Volatility risk in raw material procurement

「Japan: Although the Company promoted cost reductions in response to higher seafood market prices and higher costs caused by the weaker yen, profit declined because domestic consumption remained sluggish and price pass-through did not progress sufficiently.」

「The food distribution business reported higher revenue, supported by higher selling prices for seafood in Japan and overseas, improved profitability of its core products, and earnings from a European subsidiary acquired in May 2025. However, earnings declined because the increase in costs could not be fully offset and earnings were affected by fluctuations in imported frozen pork prices.」

「Meanwhile, higher raw material prices and increased costs in processed foods resulted in lower earnings.」

「The Aquaculture unit posted lower revenue and profit due to delayed growth caused by high water temperatures and higher costs resulting from soaring feed and other expenses, among other factors.」

「Although selling prices for tuna and yellowtail amberjack remained firm and revenue was roughly in line with the previous year, the Aquaculture unit posted lower profit due to higher costs resulting from soaring feed and other expenses.」

「The Fine Chemicals Unit posted lower revenue and profit due to customers holding back on purchases following a review of how the Foods with Function Claims system is operated, as well as higher raw-material costs resulting from Peru’s anchovy fishing ban, among other factors.」

「The write-down of the carrying amount of inventories held for ordinary sale due to declining profitability was ¥1,881 million.」

「Meanwhile, the business environment surrounding the industries related to the Group remained uncertain, due to persistently high raw-material and energy-resource prices resulting from the prolonged situation in Ukraine, as well as sharp volatility in foreign exchange markets reflecting interest-rate differentials between Japan and the United States and global economic trends.」

「Although the Company raised prices for some products, profit declined due to the continued impact of surging raw-material, packaging-material and energy costs, as well as the rapid depreciation of the yen.」

「Meanwhile, the situation remained difficult due to surging raw-material and energy-resource prices accompanying heightened tensions over Ukraine and the historic depreciation of the yen, as well as disruptions in global supply chains following the lockdown in Shanghai, China.」

「The industries related to the Group continued to face difficult conditions, affected by disruptions in global supply chains such as container shortages and higher ocean freight costs, as well as surging crude oil and raw-material prices.」

「The Household Frozen Foods unit reported higher sales as demand for home meals continued to support growth in staple products such as noodles and rice-based meals, gratins and prepared side dishes for the dining table. However, profit declined due to higher raw-material, ocean freight and energy costs.」

「The amount written down from the carrying value due to reduced profitability of inventories held for ordinary sales was ¥1,908 million.」

「The North America and Europe units reported lower sales due to lower domestic handling of surimi, lower unit prices for kazunoko roe and slower sales in Europe and the United States amid the COVID-19 pandemic. Profit also declined due to increased production costs, including costs for Alaska's COVID-19 border measures and higher costs resulting from smaller walleye pollock and delays in fishing.」

「However, in recent years the company's Alaska salmon and trout business has continued to post operating losses due to factors including surging raw-fish prices following the entry of new producers, higher costs and lower production resulting from insufficient fish availability. Competition to secure raw materials is expected to intensify further, and conditions do not support an improvement in the company's earnings.」

「Due to lower bonito catches in the purse-seine business and lower sales and market prices for farmed fish as a result of the impact of COVID-19, sales in the fisheries and aquaculture business were ¥7,283 million, down 19.8% year on year, and the operating loss was ¥538 million, a decline of ¥681 million year on year.」

「For the third quarter of the consolidated fiscal year-to-date period, revenue increased due to higher handling volumes of skipjack tuna and higher tuna shipments. However, higher tuna costs and lower skipjack tuna prices reduced margins, resulting in revenue of ¥29,904 million, up 11.2% year on year, and operating profit of ¥50 million, down 95.8%, for the Fisheries and Aquaculture segment.」

「The Fisheries and Aquaculture segment worked to secure earnings through efficient operations, using domestic and overseas sources of fisheries resources that provide sustainable and traceable supply.」

「The North America unit brought forward sales supported by firm market conditions for surimi, but sales were approximately at the previous year's level and operating profit declined due to lower handling volumes of cod resulting from reduced quotas and lower handling volumes of crab in eastern Canada, among other factors.」

「In the Seafood Trading unit, many major species remained in the high-price range. Although sales were approximately at the previous year's level, higher fish prices and the resulting increase in procurement costs due to the weaker yen led to lower profit.」

「In the Seafood Trading unit, many major species remained in the high-price range. Although sales were approximately at the previous year's level, higher fish prices and the resulting increase in procurement costs due to the weaker yen led to lower profit.」

「In the Seafood Trading unit, many major species remained in the high-price range, and sales of raw materials and processed products, centered on tuna, remained strong. However, the impact of higher landing prices and a weaker yen on procurement costs resulted in sales approximately at the previous year's level but lower profit.」

「The Group purchases seafood and other raw materials in Japan and overseas and works to secure a stable supply of raw materials and maintain appropriate prices. However, if raw-material procurement becomes difficult or purchase prices surge due to demand trends for raw materials, fluctuations in catches or other factors, this may affect the operating results and financial position of the Group.」

「In the Seafood Trading business, many major species remained in the high-price range, and sales of raw materials and processed products, centered on frozen fish and shrimp, remained strong. However, the impact of higher landing prices and a weaker yen on procurement costs resulted in higher sales and lower profit.」

「In the Seafood Trading business, many major species remained in the high-price range, and sales of raw materials and processed products, centered on frozen fish and shrimp, remained strong. However, the impact of higher landing prices and a weaker yen on procurement costs resulted in higher sales and lower profit.」

「In North America, sales of cod and salmon and trout remained firm, but lower production resulting from the closure of the snow crab fishery in the U.S. Bering Sea led to higher sales and lower profit.」

「In the Seafood Trading business, many major species remained in the high-price range, but sales of raw materials and processed products, centered on frozen fish and shrimp, remained strong. Together with lower procurement costs due to the stronger yen, this resulted in higher sales and profit.」

「In the Seafood Trading business, many major species remained in the high-price range, but sales of raw materials and processed products, centered on frozen fish and shrimp, remained strong. Together with lower procurement costs due to the stronger yen, this resulted in higher sales and profit.」

「In the Seafood Trading business, many major species remained in the high-price range, but sales of raw materials and processed products, centered on frozen fish and shrimp, remained strong. Together with lower procurement costs due to the stronger yen, this resulted in higher sales and profit.」

「In the Foodservice Products (Trading) business, raw-material prices for major species such as shrimp, shellfish and frozen fish remained high, but stronger initiatives targeting food supermarkets, food-service operators and convenience stores resulted in higher sales and profit.」

「If raw-material procurement becomes difficult or purchase prices surge due to demand trends for raw materials, fluctuations in catches or other factors, this may affect the operating results and financial position of the Group.」