Impact of COVID-19 on Commercial-Use Demand and Egg Prices
First written in FY2020. 5 of 14 entries say "Restated". Latest entry: FY2025.
Hokuryo moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 6 of 16 companies on the "Worse" side.
14 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「The infection has shown signs of subsiding since last year, and its impact has gradually weakened. However, if infections and related deaths were to surge again and emergency measures, including priority preventive measures to prevent the spread of disease, were implemented, this could have a material impact on our operating performance and financial condition through a sharp decline in egg prices.」
While stating that the impact of COVID-19 is waning, the company continued to disclose the possibility that a resurgence of infections and emergency measures could cause a sharp fall in egg prices and affect earnings. - FY2024RestatedAnnual report
「This year, the infection has shown signs of subsiding, and its impact has gradually weakened since it was classified as a Category 5 disease under the Infectious Diseases Act in May last year. However, if infections and related deaths were to surge again and emergency measures, including priority preventive measures to prevent the spread of disease, were implemented, this could have a material impact on our operating performance and financial condition through a sharp decline in egg prices.」
While stating that the impact of COVID-19 is waning, the company continued to disclose the risk that a resurgence of infections and emergency measures could cause a sharp fall in egg prices and affect earnings. - FY2024-Q1Change in disease classification and recovery in inbound demandAnnual report
「Inbound demand recovered rapidly after COVID-19 was classified as a Category 5 disease under Japan's Infectious Diseases Act and entry restrictions for foreign visitors to Japan ended on 29 April.」
The explanation shifted from concerns over conventional foodservice and tourism demand to a situation in which inbound demand was recovering rapidly, following COVID-19's reclassification as a Category 5 disease and the end of entry restrictions. - FY2023-Q3Continued infections and recovery in tourism demandAnnual report
「There are still no signs that infections with the Omicron variant of COVID-19 are subsiding. Meanwhile, the number of visitors to Japan has gradually returned to pre-COVID levels as the government has relaxed entry restrictions, becoming a positive factor for the Japanese economy.」
While there were no signs of Omicron infections subsiding, the easing of entry restrictions gradually brought the number of visitors to Japan back to pre-COVID levels, creating positive factors for foodservice demand and the Japanese economy, according to the company. - FY2023-Q2WorsenedAnnual report
「Resurgence of Omicron infections toward the summer after a temporary easing in early spring」
The explanation shifted from the signs of recovery following the temporary easing of infections reported in the previous quarter to a resurgence of Omicron infections toward the summer. The company continued to state that the COVID-19 situation could affect operating performance and financial condition. - FY2023-Q1Signs of recovery as infections subsidedAnnual report
「During the first quarter, infections with the Omicron variant, which had spread rapidly from the end of the previous year, subsided somewhat from April onward, and signs of improvement began to appear in the foodservice, tourism and transportation industries.」
The explanation shifted to signs of recovery in the foodservice, tourism and transportation industries as the spread of the Omicron variant subsided somewhat from April onward. The potential future impact of the seventh wave of infections was disclosed separately. - FY2022-Q3WorsenedAnnual report
「However, infections with the Omicron variant began spreading rapidly in Japan in December, creating a new concern after the start of the year.」
While the economy temporarily recovered, led by the transportation, tourism and foodservice industries, after the state of emergency was lifted, the rapid spread of the Omicron variant emerged as a new concern after the start of the year. - FY2022-Q2RestatedAnnual report
「In the egg industry, demand for foodservice eggs declined substantially due to COVID-19, while household demand remained firm.」
The company explained that demand for foodservice eggs continued to decline substantially due to COVID-19, while household demand remained firm. - FY2022-Q1WorsenedAnnual report
「Regarding the impact of COVID-19 on our future operating performance, we judge that an early recovery in demand for foodservice eggs will be difficult while the spread of the Delta variant is advancing. However, foodservice eggs account for a relatively small proportion of our egg sales, and we judge that the impact on total sales will be limited even if the containment of COVID-19 is delayed.」
The company judged that an early recovery in foodservice egg demand would be difficult amid the spread of the Delta variant. At the same time, it explained that the impact on total sales would be limited because the foodservice share is relatively small. - FY2021RestatedAnnual report
「The three states of emergency declared since April last year have had a significant negative impact on egg consumption, particularly causing a substantial decline in sales of foodservice products and contributing to the decline in egg prices.」
The decline in foodservice demand and its impact on lower egg prices caused by the state of emergency continued. Although the company stated that the impact on sales volume was limited because of its customer mix centered on value-added eggs and household products, the possibility of an impact on selling prices and earnings remains. - FY2021-Q3WorsenedAnnual report
「However, uncertainty over when the infection will subside remains substantial. The delayed recovery in demand for foodservice products has prolonged the weakness in egg prices, exerting a certain impact on the group's operating performance. The impact of the infection is also expected to continue at least through the current consolidated fiscal year.」
The company explained that uncertainty over when COVID-19 will subside remains substantial, while the delayed recovery in demand for foodservice products and weak egg prices continue. It indicated that the impact on earnings has already emerged and is expected to continue at least through the current consolidated fiscal year. - FY2021-Q2RestatedAnnual report
「The Company was also affected by COVID-19, and as demand for commercial use, including restaurants and processed-food applications, declined significantly, it focused on expanding sales of household eggs and value-added eggs. As a result, egg sales volume during the period to date declined slightly year on year, while net sales increased slightly.」
The substantial decline in foodservice demand caused by COVID-19 continued during the cumulative second quarter period. Expanded sales of household and value-added eggs kept the decrease in sales volume modest, while revenue increased slightly. - FY2021-Q1MaterialisedAnnual report
「As a result, foodservice sales declined by approximately 30% year on year in volume terms, but sales to mass retailers increased 6.5% year on year, allowing total sales volume to remain broadly in line with the previous year, down 2% year on year by weight.」
The decline in foodservice demand caused by COVID-19 actually occurred as an approximately 30% year-on-year decrease in sales volume. The increase in sales to mass retailers partially offset the impact, but the possibility of an impact on earnings depending on how the spread of infection develops remains. - FY2020First statedAnnual report
「The state of emergency declared by the Governor of Hokkaido and the Japanese government in response to COVID-19 has had a significant negative impact on egg consumption, particularly causing a substantial decline in sales of foodservice products. However, foodservice products account for a relatively small proportion of our customer mix, and the decline in sales therefore represents a limited share of total revenue.」
Foodservice demand for hotels, restaurants, bread, cakes and other products actually declined due to COVID-19. The company judged that the impact on its earnings was relatively limited because it was offset by increased demand for household products, but stated that the impact on earnings would remain if the spread of infection were prolonged.