Expansion of high-value-added products and products not dependent on grafted seedlings

「Demand for watermelon seedlings has also increased nationwide, driving higher sales, primarily of original-specification products such as Nude Make seedlings. / Our original products (Earth Straight seedlings, Nude Make seedlings, the e-seedling series, high-graft High Leg seedlings, Virus Guard seedlings, Twin seedlings and PeSP seedlings): ¥830.084 million, 115.8」

「Net sales by product category were as follows: Original products, including Earth Straight seedlings, Nude Make seedlings, the e-seedling series, High-Leg grafted seedlings, Virus Guard seedlings, and Twin seedlings: ¥2,275.807 million, 108.9%.」

「Original products, including Earth Straight seedlings, Nude Make seedlings, the e-seedling series, High-Leg grafted seedlings, Virus Guard seedlings, and Twin seedlings: ¥716.948 million.」

「Original products, including Earth Straight seedlings, Nude Make seedlings, the e-seedling series, High-Leg grafted seedlings, Virus Guard seedlings, and Twin seedlings: ¥678.426 million, 97.9%.」

「Original products, including Earth Straight seedlings, Nude Make seedlings, the e-seedling series, High-Leg grafted seedlings, Virus Guard seedlings, and Twin seedlings: ¥189.704 million, 87.4%.」

「Net sales by product category were as follows: Original products, including Earth Straight seedlings, Nude Make seedlings, the e-seedling series, High-Leg grafted seedlings, Virus Guard seedlings, and Twin seedlings: ¥1,882.563 million, 105.1%.」

「While sales declined as changes in planting schedules were caused by higher raw material and energy prices, sales expanded as prices were gradually revised to appropriate levels amid soaring manufacturing costs for raw materials and other inputs, and through sales efforts for our original-specification Earth Straight seedlings, which use biodegradable nonwoven fabric rather than plastic pots.」

「Amid soaring manufacturing costs for raw materials and other inputs, prices were gradually revised to appropriate levels. In addition, favorable assessments of quality increased orders for watermelon seedlings, our original-specification Earth Straight seedlings, and Twin seedlings, resulting in higher sales. As a result, net sales for the six months ended in the second quarter of the current fiscal year were ¥2,691.412 million, up 16.4% from the same period of the previous year.」

「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.」

「Net sales by product category were as follows: Original products, including Earth Straight seedlings, Nude Make seedlings, the e-seedling series, High-Leg grafted seedlings, Virus Guard seedlings, and Twin seedlings: ¥1,734.451 million, 100.7%.」

「Recognition of our original growing medium, EARTH MIX Seed-Starting Growing Medium, and Earth in Rock, a rockwool cube that can accommodate our original-specification Earth Straight seedlings, increased through sales efforts. In addition to beginning sales of plant vaccine formulations whose sales rights changed from the previous holder to us in January 2022, we worked to promote sales of new products through a business alliance with a pesticide manufacturer, contributing to higher sales.」

「Sales increased as a result of sales activities for our original growing medium and Earth in Rock, a rockwool cube that can accommodate our original-specification Earth Straight seedlings launched in 2021, as well as the start of handling plant vaccine formulations after the sales rights changed from the previous holder to us in January 2022.」

「Strengthening the production and sales of flower seedlings, one element of product diversification, led to higher sales to home improvement stores, while sales for the vegetable seedling and seedling-related businesses overall declined due to delays in shipping dates and other factors. Net sales were ¥469.637 million, down 1.6% from the same quarter of the previous year.」

「As part of our efforts to diversify the range of seedlings, one measure to address the off-season, we expanded the types of flower and leafy vegetable seedlings produced in-house and strengthened relationships with partner farms and agriculture-related companies. By building strategic partnerships, we made it possible to ensure stable production and supply a diverse range of varieties and products, thereby expanding off-season sales and improving earnings power.」

「In addition, to differentiate ourselves from competitors, we strengthened sales of vaccine-treated cucumber seedlings and made proposals for flower seedlings for home improvement stores, resulting in higher sales of cucumber seedlings in Tohoku and Kanto and flower seedlings for general consumers.」

「Sales increased as a result of higher orders for tomato seedlings for growers and large-scale gardens in Kyushu, Tohoku, and Hokkaido, increased orders for cucumber seedlings on the back of stronger demand in Koshinetsu during March-April, increased orders for vaccine-treated seedlings for Fukushima Prefecture, and orders secured for flower seedlings for home improvement stores, all driven by sales activities targeting the November-January off-season.」

「Sales of an environmental monitoring device for greenhouse cultivation bundled with an AI-based disease forecasting service, soil conditioners launched for sale to growers, and our original growing medium increased. As a result, net sales for the nine months ended in the third quarter of the current fiscal year were ¥68.746 million, up 14.0% from the same period of the previous year.」

「Sales increased as a result of the flower seedling nursery business acquired and launched in July 2019.」

「The acquired flower seedling nursery business, which began operations in July 2019, increased sales. As a result, net sales for the first quarter of the current fiscal year were ¥505.237 million, an increase of ¥66.380 million, or 15.1%, from the same quarter of the previous year.」

「In July 2019, we acquired the flower seedling business from Nagano Cell Top Co., Ltd. and began producing and selling flower seedlings, contributing to higher sales.」

「The acquisition of the flower seedling business from Nagano Cell Top Co., Ltd. in July 2019 initiated production of new seedlings and marked the beginning of progress toward product diversification, one of our growth strategies.」

「In home gardening, in addition to onion and flower seedlings for home improvement stores, we promoted flower green curtains for spring home gardening. Improvements in delivery methods through chartered transport and company-operated deliveries expanded the sales areas of home improvement stores and led to higher sales, mainly in Kyushu and Tohoku.」

「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.」

「We will work to establish a second business platform by expanding the range of products handled, particularly during the off-season, operating a comprehensive gardening store, developing and selling seeds for our own branded varieties, strengthening collaboration with many agriculture-related manufacturers in Japan, and expanding sales channels overseas.」

「Net sales of original products by product category, including Earth Straight seedlings, Nude Make seedlings, and the e-seedling series, were ¥1,339.770 million, or 109.2% of the previous fiscal year. We established Musashino Seeds Co., Ltd., whose business includes breeding and variety development, and commenced the breeding business.」

「We decided to establish Musashino Seeds Co., Ltd. to breed and sell our own varieties and conduct variety improvement and development, thereby pursuing a breeding business expected to generate synergies across our group, including its existing businesses.」

「For our core vegetable grafted seedlings, we aim to expand sales of standard products as well as original products that address the challenges faced by commercial growers. We will actively pursue research and development with research institutions, universities, and companies in other industries to develop high-value-added products that provide seedlings with additional functions. We also aim to expand products that do not depend on grafted seedlings, moving beyond fruit vegetables that require grafting technology to offer products across the full range of vegetables and fruits.」