Expanding Off-Season Order Intake, Cutting Costs, and Developing New Consumer Products

「Against this backdrop, progress in the appropriate pass-through of costs into prices, which had been implemented gradually, led to improved earnings.」

「As in the previous consolidated fiscal year, we strengthened new-customer development sales centered on original products for existing customers while reviewing prices to appropriate levels and continuing price negotiations.」

「As in the previous consolidated fiscal year, we strengthened new-customer development sales centered on original products for existing customers while reviewing prices to appropriate levels and continuing price negotiations.」

「Sales of spring home gardening products for home improvement stores also increased as a result of strengthening route delivery methods.」

「While demand for vegetable seedlings declined nationwide from November to January, sales efforts leveraging the production and delivery systems at company-operated and partner farms nationwide increased sales to Kanto. Sales to Kyushu also increased as a result of favorable assessments of product quality and production capabilities.」

「Following the year-round operation of the production facilities at the Iwate Hanamaki Farm, completed in March 2022, our in-house production capacity expanded. In preparation for the 2024 issue facing the logistics and transportation industries, we also reviewed production plans and worked to improve production efficiency to establish supply systems at each farm.」

「Under these circumstances, our Group worked to expand sales and strengthen purchasing power by strengthening sales activities centered on the vegetable seedling and seedling-related business and undertaking new product development and marketing activities to diversify our product range.」

「Although demand for vegetable seedlings declines nationwide from November to January, sales to Kyushu increased because of favorable assessments of quality and our original-specification Earth Straight seedlings.」

「Sales of flower seedlings and onion seedlings are currently increasing as measures to address the off-season, and we are accelerating the development of new products. However, first-quarter sales are expected to remain lower than in other quarters for the time being.」

「Under these circumstances, our Group worked to expand sales and strengthen purchasing power by strengthening production systems and sales promotion centered on the vegetable seedling and seedling-related business, and by expanding agricultural materials sales and purchasing power following the full acquisition of 伊予農産株式会社 as a subsidiary in November 2021.」

「Strengthening production and sales of flower seedlings, one of the products added to diversify our offering, increased sales to home improvement stores. However, higher prices for heavy oil and other products due to surging crude oil prices delayed planting of cucumber seedlings and other products north of the Kanto region until February onward, delaying shipments and contributing to lower sales through January.」

「In a situation where sales activities were restricted by the impact of COVID-19, we continued sales activities, including customer visits conducted with infection-control measures in place, field tours and product introductions using social media. To differentiate ourselves from other companies, we also strengthened sales of vaccinated cucumber seedlings, established a production system for them, and made planning proposals for flower seedlings to home improvement stores.」

「In this business segment, sales of tomato seedlings for growers and large-scale vegetable gardens in Kyushu, Tohoku and Hokkaido increased as a result of sales promotion activities to expand orders during the November-to-January off-season. Sales of cucumber seedlings also increased due to higher demand in the Koshinetsu region from March to April. However, from May through July, orders, particularly for tomato seedlings, declined because we were unable to gain market share amid price competition with other companies and a reduction in production scale.」

「The “苗ばんく” system made small-lot ordering possible by publishing information on seedlings produced by the Company and allowing customers to place orders from that information. This resulted in higher sales through support for small-scale farmers and stronger sales to home gardeners.」

「In this business segment, orders increased as a result of acquiring new customers during the November-to-January off-season and successful sales promotion focused on large-scale vegetable gardens. However, orders for tomato seedlings and other products in Kyushu and the Kanto region, where special demand had arisen following typhoon damage in the previous year, declined. Consequently, net sales for the first quarter of the current consolidated cumulative period were ¥477.266 million, a decrease of ¥27.970 million, or 5.5%, from the same quarter of the previous year.」

「In this business segment, sales of tomato seedlings for growers and large-scale vegetable gardens in Kyushu, Tohoku and Hokkaido increased as a result of sales promotion activities to expand orders during the November-to-January off-season. Sales of cucumber seedlings also increased due to higher demand in the Koshinetsu region from March to April.」

「To promote spring home gardening sales, we strengthened the use of our dedicated website, “ほうさく.ネット,” which publishes online information on immediately available vegetable seedling inventory at our own and partner farms nationwide, as well as information dissemination using free calling and email app LINE. These efforts to strengthen home gardening sales resulted in higher sales.」

「Various initiatives, including sales promotion activities to expand orders during the November-to-January off-season, resulted in higher orders for tomato seedlings for growers and large-scale vegetable gardens in Kyushu, Tohoku and Hokkaido, as well as higher sales from the flower seedling cultivation business launched after acquiring the business in July 2019. Consequently, net sales for the first quarter of the current consolidated cumulative period were ¥505.237 million, an increase of ¥66.380 million, or 15.1%, from the same quarter of the previous year.」

「The company worked to expand orders during the off-season (November to January) by strengthening its production and supply structure through the expansion of production facilities at company-operated farms, improving delivery methods through the use of chartered transport and company-owned delivery services, and strengthening sales promotion.」

「In this business segment, the company worked to expand orders during the off-season (November to January) by strengthening its production and supply structure through the expansion of production facilities at company-operated farms, improving delivery methods through the use of chartered transport and company-owned delivery services, and strengthening sales promotion. Sales progressed steadily, supported by increased orders for melon seedlings and other products for Ibaraki Prefecture, onion seedlings and flower seedlings for home improvement stores, and the growing demand among seedling producers for the company's original tomato and cucumber plug seedlings and cell seedlings.」

「Home gardening sales increased, particularly in Kyushu and Tohoku, as a result of expanding sales areas at home improvement stores by promoting onion and flower seedlings for stores seeking to diversify their product offerings, promoting flower green curtains for spring home gardening, and improving delivery methods through chartered and in-house delivery services.」

「Sales of melon seedlings for Ibaraki Prefecture and onion and flower seedlings for home improvement stores, which we have been promoting to expand the range of products, remained strong as part of our efforts to increase orders during the off-season. However, orders for tomato seedlings declined due to changes in growers' planting schedules. As a result, net sales for the first quarter of the current fiscal year were ¥438.335 million, a decrease of ¥3.056 million, or 0.7%, from the same quarter of the previous year.」

「For this initiative, we will strengthen our product offering, including flower and onion seedlings, by leveraging the production systems of our own and partner farms and promoting consultative sales. While focusing on existing sales channels, we will seek to expand our distribution network and secure profits during the off-season.」

「Amid rising delivery costs, orders for seedlings for home improvement stores and large-scale farms increased as a result of using chartered and in-house delivery services and reducing delivery costs through secondary cultivation at farms close to growers. Consequently, net sales were ¥2,984.923 million, an increase of ¥180.010 million, or 6.4%, from the same quarter of the previous year.」

「In this business segment, orders increased for pepper and melon seedlings for the Kanto region and onion seedlings for home improvement stores, for which we have continued initiatives to expand orders during the off-season, as well as for pot and plug seedlings for watermelon-producing regions such as Ishikawa and Chiba. Amid rising delivery costs, orders for seedlings for home gardening at home improvement stores and other outlets increased steadily as a result of reducing delivery costs through the use of chartered and in-house delivery services and reviewing delivery routes. Consequently, net sales were ¥1,950.166 million, an increase of ¥131.083 million, or 7.2%, from the same quarter of the previous year.」

「In this business segment, sales of pepper and melon seedlings for the Kanto region and onion seedlings for home improvement stores, for which we have continued initiatives to expand orders during the off-season, remained strong. Net sales for the first quarter of the current consolidated cumulative period were ¥441.392 million, an increase of ¥1.558 million, or 0.4%, from the same quarter of the previous year.」

「To expand orders during the off-season from November through January, we promoted sales activities based at the Ibaraki Farm and worked to improve quality. As a result, sales of pepper and melon seedlings for Ibaraki Prefecture and onion seedlings for home improvement stores nationwide increased.」

「In addition to increased sales of pepper and melon seedlings for the Kanto region and onion seedlings for home-improvement centers, which we have been working to expand orders for during the off-season, tomato seedlings for Kyushu from spring to summer also performed well. As a result, sales were ¥2,804.913 million, an increase of ¥126.090 million, or 4.7%, from the same quarter of the previous year.」

「In addition to increased sales of pepper and melon seedlings for the Kanto region and onion seedlings for home-improvement centers, which we have been working to expand orders for during the off-season, tomato seedlings for Kyushu in the spring also performed well. As a result, sales were ¥1,819.082 million, an increase of ¥76.029 million, or 4.4%, from the same quarter of the previous year.」

「Sales of the peppers and melon seedlings for the Kanto region and onion seedlings for home-improvement centers, which we have been working to expand orders for during the off-season, performed well. As a result, sales for the first quarter consolidated cumulative period were ¥439.833 million, a substantial increase of ¥77.675 million, or 21.4%, from the same quarter of the previous year.」

「We will continue working to increase orders during the off-season and reduce costs while developing new products for consumers.」