Increase in Depreciation and Personnel Expenses Associated with the New Seedling Nursery Facility

「In addition to higher raw material costs for seeds and growing media, personnel expenses increased as the use of temporary staff and other arrangements expanded amid the growing difficulty of securing the personnel needed for peak production during busy periods. Manufacturing expenses, including labor and depreciation costs, also increased as Tsurusawa Farm of consolidated subsidiary ベルグ福島株式会社 moved to full-year operations.」

「In terms of earnings, in addition to higher raw material costs for seeds, growing media and other items, personnel expenses increased as the use of temporary staff and other measures expanded amid increasing difficulty in securing the personnel required during the production peak in the busy season. In addition, manufacturing expenses, including labor costs and depreciation, increased as Tsurusawa Farm of consolidated subsidiary Berg Fukushima Co., Ltd. operated year-round.」

「In addition to higher raw material costs resulting from seed price increases, manufacturing expenses increased at consolidated subsidiary ベルグ福島株式会社 because production at Tsurusawa Farm began in March 2025, resulting in higher employment, depreciation and fuel costs associated with full-year operations.」

「In terms of earnings, following the start of operations at the new farm of Berg Fukushima Co., Ltd., expenses increased for the purchase of production equipment and other items needed to prepare the production structure, labor costs from new hires, and depreciation. In addition to higher prices for raw materials, electricity, heavy fuel oil and other energy, production became increasingly concentrated during the busy season, resulting in higher labor costs, including increased recruitment expenses to secure personnel, greater employment of temporary staff and higher wage rates.」

「In terms of earnings, fuel and electricity costs increased from December onward due to higher prices for heavy fuel oil and other fuels used in production. In addition, because this business is labor-intensive, securing personnel at the production peak during the busy season is essential. As hiring became increasingly difficult each year, personnel expenses increased due to greater use of temporary staff and other measures to secure workers.」

「In terms of earnings, although heavy fuel oil and electricity consumption declined from December onward due to the mild winter, manufacturing expenses, selling expenses and general and administrative expenses increased as labor costs and other expenses in the production division rose with higher production volumes, while sales activity expenses aimed at expanding orders increased and distribution costs rose.」

「In terms of earnings, although heavy fuel oil and electricity consumption declined from December onward due to the mild winter, manufacturing expenses, selling expenses and general and administrative expenses increased as staffing was expanded to prepare for higher production and sales activities increased to expand revenue. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥566.972 million, down 8.5% year on year, while the segment loss (operating loss) was ¥197.641 million, compared with a segment loss of ¥194.294 million in the same quarter of the previous year.」

「In terms of earnings, manufacturing costs increased as labor costs rose due to an increase in temporary staff hired to secure personnel during the busy season, while heavy fuel oil consumption increased, electricity prices rose substantially, and prices for shipping materials and other items continued to increase.」

「In terms of earnings, manufacturing costs increased as labor costs rose due to an increase in temporary staff hired to secure personnel during the busy season, while heavy fuel oil consumption increased, electricity prices rose substantially, and fertilizer, growing media and other prices continued to increase.」

「In terms of earnings, manufacturing costs increased due to higher heavy fuel oil consumption resulting from the cold wave from mid-December onward and a substantial increase in electricity prices.」

「In terms of earnings, while efforts were made to improve production efficiency through a review of the production structure and to reduce raw material procurement costs, manufacturing costs increased as heavy fuel oil and electricity prices, as well as prices for shipping materials, growing media and fertilizers, continued to rise amid higher crude oil prices. Initial expenses also increased following the start of plant vaccine research at Berg Fukushima Co., Ltd.」

「In terms of earnings, while efforts were made to improve production efficiency through a review of the production structure and to reduce raw material procurement costs, manufacturing costs increased as heavy fuel oil and electricity prices, as well as prices for shipping materials, growing media and fertilizers, continued to rise amid higher crude oil prices. Initial expenses also increased following the start of plant vaccine research at Berg Fukushima Co., Ltd.」

「In terms of earnings, manufacturing costs increased due to higher production equipment and depreciation expense resulting from the expansion of the Iwate Hanamaki farm, increases in heavy fuel oil and electricity prices amid higher crude oil prices, and continued price increases for shipping materials, fertilizers and other items. Research and development expenses also increased following the start of plant vaccine research at Berg Fukushima.」

「In terms of earnings, manufacturing costs increased, including depreciation expense resulting from the expansion of production facilities at the Ehime head-office farm and fuel costs due to higher heavy fuel oil prices.」

「The construction and renovation of production facilities at the head office farm and ベルグ福島 increased consumables used in production and depreciation expense. At the same time, production systems and processes were reviewed at each farm, including by assigning skilled employees involved in technical instruction to grafting work during peak periods, improving production efficiency and containing increases in raw material and labor costs.」

「On the earnings front, the construction and renovation of production facilities at the head office farm and ベルグ福島 increased consumables used in production and depreciation expense. At the same time, production systems were reviewed at each farm, including by assigning skilled employees involved in technical instruction to grafting work during peak periods, substantially improving production efficiency and containing the increase in labor costs.」

「On the earnings front, the construction and renovation of production facilities at the head office farm and ベルグ福島 increased production supplies and depreciation expense. At the same time, production systems were reviewed at each farm, including by assigning skilled employees involved in technical instruction to grafting work during peak periods, substantially improving production efficiency and containing the increase in labor costs.」

「Depreciation expense resulting from the expansion of production facilities at ベルグ福島 and the Ehime head office farm to meet growing demand for tomato and cucumber seedlings, together with increased personnel expenses from hiring foreign technical interns and other measures to secure labor for expanded production as orders increased during the peak season from the second quarter onward, raised manufacturing costs. As a result, segment loss (operating loss) was ¥156.621 million, compared with segment loss of ¥149.541 million in the same quarter of the previous year.」

「Expenses increased due to higher capital investment costs associated with expanding production capacity, higher employment resulting from increased production volumes, and upfront investment in human resources for new businesses and other initiatives.」

「On the earnings front, sales in the vegetable seedling and related business progressed steadily, but expenses increased due to higher employment associated with expanded production facilities and upfront investment in human resources for new businesses and other initiatives.」

「On the earnings front, manufacturing costs increased with higher order volumes, while selling, general and administrative expenses increased due to higher staffing and other costs associated with stronger sales efforts. As a result, segment loss (operating loss) was ¥149.541 million, compared with segment loss of ¥134.875 million in the same quarter of the previous year.」

「As personnel expenses, raw material costs and other costs increased with higher production volumes, the burden from higher delivery charges increased particularly sharply. However, the Company was able to contain the increase in delivery costs by using chartered vehicles and its own delivery services, and by conducting secondary seedling cultivation at farms closer to growers.」

「Production efficiency improved as a result of the full-scale launch of ベルグ福島 Farm and the expansion of production capacity through additional greenhouse facilities at Ibaraki Farm. In addition, efforts to improve shipment rates at each production farm led to segment profit (operating profit) of ¥266.878 million, an increase of ¥74.526 million, or 38.8%, from the same quarter of the previous year.」

「In this business segment, productivity improved as production capacity expanded at Ibaraki Farm and ベルグ福島. In addition, lower fuel costs for heating equipment due to the mild winter contributed to the result, and segment profit (operating profit) was ¥145.875 million, an increase of ¥60.565 million, or 71.0%, from the same quarter of the previous year.」

「In addition to improved productivity from expanded production capacity at Ibaraki Farm, milder winter weather nationwide reduced the use of heavy oil and other fuels that drive up winter expenses. As a result of lower manufacturing expenses, segment loss (operating loss) was ¥133.933 million, compared with segment loss of ¥148.590 million in the same quarter of the previous year.」

「As personnel expenses, raw material costs and other costs increased with higher production volumes, the burden from higher delivery charges increased particularly sharply. However, the Company was able to contain the increase in delivery costs by using chartered vehicles and its own delivery services, and by conducting secondary seedling cultivation at farms closer to growers.」

「As production efficiency improved following the expansion of production capacity at the fully operational ベルグ福島 Farm and the expansion of greenhouse facilities at Ibaraki Farm, segment profit (operating profit) was ¥192.351 million, an increase of ¥40.348 million, or 26.5%, from the same quarter of the previous year.」

「On the earnings front, higher manufacturing costs, including personnel expenses and other costs, resulted in segment loss (operating loss) of ¥148.590 million, compared with segment loss of ¥121.575 million in the same quarter of the previous year.」

「Although personnel expenses and other costs increased, improved production efficiency following the full-scale launch of ベルグ福島 and expanded production capacity at the Company's own farms led to lower manufacturing costs.」

「As manufacturing costs, including depreciation expense and personnel expenses related to the seedling facilities at ベルグ福島株式会社, which began production in the previous fiscal year, increased, segment loss (operating loss) was ¥121.575 million, compared with segment loss of ¥132.208 million in the same quarter of the previous year.」

「On the earnings front, the establishment of new farms increased manufacturing costs, including depreciation expense and personnel expenses. In addition, personnel expenses and other costs in indirect departments increased as the East Japan and West Japan business divisions were strengthened, creating a difficult operating profit environment.」

「In addition to higher manufacturing costs, including depreciation expense and personnel expenses related to the seedling facilities at ベルグ福島 Farm, personnel expenses and other costs in indirect departments increased as the East Japan and West Japan business divisions were strengthened. As a result, segment profit (operating profit) was ¥93.687 million, a decrease of ¥114.562 million, or 55.0%, from the same quarter of the previous year.」