Expansion of Overseas Business Centered on Asia

「Business development by the UK joint venture progressed, increasing export revenue to the UK. Exports to Thailand also performed well at local mass retailers, contributing to higher revenue. Revenue from Australia increased as products previously adopted on a spot basis shifted to year-round adoption. In contrast, exports to Europe declined as stricter local import regulations reduced some eligible product categories. Revenue from Taiwan also declined because inventories of certain products whose sales increased in the previous consolidated fiscal year remained in the market, while competition intensified following price revisions. As a result, Overseas Business revenue was ¥5,019 million, down 1.0% year on year, but gross profit increased 5.5% to ¥544 million as sales of higher-margin products progressed.」

「Business development by the UK joint venture progressed, and sales from exports to the UK increased. In addition, exports to Thailand contributed to higher sales as sales to local mass retailers remained strong. Sales to Australia also increased as products previously adopted on a spot basis were adopted throughout the year.」

「Business development by the UK joint venture progressed, increasing export revenue to the UK. Exports to Thailand also performed well at local mass retailers, contributing to higher revenue. In Australia, revenue increased as products previously adopted on a spot basis shifted to year-round adoption. However, stricter import regulations in the Netherlands reduced the range of products eligible for export. In addition, sales to the US, which had been strategically expanded in the previous period, stagnated somewhat because of US tariff policy. As a result, Overseas Business revenue was ¥2,470 million, down 9.7% year on year, and gross profit was ¥274 million, down 2.9%.」

「In addition to results from our ongoing proposals for new business development in the US, which began last year, the weaker yen and higher local prices provided support, and both revenue and gross profit progressed steadily. The EU Japanese food market also remained strong, while sales to Europe grew with the investment effects of the UK joint venture.」

「Overseas Business revenue was ¥11,325 million, up 25.1% year on year, while gross profit was ¥1,162 million, down 2.9%.」

「The effects of the newly established UK joint venture are gradually emerging, and export revenue increased year on year.」

「Repeated substantial price increases have strengthened the trend toward replacing exported products with cheaper alternatives, but careful sales efforts resulted in a slight increase in export revenue year on year. Although shipments of green coffee beans by the Chinese subsidiary increased substantially, the recent decline in coffee prices reduced selling prices and gross margins. As a result, Overseas Business revenue was ¥5,769 million, up 32.5% year on year, while gross profit was ¥620 million, down 7.5%.」

「There were no significant changes to the nature of the businesses conducted by the Group, comprising the Company and its affiliated companies, during the first quarter of the current consolidated cumulative period. During this period, Atariya-Ishimitsu UK Limited was established.」

「As a result, Overseas Business revenue was ¥9,050 million, up 31.7% year on year, and gross profit was ¥1,197 million, up 24.3%.」

「The Chinese subsidiary overcame the Shanghai lockdown by building its own logistics network and significantly increased shipments within China, substantially lifting revenue and earnings. As a result, Overseas Business revenue was ¥6,785 million, up 33.8% year on year, and gross profit was ¥971 million, up 34.7%.」

「As most major markets shifted to living with COVID-19, stay-at-home demand contracted and the frequency of exports of household products slowed. Exports of commercial food ingredients for restaurants were recovering, but volumes were insufficient to offset the decline in stay-at-home demand, and earnings did not increase significantly. Shanghai also experienced a citywide lockdown lasting 2 months from April to June, but the Chinese subsidiary expanded performance and boosted earnings by securing logistics and continuing to supply green coffee beans domestically. As a result, Overseas Business revenue was ¥4,353 million, up 30.2% year on year, and gross profit was ¥515 million, up 25.6%.」

「Although the Chinese subsidiary was affected by movement restrictions and lockdowns caused by the spread of COVID-19 in major cities, it focused on sales to customers in other regions and devised ways to ship under the restrictions, increasing sales. Exports from Japan of household products to Europe declined as restaurants fully reopened, but this was offset by exports to Asia, resulting in overall sales growth. As a result, Overseas Business revenue was ¥2,347 million, up 55.2% year on year, and gross profit was ¥329 million, up 86.6%.」

「Exports to customers mainly serving restaurants with commercial food ingredients declined as COVID-19 spread. Meanwhile, exports of household products to major customers in Asia and Europe increased, supported by stay-at-home demand. Our Indonesian group company developed coffee products and began exporting them to China and other Asian markets. The Chinese subsidiary, whose performance grew on higher domestic sales of green coffee beans, also boosted earnings. As a result, Overseas Business revenue was ¥4,642 million, up 17.8% year on year, and gross profit was ¥906 million, up 53.7%.」

「Against this backdrop, exports to customers mainly serving restaurants with commercial food ingredients declined as COVID-19 spread. Meanwhile, exports of household products to major customers in Asia and Europe increased, supported by stay-at-home demand. The Chinese subsidiary, whose performance grew on higher domestic sales of green coffee beans, boosted earnings. As a result, Overseas Business revenue was ¥3,329 million, up 17.4% year on year, and gross profit was ¥663 million, up 55.7%.」

「The global container shortage and restaurant closures caused by the spread of COVID-19 reduced exports of commercial food ingredients to parts of Southeast Asia. However, exports of household products to major customers in Asia and Europe grew steadily, supported by stay-at-home demand. Strong performance at the Chinese subsidiary, which recovered quickly from the pandemic, also boosted earnings. As a result, Overseas Business revenue was ¥2,288 million, up 29.5% year on year, and gross profit was ¥447 million, up 72.7%.」

「Revenue increased on higher exports of household products to Europe and major customers in Asia. Sales of products planned and developed in-house also produced results, while strong performance with the Chinese subsidiary, which recovered from the pandemic ahead of other regions, boosted earnings. As a result, Overseas Business revenue was ¥1,020 million, up 33.7% year on year, and gross profit was ¥196 million, up 67.8%.」

「Amid the spread of COVID-19, exports of food products from general manufacturers increased on stay-at-home demand in export markets. We also succeeded in selling canned coffee and canned chuhai developed under customers' brands, expanding exports of products planned and developed in-house. In addition, the performance of our Chinese subsidiary, which recovered from the pandemic ahead of other regions, contributed to earnings.」

「Exports to markets focused on commercial food ingredients were heavily affected by COVID-19. Meanwhile, we made detailed product proposals, including new products, to meet growing demand for household Japanese food products sold at expanding retail stores. Our strategically developed original products also began to bear fruit, and our sales network expanded into Europe. Overseas subsidiaries in countries that recovered relatively quickly from COVID-19 provided support on the profit side. As a result, Overseas Business revenue was ¥2,835 million, up 12.5% year on year, and gross profit was ¥426 million, up 12.2%.」

「We worked to promote sales by carefully introducing reliable Japanese food products online, mainly to customers with retail sales channels. In addition, our strategically developed original products began to bear fruit, while overseas subsidiaries in countries that recovered relatively quickly from COVID-19 provided support on the profit side. As a result, Overseas Business revenue was ¥1,766 million, up 9.7% year on year, and gross profit was ¥259 million, up 3.0%.」

「Although we sought to recover through household products benefiting from stay-at-home demand amid the impact of COVID-19, particularly through our own products planned and developed from the latter half of the quarter, sales of products for commercial use and the food-service industry were weak.」

「Exports from Japan grew only modestly because of unrest in Hong Kong, our main market, and a challenging competitive environment. Nevertheless, efforts to promote original products, strengthen alcoholic beverage exports, and deepen cooperation with close business partners for specific products are steadily producing results. In addition, the profitability of overseas subsidiaries, which had languished since their establishment, improved significantly. As a result, Overseas Business revenue was ¥2,521 million, up 6.3% year on year, and gross profit was ¥379 million, up 26.8%.」

「Although we worked to transform our sales structure, delays and a challenging operating environment prevented revenue from growing as planned. However, stronger handling of original products, including canned coffee developed under our own plans, together with increased alcoholic beverage exports, contributed to higher revenue year on year. Profitability at overseas subsidiaries also improved. As a result, Overseas Business revenue was ¥1,609 million, up 3.5% year on year, and gross profit was ¥251 million, up 31.3%.」

「Although performance was affected by competitors, we promoted the export business with distinctive products. In particular, we made our first shipment to Taiwan of canned coffee developed under our own plans, while exports of alcoholic beverages, an area we have pursued for many years, also increased. In addition, higher sales and improved profitability at overseas subsidiaries contributed. As a result, Overseas Business revenue was ¥791 million, up 1.9% year on year, and gross profit was ¥119 million, up 31.5%.」

「The renewal of our sales structure has yet to produce sufficient results, and intense competition in general food and miscellaneous products in Asia also weighed on performance. Sales were generally sluggish. As a result, Overseas Business revenue was ¥3,139 million, down 5.6% year on year.」

「Exports of alcoholic beverages, a key focus, remained strong, but sales of general food products to Asia, including Hong Kong and Taiwan, struggled amid intense competition. As a result, Overseas Business revenue was ¥2,372 million, down 8.3% year on year.」

「Sales efforts produced results in certain priority areas, including increased exports of alcoholic beverages from the previous period. However, we were unable to capitalize on the expansion of the Japanese food market in Europe, while in Asia order volumes declined after we discontinued certain best-selling products at the manufacturers' request. As a result, Overseas Business revenue was ¥1,555 million, down 6.9% year on year.」

「Sales to major customers in Southeast Asia were forced down by intensifying competition. In response, we accelerated efforts with major local food wholesalers that have retail channels in key export markets, visited overseas buyers and domestic suppliers, and proposed new products. We also worked to develop canned coffee under customers' private labels for Taiwan and propose high-quality products such as frozen seafood as differentiated offerings, but progress fell short of plan. As a result, revenue from the Overseas Business segment was ¥776 million, down 8.6% year on year.」

「Although exports of general food products to Hong Kong and Taiwan remained sluggish because of local regulations and sales competition, the company worked to broaden its export product range, including alcoholic beverages and commercial-use frozen foods, and actively exported these products to markets such as China, Vietnam, Malaysia and the Philippines, where the Japanese food market is expanding. As a result, Overseas Operations segment net sales were ¥2,587 million, up 1.5% year on year.」

「PT. SARI NIHON INDUSTRY was established, and following a partial capital contribution, it became an equity-method affiliate.」

「Although the company worked to improve its earnings structure, exports to Asia remained sluggish amid intense sales competition, and Overseas Operations segment net sales were ¥849 million, down 6.4% year on year.」

「As exports to Asia declined, net sales in the Overseas Operations segment were ¥2,548 million, down 4.7% year on year.」

「Due to the impact of the yen's appreciation and economic slowdowns in export destinations, net sales in the Overseas Operations segment were ¥1,689 million, down 4.5% year on year.」

「As exports to Asia continued to perform steadily, net sales in the Overseas Operations segment were ¥907 million, up 10.1% year on year.」

「We also aim to become a dynamic global company by developing new markets, mainly in Asia.」