Foreign Exchange Movements Affecting Imported Ingredients and Overseas Subsidiaries

「The economic outlook remains uncertain due to continuing geopolitical instability, including the prolonged situations in Europe and the Middle East, unstable foreign exchange movements, policy developments such as slowing consumption and trade policy under the new US administration, and stagnation in China’s real estate market.」

「During the consolidated fiscal year, Japan’s economy remained uncertain due to the prolonged situation in Ukraine, growing tensions in the Middle East and unstable foreign exchange movements.」

「During the first six months of the fiscal year from 1 November 2023 to 30 April 2024, the outlook for Japan's economy remained uncertain because of the prolonged Russian invasion of Ukraine, heightened tensions in the Middle East and the ongoing depreciation of the yen.」

「In the food service industry, although the challenging environment continues, owing to elevated procurement prices, including those for imported food ingredients, resulting from the sustained depreciation of the yen, rising labor costs due to labor shortages, and higher utility costs, business conditions have generally begun to improve, supported by increased sales resulting from greater foot traffic.」

「The yen depreciated as the interest-rate differential between Japan and the United States widened, and prices rose in Japan, particularly for imported goods.」

「The economic outlook remains uncertain due to the prolonged Russian invasion of Ukraine, higher energy prices, inflation caused by yen depreciation and wage increases resulting from labor shortages.」

「In addition to a substantial rise in raw material and energy prices accompanying yen depreciation, various cost increases, including higher labor, materials and transportation costs, have occurred.」

「In addition to higher energy and raw material prices resulting from the prolonged Russian invasion of Ukraine, the rapid depreciation of the yen has continued, leaving the outlook uncertain.」

「The Group imports some seafood used as raw materials through trading companies. Accordingly, foreign exchange movements may affect the Group’s raw material procurement costs and potentially adversely affect its operating results and financial position. In addition, when the foreign-currency financial statements of overseas subsidiaries are translated into Japanese yen, their assets and liabilities, and sales and expenses, will fluctuate.」

「The Group imports some seafood used as raw materials through trading companies. Accordingly, foreign exchange movements may affect the Group’s raw material procurement costs and potentially adversely affect its operating results and financial position. In addition, when the foreign-currency financial statements of overseas subsidiaries are translated into Japanese yen, their assets and liabilities, and sales and expenses, will fluctuate.」

「The Group imports some seafood used as raw materials through trading companies. Accordingly, foreign exchange movements may affect the Group’s raw material procurement costs and potentially adversely affect its operating results and financial position. In addition, when the foreign-currency financial statements of overseas subsidiaries are translated into Japanese yen, their assets and liabilities, and sales and expenses, will fluctuate.」

「Some seafood used as raw materials is imported through trading companies. Accordingly, foreign exchange movements may affect the Group’s raw material procurement costs and potentially adversely affect its operating results and financial position.」