Profit Pressure from Upfront Investment in the Vietnam Business

「In the Vietnam business, both domestic sales and exports performed strongly, resulting in higher sales. In addition, improved gross profit and lower promotional expenses led to a substantial increase in the profit that had been a challenge.」

「In the Vietnam business, domestic sales improved rapidly and the export business performed strongly, resulting in a substantial increase in sales. As a result, factory utilisation improved, and ongoing cost-reduction measures were also effective, leading to a substantial improvement in profit.」

「In the Vietnam business, we are expanding sales by actively launching new products in Vietnam, strengthening initiatives with leading local retail chains and expanding exports to various countries. Price revisions and various cost-reduction measures have also been effective, resulting in a substantial improvement in profit.」

「In the Vietnam business, we are expanding sales by continuing to develop the export business and actively launching new products in Vietnam. Price revisions and various cost-reduction measures have also been effective, resulting in a substantial improvement in profit.」

「In the Vietnam business, the spread of COVID-19 has subsided and operating restrictions have been lifted compared with the previous consolidated fiscal year. As a result, product shortages caused by factors including labour shortages are also being resolved, and domestic sales in Vietnam are steadily expanding. Although soaring raw-material prices are exerting significant pressure on profit, various cost-reduction measures, strong sales of “Jagaimo Kokochi” and the expansion of the export business have been effective, leading to improved profitability.」

「As a result, both sales and profit fell substantially below the initial forecast, but there were positive signs at local retail chains that had prioritised product supply, where sales remained strong, and exports to Japan, Europe and Thailand increased. Preparations are also progressing for the development of highly profitable new products.」

「Meanwhile, earnings continue to improve as the export business to Thailand, Europe and Japan expands.」

「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, sales fell short of the plan because of strong restrictions on sales activities resulting from COVID-19, but profitability has improved as the company advanced reforms to its sales structure and reductions in manufacturing costs.」

「In the Vietnam business, the introduction of standard products at chain retailers known as "Modern Trade" and higher factory utilization resulting from the start of export sales to Thailand contributed to improved profitability. However, sales to independent retailers, known as "Traditional Trade," still fell short of the target level in terms of sales efficiency, and the review of manufacturing and logistics costs also took time, resulting in particular difficulty on the earnings front in the first half. Nevertheless, cost improvements have been steadily progressing, and the effects of reviewing sales channel policies to improve sales efficiency have also begun to emerge, with profitability showing a trend toward improvement as the fiscal year-end approached.」

「On the other hand, the company is steadily improving sales efficiency for independent retailers, including by reviewing its channel structure. As a result, the effects of this improvement are beginning to appear in operating income.」

「On the other hand, profitability challenges remain, including the time required to improve sales efficiency for independent retailers, and the company is reviewing its area strategy and developing new sales channels.」

「On the other hand, challenges remained in improving sales efficiency and reducing costs.」

「However, challenges in sales efficiency and costs have continued to pressure profitability.」

「Profit was affected by upfront investment in the Vietnam business and increases in factory labor costs and other expenses associated with securing manufacturing personnel. Operating income was ¥270 million, down 21.2% year on year; ordinary income was ¥363 million, down 21.5%; and net income attributable to owners of the parent was ¥137 million, down 54.2%.」