MIRA
INFORM REPORT
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Report Date : |
27.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
KIKKOMAN CORPORATION |
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Registered Office : |
2-1-1 Nishi-Shimbashi Minatoku Tokyo 105-8428 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Dec 1917 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of soy sauce,
Coca-Cola, foods, liquor |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 9058.5 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
KIKKOMAN CORPORATION
REGD NAME
Kikkoman KK
MAIN OFFICE
2-1-1 Nishi-Shimbashi Minatoku Tokyo 105-8428 JAPAN
Tel : 03-5521-5131
Fax : 03-5521-5333
HEADQUARTER: 250 Noda Noda City
Chiba-Pref 278-8601
URL : http://www.kikkoman.co.jp/
E-Mail address: info@kikkoman.co.jp
ACTIVITIES
Mfg of soy sauce, Coca-Cola, foods, liquor
BRANCHES
Domestic 32; overseas about 100
FACTORY(IES)
Noda, Takasago
CHIEF EXEC
YUZABURO MORI, CH & CEO
TAKASHI USHIKU, PRES & COO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 392,611 M
PAYMENTS REGULAR CAPITAL Yen 11,599 M
TREND STEADY WORTH Yen 159,687 M
STARTED 1917 EMPLOYES 7,149
COMMENT
BREWER OF SOY SAUCE, COCO-COLA, WINES, OTHER FOODSTUFFS. FINANCIAL SITUATION COSIDERED FAIR TO GOOD
AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 9,058.5 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
This the largest soy sauce brewer dating back to 1917 when Mogi started brewing soy sauce. Commands 30% of domestic share. Expanding overseas sales, too. Also diversified business line into tomato products, wines & seasonings. Produces soy sauce (shoyu) in US. S/E Asia and Netherlands. Operates restaurants in Japan and overseas, including Germany. Has marketing right for Del Monte brand in the Far East. Soy sauce is showing steady growth in N America. Clients include major food processors, food wholesalers, nationwide.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen
392,611 million, a 9% up from Yen 359,906 million in the previous term. Overseas sales were robust particularly in N
America which offset languishing domestic operations, hurt by sluggish soy
sauce sales. By divisions, foodstuff
mfg division up 113% to Yen 201,793 million, boosted by robust sales in N
America & Europe, which offset sluggish sales in Japan, as affected by
fierce competition among the trade. Del
Monte fared well with vegetable juices newly added on the product line. The firm sold liquor (of rice & barley)
operations to Sapporo Holdings in Apr 2006.
Foodstuff wholesaling division was up 113.4% to Yen 67,609 million,
backed up by popularity for Japanese foods in N America and Europe, extending
into Russia and East Europe. The
recurring profit was posted at Yen 20,980 million and net profit Yen 10,739
million, respectively, compared with Yen 17,362 million recurring profit and
Yen 10,125 million net profit, respectively, a year ago.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 22,500 million and the net profit at Yen 10,739 million, on a
5% rise in turnover, to Yen 413,000 million.
Sales will fall nominally following sales of shochu operations but impact
on profit is seen minor. Robust
overseas demand driving sales.
The financial situation is considered FAIR to GOOD and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 9,058.5
million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec
1917
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 300
million shares
Issued: 197,202,300
shares
Sum: Yen
11,599 million
Major shareholders (%): Steel Partners Strategic & Offshore (5.0), Master Trust Bank of Japan T (4.5), Japan
Trustee Services Bank T (3.7), Senshusha Co (3.4), Meiji Yasuda Life Ins (2.4), Mogisa
Ltd
(2.4), Kushigata Ltd (2.1), MUFG (2.0); foreign owners (19.5)
No. of shareholders: 13,413
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Yuzaburo Mogi, ch; Takashi Ushiku, pres; Mitsuo Someya, dir; Tadao Kondoh, dir; Tohru
Kumagai,
dir; Hiroshi Takamatsu, dir; Ken’ichi Saitoh, dir; Tsunao Hashimoto,
dir;
Mamoru
Ozaki, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Del Monte Japan, Mann’s Wine, Kikkoman Foods, others (34 as
of Mar/06)
OPERATION
Activities: Manufactures soy sauce, other foodstuffs (--49%), wholesaling foodstuffs (16&), Coca-Cola franchisee sales/distribution (33%), others (1%).
Overseas sales ratio 29.4%: USA 22.8%, other region 6.6%.
Clients: [Food processors, wholesalers] Itochu Shokuhin, Kokubu, Meidi-Ya, Ryoshoku, Mitsui Foods, Nihon Shurui Hambai, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Toyo Seikan Kaisha, Del Monte
Japan, Mann’s Wine, Mitsubishi Corp, Mitsubishi Plastics Inc, Nippon Express,
other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
MUFG (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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392,611 |
359,906 |
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Cost of Sales |
237,568 |
216,975 |
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GROSS PROFIT |
155,043 |
142,931 |
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Selling & Adm Costs |
133,396 |
124,373 |
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OPERATING PROFIT |
21,646 |
18,557 |
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Non-Operating P/L |
-666 |
-1,195 |
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RECURRING PROFIT |
20,980 |
17,362 |
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NET PROFIT |
10,739 |
10,125 |
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BALANCE SHEET |
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Cash |
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24,505 |
36,487 |
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Receivables |
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50,656 |
44,652 |
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Inventory |
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29,910 |
27,142 |
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Securities, Marketable |
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Other Current Assets |
11,320 |
10,862 |
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TOTAL CURRENT ASSETS |
116,391 |
119,143 |
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Property & Equipment |
133,522 |
114,062 |
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Intangibles |
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34,015 |
6,841 |
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Investments, Other Fixed Assets |
65,067 |
91,735 |
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TOTAL ASSETS |
348,995 |
331,781 |
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Payables |
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16,242 |
13,391 |
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Short-Term Bank Loans |
13,004 |
5,905 |
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Other Current Liabs |
37,585 |
27,452 |
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TOTAL CURRENT LIABS |
66,831 |
46,748 |
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Debentures |
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40,000 |
55,000 |
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Long-Term Bank Loans |
1,070 |
5 |
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Reserve for Retirement Allw |
16,448 |
18,616 |
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Other Debts |
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17,727 |
19,404 |
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TOTAL LIABILITIES |
142,076 |
139,773 |
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MINORITY INTERESTS |
31,396 |
23,331 |
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Common
stock |
11,599 |
11,599 |
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Additional
paid-in capital |
5,782 |
5,775 |
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Retained
earnings |
145,091 |
136,546 |
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Evaluation
p/l on investments/securities |
16,926 |
19,497 |
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Others |
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(16,925) |
(2,668) |
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Treasury
stock, at cost |
(2,786) |
(2,073) |
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TOTAL S/HOLDERS` EQUITY |
159,687 |
168,676 |
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TOTAL EQUITIES |
348,995 |
331,781 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash Flows
from Operating Activities |
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24,663 |
20,646 |
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Cash
Flows from Investment Activities |
27,634 |
-17,270 |
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Cash
Flows from Financing Activities |
-9,549 |
11,240 |
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Cash,
Bank Deposits at the Term End |
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23,474 |
35,642 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
159,687 |
168,676 |
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Current
Ratio (%) |
174.16 |
254.86 |
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Net
Worth Ratio (%) |
45.76 |
50.84 |
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Recurring
Profit Ratio (%) |
5.34 |
4.82 |
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Net
Profit Ratio (%) |
2.74 |
2.81 |
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Return
On Equity (%) |
6.73 |
6.00 |
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RATING
EXPLANATIONS
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RATING |
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)