Feedone : Financial Results Q1 of FY Ending March 2023

Financial Results

Q1of FY Ending March 2023

August 9, 2022

FEED ONE CO., LTD.

TSE Prime Symbol：2060

Summary of Financial Results for First Quarter of FY Ending March 2023

• Animal feed sales increased due to higher sales prices. Profits declined significantly due to higher raw material prices and increased SG&A expenses.

（Millions of Yen, %）

Net Sales Cost of Sales SG&A expenses Operating Profit Ordinary Income

Net income attributable to owners of the parent company

Q1 FY 2022	Q1 FY 2023
		YoY
56,811	67,131	18.2
50,981	63,589	24.7
4,405	5,243	19.0
1,424	-1,700	－
1,637	-1,474	－
	年度
1,117	-984	－

YoY change

• Net sales

Sales increased due to higher sales volumes of livestock feed and higher selling prices.

• Operating Income and Ordinary Income

Cost of sales increased due to higher corn price and distribution costs and the sharp depreciation of the yen. An increase in SG&A expenses due to an increase in the reserve for the compound feed price stabilization program led to a significant decrease in profit.

2

The First Quarter FY 2022 segment status

(Millions of Yen,

Feed business

Food business

Others

%)

Net Sales Segment profit Net Sales Segment profit

Net Sales

年度 Segment profit

Q1 FY2022

Q1 FY2023

46,925	56,998
2,048	-1,021
9,266	9,525
-76	-134
619	607
68	58

YoY difference		YoY
+10,072		+ 21.5
-3,069		－
+259	年度	+ 2.8
-58		－
-11		-1.9
-10		-14.6

(Thousand metric tons)

年		Q1 FY2022	Q1 FY2023
	Sales volume
				YoY	Comments
	Animal feed	86.3	88.1	＋ 2.2	For layers +4%, for broilers +3%, for pigs -2%,
					for cattle +4%
	Aquatic feed	2.2	2.2	- 2.2	For marine fish -0%, for freshwater fish -13%	3

セグメント売上高の増減要因

Factors of Net sales increase / decrease

• Net sales increased due to higher volumes and sales prices of animal feed.

(Millions of Yen)

68000+8,202

63000

+1,928

58000	Previous period increasedvolumeSales		feedAnimal increasedpriceSales
53000	feedAnimal
56,811
48000
	Q1 FY2022

Feed business				Food business
＋10,072				＋259
+107	+127	+387
-106		-187	-128-11

+10,320

						67,131
feed Aquatic decreasedvolume Sales	feed Aquatic increased price Sales	.etc feed, Other	agent Offsetting applying by transactions Standards "Accounting ".Recognition Revenue for	business Food products Livestock .etc rise, price market	agent Offsetting applyingby transactions Standards "Accounting ".Recognition Revenue for	Others
						Current period	4
						Q1 FY2023

Increase / decrease factors of operating profit

• Feed business：Animal feed profitability declined due to higher raw material prices and increased contributions to the Feed Stabilization Fund.
  Food business： Meat business profitability declined due to higher purchase costs caused by soaring pork market prices.

(Millions of Yen)

1500

1000

1,424

500

0

-500

-1000

-1500

-2000

Previous period

Q1 FY2022

+81

Feed business		Food business
-3,069		-58

	-2,092
		-847	-19					+2
		-188	-4	-0
				-58
feed Animal volume Sales increased	feed Animal profit Gross decreased	SG&A feed Animal expenses 1* increased	feed Aquatic volume Sales decreased	feed Aquatic profit Gross decreased	feed Aquatic expenses SG&A increased	feed, Other .etc	business Food decreased Profit	Others

-3,125

-1,700

Current period

Q1 FY2023

5

*１ Mainly increased in reserve for compound feed price stabilization program -763 million yen.