Expansion of Overseas Sales Channels Centered on Taiwan and Rollout of Company-Owned Factories Overseas

「In the U.S. business, the company established a local subsidiary in June 2025 and revamped its business model when full-scale operations began in October. In November, it launched the new brand “SATISFRY” and is actively expanding the business.」

「In the U.S. business, following the establishment of a local subsidiary in June 2025 and the start of operations in October, the company is steadily preparing to launch the new product “Satisfry” in November.」

「In the Taiwan business, product distribution to mid-sized retailers progressed, and sales expanded, led by the core “Karamucho” brand. The company also strengthened its earnings management framework and rigorously controlled promotional expenses. In addition, costs were contained because the procurement of potatoes produced in Taiwan proceeded smoothly, resulting in a significant increase in both sales and profit. In the Vietnam business, domestic sales improved rapidly and the export business performed strongly, leading to significant sales growth. As a result, factory utilization improved, and profit also improved significantly as ongoing cost-reduction measures proved effective. In the Thailand business, sales expanded as initiatives with major local distributors intensified and sales channels were expanded to regional supermarkets. The company also launched the highly profitable “Karamucho Corn Snacks,” leveraging the strength of the “Karamucho” brand, which sells well locally. Despite the impact of higher costs due to exchange-rate fluctuations, both sales and profit increased.」

「Overseas, sales expanded through the active launch of new products and the development of import and export businesses, despite the continuing impact of soaring prices for potatoes and other raw materials. The company also worked to improve profit by implementing price revisions and various cost-reduction measures. Results were as follows.」

「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 Taiwan, sales and profit remained strong following significant price revisions for various potato chips. The company is also working to improve profitability by increasing the sales mix of non-potato-chip products to reduce its dependence on potatoes as a raw material. In Vietnam, sales expanded significantly, supported by strong exports. Price revisions and various cost-reduction measures also proved effective, resulting in a significant improvement in profit. In Thailand, sales expanded as the company intensified initiatives with major local distributors and strengthened in-store support activities at supermarkets and other retailers.」

「In the overseas business, the company will develop brands such as “Karamucho” and “JAGAIMO COCHE” as global brands, while strengthening cooperation among countries, with the aim of expanding sales and improving profit across the overseas business as a whole.」

「Overseas, the impact of soaring raw material prices, particularly for potatoes and edible oils, emerged earlier and more severely than in Japan, putting profit substantially below plan. However, sales grew steadily, particularly in Thailand and Vietnam, and the company worked to expand the business by launching strategic new products.」

「Overseas, the impact of soaring raw material prices, particularly for potatoes and edible oils, emerged earlier and more severely than in Japan, putting profit substantially below plan. However, sales grew steadily, particularly in Thailand and Vietnam, and the company worked to expand the business by launching strategic new products.」

「In the Vietnam business, the spread of COVID-19 subsided and restrictions on business activities were lifted compared with the previous fiscal year. As a result, product shortages caused by labor shortages and other factors began to ease, and domestic sales in Vietnam expanded steadily. Despite soaring raw material prices becoming a major factor pressuring profit, various cost reductions, strong sales of “JAGAIMO COCHE” and expansion of the export business contributed to improved profitability. In the Thailand business, sales expanded through growth in imports from Vietnam and expansion into regional supermarkets and independent shops, where sales channels had previously been limited.」

「In the Taiwan business, sales remained strong, partly due to increased demand accompanying the renewed spread of COVID-19. The company also developed high-priced, high-value-added products unique to Taiwan, including the premium potato chips “RYO・TO・TEI,” inspired by traditional Japanese restaurants. While facing shortages of potatoes produced domestically in Taiwan, the company continued expanding sales of non-potato-chip products such as the corn-based “Kibi Ichiban” and wheat-based “Yokozuna-bo.” In the Thailand business, cooperation with OSOTSPA, a major local beverage manufacturer, enabled the company to fully expand into regional supermarkets and independent shops, where its sales channels had previously been limited, and sales grew steadily.」

「In the Vietnam business, business activities were severely constrained in both production and sales because extremely strict movement restrictions were imposed throughout Vietnam as COVID-19 spread. As a result, both sales and profit fell well below the initial forecasts. On the other hand, the company invested in equipment to increase production, while sales remained strong at local retail chains that prioritized product supply, and positive signs emerged, including increased exports to various countries.」

「In Taiwan, sales remained strong, partly due to increased demand resulting from the impact of COVID-19, while promotional expenses were restrained as promotional initiatives such as in-store sampling were cancelled. In addition, the company strategically expanded sales of highly profitable potato chips such as “JAGAIMO COCHE” and non-potato-chip products such as the corn-based “Kibi Ichiban” and wheat-based “Yokozuna-bo.” Exports to North America, which has high profit margins, also expanded steadily, resulting in a significant improvement in profit. Meanwhile, sales at local retail chains that prioritized product supply remained strong, with positive signs including increased exports to Japan, Europe and Thailand. Preparations have also progressed for developing highly profitable new products.」

「In the Taiwan business, sales remained strong, partly due to increased demand resulting from the impact of COVID-19. In the previous fiscal year, shortages of potatoes produced in Taiwan had pressured profits, but in the current fiscal year the business has been able to operate with potato inventories in line with plan. In addition to expanding sales of highly profitable corn- and wheat-based products and “JAGAIMO COCHE,” the company launched the new corn-based product “Kibi Ichiban,” while controlling selling expenses and achieving a significant increase in profit.」

「In the Vietnam business, sales fell short of plan due to severe restrictions on sales activities resulting from the impact of COVID-19. However, operating efficiency improvements and manufacturing cost reductions continued to progress, and the expansion of the export business and other factors drove sales growth and a significant improvement in profitability.」

「In the Vietnam business, the introduction of core products at chain retailers known as “Modern Trade” progressed, while the start of exports to Thailand improved factory utilization, contributing to earnings improvement.」

「In Vietnam, sales at major retail chains remained strong, and we also began exporting products to Thailand, resulting in a substantial increase in sales.」

「In Vietnam, the introduction of our products at major retail chains has been successful, resulting in a substantial increase in sales. Production volumes have also increased along with sales, while manufacturing costs have been reduced through negotiations over unit prices for various raw materials and specification reviews.」

「In Vietnam, we worked to increase sales by launching multiple new products and conducting campaigns timed to coincide with local film releases. The cost ratio has also steadily improved through revisions to product specifications, reductions in raw-material unit prices and increased production volumes. In Thailand, we had previously operated a business under which local snack manufacturers were entrusted with the manufacture and sale of products under our brands in return for royalties, but changed the business model to direct sales through the sales subsidiary established last fiscal year. Accordingly, from the three-month period ended 30 June, sales of the local entity have been recorded as consolidated net sales. As a result, overseas net 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 same period of the previous year.」

「In Vietnam, we launched 2 additional products under “KARAMUCHO,” our core brand, and launched “KoiMUCHO,” targeting younger consumers. In addition to launching new products, sales increased as we expanded our sales area, and we invested in equipment to increase production and obtained ISO22000 certification with a view to future exports.」

「In Vietnam, raw-material-related issues through the second quarter were gradually resolved, and we invested in equipment to accommodate increased sales. In terms of products, we added 2 products to “KARAMUCHO,” our core brand, and launched “KoiMUCHO,” targeting younger customers, which was well received.」

「During the six-month period ended 30 September, our group established a sales subsidiary in Thailand.」

「In Vietnam, we focused on further developing the areas around Ho Chi Minh City, where sales began in October 2017, while expanding distribution channels into northern areas such as Hanoi and Haiphong. We also actively promoted productivity improvements and cost-reduction initiatives, which remained challenges.」

「In our overseas business, we will continue to focus on “Karamucho.” With Taiwan, where we have established a strong business foundation, as our core market, we will also fully launch manufacturing and sales operations in Vietnam. In the fiscal year ending June 2019, we will further strengthen our overseas expansion and seek to expand our distribution channels.」

「In our overseas business, sales in Taiwan remained strong. In Vietnam, from mid-October 2017 we began selling Karamucho-brand potato chips and corn snack products through convenience stores and general channels, mainly in Ho Chi Minh City.」

「In our overseas business, sales in Taiwan remained strong. In Vietnam, product sales began in mid-October, and in November we held a business policy briefing in Vietnam.」

「In Taiwan, potato yields recovered from the previous period’s poor harvest, resulting in increased sales and profit in fiscal 2017. In Vietnam, the factory began operating in late September, and we proceeded with product distribution.」

「In our overseas business, our strategy of concentrating on “Karamucho” is proving successful. With Taiwan, where we have established a strong business foundation, as our core market, we will strengthen our export business from Taiwan. We also plan to begin operating our group’s first wholly owned overseas factory in Vietnam in autumn 2017, while considering entering additional countries.」

「In our overseas business, sales in Taiwan remained strong, although temporary procurement costs arose due to poor potato yields. In Vietnam, we proceeded with factory construction and trained locally hired staff.」

「In our overseas business, expansion of operations in Taiwan continued. In Vietnam, we advanced preparations for launching the business, including holding a groundbreaking ceremony in July for our first wholly owned overseas factory.」

「Our strategy of concentrating on “Karamucho” is proving successful. With Taiwan, where we have established a strong business foundation, as our core market, we will strengthen our export business from Taiwan. We are also considering entering additional countries, including the establishment in Vietnam in March 2016 of a subsidiary to operate our group’s first wholly owned overseas factory.」