Management Message

In the consolidated fiscal year under review, despite concerns over the changing direction toward the tightening of monetary policy in the face of accelerating inflation, among other developments, the global economy showed signs of gradual recovery overall, with the gradual lifting of movement restrictions and moves toward normalization from the COVID-19 pandemic. The Japanese economy, too, showed signs of moderate recovery although there were some weaknesses, such as rising material prices and soaring prices for daily necessities. However, in a situation of persistent global monetary tightening, the outlook remains uncertain with the risk of a downturn in overseas economies will put downward pressure on the Japanese economy.

 

Against this backdrop, the Precious metals business Segment of the Matsuda Sangyo Group (the Group) worked to differentiate itself through its comprehensive resource recycling capability and the development of high-performance electronic materials, secure precious metal materials, and expand the sale of chemicals and other products, and expanding industrial waste treatment outsourcing, with a view to adapting to the diversifying precious metal recycling needs.

In the Food business segment, the Group coped flexibly with challenges such as the unstable supply of global food resources and increase in procurement prices by leveraging on our strengths, working to expand sales volume by developing products that meet customers’ need and ensuring the stable provision of safe and reliable products.

 

As a result of the above, for the consolidated fiscal year under review, net sales were ¥351,028 million (up 28.9% year-on-year) and operating profit was ¥13,818 million (up 9.0% year-on-year). Ordinary profit, including non-operating income or loss such as share of profit of entities accounted for using equity method, was ¥13,843 million (up 0.8% year-on-year), and profit attributable to owners of parent was ¥9,696 million (up 1.4% year-on-year).

 

Although economic activities are expected to bounce back from the impact of the COVID-19 pandemic through the effects of various policies, the future outlook remains uncertain in the face of the prolonged situation in Ukraine and continued global monetary tightening, soaring materials prices, and concerns over the impact of inflationary pressures on the economy.

Under these circumstances, the Precious Metals Business Segment is expected to see a drop in precious metals recycling volume from the semiconductor and electronic devices sector due to falling production in the sector associated with a decline in demand. However, we will continue to adapt to the needs of a circular society by leveraging on our comprehensive resource recycling capability, expand our development to other sectors such as the jewelry industry, and strive to increase our precious metals recycling volume and product sales volume as well as expand industrial waste treatment outsourcing.

In the Food Business Segment, while coping with challenges such as concerns about supply of food resources and rising logistics costs, we will further strengthen our procurement capabilities including the utilization of overseas business sites, engage in sales activities that accurately capture the needs of customers, and develop and provide products rooted in the principles of safety, reliability, and stable supply. Through these efforts, we will differentiate the Food Business Segment, expand sales volume, and secure profits.

With regard to the distribution of company profits, we have established the basic policy of meeting our shareholders’ expectations by paying stable and sustainable dividends, while giving consideration to maintaining a balance with internal resources for growth investment.

 

For the fiscal year under review, we plan to pay a year-end ordinary dividend of 25 yen per share. Combined with the interim dividend, this brings the full-year dividend to 50 yen per share.

For the next fiscal year, we forecast a full-year dividend of 60 yen per share (interim dividend of 30 yen and year-end dividend of 30 yen).

Going forward, we will continue to work toward offering comprehensive shareholder returns based on the basic policy, while taking profit levels into account.

 

I would truly appreciate the continued support of our shareholders and investors.

 

 

March, 2023

President: Yoshiaki Matsuda