Risk of Higher Procurement Costs Due to International Green Coffee Bean Prices and Foreign Exchange Movements

「Although the ICO Composite Indicator Price published by the International Coffee Organization (ICO), an indicator of coffee green-bean prices, turned downward after historically sharp increases, it remains at a high level compared with before the surge. In addition, the yen's depreciation has continued, with the exchange rate exceeding ¥160 to the U.S. dollar.」

「The ICO composite indicator price published by the International Coffee Organization (ICO), a benchmark for green coffee prices, remained at historically high levels and fluctuated sharply for an extended period after surpassing 300 cents per pound in January 2025. In addition, the yen weakened again to the upper ¥150 range per US dollar toward the fiscal year-end.」

「The business environment surrounding the Group became extremely challenging because of two factors, soaring prices for coffee green beans and the ongoing depreciation of the yen. As shown in the following graph, the prices of raw materials required to manufacture coffee have remained at their highest level in the past five years.」

「In the coffee industry, domestic imports and consumption of green coffee beans declined from the previous year. The ICO composite indicator price published by the International Coffee Organization (ICO) rose above 300 cents per pound in January 2025 and subsequently fluctuated sharply at historically high levels. The yen continued to weaken, trading in the ¥140 range per US dollar. As a result of these two factors, the price of raw materials required to produce coffee remained at its highest level in the past five years, as shown in the following graph.」

「The ICO composite indicator price published by the International Coffee Organization (ICO) surged above 200 cents per pound from April 2024. It then rose sharply over a short period and remained above 300 cents at high levels from January 2025. The yen weakened against the US dollar to more than ¥150 per dollar from April 2024, and remained at a similar level. As a result of these two factors, the price of raw materials required to produce coffee continued to surge to historic levels, reaching its highest level in the past five years, as shown in the following graph.」

「The ICO composite indicator price published by the International Coffee Organization (ICO), a benchmark for green coffee prices, surged above 200 cents per pound from April 2024. It then followed a consistent upward trend over a short period, recently surpassing 250 cents and remaining at high levels. In foreign exchange markets, the yen continued to weaken from April 2024, exceeding ¥150 per US dollar and temporarily reaching levels in the ¥160 range. Although the yen subsequently moved toward appreciation against the US dollar from July, it remained above ¥140 per US dollar. As a result of these two factors, the price of raw materials required to produce coffee remained at its highest level of the past five years.」

「Green coffee prices, which have a significant impact on operating performance, rose sharply due to persistently low certified stocks in the coffee futures market and lower production in Vietnam, the world's largest producer of robusta coffee, caused by adverse weather. The procurement price of raw green coffee remained high due to higher maritime freight rates following the outbreak of conflict in the Middle East and the continued weakening trend in foreign exchange rates. In addition, coffee production costs increased due to higher materials costs, resulting in a challenging operating environment.」

「The procurement price of raw green coffee, which has a significant impact on operating performance, remained high as green coffee prices rose due to persistently low certified stocks in the coffee futures market and concerns over maritime transport following the outbreak of conflict in the Middle East. The yen also continued to weaken. Coffee production costs remained elevated due to higher materials costs, resulting in a challenging operating environment.」

「The procurement price of raw green coffee, which has a significant impact on operating performance, has recently shown signs of easing as harvesting progresses smoothly in Brazil, the largest producing region. However, it remains high because the yen's weakening trend continues. In addition, coffee production costs, including resource and energy prices and materials costs, have remained elevated, resulting in a challenging operating environment.」

「Green coffee prices, which had remained at high levels since the previous fiscal year, eased due to declining concerns over lower production, a recovery in certified stocks in the coffee futures market, concerns over weaker demand resulting from a global economic downturn and a reversal in foreign exchange rates.」

「Green coffee prices, which have a significant impact on operating performance, eased from their persistently high levels and stabilized due to upward revisions to Brazil's 2023 production forecast, an increase in certified stocks in the coffee futures market and concerns over weaker demand resulting from a global economic downturn. Although the yen's record depreciation temporarily eased, the yen remained on a weakening trend and the challenging operating environment continued.」

「Green coffee prices, which have a significant impact on operating performance, remained high due to downward revisions to Brazil's current-year production, concerns over next year's crop following dry weather in producing regions and low certified stocks in the coffee futures market. The yen has also continued to weaken at record levels, raising the procurement cost of raw green coffee and resulting in a challenging operating environment.」

「Green coffee prices, which have a significant impact on operating performance, remained high due to a substantial decline in Brazil's current-year production following severe frost damage in the previous year, persistently low certified stocks in the coffee futures market and stagnation in maritime transport caused by the container shortage. Prices were approximately 150% higher than in the previous year. The yen has also continued to weaken, leaving the situation uncertain.」

「Our group procures all raw green coffee beans for its regular coffee products through imports from overseas and takes various measures to procure raw materials of the quality we require at optimal prices. However, raw green coffee beans are internationally traded commodities, and factors such as political conditions in coffee-producing countries, climate change and pest or disease damage in coffee-growing regions, and lower production due to crop conditions could drive up market prices. Fluctuations in foreign exchange rates and increases in various costs, including materials and logistics expenses, resulting from higher resource and energy prices could also affect our operating performance and financial position.」

「Green coffee prices, which have a significant impact on operating performance, surged amid concerns over lower production this year due to prolonged insufficient rainfall in Brazil's producing regions and severe frost in late July. Prices continued to rise due in part to stagnation in maritime transport caused by the container shortage, and remained at levels more than 190% above the previous year's level in November and December.」

「Green coffee prices remained high due to concerns over lower production in Brazil resulting from prolonged insufficient rainfall and disruptions to maritime transport caused by the COVID-19 pandemic. In late July, severe frost was observed across extensive coffee-growing regions in Brazil, and prices surged to more than 180% of the previous year's level amid concerns over a significant impact on the following year's crop. Prices are expected to remain high going forward.」

「Green coffee prices, which have a significant impact on operating performance, remained high due to increased coffee demand in food-service businesses, particularly in Europe and the United States, as well as concerns over lower production in Brazil resulting from prolonged dry weather and delays in coffee shipments caused by anti-government demonstrations in Colombia. Prices reached levels more than 50% above the previous year's level in early June.」

「Green coffee prices, which have a significant impact on operating performance, began rising from mid-November due to hurricanes that struck Central America, concerns over lower production in Brazil resulting from adverse weather and transportation concerns caused by a global container shortage. Over the fiscal year, prices remained approximately 10% higher than in the previous year.」

「Green coffee prices, which have a significant impact on operating performance, had generally remained stable, but rose approximately 20% from mid-November amid the impact of hurricanes that struck Central America and downward revisions to Brazil's production forecast for the following year due to insufficient rainfall.」

「Although we take various measures to procure raw materials of the quality we require at optimal prices, political conditions in coffee-producing countries, crop conditions and market conditions in coffee-growing regions, the availability of transportation, import quarantine procedures and fluctuations in foreign exchange rates could affect our operating performance and financial position.」

「Green coffee prices began rising in November amid concerns over drought caused by dry weather in Brazil, downward revisions to production estimates due to declining quality, and lower supply resulting from fluctuations in the Brazilian real. Prices became highly volatile, reaching levels in December more than 30% above the beginning of the fiscal year.」

「Our group is engaged in the coffee business, and all of the green coffee beans used as its principal raw material are procured through imports from overseas. Because green coffee beans are traded in international commodity markets, a surge in market prices or foreign exchange fluctuations may increase procurement costs. In addition, if we are unable to fully reflect increases in personnel and logistics costs resulting from difficulties securing personnel in selling prices, this could have a material impact on our financial results.」

「Green coffee prices remained relatively stable, supported by ample supply following the good harvest in Brazil, the world's largest coffee-producing country, but rose temporarily in June due to concerns over frost in Brazil and a decline in export volumes caused by the appreciation of the Brazilian real.」

「We procure all raw green coffee beans for our regular coffee products through imports from overseas. Coffee beans are internationally traded commodities. Although we take various measures to procure raw materials of the quality we require at optimal prices, political conditions in coffee-producing countries, crop conditions and market conditions in coffee-growing regions, the availability of transportation, import quarantine procedures and fluctuations in foreign exchange rates could affect our operating performance and financial position.」

「Our group is engaged in the coffee business, and all of the green coffee beans used as its principal raw material are procured through imports from overseas. Because green coffee beans are traded in international commodity markets, a surge in market prices or foreign exchange fluctuations may increase procurement costs. In addition, if we are unable to fully reflect increases in personnel and logistics costs resulting from difficulties securing personnel in selling prices, this could have a material impact on our financial results.」

「Profit declined year on year due to lower selling prices amid intensifying competition, changes in the product mix, and higher purchase prices, which reduced gross profit, as well as further increases in logistics costs such as delivery and warehouse storage expenses.」

「Our group is engaged in the coffee business, and all of the green coffee beans used as its principal raw material are procured through imports from overseas. Because green coffee beans are traded in international commodity markets, a surge in market prices or foreign exchange fluctuations may increase procurement costs. In addition, if we are unable to fully reflect increases in personnel and logistics costs resulting from difficulties securing personnel in selling prices, this could have a material impact on our financial results.」

「Profit declined from the previous year due to higher prices for the high-quality green coffee beans meeting our quality standards, lower sales margins resulting from intensified competition in the household market and changes in the product mix, and higher logistics costs following the addition of logistics hubs and the development of the related infrastructure.」

「Our group is engaged in the coffee business, and all of the green coffee beans used as its principal raw material are procured through imports from overseas. Because green coffee beans are traded in international commodity markets, a surge in market prices or foreign exchange fluctuations may increase procurement costs. If we are unable to fully reflect such increases in selling prices, this could have a material impact on our financial results.」

「Our group is engaged in the coffee business, and all of the green coffee beans used as its principal raw material are procured through imports from overseas. Because green coffee beans are traded in international commodity markets, a surge in market prices or foreign exchange fluctuations may increase procurement costs. If we are unable to fully reflect such increases in selling prices, this could have a material impact on our financial results.」

「Green coffee bean prices remained stable, supported by prospects for increased production due to favorable growing conditions in Brazil, the world’s largest coffee-producing country, and rising green coffee bean inventories in consuming countries.」

「Green coffee bean prices rose from June amid concerns that adverse weather in Brazil, the world’s largest producer, would reduce production, and by November prices were approximately 30% higher than at the start of the year.」

「In the coffee industry, green coffee bean prices, which have a significant impact on business performance, have risen amid concerns that adverse weather in Brazil, the world’s largest producer, will reduce production. In addition, the yen’s depreciation trend has continued, leaving the situation uncertain.」

「In the coffee industry, green coffee bean prices, which have a significant impact on business performance, had risen by more than 20% since the start of the fiscal year due to concerns that adverse weather in Brazil, the world’s largest producer, would reduce production in the following year. The situation remains uncertain.」

「Our group is engaged in the coffee business, and all of the green coffee beans used as its principal raw material are procured through imports from overseas. Because green coffee beans are traded in international commodity markets, a surge in market prices or foreign exchange fluctuations may increase procurement costs. If we are unable to fully reflect such increases in selling prices, this could have a material impact on our financial results.」