Building a Second Business Pillar Under the First 日甜 Group Medium-Term Management Plan

「In the fiscal year ending March 2026, the third year of the medium-term management plan, revenue increased mainly because sales volume of beet raw sugar rose as beet sugar production recovered. Although manufacturing costs, including energy costs, declined, operating profit was pressured by higher sales of low-margin raw sugar and increased product transportation costs associated with higher sales, among other factors. Operating profit therefore fell 90.2% from the previous fiscal year to ¥52 million, an extremely difficult result. Meanwhile, net income attributable to owners of the parent was ¥5,032 million, mainly due to an increase in gains on sales of investment securities, and ROE for the fiscal year ending March 2026 was 6.7%.」

「The Company Group formulated the Second Nitten Group Medium-Term Management Plan (April 2023 to March 2028),」

「Against this backdrop, the 日甜 Group formulated the Second 日甜 Group Medium-Term Management Plan (April 2023 to March 2028), setting out its aim to “create a sustainable beet industry and contribute to the realization of a safe, secure and happy society,” while working to further enhance corporate value in pursuit of management that is conscious of the cost of capital and share price.」

「The company has reviewed the Second 日甜 Group Medium-Term Management Plan and reset the targets for years 3 through 5 of the plan.」

「Against this backdrop, the 日甜 Group formulated the Second 日甜 Group Medium-Term Management Plan (April 2023 to March 2028), setting out its aim to “create a sustainable beet industry and contribute to the realization of a safe, secure and happy society,” while working to further enhance corporate value in pursuit of management that is conscious of the cost of capital and share price.」

「In the fiscal year ending March 2025, the second year of the plan, the decline in beet production capacity due to a smaller planted area and persistently high manufacturing costs are viewed as major obstacles to executing the plan, and operating profit is expected to remain at ¥600 million. To emerge from this critical situation, the group will expand its operations and work toward achieving the plan through sales at appropriate prices, further cost reductions and the early realization of overseas expansion in the feed and agricultural materials businesses, including DFA III and paper tubes for organic farming.」

「During the first half of the current consolidated fiscal year, there were no material changes to, or newly arising, business or financial challenges requiring action by the Group.」

「Against this backdrop, under the Second 日甜 Group Medium-Term Management Plan (April 2023 to March 2028), the group has set out its aim to “create a sustainable beet industry and contribute to the realization of a safe, secure and happy society,” and will work to “pursue customer satisfaction,” “create a comfortable working environment,” and “promote environmental consideration and social contribution.”」

「Although the current consolidated fiscal year, the final year of the plan, should have been a year for pursuing further growth beyond the targets, the company faced an external environment of uncertainty over supplies and sharp price increases for fuel, raw materials and various supplies. Ordinary profit therefore remained at ¥2,000 million or less, resulting in a difficult situation. The company also formulated the Second 日甜 Group Medium-Term Management Plan (fiscal years ending March 2024 to March 2028). It targets operating profit of ¥2,400 million and ordinary profit of ¥2,800 million by the fiscal year ending March 2028, the final year of the plan.」

「During the first half of the current consolidated fiscal year, there were no material changes to, or newly arising, business or financial challenges requiring action by the Group.」

「The 日甜 Group entered the final year of the First 日甜 Group Medium-Term Management Plan. In addition to sluggish sugar consumption, soaring energy costs and other factors are expected to make achievement of the target profit extremely difficult. Accordingly, the group has promoted cost reductions while working to increase sales.」

「The fiscal year ending March 2023, the final year of the medium-term management plan, would ordinarily have been a year in which we aimed to achieve further profit growth. However, in addition to the impact of the COVID-19 pandemic on sales, we faced a rapid change in the external environment in the form of soaring energy costs, making achievement of the numerical targets extremely difficult. Accordingly, while maintaining the above policy of the medium-term management plan, we will first seek to emerge from this critical situation.」

「During the first 9 months of the current consolidated fiscal year, there were no material changes to, or newly arising, business or financial challenges requiring action by the Group.」

「Against this backdrop, the 日甜 Group has worked to achieve the financial targets of the First 日甜 Group Medium-Term Management Plan.」

「Against this backdrop, the 日甜 Group has worked to achieve the financial targets of the First 日甜 Group Medium-Term Management Plan.」

「We formulated the First 日甜 Group Medium-Term Management Plan, covering 3 years from the 123rd fiscal period (1 April 2020). Under our corporate principles, the entire group, including its subsidiaries, will continue its beet and beet sugar businesses, grow each business further, build a second core business following the sugar and real estate businesses, and fulfill its social responsibilities.」