Improving Profitability through Productivity Gains and Cost Reduction

「The operating profit margin of core products in the frozen food business improved by approximately 1 percentage point versus plan due to the effect of price revisions.」

「The Food Ingredients Distribution unit reported higher revenue as it strengthened cooperation within the group and worked to expand sales channels, while sales to mass retailers and the food-service sector remained solid. However, despite efforts to reduce inventories, improve business efficiency and enhance factory productivity, the unit was unable to offset higher costs caused by the yen's depreciation and higher raw material prices in the first quarter, resulting in lower profit.」

「The Food Ingredients Distribution unit reported higher revenue as it strengthened cooperation within the group, worked to identify market-specific needs and expand sales channels, and particularly benefited from growth in the food-service route. Profit increased due to improved business efficiency and factory productivity.」

「The Food Ingredients Distribution unit reported higher revenue as sales to the food-service, care, consumer cooperative, school meal and convenience store markets remained solid and demand recovered after the COVID-19 pandemic. Profit also increased as the company pursued price revisions and business efficiency and productivity improvements, including by reducing the number of items, in response to higher raw material and energy costs.」

「The Food Ingredients Distribution unit reported higher revenue and profit as sales to the food-service, care, consumer cooperative and school meal markets remained solid, while the company pursued price revisions and business efficiency and productivity improvements, including by reducing the number of items.」

「The Food Ingredients Distribution unit reported higher revenue as sales to the food-service sector recovered and sales to school meal providers and the care-food market remained solid. However, despite efforts to improve productivity and efficiency, profit declined because these measures were insufficient to offset higher costs caused by soaring raw material and energy costs and the yen's rapid depreciation.」

「The Food Ingredients Distribution unit reported higher revenue as sales to the food-service sector recovered and sales to school meal providers, convenience stores and the care-food market remained solid. However, despite efforts to improve productivity and efficiency, profit declined due to soaring raw material costs and the yen's rapid depreciation.」

「Despite soaring raw material costs and a weakening yen, the company also advanced productivity improvements and efficiency measures, resulting in higher revenue and profit.」

「The Household Frozen Foods unit reported higher revenue as demand for eating at home remained strong and the effects of school and nursery closures boosted sales of rice and noodle products, gratins, and leading prepared-meal and Chinese-food products. However, profit declined due to higher raw material, ocean freight and energy costs.」

「The dessert business reported higher revenue and profit due to favorable summer weather and an expanded menu. However, the canned foods business faced a reaction to the previous year's demand growth, while fish sausage sales fell behind due to intensifying price competition, resulting in lower revenue and profit for that business and lower revenue and profit overall in the Household Processed Foods unit.」

「The Household Processed Foods unit reported lower revenue across its canned foods, desserts, and ham and sausage businesses due to weak sales, but profit increased as the unit focused on profitability-oriented sales, particularly of fish sausages, and worked to review the production structure for jelly and retort foods.」

「The Household Processed Foods unit reported lower revenue due to weak sales of gifts, chikuwa and desserts, but profit increased as the unit focused on profitability-oriented sales, particularly of fish sausages, and worked to review the production structure for jelly and retort foods.」

「The Household Processed Foods unit reported lower revenue due to weak sales of gifts, chikuwa and desserts, but profit increased as the unit worked to revise the specifications of its fish sausages, sell products at appropriate prices and review its dessert and retort-food production structure.」

「Despite higher depreciation expense associated with the replacement of freezing equipment and other projects, lower power, outsourcing and labor costs resulted in higher profit. Revenue was ¥4,086 million, down 0.9% year on year, while operating profit was ¥586 million, up 29.1%.」

「The Household Frozen Foods unit maintained sales at approximately the previous year's level through enhanced promotional activities, but profit declined slightly due to higher costs resulting from lower factory utilization.」

「The Household Processed Foods unit reported lower revenue as jelly sales struggled due to the delayed end of the rainy season, but profit increased as customers accepted price revisions for canned foods and fish sausages.」

「The Household Processed Foods unit reported higher revenue and profit, as customers accepted price revisions for retail canned foods to reflect soaring raw material prices, while sales of fish-paste products performed relatively well.」

「The Household Frozen Foods unit reported lower revenue, as increased sales of products for prepared meals and frozen vegetables were outweighed by lower sales of products for lunchboxes. Profit increased due to improved factory productivity.」

「The Household Processed Foods unit reported higher revenue due to increased demand for canned blue-backed fish, such as mackerel, saury and sardines, against a backdrop of growing consumer health awareness. Profit also increased as the unit focused on sales aimed at improving profitability in desserts, in addition to benefiting from higher revenue.」

「The Household Processed Foods segment maintained sales at approximately the previous year's level, supported by growth in canned green fish, while sales of chilled foods such as chikuwa performed well, resulting in higher revenue. Profit also increased due to improvements in raw material costs and productivity.」

「The Household Processed Foods segment posted higher revenue and higher profit as strong sales of fish sausages and other products, together with improvements in raw material costs and productivity, outweighed the decline in canned-food revenue caused by the reaction to earthquake-related demand in the previous year.」

「The Household Processed Foods segment posted higher profit despite revenue remaining roughly flat year on year, as lower revenue from canned foods due to the reaction to earthquake-related demand in April of the previous year was offset by strong sales of fish sausages, desserts, freeze-dried products, and other items, as well as improvements in raw material costs and productivity.」

「As a result, revenue in the Processed Foods business was ¥53,779 million, up 3.2% year on year, and operating profit was ¥1,864 million, up 5.7% year on year.」

「Cost of sales, selling, general and administrative expenses decreased from the previous fiscal year due to lower procurement costs resulting from the stronger yen, productivity gains, cost reductions, and the discontinuation and revision of unprofitable products. As a result, operating profit was ¥26,308 million, up 55.0% year on year, and ordinary profit was ¥27,874 million, up 62.8% year on year.」

「The Household Processed Foods segment posted higher profit despite revenue remaining roughly flat year on year, due to appropriate pricing for canned foods, productivity gains for fish sausages, jelly products, and other items, and improved logistics costs.」

「The Household Frozen Foods segment posted higher revenue and higher profit due to increased sales of staple products such as noodles and rice-based products, frozen vegetables, and ACRY-brand products, as well as higher plant utilization and productivity. The Household Processed Foods segment posted higher profit despite revenue remaining roughly flat year on year, due to appropriate pricing for canned foods and jelly products, productivity gains for fish sausages and other products, and improved logistics costs. The Commercial Foods (Processed) segment posted a slight decline in revenue as lower sales of prepared foods at mass retailers and to the food-service industry outweighed solid sales to convenience stores and of care foods, but profit increased due to the discontinuation and revision of unprofitable products and cost reductions. As a result, revenue in the Processed Foods business was ¥104,801 million, up 0.9% year on year, and operating profit was ¥3,355 million, up 583.3% year on year.」

「The Overseas segment posted lower revenue but higher profit as exports from the Thai subsidiary to Europe and the United States declined, while raw material and manufacturing costs were reduced. The Household Frozen Foods segment posted higher revenue and higher profit due to increased sales of staple products such as noodles and rice-based products, including ACRY-brand products, as well as productivity gains and lower logistics costs. The Household Processed Foods segment also posted higher revenue and higher profit due to appropriate pricing, productivity gains, and lower logistics costs.」