Deterioration in the food business environment due to soaring raw-material costs and price pass-through

「The difficult situation has continued because, in addition to soaring raw material prices and higher logistics costs, consumers have become increasingly inclined to save in response to price increases.」

「The confectionery industry remained difficult as multiple cost pressures, including soaring prices for raw materials such as cocoa beans and higher labor and logistics costs, accumulated.」

「The food industry remains difficult because, in addition to higher raw material prices, labor and logistics costs are rising and consumers are increasingly inclined to save in response to price increases.」

「The economic environment surrounding the Group is expected to remain difficult because, in addition to customers’ preference for saving in response to higher food prices, there are concerns over soaring raw material and energy prices and higher labor costs.」

「The food industry remained difficult because of soaring raw material and energy prices and customers’ increasingly strong inclination to save in response to price increases.」

「The food industry remained difficult because of soaring raw material and energy prices and customers’ increasingly strong inclination to save in response to price increases.」

「In terms of profit, although we worked to improve productivity through product price reviews and labor-saving measures, the impact was significant from higher-than-expected raw material prices, rising labor costs, lower sales volumes resulting from product price reviews in the confectionery business, and lower production resulting from inventory controls in the Western-style confectionery business.」

「In terms of profit, although we worked to improve productivity through product price reviews and labor-saving measures, the impact was significant from higher-than-expected raw material prices in the Western-style confectionery business, struggling franchise stores, lower production resulting from inventory adjustments, disposal of obsolete inventory, and lower sales volumes resulting from product price reviews in the confectionery business, and we were unable to absorb the higher costs.」

「In terms of profit, the sharp rise in egg prices was added to the ongoing increase in raw material prices. Although we reviewed confectionery product prices in March and worked to improve profitability, operating profit was ¥953 million (71.5% year on year), ordinary profit was ¥1,109 million (72.2%), and profit attributable to owners of the parent was ¥684 million (78.6%), so we were unable to match the results of the same period of the previous year.」

「In terms of profit, particularly in the third quarter, raw material and energy prices rose more than expected.」

「To address soaring raw material and energy prices, we worked to further improve productivity by increasing production capacity, labor-saving and installing solar power generation equipment, while also reviewing package sizes and prices to secure profit.」

「The food industry is facing a difficult operating environment as the impact of yen depreciation has been added to soaring prices for raw materials such as flour and fats and oils.」

「The food industry is facing a difficult operating environment because restaurants in particular have been significantly affected by the priority preventive measures, while prices of raw materials such as flour and fats and oils, as well as energy prices, have risen.」

「There are also concerns over soaring prices for raw materials such as flour, fats and oils, sugars and packaging materials, and the economic environment surrounding the Group is expected to become difficult.」

「In the food industry to which the Group belongs, food prices have been raised one after another because of soaring raw material and labor costs, while consumer sentiment has increasingly stalled amid uncertainty over the economic outlook, resulting in a difficult operating environment.」

「However, concerns over higher prices for certain raw materials and rising labor costs caused by labor shortages, in addition to a slowdown in the economic recovery and weaker consumer sentiment following the increase in the consumption tax rate, mean that the operating environment is expected to remain difficult.」

「In the China business, profit fell below the previous fiscal year because of lower sales caused by intensifying market competition and higher raw material prices.」

「Although the Group as a whole achieved sales comparable to those in the same period of the previous year, consolidated operating results included an operating loss, and ordinary profit also fell short of the same period of the previous year because of lower sales at the Western-style confectionery chain, the slowdown in the domestic Chinese economy, intensifying market competition in the China business and lower profit margins caused by higher raw material prices.」

「If the supply of key raw materials used by the Company, including dairy products such as butter and fresh cream, vegetable oils, cocoa, flour, sugar and almonds, becomes difficult to secure in volume or prices rise sharply due to changes in global supply and demand caused by increased demand in emerging economies or abnormal weather in producing countries, or political instability in exporting countries, or if exchange rates fluctuate sharply, the cost of sales could deteriorate, production activities could be disrupted and the Group’s results could be affected.」

「Since the consumption tax increase, consumer sentiment has weakened as higher raw-material costs have been passed through to certain products, including chocolate.」

「Since the consumption tax increase, consumer sentiment has continued to weaken, partly because higher raw-material costs have been passed through to the prices of certain products.」