Widening operating loss despite higher revenue

「As a result, revenue for the interim consolidated accounting period was ¥3,496.053 million, an increase of ¥290.874 million, or 9.1%, from the same period of the previous year. In terms of earnings, the Group reported an operating loss of ¥43.904 million, compared with an operating loss of ¥232.124 million in the same period of the previous year, and an ordinary loss of ¥36.583 million, compared with an ordinary loss of ¥223.761 million. After recognizing a ¥16.902 million deferred income tax benefit, mainly as a result of reviewing the recoverability of deferred tax assets at the current point in time, the Group reported an interim net loss attributable to owners of the parent of ¥12.437 million, compared with an interim net loss attributable to owners of the parent of ¥69.383 million in the same period of the previous year.」

「As a result, the Group reported revenue of ¥788.747 million for the cumulative first quarter, an increase of ¥25.316 million, or 3.3%, from the same quarter of the previous year. In terms of earnings, the Group reported an operating loss of ¥330.871 million, compared with an operating loss of ¥374.277 million in the same quarter of the previous year, and an ordinary loss of ¥332.019 million, compared with an ordinary loss of ¥373.052 million.」

「As a result, for the fiscal year, revenue was ¥7,303.461 million, up 2.9% year on year, the operating loss was ¥32.624 million, compared with operating income of ¥22.459 million in the previous fiscal year, and the ordinary loss was ¥28.887 million, compared with an ordinary loss of ¥16.125 million.」

「For the six months ended the interim period, revenue was ¥3,205.179 million, an increase of ¥44.304 million, or 1.4%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥232.124 million, compared with an operating loss of ¥132.652 million in the same period of the previous year, the ordinary loss was ¥223.761 million, compared with an ordinary loss of ¥117.609 million, and the interim net loss attributable to owners of the parent was ¥69.383 million, compared with an interim net loss attributable to owners of the parent of ¥17.421 million.」

「As a result, revenue for the six months ended the second quarter was ¥3,160.875 million, a decrease of ¥135.366 million, or 4.1%, from the same period of the previous year, partly due to the impact of 伊予農産株式会社’s change in fiscal year-end in the previous fiscal year. In terms of profit and loss, the operating loss was ¥132.652 million, compared with an operating loss of ¥111.586 million in the same period of the previous year, the ordinary loss was ¥117.609 million, compared with an ordinary loss of ¥99.291 million, and the net loss attributable to owners of the parent was ¥17.421 million, compared with a net loss attributable to owners of the parent of ¥51.055 million.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥739.670 million, a decrease of ¥185.710 million, or 20.1%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥321.032 million, compared with an operating loss of ¥313.194 million in the same period of the previous year, the ordinary loss was ¥315.384 million, compared with an ordinary loss of ¥305.724 million, and the net loss attributable to owners of the parent was ¥222.638 million, compared with a net loss attributable to owners of the parent of ¥212.744 million.」

「As a result, for the fiscal year, revenue was ¥7,061.165 million, up 10.4% year on year, operating income was ¥76.614 million, compared with an operating loss of ¥58.613 million in the previous fiscal year, ordinary income was ¥106.604 million, compared with an ordinary loss of ¥44.041 million, and net income attributable to owners of the parent was ¥78.032 million, down 61.4% year on year.」

「As a result, revenue for the nine months ended the third quarter was ¥4,779.704 million, an increase of ¥548.674 million, or 13.0%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥91.718 million, compared with an operating loss of ¥193.395 million in the same period of the previous year, the ordinary loss was ¥73.840 million, compared with an ordinary loss of ¥185.952 million, and the net loss attributable to owners of the parent was ¥40.920 million, compared with net income attributable to owners of the parent of ¥40.884 million in the same period of the previous year.」

「As a result, revenue for the six months ended the second quarter was ¥3,296.241 million, an increase of ¥647.720 million, or 24.5%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥111.586 million, compared with an operating loss of ¥219.947 million in the same period of the previous year, the ordinary loss was ¥99.291 million, compared with an ordinary loss of ¥217.282 million, and the net loss attributable to owners of the parent was ¥51.055 million, compared with net income attributable to owners of the parent of ¥7.654 million in the same period of the previous year.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥925.380 million, an increase of ¥379.701 million, or 69.6%, from the same period of the previous year, owing to the contribution from 伊予農産株式会社, which became a wholly owned subsidiary in November 2021. In terms of profit and loss, the operating loss was ¥313.194 million, compared with an operating loss of ¥295.509 million in the same period of the previous year, the ordinary loss was ¥305.724 million, compared with an ordinary loss of ¥295.000 million, and the net loss attributable to owners of the parent was ¥212.744 million, compared with a net loss attributable to owners of the parent of ¥231.167 million.」

「As a result, for the fiscal year, revenue was ¥6,393.813 million, up 19.0% year on year. In terms of profit and loss, manufacturing costs increased amid continued price increases for heavy oil, electricity, growing media, fertilizer and other raw materials, while selling, general and administrative expenses increased due to higher research and development expenses associated with the start of plant vaccine research at ベルグ福島株式会社. Consequently, the operating loss was ¥58.613 million, compared with an operating loss of ¥54.184 million in the previous fiscal year, and the ordinary loss was ¥44.041 million, compared with an ordinary loss of ¥56.881 million.」

「As a result, revenue for the nine months ended the third quarter was ¥4,231.030 million, an increase of ¥658.387 million, or 18.4%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥193.395 million, compared with an operating loss of ¥142.910 million in the same period of the previous year, the ordinary loss was ¥185.952 million, compared with an ordinary loss of ¥144.945 million, and net income attributable to owners of the parent was ¥40.884 million, up 25.1% from the same period of the previous year.」

「As a result, revenue for the six months ended the second quarter was ¥2,648.520 million, an increase of ¥267.403 million, or 11.2%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥219.947 million, compared with an operating loss of ¥142.865 million in the same period of the previous year, and the ordinary loss was ¥217.282 million, compared with an ordinary loss of ¥144.683 million.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥545.679 million, an increase of ¥13.762 million, or 2.6%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥295.509 million, compared with an operating loss of ¥294.669 million in the same period of the previous year, and the ordinary loss was ¥295.000 million, compared with an ordinary loss of ¥294.001 million.」

「Despite restrictions on sales activities in Japan and overseas as the impact of the COVID-19 pandemic persisted, the group continued visiting new customers and conducting sales and production activities after thoroughly implementing infection-control measures for employees. As a result, revenue increased to ¥5,372.134 million, up 3.4% year on year. The operating loss was ¥54.184 million, compared with an operating loss of ¥124.479 million in the previous fiscal year, and the ordinary loss was ¥56.881 million, compared with an ordinary loss of ¥132.395 million.」

「As a result, revenue for the nine months ended the third quarter was ¥3,572.643 million, an increase of ¥144.143 million, or 4.2%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥142.910 million, compared with an operating loss of ¥214.322 million in the same period of the previous year, and the ordinary loss was ¥144.945 million, compared with an ordinary loss of ¥219.068 million. Net income attributable to owners of the parent was ¥32.679 million, compared with a net loss attributable to owners of the parent of ¥146.814 million in the same period of the previous year, due to the recognition of ¥252.487 million in subsidy income under the Subsidy Program for Strengthening Production Bases in Production Areas, for which a grant decision had been made in connection with capital investment at the head-office farm, the recognition of a compression reserve, and the recognition of ¥69.988 million in income taxes adjustment resulting from the application of tax-effect accounting and other factors.」

「As a result, revenue for the six months ended the second quarter was ¥2,381.116 million, an increase of ¥112.291 million, or 4.9%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥142.865 million, compared with an operating loss of ¥190.111 million in the same period of the previous year, and the ordinary loss was ¥144.683 million, compared with an ordinary loss of ¥198.989 million. Net income attributable to owners of the parent was ¥46.903 million, compared with a net loss attributable to owners of the parent of ¥119.993 million in the same period of the previous year.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥531.916 million, a decrease of ¥11.044 million, or 2.0%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥294.669 million, compared with an operating loss of ¥273.702 million in the same period of the previous year, the ordinary loss was ¥294.001 million, compared with an ordinary loss of ¥278.499 million, and the net loss attributable to owners of the parent was ¥265.308 million, compared with a net loss attributable to owners of the parent of ¥187.158 million.」

「As a result, revenue for the nine months ended the third quarter was ¥3,428.499 million, an increase of ¥196.889 million, or 6.1%, from the same period of the previous year. In terms of profit and loss, sales in the vegetable seedling and seedling-related businesses remained strong, but expenses increased due to higher capital investment costs associated with expanded production capacity at the company’s own farms, increased employment accompanying higher production volumes, upfront investment in human resources for new businesses and other initiatives, and higher consulting fees related to improvements and reviews of the group’s overall business structure and support for M&A involving companies expected to generate synergies with existing businesses. As a result, the operating loss widened to ¥214.322 million, compared with an operating loss of ¥49.700 million in the same period of the previous year. The ordinary loss was ¥219.068 million, compared with an ordinary loss of ¥58.616 million, and the net loss attributable to owners of the parent was ¥146.814 million, compared with a net loss attributable to owners of the parent of ¥59.408 million.」

「As a result, revenue for the six months ended the second quarter was ¥2,268.825 million, an increase of ¥148.295 million, or 7.0%, from the same period of the previous year. In terms of profit and loss, sales in the vegetable seedling and seedling-related businesses remained strong, but expenses increased due to higher employment associated with expanded production facilities and upfront investment in human resources for new businesses and other initiatives. These additional expenses had been incorporated into the original plan. As a result, the operating loss increased significantly to ¥190.111 million, compared with an operating loss of ¥59.376 million in the same period of the previous year. The ordinary loss was ¥198.989 million, compared with an ordinary loss of ¥62.039 million, and the net loss attributable to owners of the parent was ¥119.993 million, compared with a net loss attributable to owners of the parent of ¥51.247 million.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥542.961 million, an increase of ¥78.418 million, or 16.9%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥273.702 million, compared with an operating loss of ¥244.570 million in the same period of the previous year, the ordinary loss was ¥278.499 million, compared with an ordinary loss of ¥247.271 million, and the net loss attributable to owners of the parent was ¥187.158 million, compared with a net loss attributable to owners of the parent of ¥166.912 million.」

「As a result, for the fiscal year, revenue was ¥4,885.559 million, up 4.0% year on year, and operating income was ¥72.684 million, up 432.8% year on year. In contrast, as the equity-method investment loss of an affiliated company widened, ordinary income was ¥31.912 million, up 9.0% year on year, while the net loss attributable to owners of the parent was ¥3.767 million, compared with net income attributable to owners of the parent of ¥29.212 million in the previous fiscal year.」

「As a result, revenue for the nine months ended the third quarter was ¥3,231.609 million, an increase of ¥166.694 million, or 5.4%, from the same period of the previous year. In terms of profit and loss, sales in the vegetable seedling production and sales business remained strong. The acquisition of the flower seedling business of 株式会社長野セルトップ in July 2019 contributed revenue from the new business, while expanded and improved production capacity at the company’s own farms also contributed. These factors resulted in a significant improvement in the operating loss to ¥49.700 million, compared with an operating loss of ¥127.613 million in the same period of the previous year.」

「As a result, revenue for the six months ended the second quarter was ¥2,120.529 million, an increase of ¥112.266 million, or 5.6%, from the same period of the previous year. In terms of profit and loss, sales in the vegetable seedling production and sales business remained strong, and improvements in production efficiency and other factors resulted in a significant improvement in the operating loss to ¥59.376 million, compared with an operating loss of ¥111.396 million in the same period of the previous year. The ordinary loss was ¥62.039 million, compared with an ordinary loss of ¥96.166 million, and the net loss attributable to owners of the parent was ¥51.247 million, compared with a net loss attributable to owners of the parent of ¥67.616 million.」

「Under these circumstances, revenue for the three months ended the first quarter was ¥464.542 million, an increase of ¥1.263 million, or 0.2%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥244.570 million, compared with an operating loss of ¥254.243 million in the same period of the previous year, the ordinary loss was ¥247.271 million, compared with an ordinary loss of ¥252.373 million, and the net loss attributable to owners of the parent was ¥166.912 million, compared with a net loss attributable to owners of the parent of ¥168.430 million.」

「As a result, for the fiscal year, revenue was ¥4,698.508 million, up 1.6% year on year, operating income was ¥13.641 million, compared with an operating loss of ¥59.175 million in the previous fiscal year, ordinary income was ¥29.277 million, compared with an ordinary loss of ¥71.410 million, and net income attributable to owners of the parent was ¥29.212 million, compared with a net loss attributable to owners of the parent of ¥69.178 million.」

「Revenue for the nine months ended the third quarter was ¥3,064.915 million, an increase of ¥44.327 million, or 1.5%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥127.613 million, compared with an operating loss of ¥170.586 million in the same period of the previous year, the ordinary loss was ¥111.278 million, compared with an ordinary loss of ¥160.585 million, and the net loss attributable to owners of the parent was ¥80.805 million, compared with a net loss attributable to owners of the parent of ¥124.671 million.」

「Revenue for the six months ended the second quarter was ¥2,008.263 million, an increase of ¥33.568 million, or 1.7%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥111.396 million, compared with an operating loss of ¥161.126 million in the same period of the previous year, the ordinary loss was ¥96.166 million, compared with an ordinary loss of ¥155.999 million, and the net loss attributable to owners of the parent was ¥67.616 million, compared with a net loss attributable to owners of the parent of ¥120.047 million.」

「Under these circumstances, sales in the vegetable seedling production and sales business remained broadly in line with the previous fiscal year. However, following the withdrawal from the convenience store business on 31 October 2017, revenue for the three months ended the first quarter was ¥463.279 million, a decrease of ¥38.480 million, or 7.7%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥254.243 million, compared with an operating loss of ¥235.035 million in the same period of the previous year, and the ordinary loss was ¥252.373 million, compared with an ordinary loss of ¥236.290 million.」

「As a result, for the fiscal year, revenue was ¥4,623.167 million, up 5.2% year on year, the operating loss was ¥59.175 million, compared with an operating loss of ¥98.418 million in the previous fiscal year, the ordinary loss was ¥71.410 million, compared with an ordinary loss of ¥91.604 million, and the net loss attributable to owners of the parent was ¥69.178 million, compared with net income attributable to owners of the parent of ¥13.981 million in the previous fiscal year.」

「Revenue for the nine months ended the third quarter was ¥3,020.588 million, an increase of ¥128.346 million, or 4.4%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥170.586 million, compared with an operating loss of ¥207.827 million in the same period of the previous year, the ordinary loss was ¥160.585 million, compared with an ordinary loss of ¥200.494 million, and the net loss attributable to owners of the parent was ¥124.671 million, compared with a net loss attributable to owners of the parent of ¥64.809 million.」

「Revenue for the six months ended the second quarter was ¥1,974.695 million, an increase of ¥78.988 million, or 4.2%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥161.126 million, compared with an operating loss of ¥164.015 million in the same period of the previous year, the ordinary loss was ¥155.999 million, compared with an ordinary loss of ¥163.592 million, and the net loss attributable to owners of the parent was ¥120.047 million, compared with a net loss attributable to owners of the parent of ¥41.180 million.」

「Despite these circumstances, revenue for the three months ended the first quarter was ¥501.760 million, an increase of ¥70.110 million, or 16.2%, from the same period of the previous year, supported by strong sales in the vegetable seedling production and sales business. In terms of profit and loss, the operating loss was ¥235.035 million, compared with an operating loss of ¥244.099 million in the same period of the previous year, and the ordinary loss was ¥236.290 million, compared with an ordinary loss of ¥245.212 million.」

「As a result, for the fiscal year, revenue was ¥4,395.994 million, up 3.9% year on year, the operating loss was ¥98.418 million, compared with operating income of ¥55.436 million in the previous fiscal year, and the ordinary loss was ¥91.604 million, compared with ordinary income of ¥57.057 million in the previous fiscal year.」

「Revenue for the nine months ended the third quarter was ¥2,892.241 million, an increase of ¥97.412 million, or 3.5%, from the same period of the previous year. In terms of profit and loss, the operating loss was ¥207.827 million, compared with an operating loss of ¥82.179 million in the same period of the previous year, the ordinary loss was ¥200.494 million, compared with an ordinary loss of ¥81.346 million, and the net loss attributable to owners of the parent was ¥64.809 million, compared with a net loss attributable to owners of the parent of ¥57.940 million.」