Morozoff Limited

The Group’s core business is the manufacture and sale of Western-style confectionery, and it operates businesses in Western-style confectionery manufacturing and sales, as well as cafés and restaurants. During the interim consolidated accounting period, the Group steadily advanced its baked-goods strategy and cost-control strategy under its medium-term management plan, “Tsunagu: Next Stage 2031.” In Japan, business remained firm, including sales of existing products and products under new brands. Overseas, sales were recorded for the Lunar New Year by the Hong Kong subsidiary, resulting in net sales of ¥16,355 million. Raw material prices were affected by higher cocoa and nut prices. Depreciation expenses and equipment relocation costs associated with the renovation of the Seishin No. 2 Plant and the start of operations at the Shin-Funabashi Plant affected operating income, ordinary income and interim net income.