Analytical Survey on P/L Status of Companies in Food Industry in Japan: Key Research Findings 2020
Yano Research Institute (the President, Takashi Mizukoshi) has conducted an analytical survey on profit and loss status of 103 listed companies in food industry (manufacturers, wholesalers, and retailers) based on their profit and loss statement in securities report. Here, analysis on operating margin and ratio of R&D expenditures to sales are announced.
Summary of Research Findings
Out of 103 companies in food industry in this research (44 manufacturers, 6 wholesalers, and 53 retailers), 57 companies have increased operating margin (ratio of operating income to sales) for FY2019 compared to FY2018. Break down of the 57 are 28 food manufacturers, 4 food wholesalers, and 25 food related retailers.
Viewing at an average value of operating margins in FY2019, food manufacturers earned 4.7% by average among 44 companies (4.8% in FY2018), and food related retailers 3.1% by average among 53 companies (2.9% in FY2018). Nonetheless, of the 6 wholesalers targeted in this survey, average operating margin remained at the same level compared to the previous fiscal year, 0.8% (0.8% in FY2018).
Distribution of operating margins for FY2019 among the 103 companies in food industry shows that companies with operating margin below 2% make up the majority, 32% (33 companies out of 103 companies), followed by greater than 2% to less than 4% accounting for 28.2% (29 companies out of 103 companies), and greater than 4% to less than 6%, 25.2% (26 companies out of 103 companies). Companies in food industry with operating margin less than 6% account for 85.4% (88 companies out of 103 companies), indicating that operating margins of most of the target companies for this research was below 6%.
As for connection between R&D expenses to sales among 40 listed companies of food makers that disclosed R&D expenditures, total amount of sales among 40 food manufacturers attained 100.2% year-on-year with 21,575,685 million yen for FY2019, compared to 21,541,880 million yen in FY2018. R&D expenditure of the 40 companies totaled 243,583 million yen for FY2019, reaching 102.6% compared to 237,495 million yen in FY2018. Meanwhile, an average ratio of R&D expenses to sales among the 40 companies was 0.9% for 2019 and 1.0% for FY2018, meaning it stayed at approximately the same level year on year.
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