Fluctuations in Overseas and Domestic Sugar Market Conditions and Their Impact on Selling Prices

「Revenue in the Sugar Business increased 8.9% year on year to ¥46,694 million, but the business recorded an operating loss of ¥2,557 million due to the impact of lower selling prices, compared with an operating loss of ¥1,598 million in the previous fiscal year.」

「In overseas markets, New York raw sugar futures for the spot month opened at 18.89 cents per pound at the beginning of the period, but fell to the low 15-cent range in September as production in Brazil, the world's largest sugarcane producer, progressed smoothly and similar conditions were expected in India and Thailand, ending the interim period of the consolidated fiscal year at 16.06 cents. Although beet sugar selling prices declined due to lower overseas raw sugar prices, sales exceeded those of the same period of the previous year because higher beet sugar production increased raw sugar sales volumes. Sugar business sales were ¥24,173 million, up 18.5% from the same period of the previous year, but the business posted an operating loss of ¥309 million, compared with operating profit of ¥747 million in the same period of the previous year, due to lower selling prices and higher sales of unprofitable raw sugar.」

「In overseas markets, New York raw sugar futures for the spot month opened at 22.65 cents per pound at the beginning of the period and temporarily fell to the 17-cent range on expectations of a bumper harvest in Brazil, a major producer. The market subsequently returned to 22.65 cents by the end of the interim period of the consolidated fiscal year as concerns about next season's crop intensified due to insufficient rainfall in Brazil and India. Meanwhile, domestic market prices opened at ¥249–251 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, and remained at that level through the end of the interim period of the consolidated fiscal year.」

「Domestic market prices opened at ¥227–229 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, then rose to ¥239–241 in July and further to ¥249–251 in January in response to higher overseas raw sugar prices, ending the fiscal year at that level.」

「Sugar segment sales increased 11.4% year on year to ¥36,095 million, reflecting a recovery in demand from confectionery and food-service customers, as well as higher selling prices. However, beet sugar production incurred an operating loss of ¥509 million, compared with an operating loss of ¥520 million in the same period of the previous year, due to the markedly low sugar content of the beets used as raw material following last summer's extreme heat and persistently high energy costs.」

「Domestic market prices opened at ¥227–229 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, but rose to ¥239–241 in July in response to higher overseas raw sugar prices and remained at that level through the end of the cumulative period of the second quarter of the consolidated fiscal year. Sugar business sales were ¥23,261 million, up 8.7% from the same period of the previous year, and operating profit rose 62.3% to ¥1,413 million as higher selling prices improved earnings.」

「Sugar business sales increased 10.2% year on year to ¥11,755 million because sales volumes of sugar, which had declined because of the impact of COVID-19, were showing signs of recovery and selling prices rose along with higher sugar market prices. However, the Company posted an operating loss of ¥71 million, compared with operating profit of ¥289 million in the same period of the previous year, largely because of the recognition of an inventory valuation loss.」

「Sugar segment sales were ¥42,818 million, up 13.2% from the previous fiscal year, but the segment posted a loss of ¥243 million, compared with a segment loss of ¥331 million in the previous fiscal year, largely due to higher energy costs.」

「Sugar segment sales were ¥32,392 million, up 15.7% from the same period of the previous year, supported by recovering demand for soft drinks and other products and higher selling prices. However, the segment posted a loss of ¥520 million, compared with a segment loss of ¥382 million in the same period of the previous year, due to higher energy costs and other factors.」

「Domestic market prices opened at ¥204–205 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, but rose to ¥216–217 in August due to the sharp depreciation of the yen and higher energy costs, remaining at that level through the end of the cumulative period of the second quarter of the consolidated fiscal year. Sales volumes of beet sugar, which had declined due to the impact of COVID-19, began to recover in commercial-use applications such as soft drinks and food service, and sales exceeded those of the same period of the previous year, also helped by higher selling prices.」

「Domestic market prices opened at ¥192–193 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, then rose to ¥198–199 in August and to ¥204–205 in January in response to higher overseas sugar prices, ending the fiscal year at that level.」

「Meanwhile, domestic market prices opened at ¥192–193 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, but rose to ¥198–199 in August in response to higher overseas sugar prices and remained at that level through the end of the cumulative period of the second quarter of the consolidated fiscal year.」

「In overseas markets, New York raw sugar futures for the spot month opened at 10.04 cents per pound at the beginning of the period, but fell to 9.21 cents in late April, the lowest level in approximately 13 years, due to the impact of COVID-19, declining global consumption, continued falls in crude oil prices, a weaker Brazilian real, and expectations of increased production in Brazil, a major producer. The market subsequently rose to 13.24 cents in August on expectations of sugar import demand from China and lower sugarcane production in Thailand. Although the sugar market was expected to remain oversupplied globally, buying support from speculative investors helped it end the cumulative period of the second quarter of the consolidated fiscal year at 13.07 cents. Meanwhile, domestic market prices opened at ¥187–188 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, and remained at that level through the end of the cumulative period of the second quarter of the consolidated fiscal year.」

「Sugar segment sales were ¥37,729 million, down 1.6% from the previous fiscal year, and the segment posted a loss of ¥613 million, compared with a segment loss of ¥470 million in the previous fiscal year, largely due to sluggish selling prices and the impact of inventory valuation losses on beet sugar.」

「Sugar segment sales were ¥29,026 million, down 1.4% from the same period of the previous year due to lower selling prices. The segment posted a loss of ¥230 million, compared with a segment loss of ¥1,229 million in the same period of the previous year, as profit improved due to lower inventory valuation losses on beet raw sugar and cost reductions and other measures.」

「Although selling prices for beet sugar declined from the same period of the previous year due to domestic sugar market conditions, higher sales volumes kept sales broadly in line with the same period of the previous year. Sugar segment sales were ¥19,504 million, down 0.2% from the same period of the previous year, while segment profit was ¥737 million, compared with a segment loss of ¥28 million in the same period of the previous year, due to higher sales volumes and cost reductions.」

「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.」

「Sugar segment sales were ¥29,430 million, down 2.2% from the same period of the previous year, as higher sales volumes were more than offset by lower selling prices accompanying the market decline. The segment posted a loss of ¥1,229 million, compared with a segment loss of ¥484 million in the same period of the previous year, due to higher sales of unprofitable beet raw sugar, impairment losses on beet raw sugar inventories, and increases in storage and transportation costs.」

「Sugar segment sales were ¥19,536 million, down 3.2% from the same period of the previous year, and the segment posted a loss of ¥28 million, compared with a segment profit of ¥1,139 million in the same period of the previous year, largely due to sluggish selling prices and other factors.」

「Sugar segment sales were ¥10,200 million, up 2.7% from the same period of the previous year, due mainly to higher sales volumes resulting from increased production of 2017 beet sugar. However, the segment posted a loss of ¥115 million, compared with a segment profit of ¥689 million in the same period of the previous year, due to higher sales volumes of unprofitable beet raw sugar and lower selling prices.」

「Reflecting these factors, as well as sluggish sugar prices and other conditions, the segment posted a loss of ¥484 million, compared with a segment profit of ¥545 million in the same period of the previous year.」

「In overseas sugar markets, New York raw sugar futures for the spot month opened at 16.54 cents per pound at the beginning of the period, but fell to 12.55 cents in June. This reflected expectations that global markets would shift to an oversupply for the first time in 3 years due to anticipated production increases in major producers India and Thailand, as well as China and Europe, together with steady sugarcane crushing operations in Brazil. The market subsequently rose, partly because Brazil decided in August to introduce import tariffs on ethanol, and ended the cumulative period of the second quarter of the consolidated fiscal year at 13.54 cents. Meanwhile, domestic sugar market prices opened at ¥195–196 per kilogram at the beginning of the period, based on the Tokyo Seito refined sugar spot market, but fell to ¥189–190 in July in response to the decline in overseas sugar prices and remained at that level through the end of the cumulative period of the second quarter of the consolidated fiscal year.」