Cost reductions of approximately ¥35 billion over five years under THE ROUTE to 2024

「Consolidated business profit was ¥8,137 million, up ¥6,602 million, or 430.1%, year on year. Profit contributions from higher revenue and cost savings through transformation, among other factors, contributed to improved profitability.」

「Cost savings through transformation: ¥25–35 billion」

「Consolidated business profit increased ¥3,972 million year on year, meaning that the loss narrowed, to a loss of ¥2,791 million, compared with a loss of ¥6,763 million in the same period of the previous year. Profitability improved due to earnings contributions from top-line growth, cost reductions through transformation, and the ability to keep costs arising from higher raw material, packaging material, and energy prices and the weaker yen below the level of the same period of the previous year.」

「Cost reductions from transformation: ¥25 billion to ¥35 billion」

「Consolidated operating profit increased by ¥17,063 million year on year to ¥5,867 million, compared with a loss of ¥11,196 million in the same period of the previous year. Despite continued cost increases from external factors such as higher prices for raw materials, supplies and energy and the weaker yen, profitability improved substantially through the contribution from top-line growth, including higher sales volume and improved selling prices per case, lower promotional expenses from marketing activities focused on cost effectiveness, and lower logistics costs resulting from improvements to the supply network.」

「Although profitability was affected by higher costs due to external factors such as rising raw material, packaging material, and energy prices and the weaker yen, profitability improved through earnings contributions from top-line growth, including volume growth and improved selling prices per case, lower promotional expenses from cost-effective marketing activities, and lower logistics costs from supply network improvements.」

「Consolidated business profit increased ¥3,312 million year on year, meaning that the loss narrowed, to a loss of ¥9,437 million, compared with a loss of ¥12,749 million in the same period of the previous year. Despite the impact of higher costs due to external factors such as rising raw material, packaging material, and energy prices and the weaker yen, as well as the reversal of temporary cost reductions implemented in the same period of the previous year, profitability improved as the company achieved approximately ¥5 billion in earnings improvement in areas within its control, including earnings contributions from top-line growth through volume growth and improved selling prices per case and lower logistics costs from improvements to the supply network.」

「In addition to the effects of volume growth and improved selling prices per case from price revisions, the company achieved approximately ¥20 billion in earnings improvement in areas within its control, including cost reductions from improved manufacturing and logistics efficiency and the advancement of transformation initiatives.」

「Business profit increased year on year, meaning that the loss narrowed, due to cost reductions from improvements in manufacturing and logistics efficiency and the advancement of transformation initiatives.」

「Consolidated operating profit was a loss of ¥18,221 million, compared with a loss of ¥14,799 million in the same period of the previous year. Although volume growth, an improved packaging mix, improved selling prices per case in the second quarter and cost reductions from advancing transformation contributed to profit, results were affected by higher prices for raw materials, supplies and crude oil, the weaker yen and the reversal of temporary cost reductions implemented in the same period of the previous year.」

「The company is focusing on initiatives in areas within its control amid a challenging business environment and is considering and implementing measures for the short, medium, and long term. Transformation initiatives are also progressing steadily, with approximately ¥8 billion in recurring cost reductions achieved during the nine-month period.」

「Transformation initiatives are progressing steadily, with approximately ¥6 billion in recurring cost reductions achieved in the first half. Amid continued uncertainty, the company is continuing to focus on areas within its control and pursue transformation initiatives to build a strong foundation for future growth. Transformation in the vending and supply chain areas contributed this year.」

「We actively monitor risks and respond to changes in the business environment. We are accelerating business and management transformation, responding to changes in the behavior of customers and consumers, and pursuing cost reductions.」

「We have continued transforming the cost structure of the beverage business, which has a high fixed-cost ratio. In response to the sharp change in the business environment, we are accelerating the transformation initiatives currently under way, identifying new opportunities, and taking measures to prepare for changes in the business environment over the medium to long term.」

「Significant cost reductions partially offset the impact on this year's top line. More than ¥10 billion in cost reductions were implemented in the first half, and cost reduction initiatives will continue in the second half.」

「The Company is pursuing fundamental business reform aimed at returning to a sustainable growth trajectory, including transforming the cost structure, increasing customer-oriented investment in production capacity and expanding points of sale, and increasing investment in human resources capability development, including in important vending channels and indirect functions.」

「In addition to our cost reduction initiatives to date, we expect to reduce costs by approximately ¥35 billion over 5 years through new initiatives, including transforming the vending business, strengthening sales and market execution capabilities, and identifying procurement and supply chain opportunities to offset expected future cost increases.」