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Annual Review

Fiscal 2015 Earnings Results Overview

Japan’s economic growth came to a standstill in the fiscal year ended March 31, 2016 (fiscal 2015). Globally, the economic outlook remained murky due in part to overseas economic concerns, mainly stagnating economic growth in emerging countries and China.

In the edible oil industry, market prices for core raw materials soybeans and rapeseed were volatile due in part to crop forecasts in producing areas. In addition, conditions for procuring core raw materials remained poor, exacerbated by the yen’s weakness against major currencies, given impact from negative factors such as the U.S. interest rate hike.

Amid this economic and market environment, in accordance with the three-year Medium-Term Management Plan the Nisshin OilliO Group launched in the fiscal 2014 (April 1, 2014 – March 31, 2015), it is the basic policy of the group to build a solid earnings base for the future which centers on the improvement of earnings in the group’s core oil and fat business.

In the fiscal year under review, net sales were on a par with the previous year. Although sales in the Processed Oil and Fat Business declined in tandem with sluggish demand for palm oil in Malaysia, this was offset by performance elsewhere. In the Domestic Oil and Fat Business, the company actively launched new edible oils for household use, including “Nisshin Healthy-Off,” and sales were brisk for “Nisshin Flaxseed Oil” and value-added products for commercial-use.

The Nisshin OilliO Group posted its third consecutive year of profit growth. In the Domestic Oil and Fat Business, the company actively sold value-added products and achieved a cost reduction via cost structure reforms. In the Processed Oil and Fat Business, there was profit contribution from an expansion in sales of valueadded products and owing to the development of new customers.

In the fiscal year under review, the company posted consolidated net sales of ¥327,836 million, which was on a par with the previous fiscal year (down 0.4%), operating income of ¥7,491 million, a rise of 34.4%, ordinary income of ¥7,732 million, a growth of 32.8%, and net income attributable to the parent’s shareholders of ¥5,296 million, an increase of 53.6%.

In the fiscal 2016 (year ending March 31, 2017), we forecast consolidated net sales of ¥329,000 million, a rise of 0.4% year-onyear, operating income of ¥9,000 million, an increase of 20.1%, ordinary income of ¥9,000 million, a growth of 16.4%, and net income attributable to the parent’s shareholders of ¥6,000 million, an expansion of 13.3%.

Earnings improvement in the Domestic Oil and Fat Business is essential for us to achieve our goal of building a solid earnings base for the future, which is the vision in its Medium-Term Management Plan. The company plans to boost its profit margin by actively expanding sales of BOSCO Olive Oil, which is celebrating its 20th year on market, value-added products for commercial use, sesame oil, and “Nisshin Flaxseed Oil,” which contains omega-3 fatty acids, a health nutrient that is currently a key topic. In addition, in the standard oil business, the company plans to improve its earnings structure, in part by increasing sales ratio of “Nisshin Healthy-Off” products, which are popular among consumers concerned about excess calories from fried foods.

Profits are steadily growing at the Processed Oil and Fat Business. The company aims to convert this into a base for group earnings by further strengthening collaborations between production, sales, and research to expand this business. Also, in the Fine Chemical Business, earnings trended smoothly, reflecting brisk sales of raw materials for cosmetics and other products. However, the group aims to further expand this business by enhancing its global operations.

The Nisshin OilliO Group is looking to development the Medium-Chain Triglyceride (MCT) business, where it is undertaking measures to transform this business into a growth pillar further out. The company aims to turn this into a new business domain by promoting the functions of MCT to develop the market and by implementing collaborations with overseas companies. We plan to boost the recognition of MCT by actively advertising the potential benefits of MCT to support people’s health through various life stages (Super energy).

The group completed a cost-reduction system for production and distribution in the fiscal year under review. Nonetheless, the company aims to push forward with another round of reform initiatives that will contribute to additional cost savings.

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Annual Review 2016 PDF (5,300 kb)

Annual Review 2016

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Annual Review 2015 PDF (4,202 kb)
Annual Review 2014 PDF (3,576 kb)
Annual Review 2013 PDF (2,337 kb)
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