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Sakata Group sales up 5.2% in 2017 financial year
Nov. 20, 2017
Sakata Seed Corporation
JapanFollow
Japan
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
- Performance by region:
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.
- Performance by product:
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.
Source: Sakata Seed Corporation
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