Q1 2021 Marubeni Corp Earnings Call Transcript
Key Points
- Marubeni Corp (MARUF) reported a positive free cash flow of JPY 49.3 billion, an increase of JPY 4.1 billion year-on-year.
- The net D/E ratio improved by 0.03 points from the end of the previous fiscal year to 1.13x, indicating a stronger financial position.
- Stable earnings-type businesses, such as IPP with PPA in Power Business, and essential infrastructure businesses maintained their earnings at JPY 32 billion, unchanged year-on-year.
- The Food business, particularly Creekstone Farms in the U.S., increased profit by JPY 4 billion to JPY 11 billion due to maintaining operations amid industry disruptions.
- The Chemicals segment saw improved profitability in trading petrochemical products, resulting in a profit increase of JPY 2 billion year-on-year.
- Net profit for the first quarter decreased by JPY 7 billion or 11% year-on-year to JPY 58.1 billion.
- Adjusted net profit declined by JPY 11 billion or 16% year-on-year, primarily due to a drop in coal prices.
- Businesses affected by COVID-19, such as Transportation and oil and gas E&P, suffered a significant year-on-year drop of JPY 16 billion in adjusted net profit.
- The Metals and Mineral Resources segment experienced an JPY 11 billion year-on-year drop in profit due to lower coal prices.
- Aircastle Limited, a U.S. aircraft leasing business, reported a loss, contributing to a JPY 2.2 billion deficit in income attributable to Marubeni Corp (MARUF).
Thank you very much for taking time to attend our conference call today. I will go over the consolidated financial results of the first quarter of the fiscal year, ending March 2021, by referring to the A4 size IR PowerPoint presentation.
Please turn to Page 1 and 2. The net profit for the first quarter decreased by JPY 7 billion or 11% year-on-year to JPY 58.1 billion. The adjusted net profit, obtained by subtracting onetime items from the net profit, declined by JPY 11 billion or 16% year-on-year to JPY 59 billion. The breakdown of the drop of the adjusted net profit of about JPY 11 billion were JPY 4 billion in the non-resources area, such as Construction, Industrial Machinery & Mobility and Finance & Leasing Business, and JPY 8 billion in resources where a drop in coal prices was the primary reason. I will give you more details by segment later in my presentation.
The improvement in profit and loss for onetime items of JPY 4 billion was
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