Strengthening Cost Competitiveness

「In the fiscal year ending March 2026, the third year of the medium-term management plan, revenue increased mainly because the recovery in beet sugar production increased sales volume of beet raw sugar. Although manufacturing costs, including energy costs, declined, operating earnings were reduced by higher sales of low-margin raw sugar and increased product transportation costs associated with higher sales, among other factors.」

「Feed business revenue decreased 2.7% year on year to ¥5,088 million, while lower raw material prices and cost reductions resulted in an operating loss of ¥103 million, compared with an operating loss of ¥183 million in the same period of the previous year.」

「Feed business revenue was ¥12,858 million, up 1.5% from the previous fiscal year, while higher sales volume and efforts to reduce costs resulted in operating profit of ¥1,221 million, up 903.3% from the previous fiscal year.」

「Food business revenue increased 2.7% year on year to ¥1,298 million, while operating profit increased 162.3% to ¥71 million.」

「Food business revenue was ¥2,615 million, up 3.4% from the previous fiscal year, while fixed-cost reductions and other measures resulted in operating profit of ¥188 million, up 280.5% from the previous fiscal year.」

「Food business revenue increased 3.4% year on year to ¥1,979 million, driven by higher sales of yeast and other products, while operating profit increased 338.2% to ¥138 million through efforts to sell at appropriate prices and reduce costs.」

「Under this plan, we aim to increase revenue and restore profit through further cost reductions in the sugar business and growth in the food, feed and agricultural materials businesses. While maintaining a solid structure for the sugar business as a core business, we will strengthen sales of products such as fructooligosaccharides, expand overseas operations for agricultural materials and other products, and broaden the applications of sugar beets as growth initiatives.」

「Food segment revenue increased 7.8% year on year to ¥1,914 million, driven by higher sales of food ingredients such as oligosaccharides, while segment profit increased 96.0% to ¥31 million through efforts to reduce selling expenses and other costs.」

「Food segment revenue increased 11.9% year on year to ¥1,252 million, while efforts to reduce selling expenses and other measures resulted in segment profit of ¥15 million, compared with a segment loss of ¥3 million in the same period of the previous year.」

「Accordingly, we have worked to advance cost reductions and promote sales, among other measures.」

「In addition to making greater efforts than before to reduce costs, we will work to strengthen our business foundations, including sales at appropriate prices.」

「Sugar segment revenue increased 5.6% year on year to ¥27,987 million, as demand for soft drinks and other products showed some recovery. In terms of earnings, efforts to reduce costs and other measures resulted in a segment loss of ¥382 million, compared with a segment loss of ¥873 million in the same period of the previous year. Feed segment revenue increased 12.4% year on year to ¥7,954 million, mainly owing to higher compound feed sales, while segment profit increased 30.7% to ¥768 million owing to higher beet pulp earnings.」

「Sugar segment revenue increased 5.5% year on year to ¥18,101 million, while higher beet sugar sales volume and expense reductions, among other factors, resulted in segment profit of ¥1,041 million, up 171.1% year on year. Feed segment revenue increased 8.9% year on year to ¥4,485 million, while expense reductions and other measures helped produce segment profit of ¥171 million, up 69.7% year on year.」

「Although demand for industrial sugar, including sugar for confectionery, remained depressed because of the impact of COVID-19, some recovery was seen in demand for beverages and other products. Sugar segment sales increased 1.3% year on year to ¥8,719 million, and segment profit was ¥369 million, compared with a segment loss of ¥0 million in the same period of the previous year, partly because the Company continued to reduce expenses.」

「Feed segment revenue increased 1.6% year on year to ¥7,074 million, driven by higher beet pulp sales, while segment profit increased 34.1% to ¥588 million owing to higher sales volume and cost reductions, among other factors.」

「Food segment revenue decreased 2.7% year on year to ¥1,101 million, but expense reductions and other measures resulted in segment profit of ¥9 million, compared with a segment loss of ¥22 million in the same period of the previous year.」

「Food segment revenue decreased 6.9% year on year to ¥557 million, as higher sales of household dry yeast were more than offset by lower sales of food ingredients such as oligosaccharides. However, cost reductions and other measures resulted in segment profit of ¥12 million, compared with segment profit of ¥0 million in the same period of the previous year.」

「Cost of sales was below the previous fiscal year as a result of efforts to reduce costs.」

「Sugar segment revenue decreased 1.4% year on year to ¥29,026 million due to lower selling prices. As for earnings, the loss on valuation of beet raw sugar inventories decreased from the same period of the previous year, and earnings improved through cost reductions and other measures, resulting in a segment loss of ¥230 million, compared with a segment loss of ¥1,229 million in the same period of the previous year. Feed segment revenue increased 2.7% year on year to ¥6,960 million, driven by higher beet pulp and compound feed sales, while segment profit increased 71.6% to ¥438 million owing to higher sales volume and cost reductions, among other factors.」

「Sugar segment revenue decreased 0.2% year on year to ¥19,504 million, while higher sales volume and cost reductions, among other factors, resulted in segment profit of ¥737 million, compared with a segment loss of ¥28 million in the same period of the previous year.」

「Sugar segment revenue was broadly in line with the same period of the previous year at ¥10,142 million, while stable domestic sugar market conditions and cost reductions, among other factors, resulted in segment profit of ¥372 million, compared with a segment loss of ¥115 million in the same period of the previous year.」

「During the cumulative third quarter consolidated period, there were no significant changes to, or newly arising issues concerning, the business and financial matters that our group must address.」

「Feed segment revenue increased 4.4% year on year to ¥6,301 million, driven by higher compound feed sales, while segment profit increased 236.2% to ¥264 million, owing to higher compound feed sales volume and lower beet pulp production costs.」

「Sugar segment revenue decreased 7.2% year on year to ¥20,172 million, while segment profit increased 85.2% to ¥1,139 million, owing to cost reductions and sales efforts, among other factors.」

「Revenue in the sugar segment decreased 4.0% year on year to ¥9,933 million due partly to lower sales volumes of beet sugar, but segment profit increased 42.1% to ¥689 million through cost reductions and sales efforts.」

「Revenue in the sugar segment increased 1.8% year on year to ¥40,437 million, while segment profit increased 368.1% to ¥518 million due to higher sugar selling prices and efforts to reduce costs.」

「Sugar segment sales increased 3.7% year on year to ¥31,300 million due to higher selling prices resulting from firm overseas sugar market conditions. Segment profit increased 75.2% year on year to ¥545 million, despite lower yields and deteriorating quality of beets harvested in 2016, as higher selling prices and cost-reduction efforts offset these factors.」

「Revenue in the sugar segment increased 4.1% year on year to ¥10,348 million, due partly to higher sales volumes of beet sugar. Segment profit increased 89.9% to ¥485 million, partly due to lower costs for beet sugar produced in 2015.」

「We will advance cost reductions through lower procurement costs for raw materials and supplies, lower manufacturing costs, energy savings and rationalization through efficient investment, and greater efficiency in the distribution system.」