Fluctuations in purchase prices of agricultural, livestock and aquatic products

「The raw material environment surrounding the group is expected to remain challenging, as raw material and energy costs continue to surge against the backdrop of international conditions and the yen remains weak.」

「However, the food industry continues to face a challenging and uncertain operating environment, including persistently high raw material prices resulting from yen depreciation.」

「In terms of earnings, segment profit (operating income) was ¥834 million, up 62.2% year on year, because price revisions and other measures improved the profit margin for aquaculture feed.」

「In the feed business, revenue increased because of price revisions in response to surging raw material prices and an increase in the volume of marine products handled. As a result, net sales were ¥5.511 billion, up 35.8% year on year. In terms of earnings, segment profit (operating income) was ¥250 million, down 16.0% year on year, because profit margins declined for marine products and aquaculture feed.」

「Although a marked recovery in foodservice demand can be seen in the company's operating environment, the raw material environment is expected to remain unstable. In addition to elevated raw material prices, supply concerns arising from the situation in Ukraine and yen depreciation raise concerns about further increases in raw material prices and energy costs.」

「In terms of earnings, operating income was ¥541 million, down 48.2% year on year, ordinary income was ¥634 million, down 47.2%, and profit for the quarter attributable to owners of the parent was ¥404 million, down 46.9%, because price revisions failed to keep pace with rising costs and because of the effects of the group reorganization carried out in the previous consolidated fiscal year.」

「The food industry continues to face a challenging operating environment, with raw material prices and energy costs surging because of the prolonged situation in Ukraine and further yen depreciation.」

「In terms of earnings, operating income was ¥14 million, down 91.9% year on year, ordinary income was ¥68 million, down 75.3%, and profit for the quarter attributable to owners of the parent was ¥53 million, down 66.2%, partly because surging raw material prices worsened profit margins and because of the effects of the group reorganization.」

「The raw material environment surrounding the company is expected to remain challenging. In addition to the longstanding surge in raw material prices, further price increases are unavoidable amid the worsening situation in Ukraine and the yen's rapid depreciation. Surimi, the primary raw material for fish-paste products, pork, the primary raw material for processed meat products, and fishmeal and grains, the primary raw materials for compound feed, may weigh on earnings because of market price fluctuations.」

「In terms of earnings, profit declined because of higher pork procurement prices and lower factory operating rates resulting from the decline in processed meat product sales volume.」

「In terms of earnings, segment profit (operating income) was ¥234 million, down 33.2% year on year, because of the decline in processed meat product sales volume and higher pork procurement costs.」

「In terms of earnings, segment profit (operating income) was ¥7 million, down 84.4% year on year, because of the decline in processed meat product sales volume and higher pork procurement costs.」

「In the livestock products business, sales volume of processed meat products declined because of lower foodservice demand, but sales volume of prepared foods, pork and beef increased, resulting in higher revenue. As a result, net sales were ¥4.772 billion, up 1.7% year on year. In terms of earnings, segment profit (operating income) was ¥11 million, down 63.8% year on year, because of the decline in processed meat product sales volume and higher raw material prices.」

「In terms of earnings, segment profit (operating income) was ¥351 million, down 40.7% from the previous fiscal year, partly because higher pork procurement costs worsened the profit margin.」

「In terms of earnings, segment profit (operating income) was ¥351 million, down 43.3% year on year, partly because higher pork procurement costs worsened the profit margin.」

「In the meat business, domestic pork production declined because of the effects of exceptionally hot weather and other factors, while pork sales to existing mass retailers also declined, resulting in lower revenue. As a result, net sales were ¥9.496 billion, down 2.8% year on year. In terms of earnings, segment profit (operating income) was ¥51 million, down 75.6% year on year, partly because higher pork procurement costs worsened the profit margin.」

「The raw material environment surrounding the company is expected to remain challenging. Surimi, the primary raw material for fish-paste products, pork, the primary raw material for processed meat products, and fishmeal, the primary raw material for aquaculture feed, may weigh on earnings because of market price fluctuations.」

「As a result, net sales were ¥3.565 billion, up 1.4% year on year. In terms of earnings, surimi prices, the primary raw material for fish-paste products, remained elevated, and segment profit (operating income) was ¥243 million, down 13.1% year on year.」

「Operating profit decreased 11.5% year on year to ¥481 million and ordinary profit decreased 12.9% to ¥545 million due to principal raw material prices remaining high. However, net income attributable to owners of the parent increased 1.6% to ¥402 million due to lower income tax expense.」

「Sales in the aquatic food business increased due to strong sales of the functional food ingredients bonito elastin and the soft food product for older consumers, Sofmeat, as well as increased exports of fish-paste products. Segment profit (operating profit) decreased 9.6% year on year to ¥94 million because surimi prices, the principal raw material for fish-paste products, remained high. Sales in the feed business increased due to higher sales volumes of aquaculture feed, among other factors. Segment profit (operating profit) decreased 3.5% year on year to ¥205 million due to the surge in fishmeal prices, the principal raw material for aquaculture feed.」

「Sales in the livestock food business increased due to higher pork sales volumes and the launch of cooked food sales through new channels, among other factors. As a result, net sales increased 2.3% year on year to ¥15.867 billion. Segment profit (operating profit) decreased 15.4% year on year to ¥439 million due to higher procurement costs resulting from high pork prices and increased logistics costs.」

「Operating profit decreased 5.2% year on year to ¥544 million, mainly due to lower sales and higher procurement costs resulting from pork prices remaining high.」

「Operating profit increased 30.5% year on year to ¥206 million, ordinary profit increased 45.4% to ¥286 million, and net income attributable to owners of the parent increased 26.6% to ¥161 million, due to increased exports of fish-paste products and sales of functional foods, as well as stable trends in principal raw material prices.」

「Operating profit increased 39.0% year on year to ¥1.138 billion and ordinary profit increased 55.6% to ¥1.099 billion, mainly due to stable trends in principal raw material prices.」

「Operating profit increased 13.3% year on year to ¥1.352 billion, ordinary profit increased 17.9% to ¥1.342 billion, and net income attributable to owners of the parent increased 26.6% to ¥1.010 billion, mainly due to stable trends in principal raw material prices.」

「Sales of livestock feed declined because prices were reduced in response to lower raw material prices.」

「Operating profit decreased 24.8% year on year to ¥157 million and ordinary profit decreased 12.5% to ¥197 million, mainly due to lower sales and surimi prices, the principal raw material for fish-paste products, remaining high.」

「Many of the main raw materials used in the principal products manufactured by our group are agricultural, livestock and aquatic products. Consequently, declines in harvests due to adverse weather conditions in producing regions and excessive speculation in futures markets may cause substantial price fluctuations and affect our group’s performance.」