Improving profitability across the overseas business

「As a result of actively working to expand channels and improve profitability in each country, overseas sales amounted to ¥6,422 million, up 3.1% year on year, and segment profit was ¥649 million, up 12.6% year on year.」

「Against this backdrop, sales across the overseas business amounted to ¥3,048 million, down 1.1% year on year, and segment profit was ¥342 million, down 20.8% year on year. Going forward, the company will strengthen measures including passing on costs through pricing, further shifting toward higher-value-added products and reducing costs, while seeking to improve profitability across the overseas business with its US subsidiary as a new growth engine.」

「As a result, overseas sales amounted to ¥3,082 million, up 12.9% year on year, and segment profit was ¥432 million, up 169.9% year on year.」

「As a result, overseas sales amounted to ¥5,585 million, up 13.4% year on year, and segment profit was ¥350 million, compared with a segment loss of ¥112 million in the same period of the previous year.」

「In Taiwan, the company pursued measures including price revisions for various potato chips and increasing the sales mix of non-potato-chip products to reduce dependence on potatoes as a raw material, working to improve profitability, including through a lower cost ratio. In Vietnam, sales expanded through continued development of the export business and the active launch of new products in the domestic market. Price revisions and various cost-reduction measures also proved effective, resulting in a significant improvement in profit. In Thailand, the company worked to improve profit by actively expanding products into supermarkets and other outlets with limited sales channels, while also changing product specifications and reducing logistics costs. As a result, overseas sales were ¥4,090 million, up 14.3% year on year, and segment profit was ¥142 million, compared with a segment loss of ¥222 million in the same period of the previous year.」

「In Vietnam, sales expanded substantially, partly because of strong export business. Price revisions and various cost-reduction measures also took effect, substantially improving profit.」

「Overseas operations also achieved substantial profit growth as price revisions and various cost reductions took effect.」

「Overseas operations were also more severely affected than domestic operations by higher raw material prices, particularly for potatoes and edible oil, leaving profit substantially below plan. However, sales grew steadily, mainly in Thailand and Vietnam, and the company worked to expand the business, including through the launch of strategic new products. As a result, overseas sales amounted to ¥4,926 million, and the segment loss was ¥112 million.」

「Overseas operations were affected by higher raw material prices, particularly for potatoes and edible oil, earlier and more severely than domestic operations, leaving profit well below plan. However, sales grew steadily, mainly in Thailand and Vietnam, and the company worked to expand the business, including through the launch of strategic new products. As a result, overseas sales amounted to ¥3,578 million, and the segment loss was ¥222 million.」

「Overseas operations were hit by higher raw material prices and ocean freight costs earlier and more severely than domestic operations, making it difficult to secure profit. At the same time, sales grew steadily, mainly in Thailand and Vietnam, and the company worked to expand the business, including through the launch of strategic new products. As a result, overseas sales amounted to ¥2,322 million, and the segment loss was ¥8 million.」

「As a result, overseas sales amounted to ¥1,236 million, and the segment profit was ¥49 million.」

「Profitability improved in each country, and the overseas business as a whole returned to profitability.」

「In Taiwan, sales performed strongly, partly because of increased demand resulting from COVID-19, while promotional expenses were held down as promotional initiatives such as product sampling were cancelled. In addition, the company strategically expanded sales of high-margin potato chips such as Jagaimo-gokochi and non-potato-chip products such as 黍一番, made with corn ingredients, and 横綱棒, made with wheat ingredients. Exports to North America, where profit margins are high, also expanded steadily, resulting in a substantial improvement in profit. As a result, overseas sales amounted to ¥3,180 million, and the segment profit was ¥57 million.」

「As a result, overseas sales amounted to ¥2,089 million, and the segment profit was ¥110 million.」

「As a result, overseas sales amounted to ¥2,559 million, up 6.2% year on year, and the segment loss was ¥135 million, compared with a segment loss of ¥159 million in the same period of the previous year.」

「As a result, overseas sales amounted to ¥1,639 million, up 5.0% year on year, and the segment loss was ¥92 million, compared with a segment loss of ¥50 million in the same period of the previous year.」

「In Taiwan, despite the adverse impact of the poor 2020 potato harvest in Taiwan on both sales and profit, sales of higher-margin products made with corn and wheat ingredients, as well as the expansion of Jagaimo-gokochi potato chips, progressed largely in line with plan in both sales and profit. In Vietnam, sales fell short of plan because of severe restrictions on sales activities caused by COVID-19, but earnings are improving as the company advances reforms to its sales structure, improves sales efficiency and reduces manufacturing costs. In Thailand, sales also struggled because of the downturn in the snack market caused by COVID-19, but expense controls, including reductions in promotional expenses, enabled the company to secure profit in line with plan. As a result, overseas sales amounted to ¥799 million, up 4.2% year on year, and the segment loss was ¥8 million, compared with a segment loss of ¥22 million in the same period of the previous year.」

「As a result, overseas sales amounted to ¥3,318 million, up 35.9% from the previous consolidated fiscal year, and the segment loss was ¥176 million, compared with a segment loss of ¥236 million in the previous consolidated fiscal year.」

「In Taiwan, amid continued demands from major retail chains for strict control of promotional expenses, sales of higher-margin products made with corn and wheat ingredients remained strong, and both sales and profit exceeded the previous year. In Vietnam, sales through major retail chains remained strong, and exports to Thailand were launched, resulting in substantial sales growth. Sales efficiency at independent stores is being improved progressively, including through a review of the channel structure. The effects are beginning to appear in operating profit. In Thailand, Karamucho sales have been strong, mainly through major retail chains, while Scone, which began to be imported from Vietnam for local sale, has also been introduced at major local convenience stores. As a result, the business continued to perform steadily in both sales and profit. Overseas sales amounted to ¥2,411 million, up 37.3% year on year, and the segment loss was ¥159 million, compared with a segment loss of ¥213 million in the same period of the previous year.」

「In Taiwan, amid continued demands from major retail chains for strict control of promotional expenses, sales of higher-margin products made with corn and wheat ingredients remained strong, and both sales and profit exceeded the previous year. In Vietnam, product placements at major retail chains have been successful, driving substantial sales growth. Production volumes have also increased with sales, while negotiations over unit prices for various raw materials and specification reviews have reduced manufacturing costs. Challenges remain on the earnings front, including the time required to improve sales efficiency at independent stores, and the company is reviewing its area strategy and developing new sales channels. In Thailand, Karamucho sales have been strong, mainly through major retail chains, while costs remain under control, establishing a framework to secure earnings soon after the business was fully launched in May 2019. As a result, overseas sales amounted to ¥1,562 million, up 38.9% year on year, and the segment loss was ¥50 million, compared with a segment loss of ¥114 million in the same period of the previous year.」

「The cost ratio is steadily improving through the review of product specifications, reductions in raw-material unit prices and increased production volumes. Meanwhile, the company is strengthening and rebuilding its sales channels, but sales mainly to independent retailers remain a work in progress, and investment continues to precede returns. As a result, overseas sales were ¥767 million, up 35.5% year on year, and the segment loss was ¥22 million, compared with a segment loss of ¥32 million in the previous year.」

「In the overseas business, improving profitability across the overseas business as a whole is regarded as the highest-priority issue.」