Nov. 20, 2017
Sakata Group report results of operations Fiscal year ended May 31, 2017 (year on year, percentage changes). Consolidated net sales up 5.2% to ¥61,844 million; operating profit up 5.3% to ¥7,702 million; ordinary profit up 9.2% to ¥8,250 million; and profit attributable to owners of parent up 17.2% to ¥6,112 million (a new record for the Sakata Group).
Business segment review
1. Domestic wholesaling: net sales up 2.1% to ¥16,707 million; operating profit down 0.6% to ¥5,296 million
- Sales of vegetable seeds increased significantly, but sales of flower seeds fell slightly amid market stagnation.
- Vegetable seeds: top sellers included broccoli, bunching onion and lettuce.
- Materials: sales increased slightly year-on-year as demand for agricultural pipe and materials for green houses was stimulated by rising oil prices and price hikes for steel pipe.
2. Overseas wholesaling: the segment posted a strong performance, with net sales up 10.1% to ¥35,299 million and operating profit up 1.9% to ¥10,369 million
1) Asia: strong export performers included broccoli, spinach, lisianthus and sunflower.
2) North America: broccoli, tomato, carrot, spinach, cabbage, beet, melon and other vegetable seeds all posted higher sales.
3) Europe: sales growth for broccoli, spinach, melon and other vegetable seeds and for lisianthus seeds.
4) South America: broccoli, tomato, squash, pepper, melon, lettuce and other vegetable seeds all posted higher sales; the yen’s depreciation against regional currencies boosted the rate of sales growth from the previous year.
1) Vegetable seeds: strong year-on-year sales growth was driven by top performers such as broccoli, tomato, squash, spinach and melon.
2) Flower seeds: lisianthus and sunflower remained the top performers, driving further positive year-on-year sales growth.
3. Retailing: net sales down 11.7% to ¥8,221 million; the segment recorded operating profit of ¥65 million following the previous year’s loss of ¥290 million.
- Home improvement retailers: sales declined significantly due to the impact of unseasonable summer and autumn weather, poor sales of materials, and continued restraints on sales of unprofitable product lines; profitability improved significantly, however, due to progress in limiting sales of less profitable product lines, coupled with efforts to constrain operating costs. · Mail order sale: sales of seedlings and bulbs failed to grow due to the impact of unusually heavy autumn rains; with the transition to an online subscriber system complete, costs were cut by switching to electronic publication of mail-order catalogs and other materials.
- Garden shop: solid sales of seeds and plants due to more frequent sales events were offset by a significant dip in sales of novelty items, leading to a year-on-year decline in aggregate sales revenue.
4. Other businesses: net sales up 57.4% to ¥1,615 million; operating profit up by ¥53 million, or 542.9%, to ¥63 million
- Sales revenue generated by landscaping and garden construction services increased significantly with the completion of large-scale projects for both government agencies and private-sector companies.