Risk of fluctuations in beverage sales due to weather factors such as cool summers and warm winters

「Although price revisions implemented in the previous fiscal year and unfavorable weather in March had a negative impact on demand, sales volume remained at approximately the same level as the previous year as the company worked to capture increased demand from rising foot traffic through new product launches, expanded shelf space and effective marketing activities.」

「To capture as much of the increased demand resulting from record extreme heat and other factors as possible, the company has worked on launching new products, conducting efficient and effective marketing activities, and continuously strengthening customer engagement, with the aim of growing sales revenue through higher sales volume and improved net revenue per case.」

「Sales volume during the current third-quarter cumulative period increased 4%. In particular, third-quarter volume increased 5% as the effects of initiatives to date emerged significantly against a backdrop of recovering foot traffic and extremely hot weather during the peak demand period, driving up cumulative volume.」

「The decline is estimated to have been approximately 1% year on year due to the反動 from the extreme heat in the same period of the previous year, among other factors.」

「During the current consolidated fiscal year, from 1 January 2022 to 31 December 2022, hereinafter the "current fiscal year," demand in Japan's soft drinks market increased due to the recovery in foot traffic accompanying the easing of COVID-19-related restrictions on activities, the revitalization of economic activity and record extreme heat. However, the implementation of price revisions by soft drinks companies had a negative impact on demand, and the market is estimated to have increased approximately 4% year on year on a volume basis.」

「During the current third-quarter cumulative consolidated period, Japan's soft drinks market is estimated to have grown approximately 5% year on year on a volume basis, due to the continued recovery in foot traffic following the lifting of COVID-19-related restrictions on activities and the effects of extremely hot weather.」

「Sales are believed to have remained at the same level as the previous year due to the repeated issuance of states of emergency and the effects of record heavy rainfall in August, the peak demand period, among other factors.」

「Third-quarter sales volume declined 1% year on year, despite a rebound from the previous year's disaster impacts and supply constraints, due to the effects of prolonged rain and low temperatures in July. Sales volume in July declined 13%.」

「During the current consolidated fiscal year, sales volume in the soft drinks business declined slightly year on year due to unfavorable weather, weak performance in the vending machine channel and profitability improvement initiatives, including a focus on small-size packages. Net sales decreased by ¥21,140 million from the previous consolidated fiscal year to ¥991,563 million, down 2.1% year on year.」

「During the current third-quarter cumulative consolidated period, sales volume in the soft drinks business declined due in part to unfavorable weather and efforts focused on profitability. Net sales decreased by ¥12,892 million from the third-quarter cumulative consolidated period of the previous year to ¥764,029 million, down 1.7% year on year.」

「Sales of the Group's beverage products tend to be susceptible to weather conditions. For example, cool summers and warm winters have a significant impact on customer (consumer) demand.」