Weak consumer spending, market maturation, rising costs, and labor shortages

「一方で、原材料価格の高止まりや地政学リスクの継続に加え、長期化する物価上昇による消費者の節約志向も根強く、依然として先行き不透明な状況が続いております。」

「Although the economy appears to be recovering gradually, the environment surrounding the company is expected to remain uncertain due to elevated raw material prices, worsening labor shortages, instability in crude oil supplies resulting from the deteriorating situation in the Middle East, and rising uncertainty in the global economy resulting from U.S. trade policy and other factors.」

「At the same time, higher prices resulting from soaring raw material and personnel costs and elevated energy prices, together with sluggish growth in real wages, have restrained personal consumption, and the challenging business environment continues.」

「Although the economy appears to be recovering gradually, the environment surrounding the company is expected to remain uncertain due to elevated raw material and energy prices, worsening labor shortages, particularly in the logistics industry, and rising uncertainty in the global economy resulting from trade friction and other factors.」

「Although economic sentiment has improved in some areas following the resumption of social and economic activity, the business environment is expected to remain challenging due to high prices driven by elevated raw material and energy costs, worsening labor shortages and the 2024 logistics problem.」

「During the cumulative third quarter, the confectionery and food industries saw personal consumption begin to recover as COVID-19 was reclassified as a Category V infectious disease and the flow of people recovered, along with signs of a return to normal economic activity. However, the outlook remained uncertain amid concerns that soaring raw material and energy prices and higher prices would dampen consumer sentiment.」

「During the cumulative second quarter, the flow of people recovered following the reclassification of COVID-19 as a Category V infectious disease, and personal consumption showed signs of recovery. However, as raw material and energy prices soared, many companies were forced to raise product prices, and the outlook remained uncertain amid concerns that higher prices would dampen consumer sentiment.」

「The confectionery and food industries continue to face a challenging business environment as higher prices strengthen consumers' focus on saving and the recovery in personal consumption remains limited, while soaring raw material and energy prices place pressure on earnings.」

「At the same time, sharp exchange-rate fluctuations and soaring raw material and energy prices placed significant pressure on corporate earnings, while the resulting rise in consumer prices restrained consumers' purchasing behavior.」

「During the cumulative third quarter, the confectionery and food industries saw demand begin to recover as restrictions on activities related to COVID-19 were gradually eased and nationwide travel subsidies were resumed. However, the combination of soaring raw material and energy prices and the yen's depreciation drove up prices and reduced purchasing appetite, and the industries remained in an extremely challenging situation.」

「During the cumulative second quarter, the confectionery and food industries saw demand begin to recover as restrictions on activities related to COVID-19 were gradually eased and the flow of people recovered. However, the industries remained in an extremely challenging situation due to soaring raw material and energy costs and the effects of the sharp depreciation of the yen.」

「The confectionery and food industries are also expected to continue facing a challenging business environment as rising prices further strengthen consumers' focus on saving and hold back personal consumption, while soaring raw material and energy prices place pressure on earnings.」

「The challenges to be addressed are wide-ranging, including higher raw material and energy prices resulting from global instability and the yen's depreciation, rising personnel expenses and logistics costs, an accelerating shift to digital, and the contraction of the domestic market due to population decline and the declining birthrate and aging population.」

「During the cumulative third quarter, the lifting of the state of emergency and all priority preventive measures allowed daily life to ease gradually and temporarily halted the economic decline. However, the renewed spread of COVID-19 driven by the Omicron variant, higher crude oil prices and soaring raw material prices put the economy back into a slowdown.」

「During the cumulative second quarter, the confectionery and food industries remained in a challenging environment as the outlook for containing COVID-19 remained uncertain, consumers' focus on saving intensified and consumer behavior became more diverse, intensifying competition for sales.」

「During the cumulative first quarter, Japan's economy showed some positive signs, including earnings recovery at certain companies, despite continued restrictions on economic activity due to COVID-19. However, the emergence of highly transmissible variants and repeated infection-control measures have left the economic outlook uncertain.」

「In addition to the spread of COVID-19, management faces a wide range of challenges, including Japan's declining birthrate and aging population, a shrinking labor force, higher raw material prices, personnel expenses and logistics costs, and increasingly diverse and complex consumer behavior.」

「During the cumulative third quarter, Japan's economy saw stock prices rise and temporary signs of a gradual recovery as a result of government measures and other factors. However, the renewed spread of COVID-19 led to worsening corporate earnings and declining personal income, and the uncertain outlook has continued.」

「At major commercial facilities and restaurant chains, which are our primary sales channels, we were forced to close temporarily or shorten operating hours. At transportation hubs such as stations and airports and at convenience stores, customer numbers fell as people refrained from going out. The resulting loss of sales opportunities had a serious impact on our business performance.」

「In the confectionery and food industries, higher personnel expenses, logistics costs and raw material prices were weighing on corporate earnings when a state of emergency was declared. Requests to refrain from business activities and going out led stores to close temporarily, further worsening corporate earnings.」

「In the confectionery and food industries, personal consumption showed signs of recovery, but consumers remained focused on saving. In addition, various cost pressures, including higher personnel expenses, logistics costs and raw material prices, created a challenging environment that weighed on corporate earnings.」

「However, in addition to the effects of abnormal weather, including extreme heat and typhoons, and natural disasters, sales of the Company’s core steamed buns were sluggish due to the warm winter, resulting in sales of ¥26,111 million for the cumulative third quarter.」

「During the cumulative second quarter of the fiscal year, the confectionery and food industries continued to face difficult operating conditions. Consumer sentiment remained subdued due to uncertainty about the outlook for the domestic economy, while higher labor and logistics costs amid labor shortages and rising raw material prices and energy costs put pressure on corporate earnings.」

「During the cumulative first quarter of the fiscal year, the Japanese economy was on a gradual recovery trend as the downturn bottomed out, but the outlook remained uncertain due to uncertainty in the international economy, including US-China trade friction. The confectionery and food industries continued to face difficult operating conditions due to market contraction caused by the declining birth rate, rising labor and logistics costs amid labor shortages, and the effects of unsettled weather.」

「The confectionery and food industries continued to face difficult operating conditions as consumers maintained a preference for saving and low prices, while labor and logistics costs rose amid labor shortages and the industries were affected by unsettled weather and a succession of natural disasters.」

「In the confectionery and food industries, competition among companies is intensifying as the market contracts due to the declining birth rate and sluggish personal consumption.」

「The operating environment became difficult as rising labor costs due to labor shortages and higher logistics costs became apparent, putting pressure on corporate earnings.」

「During the cumulative third quarter of the fiscal year, the confectionery and food industries continued to face difficult conditions. Although the economy was on a gradual recovery trend, competition among companies intensified as the market contracted due to the declining birth rate and sluggish personal consumption.」

「During the cumulative second quarter of the fiscal year, the confectionery and food industries continued to face difficult conditions. Personal consumption was on a recovery trend, but consumers maintained a strong preference for saving amid concerns about the economic outlook, leading to intensified price competition.」

「During the cumulative period of the quarter, the Japanese economy showed a gradual improvement in consumption trends as asset effects from a weaker yen and higher stock prices supported high-value consumption by some affluent consumers. However, consumer sentiment remained sluggish due to concerns about the outlook, while competition among companies in the confectionery and food industries intensified as the market contracted because of the declining birth rate and sluggish personal consumption.」

「The confectionery and food industries are expected to continue facing difficult operating conditions due to an anticipated contraction in market size caused by population decline, higher raw material prices and rising labor costs resulting from labor shortages.」

「During the cumulative third quarter of the fiscal year, the confectionery and food industries continued to face difficult conditions. The recovery in consumer sentiment was slow, price competition intensified as consumers maintained a strong preference for saving and low prices, and companies were required to respond to unusually variable weather, among other factors.」

「During the cumulative second quarter of the fiscal year, the confectionery and food industries remained in an uncertain environment. The recovery in consumer sentiment was slow, while price competition intensified as consumers maintained a strong preference for saving and low prices, and the industries were affected by this summer’s unsettled weather, among other factors.」

「Competition among companies in the confectionery and food industries is intensifying as the market contracts due to the declining birth rate and sluggish personal consumption.」

「Personal consumption is expected to remain sluggish due to rising prices, an increase in the consumption tax rate and higher social insurance premiums, among other factors, and the outlook remains uncertain.」