MIRA INFORM REPORT
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Report Date : |
8th May 2006 |
IDENTIFICATION DETAILS
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Name : |
NICHIREI CORPORATION |
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Registered Office : |
6-19-20 Japan |
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Date of Incorporation : |
Dec 1942 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Engaged in manufacturing, processing of
frozen foods with cold storage operations |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 10,559.5 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
NICHIREI CORPORATION
REGD NAME
KK Nichirei
MAIN OFFICE
6-19-20 JAPAN
Tel: 03-3248-2101
Fax: 03-3248-2119
URL: http://www.nichirei.co.jp/
E-Mail address: info@nichirei.co.jp
ACTIVITIES
Mfg, processing of frozen foods with
cold storage operations
BRANCHES
Tokyo, Osaka, Nagoya, Sapporo, Sendai,
Fukuoka, other (Tot 22)
OVERSEAS: Ho Chi Minh, Shanghai, Dalian (--China), Bangkok,
Amsterdam;
(Subsidiaries): USA (2), Netherlands
(5), Brazil (2), Germany, Thailand, China
CHIEF EXEC
MITSUDO URANO, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
461,426 M
PAYMENTS REGULAR CAPITAL Yen 30,307 M
TREND SLOW WORTH Yen 94,007 M
STARTED 1942 EMPLOYES 6,851
COMMENT
GENERL PROCESSED FOOD COMPANY
WITH COLD STORAGE OPERATIONS.
FINANCIALS SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS:
US$5,000,000.-
MAX CREDIT LIMIT: YEN 10,559.5 MILLION,
NORMAL 30 DAYS TERMS
Forecast (or estimated) figures for
31/03/2006 fiscal term
HIGHLIGHTS
This is the largest processed
food company with freezer warehousing facilities. Leader in frozen foods controlling about 20% of the market share
in this specific business line. Also
the largest in cool temperature distribution business. Has many subsidiaries. Known for aggressive management. Also involved in leasing of buildings,
including the caption address. Latent
land assets great. Aggressively
branching out into health foods, prescription drugs, other.
As of Apr 1, 2005, the subject
has become a holding company of five major operating companies, spun off from
the parent: Nichirei Foods Inc, which deals in processed foods; Nichirei Fresh
Inc, which handles marine, meat, and poultry products; Nichirei Logistics Group
Inc, which engages in low-temperature logistics; Nichirei Bioscience Inc, which
does biotechnology-related business; and Nichirei ProServe Ins, which provides
services for the Group.
(News releases from the Nihon Keizai Shimbun)
(26/Nov/2005): Nichirei Corp and
Nisshin Seifun Group Inc plan to create a 50/50 JV in China to analyze and inspect
vegetables, meat and other ingredients used in products. The deal is aimed at meeting new food safety
standards slated for Introduction in Japan from May 2006, which call for the
labeling of permitted agricultural chemicals.
The net firm, to be capitalized at Yen 240 million, will inspect the
safety of agrochemicals, additives, livestock drugs and other chemicals used in
vegetables, meat and seafood.
(05/04/2006): Major Japanese
food companies are substantially strengthening their production management
systems for the materials used in their products. (In this connection), Nichirei Corp has begun to dispatch
agricultural consultants to Chinese farmers that supply vegetables to the major
frozen food producers. The step is
intended to enhance the technical advice it can give them in a broad range of
operations, from soil improvement to planting.
The firm expects improved soil condition to help reduce the amount of
agrochemicals used.
The sales volume for Mar/2005
fiscal term amounted to Yen 461,426 million, a
7.1% down from Yen 496,611 million
in the previous term. Processed foods
declined due to product recall and bird flu spread in the S/E Asia.
Refrigerated distribution
weighed down by reduced cargo volume.
Conversion of wholesaling subsidiary to equity-method sub had full
impact leading to sales decline.
Despite the sales decline, the recurring profit was posted at Yen 12,893
million, up 7% from Yen 12,095 million a year ago, and the net profit at Yen
5,878 million (up from Yen 1,891 million net loss the previous year).
For the term ended Mar/2006 the
recurring profit was projected at Yen 14,500 million and the net profit at Yen
6,200 million, respectively, on a 1.6% rise in turnover, to Yen 469,000
million. Processed foods & cold storage
rising. Profits rising due to seafood deficit
shrinking. Fourth quarter results
ending 31/12/2005: sales Yen 362,449 million (up 1.9%), operating profit Yen
13,119 million (up 9.1%), recurring profit Yen 12,760 million (up 13.5%), net
profit Yen 5,764 million (up 2.9%). (%
compared with the corresponding period year ago).
The financial situation is
considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
10,559.5 million, on normal 30 days terms.
The proposed amount is considered well within the firm’s financial
capacities.
REGISTRATION
Date Registered: Dec 1942
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 720 million shares
Issued: 310,851,065
shares
Sum: Yen 30,307 million
Major shareholders (%): Japan
Trustee services Bank T (9.9), Nippon Life Ins (5.3), Master Trust Bank of
Japan T (5.1), Bank of Tokyo-Mitsubishi UFJ (4.0), Sompo Japan Ins (3.8), TCSB
(Mizuho Corporate Bank) (2.5), Mizuho Corporate Bank (2.3), Dai-ichi Life Ins
(1.8), TCSB (Mizuho Bank) (1.8); foreign owners (16.5)
No. of shareholders: 24,061 (as of
Sept/05)
Listed on the S/Exchange (s) of: Tokyo,
Osaka
Managements: Ohto Takemoto, ch;
Mitsudo Urano, pres & CEO; Masahiro Ara, s/mgn dir; Yoshihiko Soma, s/mgn
dir; Hisashi Hasegawa, mgn dir; Toshiaki Murai, mgn dir; Masatoshi Toyama, mgn
dir; Mitsuo Hirose, dir; Toshiki Sumitani, dir; Miyuri Kawamata, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies: Nichirei Foods,
Nichirei Fresh, other (Tot 65 as of Sept/05).
OPERATION
Activities: Manufactures
processed foods with cold storage operations (breakdown of sales by divisions):
Processed foods (39%): acerola-based beverages, retort-pouch foods, canned
foods, health foods, other; Seafoods (19%): shrimp, herring roe, octopus,
other; Meat & Poultry (17%): poultry, pork, beer, other; Logistics &
cold storage operations (22%): refrigerated warehousing, sorting,
transportation & delivery; Real estate management (2%): leasing of
company-owned properties nationwide; Others (1%): antibody products,
cell-culture reagents, raw materials for cosmetics, horticultural
products. (The breakdown &
percentages represent those as of the 31/03/2005 fiscal term and not showing
those after the reorganization on 01/04/2005).
Clients: Major fishery firms,
wholesalers, fishery markets, food processors,
other
No. of accounts: 3,000
Domestic areas of activities:
Nationwide
Suppliers: Major fishery firms, food
processors, wholesalers, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Corporate Bank (H/O)
Bank of Tokyo-Mitsubishi UFJ (Tokyo)
Relations: Satisfactory
FINANCES
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(Consolidated in million yen) |
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Terms
Ending: |
31/03/2005 |
31/03/2004 |
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INCOME
STATEMENT |
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Annual Sales |
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461,426
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496,611
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Cost of Sales |
372,589
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401,101
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GROSS PROFIT |
88,836
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95,510
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Selling & Adm Costs |
75,354
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81,533
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OPERATING PROFIT |
13,482
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13,976
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Non-Operating P/L |
-589 |
-1,881
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RECURRING PROFIT |
12,893
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12,095
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NET PROFIT |
5,878 |
-1,891
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BALANCE
SHEET |
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Cash |
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3,087 |
3,543 |
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Receivables |
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64,150
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59,127
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Inventory |
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33,065
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30,602
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Securities, Marketable |
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Other Current Assets |
8,533 |
14,840
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TOTAL CURRENT ASSETS |
108,835
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108,112
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Property & Equipment |
116,963
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126,767
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Intangibles |
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7,229 |
7,915 |
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Investments, Other Fixed Assets |
43,390
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41,906
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TOTAL ASSETS |
276,417
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284,700
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Payables |
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24,563
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23,198
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Short-Term Bank Loans |
16,289
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18,514
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Other Current Liabs |
52,528
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60,243
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TOTAL CURRENT LIABS |
93,380
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101,955
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Debentures |
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35,000
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35,000
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Long-Term Bank Loans |
37,506
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41,299
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Reserve for Retirement Allw |
3,983 |
3,542 |
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Other Debts |
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11,910
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12,214
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TOTAL LIABILITIES |
181,779
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194,010
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MINORITY INTERESTS |
630 |
513 |
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Common
stock |
30,307
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30,307
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Additional
paid-in capital |
23,705
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23,704
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Retained
earnings |
35,495
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31,525
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Evaluation
p/l on investments/securities |
4,533 |
4,890 |
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Others |
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191 |
(59) |
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Treasury
stock, at cost |
(224) |
(191) |
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TOTAL S/HOLDERS` EQUITY |
94,007
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90,176
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TOTAL EQUITIES |
276,417
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284,700
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CONSOLIDATED CASH FLOWS |
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Terms
ending: |
31/03/2005 |
31/03/2004 |
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Cash
Flows from Operating Activities |
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15,564
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13,106
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Cash
Flows from Investment Activities |
-837 |
13,757
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Cash
Flows from Financing Activities |
-15,180
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-23,397
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Cash,
Bank Deposits at the Term End |
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3,087 |
3,543 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2005 |
31/03/2004 |
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Net
Worth (S/Holders' Equity) |
94,007
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90,176
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Current
Ratio (%) |
116.55
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106.04
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Net
Worth Ratio (%) |
34.01 |
31.67 |
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Recurring
Profit Ratio (%) |
2.79 |
2.44 |
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Net
Profit Ratio (%) |
1.27 |
-0.38 |
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Return
On Equity (%) |
6.25 |
-2.10 |
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RATING EXPLANATIONS
RATING
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STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |