Soft Pouches, demand increase of beverage and price revisions in household contributed to increase sales
but total sales remained at the same level as last year due to a decline in demand for refills.
In Machinery, sales declined due to the postponement of some main machine to the next year, despite strong
sales of services and parts.
Shrink Sleeve Label sales increased due to a gradual recovery in demand from the first quarter of FY2023.
Pressure Sensitive Label sales decreased due to inventory adjustments by customers and delay in launching
new projects.
Machinery sales increased due to record-high sales in the 4th quarter on the back of strong sales of main
machines, parts, and services.
Other increased due to demand for final production following the withdrawal from the business.
Shrink Sleeve Label sales were on par with last year, as price revisions and other measures offset sluggish
demand due to inflation.
Sales of machinery increased due to continued strong demand in the pharmaceuticals and North American
markets.
In Shrink Sleeve Labels, despite a decline in volume, maintain the same level as last year due to the
contribution of price revisions.
In Soft Pouches, despite improvement in the second half, sales declined due to sluggish market demand.
Copyright 2024 Fuji Seal Group
Machinery sales increased slightly due to the contribution of unit sales and related services.
5
1. Consolidated result FY2023 (3) Operating income by region
- Progress was made in recovery in all regions, and profits increased 58.5% from the previous year on a local currency basis.
FY2022 | FY2023 Year-on-year | Excluding forex impact | |||||
(Millions of yen) Full year | Full year | change | |||||
Japan
In addition to price revisions for customers, portfolio |
replacement and profitability improvement measures |
have been implemented to increased profits. |
Consolidated | 8,194 | 13,309 | +5,115 | |
operating profits | ||||
Japan | 7,623 | 8,779 | +1,156 | |
Americas | 1,749 | 3,368 | +1,619 | |
Europe | △1,079 | 801 | +1,880 | |
ASEAN | 94 | 482 | +388 | |
Eliminations | △193 | △122 | +71 | |
+4,793 | +58.5% |
+1,156 +15.2%
+1,402 +80.1%
+1,806-
+357 +375.7%
+71-
Americas Europe ASEAN
High profitability Machinery (parts and service) and |
final demand driven by withdrawal from unprofitable |
businesses increased profits. |
In Europe, achieved profitability through measures |
such as focusing on structural reforms, reducing |
material costs by strengthening purchasing functions, |
improving productivity, and replacing its portfolio. |
Profit increase due to productivity improvement and |
fixed cost reduction effects from the policy |
emphasizing profitability |
Copyright 2024 Fuji Seal Group
6
1. Consolidated result FY2023 (4) Non-operating income, Ordinary Income and Net income
FY2022 | FY2023 | Increase/Decrease | 【Non-operating income】 | ||||||||
(Millions of yen) | Full year | Full year | ・Foreign exchange gains (+1,407 million yen) | ||||||||
(Amount) | (%) | ||||||||||
The main impact is the realization of Foreign exchange gains due to | |||||||||||
Net sales | 184,035 | 196,624 | +12,589 | +6.8% | valuation of foreign currency deposits and foreign currency fund settlements. | ||||||
【Non-operating expenses】 | |||||||||||
Operating profits | 8,194 | 13,309 | +5,115 | +62.4% | |||||||
・Interest expenses (+282 million yen) | |||||||||||
・Non-operating income | 542 | 2,012 | +1,470 | +270.9% | |||||||
Impact of increase in interest on debts due to higher interest rates, etc. | |||||||||||
・Non-operating expenses | 310 | 590 | +279 | +90.0% | |||||||
【Extraordinary losses】 | |||||||||||
Ordinary profits | 8,426 | 14,732 | +6,305 | +74.8% | |||||||
・Impairment loss 498 million yen | |||||||||||
・Extraordinary income | 147 | 68 | △ | 78 | △ | Impairment loss on Fixed assets of European subsidiaries, etc. | |||||
53.3% | |||||||||||
・Reorganization expenses 293 million yen | |||||||||||
・Extraordinary losses | 840 | 938 | +98 | +11.7% | |||||||
Before income taxes | 7,733 | 13,862 | +6,128 | +79.2% | Mainly due to expenses related to the partial withdrawal from the | ||||||
Net profits | Americas and ASEAN business | ||||||||||
・Income taxes | 864 | 3,584 | +2,720 | +314.6% | |||||||
Income taxes | |||||||||||
Net profits | 6,869 | 10,277 | +3,408 | +49.6% | |||||||
In the previous year, income taxes temporarily shrank due to a large amount | |||||||||||
Foreign | Currency | USD | 131.62 | 140.67 | +6.9% | of deferred tax assets resulting from a resolution to close an overseas | |||||
Translation | |||||||||||
EUR | 138.14 | 152.11 | +10.1% | subsidiary. | Copyright 2024 Fuji Seal Group | ||||||
Rate (average) | |||||||||||
7
1. Consolidated result FY2023 (5) B/S | (million-yen) | |
- Working capital increased due to foreign exchange effects and revenue increase. Goodwill increased due to the acquisition of a domestic subsidiary.
Current assets
117,064
(+7,041 compared to the end of the
previous period)
Main Points of Increase/Decrease | |
・Cash and time deposits | +771 |
・Notes and accounts receivable | +6,018 |
・Inventories | △167 |
Fixed assets
75,620
(+5,639 compared to the end of the
previous period)
Main Points of Increase/Decrease
・Tangible fixed assets | +784 |
・Goodwill | +946 |
・Investments and other assets | +3,060 |
Total assets
192,684
(+12,680 compared to the end of
the previous period)
End of | End of | Rate of | ||||
FY2022 | FY2023 | change | ||||
Equity ratio | 67.0% | 68.6% | +1.6pt | |||
Interest-bearing debt | 12,578 | 7,406 | △41.1% | |||
D/E ratio | 10.4% | 5.6% | △4.8pt | |||
Foreign | USD | |||||
Currency | 132.70 | 141.83 | +6.9% | |||
Translation | EUR | |||||
Rate | 141.47 | 157.12 | +11.1% | |||
Liabilities
60,542 | |
(+1.109 from the end of the previous | |
period) | |
Main Points of Increase/Decrease | |
・Trade notes and accounts payable | △1,059 |
・Debts | △ 5,171 |
・Other Current liabilities | +2,309 |
Net assets
132,142
(+11,570 compared to the end of the
previous period)
Main Points of Increase/Decrease
Retained earnings | +8,360 |
Treasury stock | △ 1,076 |
Foreign currency translation adjustment +4,882
Copyright 2024 Fuji Seal Group
8
(million-yen)
1. Consolidated result FY2023 (6) Cash flows from investing activities and depreciation
- Free cash flow turned positive from negative in the previous year as business performance recovered, This is the highest operating cash flow in the company's history.
Operating CF | Invest CF | FCF | |||||
19,086 | 18,847 | 19,930 | |||||
18,000
【Main CF from operating activities】 ・Profit before income taxes 13,862
・Depreciation | 8,469 |
・Change in working capital | △2,309 |
・Income taxes payment | △ 2,289 |
【CF from investing activities】 |
13,000
8,000
9,770
14,021 | |
12,265 | |
8,269 | 9,362 |
6,217 |
・Term deposit | △3,045 |
・Acquisition of fixed assets | |
△6,300 |
・Payments for acquisition of subsidiaries resulting in change in scope of
consolidation | △ 1,204 |
3,000
△2,000 △2,745
△7,000 | |||||
△6,582 | △7,804 | ||||
△9,316 | |||||
△12,000 | △11,014 | △10,568 | |||
2021 | |||||
2019 | 2020 | 2022 | 2023 | ||
End of FY2022 | End of FY2023 | |
Capital expenditures | 11,068 | 7,119 |
Depreciation and amortization | 7,738 | 8,469 |
Copyright 2024 Fuji Seal Group
9
Table of Contents
- Consolidated Financial Results for FY2023
- Consolidated Financial Forecasts for FY2024
- Our vision
●Trend over the past quarter century (Consolidated Net sales and Operating income) ●Review of the previous Mid-Term Management plan
●New Management Plan | - FSG.30 |
●FSG.30 - Growth strategy |
- Growth investment
- KPI Targets
- Financial strategy ・Current market valuation analysis ・ROE Improvement ➀②③
- Business strategy ・Existing 4 businesses ・Americas
・Matrix management + Customer-oriented decision making ・Pharmaceutical business ・Deep IS ・Environment
- Human resorces strategy
- Initiatives to enhance corporate value
10
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Disclaimer
Fuji Seal International Inc. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 06:07:09 UTC.