Decline following the earthquake reconstruction boom and deteriorating profitability in the facility materials business

「Demand to secure agricultural materials became particularly pronounced amid uncertainty over the situation in the Middle East, resulting in revenue of ¥3,615 million, up 12.4% year on year. In terms of profit, appropriate price pass-through progressed and improved profitability, resulting in segment profit of ¥108 million, up 113.1% year on year.」

「In the horticultural materials business, although revenue from completed greenhouses declined, deliveries of agricultural materials proceeded smoothly amid tight supply and demand for naphtha feedstock, resulting in revenue of ¥15,264 million, up 4.1% year on year. Profitability also improved as operating efficiency advanced, with segment profit of ¥488 million, up 30.5% year on year.」

「In the facilities materials business, demand for replacement agricultural films ran its course and revenue from completed greenhouses declined, creating downward pressure on revenue. However, increased demand for general agricultural materials kept revenue broadly unchanged year on year at ¥6,875 million. Segment profit was ¥148 million, down 5.0%.」

「In the horticultural materials business, sales related to agricultural greenhouses remained sluggish as farmers' appetite for capital investment failed to recover. However, replacement demand for agricultural film and sales of shading materials increased, resulting in revenue of ¥6,885 million, up 8.0% year on year. Segment profit was ¥156 million, up 107.4% year on year.」

「In the horticultural materials business, higher and persistently high prices for agricultural materials, including agricultural film and steel products, in line with surging raw material prices led producers to conserve cash and reduced their capital investment appetite, causing sales to decline. Revenue was ¥13,337 million, down 5.1% year on year, while segment profit was ¥206 million, down 36.0% year on year.」

「In the horticultural materials business, sales declined because persistently high agricultural material prices led producers to defer purchases and reduced their capital investment appetite. Revenue was ¥6,378 million, down 6.8% year on year, while segment profit was ¥75 million, down 42.5% year on year.」

「In the horticultural materials business, higher agricultural material prices resulting from surging raw material prices led producers to defer purchases and reduced their capital investment appetite, causing sales to decline, particularly for agricultural film. Revenue was ¥2,932 million, down 10.0% year on year, while segment profit was ¥26 million, down 46.1% year on year.」

「Higher prices for agricultural materials, including agricultural film and steel products, in line with surging raw material prices led farmers to defer purchases and reduced their capital investment appetite, causing sales to decline. Revenue was ¥14,054 million, down 3.5% year on year, while segment profit was ¥321 million, down 23.6% year on year.」

「In the horticultural materials business, higher selling prices for agricultural materials, including agricultural film and steel products, in line with raw material prices provided a revenue growth factor. However, the price increases led farmers to defer purchases and reduced their capital investment appetite, causing sales volumes to decline. Revenue was ¥10,109 million, down 1.0% year on year, while segment profit was ¥204 million, down 12.0% year on year.」

「In the horticultural materials business, higher prices for agricultural materials, including agricultural film and steel products, resulting from surging resource prices, as well as weak agricultural product prices, reduced farmers' appetite for capital investment, and sales volumes declined, particularly for greenhouse materials. However, selling prices rose in line with raw material prices, resulting in revenue of ¥6,842 million, a slight year-on-year increase. In terms of profit, profitability deteriorated, and segment profit was ¥131 million, down 19.4% year on year.」

「In the horticultural materials business, sales remained sluggish because of factors including a decline in the reaction demand brought forward ahead of price increases for agricultural greenhouse materials and excess channel inventories caused by weak producers' purchasing appetite. Revenue was ¥3,256 million, down 3.4% year on year. In terms of profit, segment profit was ¥49 million, down 30.5% year on year.」

「In the facilities materials business, farmers’ capital investment and replacement demand declined as higher resource costs led to price increases for agricultural films and various agricultural materials. Sales also weakened following the reversal of special restoration demand for agricultural facilities damaged by major typhoons in previous years. Revenue was ¥14,564 million, down 3.0% year on year, while segment profit was ¥421 million, down 1.1%.」

「In the facility materials business, sales remained weak following the decline in restoration demand related to typhoon damage in previous years. In addition, repeated price increases for agricultural film and other products due to higher resource costs, together with prolonged weakness in fresh-produce prices, reduced farmers' replacement demand for durable materials and their willingness to invest in equipment. Sales of general agricultural materials and revenue from completed greenhouse and hydroponic cultivation plant projects consequently declined. Revenue fell 6.5% year on year to ¥10,213 million, while segment profit declined 19.4% to ¥232 million.」

「As in the agricultural materials business, the facility materials business revised prices for products such as agricultural film in response to higher resource costs, resulting in stronger sales from rush demand ahead of the price increases. However, prolonged weakness in fresh-produce prices reduced farmers' replacement demand for durable materials and their willingness to invest in equipment, causing sales of general agricultural materials and revenue from completed greenhouse and hydroponic cultivation plant projects to decline. Revenue consequently fell 6.5% year on year to ¥6,841 million, while segment profit declined 20.1% to ¥162 million.」

「In the facility materials business, sales increased due to rush demand ahead of price increases for agricultural materials. However, farmers' willingness to invest in equipment weakened because of poor harvests caused by unfavorable weather and falling prices for some vegetables. Sales of greenhouse components and revenue from completed hydroponic cultivation plant projects consequently declined, resulting in a 2.0% year-on-year decrease in revenue to ¥3,371 million. Segment profit also fell 10.9% to ¥70 million.」

「In the facility materials business, sales in the Kanto region increased due to demand for restoration of agricultural facilities damaged by typhoons. In addition, demand for labor-saving products such as irrigation materials increased as farmers aged, and the company responded effectively to changes in domestic sales channels resulting from the decline in imported products during the COVID-19 pandemic. Revenue consequently rose 2.4% year on year to ¥15,009 million. Profitability declined, however, as the pandemic reduced willingness to invest in equipment and demand for hydroponic cultivation plants and greenhouse components remained weak. Segment profit fell 2.7% to ¥426 million.」

「In the facility materials business, sales remained weak as demand for restoration of agricultural facilities damaged by major typhoons had run its course. However, sales of summer shading and irrigation materials and winter insulation materials increased, as did revenue from completed greenhouse projects, resulting in a 2.6% year-on-year increase in revenue to ¥10,918 million. Profitability declined because of weaker demand for low-priced products and lower revenue from completed hydroponic cultivation plant projects, which generally generate relatively high margins. Segment profit consequently fell 9.3% to ¥288 million.」

「In the horticultural materials business, there were revenue-reducing factors, including a decline in replacement demand for agricultural film as farmers sought to conserve cash amid low produce prices, and a decrease in revenue from completed nutrient-solution cultivation plants. However, sales of pipes for agricultural facilities increased on demand for typhoon recovery, and revenue from completed greenhouses also rose, resulting in revenue of ¥7,314 million, up 2.9% year on year. In terms of profit, the profit margin declined because profitability deteriorated amid weak demand for agricultural film and the relatively high-margin nutrient-solution cultivation plant business remained sluggish. Segment profit was ¥203 million, down 3.9% year on year.」

「In the facilities materials business, agricultural facilities, particularly in Chiba Prefecture, suffered extensive damage from a major typhoon the previous year, and restoration demand continued. In addition, stay-at-home demand related to COVID-19 was also seen for agricultural materials. Revenue was ¥3,441 million, up 8.8% year on year, while segment profit was ¥79 million, up 55.2%.」

「Orders for hydroponic plant projects declined as falling prices for fruits and vegetables reduced farmers' willingness to invest in equipment. As a result, revenue was ¥14,656 million, down 0.1% year on year, while segment profit was ¥438 million, down 3.4% year on year.」

「In the facility materials business, sales increased in the Kanto region due to demand for restoration of agricultural facilities damaged by typhoons. However, orders for hydroponic cultivation plants declined, restoration demand in the Tokai region decreased following the previous fiscal year, and sales of insulation materials fell due to the mild winter. Revenue consequently declined 1.7% year on year to ¥10,641 million, while segment profit fell 8.0% to ¥317 million.」

「In the facility materials business, sales increased in the Kanto region due to demand for restoration of agricultural facilities damaged by typhoons. However, sales declined due to the decrease following the restoration demand generated in the Tokai region in the previous fiscal year, lower sales of shading and irrigation materials resulting from low temperatures and insufficient sunlight in early summer, and fewer orders for hydroponic cultivation plants. Revenue therefore fell 3.8% year on year to ¥7,106 million, while segment profit declined 15.8% to ¥211 million.」

「In the facility materials business, sales of shading and irrigation materials declined due to low temperatures and insufficient sunlight in early summer, while orders for hydroponic cultivation plants also decreased. As a result, revenue fell 2.9% year on year to ¥3,163 million, and segment profit declined 18.8% to ¥51 million.」

「In the facilities materials business, demand increased for replacement of films at agricultural facilities damaged by repeated typhoons, and sales of low-environmental-impact biodegradable covering materials rose. However, revenue from completed hydroponic plant and greenhouse projects decreased as completion dates were pushed into the following fiscal year. Revenue was ¥14,673 million, down 0.5% year on year. In terms of profit, improved profitability of hydroponic plant projects and other factors resulted in segment profit of ¥453 million, up 11.0% year on year.」

「In the facilities materials business, sales of insulating materials to protect crops from cold weather declined due to the mild winter, but demand for restoration of agricultural facilities damaged by repeated typhoons, increased sales of shading and irrigation materials due to last summer’s extreme heat, exports of hydroponic cultivation plants, completion of large-scale projects for plants combined with solar power generation and closed plant factories, and higher revenue from completed greenhouse projects resulted in revenue of ¥10,826 million, up 3.2% year on year. Segment profit also increased 50.6% to ¥345 million.」

「In the facilities materials business, demand for restoration of agricultural facilities damaged by repeated typhoons, increased sales of shading and irrigation materials due to last summer’s extreme heat, and steady performance in the hydroponic cultivation plant business, including exports and the completion of large-scale projects for plants combined with solar power generation and closed plant factories, resulted in revenue of ¥7,384 million, up 7.1% year on year. Segment profit also increased 64.4% to ¥251 million.」

「In the facilities materials business, despite a decline following front-loaded demand in the previous fiscal year ahead of price increases, revenue increased 2.6% year on year to ¥3,259 million, driven by the development of new customers, higher demand for shading and irrigation materials due to extreme heat, and increased sales accompanying exports of hydroponic cultivation plants. Segment profit also increased 24.3% to ¥63 million.」

「In the facilities materials business, revenue was ¥14,740 million, up 6.9% year on year, supported by successful expansion of agricultural film sales and development of new customers. In terms of profit, lower orders for hydroponic plant projects led to a decline in the profit margin, and segment profit was ¥468 million, down 12.4% year on year.」

「In the facilities materials business, proactive development of new customers, among other factors, resulted in revenue of ¥10,488 million, up 9.0% year on year. However, segment profit fell 9.9% to ¥278 million due to lower hydroponic cultivation plant construction volumes and deteriorating profitability amid weak market conditions for general agricultural materials, among other factors.」

「In the facilities materials business, proactive development of new customers, among other factors, resulted in revenue of ¥6,897 million, up 9.5% year on year. However, segment profit fell 11.1% to ¥184 million due to lower hydroponic cultivation plant and greenhouse construction volumes and deteriorating profitability amid weak market conditions for general agricultural materials, among other factors.」

「In the facilities materials business, sales of general agricultural materials increased through proactive acquisition of new customers, offsetting a decline in hydroponics-related demand following the previous year's post-earthquake reconstruction demand and a decrease in greenhouse construction completions. As a result, revenue was ¥3,176 million, up 7.2% from the same quarter of the previous year. However, segment profit was ¥63 million, down 26.4% year on year, mainly because the highly profitable hydroponics and greenhouse construction businesses performed weakly.」