In the fiscal year ended March 31, 2017 (fiscal 2016), Japan’s economy showed some signs of an upturn in consumer spending in line with an increase in the number of employed persons. Meanwhile, overseas economies saw concerns about political risks emerge in the U.S. and Europe, in addition to slowing growth in China and a slowdown in emerging markets. As a result, the global economic outlook remained uncertain.
In the edible oil industry, conditions for the procurement of the core raw materials soybeans and rapeseed were affected by volatile price movements throughout the year, partly due to the yen’s sharp depreciation from November 2016 onward.
In this environment, the group advanced various measures in line with the basic policy of building a solid earnings base for the future, which centers on the improvement of earnings in the group’s core oil and fat business. This basic policy was laid out in accordance with the Nisshin OilliO Group’s three-year Medium-Term Management Plan launched in fiscal 2014 (April 1, 2014 - March 31, 2015).
In the Domestic Oil and Fat Business, the company worked to strengthen sales of sesame oil and olive oil, which marked the 20th anniversary of the launch of BOSCO Olive Oil, posting solid sales. In parallel, the company worked to expand sales of highly functional oil and fat products beginning with “Nisshin Healthy- Off.” In addition, the company pushed ahead with optimization of production and logistics, as well as cost structure reforms, which contributed to cost reductions. Moreover, in the Processed Oil and Fat Business, sales were strong for high value-added products for Europe.
As a result, in the fiscal year under review, the company posted consolidated net sales of ¥324,909 million (down 0.9% year on year), operating income of ¥10,234 million (up 43.6%), and record-high ordinary income of ¥10,334 million (up 40.2%). Net income attributable to the parent’s shareholders also reached an all-time high of ¥7,569 million (up 50.8%).
To advance to the next stage of growth, in April 2017, the company launched OilliO Value Up 2020, a new four-year medium-term management plan running from fiscal 2017 to fiscal 2020. Under this plan, we have adopted a basic policy of shifting our focus more towards a growth trajectory for the future, in conjunction with carrying on the business structure reforms undertaken to date. Concurrently, we will work to achieve specific targets for future growth.
Against this backdrop, in fiscal 2017 (the fiscal year ending March 31, 2018), we forecast consolidated net sales of ¥340,000 million, operating income of ¥10,000 million, ordinary income of ¥10,000 million and net income attributable to the parent’s shareholders of ¥6,500 million.
* For details on the medium-term management plan, please see pages 2 and 3.
Annual Review 2017 (1,988 kb)