Rebuilding a Structure for Stable Profitability

「Net sales were ¥18,635 million, up 1.6% year on year; gross profit was ¥2,582 million, up 1.5%; operating income was ¥822 million, up 4.1%; ordinary income was ¥785 million, up 12.3%; and net income attributable to owners of the parent was ¥813 million, up 116.6%.」

「Based on historical results for total asset turnover and the equity ratio, which are components of ROE, as well as the effective tax rate, the group calculated that an operating margin of approximately 2.5% or more would be required to achieve an ROE of 8%, and set a target of consistently achieving this 2.5% level on average across the business as a whole. Although the group fell below this benchmark in the previous consolidated fiscal year, the operating margin rose substantially in the current consolidated fiscal year as group companies expanded their customer base for industrial and household products, reviewed prices to appropriate levels in response to higher raw material prices resulting from rising coffee prices, and reviewed low-margin products.」

「Net sales were ¥36,817 million, up 22.1% year on year; gross profit was ¥4,885 million, up 28.3%; operating profit was ¥1,263 million, up 190.7%; ordinary profit was ¥1,037 million, up 129.7%; and interim net profit attributable to owners of the parent was ¥616 million, up 67.2%.」

「Net sales were ¥30,154 million, down 2.0% year on year; gross profit was ¥3,806 million, down 4.6%; operating profit was ¥434 million, down 39.6%; ordinary profit was ¥451 million, down 45.2%; and interim net profit attributable to owners of the parent was ¥368 million, down 36.4%.」

「In the current consolidated fiscal year, the increase in procurement prices resulting from yen depreciation was reflected in higher selling prices, improving gross profit margin from the previous consolidated fiscal year. Selling, general and administrative expenses were also kept under control through appropriate management, resulting in a higher operating margin. As a result, the group as a whole substantially exceeded 2%.」

「As a result, for the nine months ended 31 December, net sales were ¥47,367 million, up 6.4% year on year; gross profit was ¥6,251 million, up 5.4%; operating profit was ¥1,336 million, up 11.4%; ordinary profit was ¥1,438 million, up 9.7%; and profit attributable to owners of the parent was ¥842 million, up 5.6%.」

「Net sales were ¥30,780 million, up 8.5% year on year; gross profit was ¥3,988 million, up 2.5%; operating profit was ¥720 million, down 14.9%; ordinary profit was ¥823 million, down 15.6%; and profit attributable to owners of the parent was ¥579 million, up 1.8%.」

「However, in the first quarter alone, margins contracted mainly in the coffee-related business because of a mismatch between movements in selling prices and costs. In addition, the absence of the one-off earnings recorded in the same quarter of the previous year resulted in a year-on-year decline in profit.」

「The group as a whole exceeded 2%, although challenges remain in each business. Going forward, we will work to secure a stable operating margin by improving investment efficiency management through the introduction of ROIC-based management.」

「For the nine months ended 31 December, the group-wide initiatives undertaken to date began to produce results. Net sales were ¥44,504 million, up 27.6% year on year; gross profit was ¥5,933 million, up 12.2%; operating profit was ¥1,199 million, up 43.2%; ordinary profit was ¥1,311 million, up 50.2%; and profit attributable to owners of the parent was ¥797 million, up 41.8%.」

「For the six months ended 30 September, the group-wide initiatives undertaken to date began to produce results. Net sales were ¥28,358 million, up 29.2% year on year; gross profit was ¥3,891 million, up 13.3%; operating profit was ¥845 million, up 46.9%; ordinary profit was ¥976 million, up 63.1%; and profit attributable to owners of the parent was ¥569 million, up 42.6%.」

「For the three months ended 30 June, the group-wide initiatives undertaken to date began to produce results. Net sales were ¥14,422 million, up 33.4% year on year; gross profit was ¥2,164 million, up 25.1%; operating profit was ¥658 million, up 108.3%; ordinary profit was ¥727 million, up 116.0%; and profit attributable to owners of the parent was ¥446 million, up 108.5%.」

「The group’s total asset turnover and equity ratio, which are components of return on equity, have remained relatively stable. Based on these metrics and the effective tax rate, we calculated that an operating margin of approximately 2% or more would be required to achieve an ROE of 8%, and set a target of consistently achieving this 2% level on average in each business. In the current consolidated fiscal year, the impact of coffee prices, a sharper-than-expected depreciation of the yen, and higher ocean freight costs reduced margins, leaving the group-wide operating margin at 1.5%. Going forward, we will steadily work to improve the operating margin.」

「As a result, for the nine months ended 31 December, net sales were ¥34,888 million, up 16.1% year on year; gross profit was ¥5,290 million, up 13.6%; operating profit was ¥837 million, up 32.5%; ordinary profit was ¥873 million, up 57.6%; and profit attributable to owners of the parent was ¥562 million, up 64.6%.」

「As a result, for the six months ended 30 September, net sales were ¥21,951 million, up 20.9% year on year; gross profit was ¥3,435 million, up 25.4%; operating profit was ¥575 million, up 191.2%; ordinary profit was ¥598 million, up 234.0%; and profit attributable to owners of the parent was ¥399 million, up 187.6%.」

「As a result, for the three months ended 30 June, net sales were ¥10,808 million, up 33.4% year on year; gross profit was ¥1,731 million, up 42.7%; operating profit was ¥316 million, up 383.2%; ordinary profit was ¥336 million, up 764.8%; and profit attributable to owners of the parent was ¥214 million, up 489.7%.」

「For the current consolidated fiscal year, the group as a whole exceeded the 2% target through reductions in selling, general and administrative expenses, although challenges remain in each business.」

「Under these circumstances, as the food-service business was unavoidably affected by COVID-19, we worked to recover earnings by strengthening sales and reducing costs in areas such as the prepared-food business, which were not affected. As a result, operating profit for the nine months ended 31 December was ¥632 million, up 70.6% year on year; ordinary profit was ¥554 million, up 81.6%; and profit attributable to owners of the parent was ¥341 million, up 64.6%.」

「Meanwhile, although the food-service business has been unavoidably affected by COVID-19, we are working to recover earnings by strengthening sales and reducing costs in areas that have not been affected.」

「Under these circumstances, to achieve the newly formulated medium-term management plan, the I Project, we established the mission of contributing to food-related happiness worldwide in the first year of the plan, the current consolidated fiscal year. In addition to strengthening our financial position and human resources, we are working to create the systems needed to become a company that continues to be needed by stakeholders, including society, customers, shareholders, and employees, while pursuing both economic and social value.」

「Under these circumstances, to achieve the newly formulated medium-term management plan, the I Project, we established the mission of contributing to food-related happiness worldwide in the first fiscal year of the plan, the current consolidated fiscal year. In addition to strengthening our financial position and human resources, we are working to create the systems needed to become a company that continues to be needed by stakeholders, including society, customers, employees, and shareholders, while pursuing both economic and social value.」

「Although net sales increased only slightly year on year, gross profit margin rose from 13.3% to 14.0% as a result of selecting products with an emphasis on profit margins.」

「Under these circumstances, in line with the medium-term management plan, the S Project, we continued to improve profit margins and strengthen our management structure, as in the previous fiscal year.」

「Under these circumstances, in line with the medium-term management plan, the S Project, we continued to improve profit margins and strengthen our management structure, as in the previous fiscal year.」

「Under these circumstances, in line with the medium-term management plan, the S Project, we continued to improve profit margins and strengthen our management structure, as in the previous fiscal year. We promoted the use of our core systems and logistics and work-style reforms, while selecting products and focusing on high-value-added products to move away from price competition, thereby improving and strengthening our earnings profile.」

「Under these circumstances, to achieve the medium-term management plan, the S Project, we placed even greater emphasis in the second year of the plan, the current consolidated fiscal year, on the improvement and strengthening of our earnings profile, which we had pursued since the previous fiscal year, while working to improve profit margins and capital turnover and develop and strengthen our business operations structure.」

「Under these circumstances, to achieve the medium-term management plan, the S Project, we placed even greater emphasis in the second year of the plan, the current consolidated fiscal year, on the improvement and strengthening of our earnings profile, which we had pursued since the previous fiscal year, while working to improve profit margins and capital turnover and develop and strengthen our business operations structure.」

「Under these circumstances, to achieve the medium-term management plan, the S Project, we placed even greater emphasis in the second year of the plan, the current consolidated fiscal year, on the improvement and strengthening of our earnings profile, which we had pursued since the previous fiscal year, while working to improve profit margins and capital turnover and develop and strengthen our business operations structure.」

「Under these circumstances, to achieve the new medium-term management plan, the S Project, we focused in the first fiscal year of the plan, the current consolidated fiscal year, on improving and strengthening our earnings profile through reforms to our internal structure and incremental improvements and enhancements, while working to improve profit margins and capital turnover and thoroughly strengthen our management structure.」

「Under these circumstances, to achieve the new medium-term management plan, the S Project, we focused in the first fiscal year of the plan, the current consolidated fiscal year, on improving and strengthening our earnings profile through reforms to our internal structure and incremental improvements and enhancements, while working to improve profit margins and capital turnover and thoroughly strengthen our management structure.」

「In the first fiscal year of the plan, the current consolidated fiscal year, we focused on strengthening and improving our earnings profile through reforms to our internal structure and incremental improvements and enhancements, while working to improve profit margins and capital turnover and thoroughly strengthen our management structure.」

「To address the urgent task of rebuilding a structure capable of generating stable profits and overcome the deficit recorded in the previous consolidated fiscal year, we strengthened our sales capabilities, rigorously selected products, reviewed procurement routes and prices, reduced costs and improved cash flow across the company, and implemented detailed risk management.」