Impact of COVID-19 on Overseas Factory Operations and Business Performance
First written in FY2020. 4 of 16 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2025.
Hokuto moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 104 of 176 companies on the "Worse" side.
26 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「If infections with a pandemic-type disease spread and governments or local authorities impose requests to refrain from going out, business restrictions, or requests to take leave, normal business operations may be disrupted, potentially affecting the supply of products supplied by our Group.」
The former risk associated with COVID-19 has been reorganized as the risk of operational and supply constraints caused by pandemic-type infectious diseases in general. - FY2024MitigatedAnnual report
「At our overseas subsidiaries in the US, Taiwan, and Malaysia, the impact of COVID-19 has become limited compared with before. However, if the impact of the infection increases again, this could affect the Group's financial position and operating results.」
The impact of infectious diseases on overseas subsidiaries has become more limited than before. However, the potential impact of a resurgence, employee health management, and measures such as mask-wearing and handwashing continue to be described. - FY2024-Q3MitigatedAnnual report
「As restrictions on in-store promotions and events were lifted as COVID-19 moved toward containment, we held events, mainly in Malaysia, including sampling and pick-your-own sales, to increase sales.」
With restrictions on in-store promotions and events due to COVID-19 lifted, conditions now allow sales activities to resume in Malaysia. - FY2023MitigatedAnnual report
「At our overseas subsidiaries in the US, Taiwan, and Malaysia, the impact of COVID-19 has become limited compared with before. However, if the impact of the infection increases again, this could affect the Group's financial position and operating results.」
While the impact of COVID-19 on the overseas subsidiaries has become more limited than before, the potential impact of a renewed spread continues to be disclosed as a risk. - FY2023-Q3Impact varied by regionAnnual report
「At the U.S. subsidiary HOKTO KINOKO COMPANY, the benefits of price increases implemented at the end of November were offset by lower sales volume caused by production defects in some products, and sales growth was sluggish. At the Taiwanese subsidiary 台灣北斗生技股份有限公司, the easing of COVID-19-related movement restrictions boosted domestic tourism and food-service demand, reducing opportunities for home cooking and depressing sales across the retail market.」
After movement restrictions related to COVID-19 were eased, the US was affected by production defects, Taiwan by lower demand for home cooking and a weak retail market, and Malaysia by inflation and low-priced Chinese products, resulting in regionally differentiated impacts. - FY2023-Q2Impact varied by regionAnnual report
「At the U.S. subsidiary HOKTO KINOKO COMPANY, sales remained firm, but operating income fell slightly below plan because of competition from imported products and higher prices. At the Taiwanese subsidiary 台灣北斗生技股份有限公司, domestic tourism and the food-service industry expanded rapidly as COVID-19-related movement restrictions were eased. However, the retail market as a whole struggled, and mushroom sales also declined.」
In the US, sales remained firm but profit fell below the plan because of competition and inflation. Taiwan struggled in the retail market after movement restrictions were eased, while Malaysia was affected by low-priced transactions originating in China, resulting in regionally differentiated impacts from COVID-19 and demand conditions. - FY2023-Q1Impact varied by regionAnnual report
「At the US subsidiary HOKTO KINOKO COMPANY, sales remained firm, but operating income fell slightly below the plan because of higher raw material prices and other factors. At the Malaysian subsidiary HOKTO MALAYSIA SDN. BHD., restrictions were lifted in the ASEAN countries where products are sold, leading to increased travel, including overseas travel, and dining out. As consumers increasingly bought ingredients at retail stores and cooked at home less often, this affected mushroom sales.」
In the US, sales remained firm but operating income fell below the plan because of higher raw material prices. In Malaysia, demand for household consumption declined as travel and dining out increased after restrictions were lifted, resulting in regionally differentiated impacts. - FY2022Impact varied by regionAnnual report
「At the US subsidiary HOKTO KINOKO COMPANY, sales, led by Food Service, remained firm in the first half of the current consolidated fiscal year as economic activity picked up with the expansion of vaccinations. However, in the third quarter, operating income fell below the plan because of disruptions to container volumes and higher raw material prices and labour costs resulting from the impact of COVID-19.」
In the US, sales recovered in the first half, while operating income fell below the plan in the second half because of container disruptions and higher raw material prices and labour costs. In Malaysia, the spread of COVID-19 and lower exports continued. - FY2022-Q3US recovery, Asia weaknessAnnual report
「At the US subsidiary HOKTO KINOKO COMPANY, sales volume and unit prices exceeded the plan in the first half as economic activity picked up with the expansion of vaccinations, and sales and operating income continued to significantly outperform the plan. In the third quarter, sales remained firm, led by Food Service, as the US economy recovered. However, operating income fell below the plan, mainly because of higher raw material prices and labour costs amid disruptions to container volumes caused by COVID-19.」
In the US, sales volume and revenue recovered on the back of vaccination progress and economic recovery, while operating income fell below the plan because of container disruptions and higher raw material and labour costs. The impact of COVID-19 has differed by region. - FY2022-Q2Impact varied by regionAnnual report
「At the US subsidiary HOKTO KINOKO COMPANY, sales volume and unit prices both exceeded the plan as economic activity picked up with the expansion of vaccinations, resulting in sales and operating income significantly exceeding the plan. At the Malaysian subsidiary HOKTO MALAYSIA SDN. BHD., strict movement control orders were imposed as COVID-19 cases increased across the ASEAN countries where products are sold, while growing uncertainty about the economic outlook led to increased consumer restraint, worsening the sales environment.」
Sales recovered in the US as vaccinations expanded, while the sales environment deteriorated in Malaysia because of the spread of COVID-19, movement restrictions, and consumer restraint, resulting in regionally differentiated impacts. - FY2022-Q1Impact varied by regionAnnual report
「At the US subsidiary HOKTO KINOKO COMPANY, sales volume recovered as COVID-19 vaccinations expanded, and efforts to raise unit prices were strengthened, resulting in sales and operating income both exceeding the previous year and the plan. At the Malaysian subsidiary HOKTO MALAYSIA SDN. BHD., COVID-19 spread across the ASEAN countries where products are sold, and movement control orders were issued in Malaysia from May. The sales environment deteriorated because of the lockdown from 1 June.」
Sales recovered in the US as vaccinations expanded, while the sales environment deteriorated in Malaysia because of the spread of COVID-19 across ASEAN countries, movement control orders, and the lockdown, resulting in regionally differentiated impacts. - FY2021MaterialisedAnnual report
「At the US subsidiary, weak demand for dining out caused by restrictions on restaurant operations has continued. At the Malaysian subsidiary, exports to ASEAN countries were disrupted by lower demand resulting from movement control orders and a global container shortage. As a result, some overseas mushroom production plants have continued to operate at reduced levels.」
Weak US demand for dining out and movement restrictions and export disruptions in Malaysia caused by COVID-19 have continued, with the impact materialising as reduced operations at overseas plants and lower revenue from the overseas business. - FY2021-Q3MaterialisedAnnual report
「At the US subsidiary, weak demand for dining out caused by restrictions on restaurant operations has continued. At the Malaysian subsidiary, exports to ASEAN countries were disrupted by lower demand resulting from movement control orders and a global container shortage. As a result, some overseas mushroom production plants have continued to operate at reduced levels.」
Weak US demand for dining out and export disruptions caused by movement restrictions and container shortages in Malaysia have continued, with the impact of COVID-19 persisting as reduced operations at some overseas plants. - FY2021-Q2MaterialisedAnnual report
「At the US subsidiary HOKTO KINOKO COMPANY, many restaurants continued to be forced to close because of COVID-19, and sales in non-Asian markets, which are centred on foodservice, remained weak, although signs of recovery were seen at some retailers.」
In the US, sales in non-Asian markets centred on foodservice remained weak because of restaurant closures, and the impact of COVID-19 on the overseas business has materialised. - FY2021-Q1MaterialisedAnnual report
「At the U.S. subsidiary HOKTO KINOKO COMPANY, we continued to focus on non-Asian markets, particularly food service. However, many restaurants were forced to close because of the COVID-19 pandemic, and sales remained sluggish.」
COVID-19 led to restaurant closures and lower foodservice demand in the US, resulting in weak sales at the US subsidiary and lower revenue from the overseas mushroom business. - FY2020First statedAnnual report
「Within our Group, the US subsidiary has experienced reduced plant operations because of declining demand for dining out, while the impact on business activities and operating results has been limited at Group companies other than the US subsidiary. However, if the situation persists, it could affect the Group's financial position and operating results.」
The disclosure states that the US subsidiary has already reduced plant operations because of declining demand for dining out as a result of COVID-19, identifying the potential impact of a prolonged spread of the infection on the Group's financial position and operating results as a new risk.