Risk of Rising Raw Material Prices and Insufficient Procurement Volumes

「However, if a significant increase in raw material prices or insufficient procurement volumes were to arise due to changes in global supply-demand balances, poor harvests, changes in laws and other regulations or political turmoil in sourcing countries, international conflicts, fluctuations in tariffs, or significant foreign exchange fluctuations over an extended period, this could affect the Group's operating results and financial position.」

「With regard to the future economic environment, raw material and energy prices are expected to remain at elevated levels due to geopolitical risks, including the situation in Ukraine, fluctuations in foreign exchange rates and other factors.」

「In terms of earnings, although raw material prices continued to rise, operating profit increased ¥1,533 million year on year to ¥7,171 million (up 27.2%), ordinary profit increased ¥1,631 million to ¥7,393 million (up 28.3%), and net profit attributable to owners of the parent increased ¥1,041 million to ¥5,290 million (up 24.5%). This was due to higher revenue resulting from proactive sales promotion activities, including for new products, and the effects of price revisions, as well as efforts to reduce costs and expenses.」

「In terms of earnings, although the cost of sales ratio rose due to soaring raw material prices and other factors, operating profit increased ¥10 million year on year to ¥3,277 million (up 0.3%), and ordinary profit increased ¥87 million to ¥3,515 million (up 2.6%). This reflected higher revenue resulting from the effects of price revisions implemented since the previous fiscal year, as well as continued efforts to reduce costs and expenses.」

「In terms of earnings, although price revisions have been implemented since the previous fiscal year, the cost of sales ratio continued to rise due to surging raw material prices and other factors. Operating profit fell ¥459 million year on year to ¥1,802 million, down 20.3%, ordinary profit fell ¥426 million to ¥2,043 million, down 17.3%, and quarterly net income attributable to owners of the parent fell ¥296 million to ¥1,495 million, down 16.6%.」

「In terms of earnings, although sales increased, the cost of sales ratio rose due to surging raw material prices and other factors. Operating profit fell ¥3,218 million from the previous fiscal year to ¥5,399 million, down 37.3%, ordinary profit fell ¥3,244 million to ¥5,465 million, down 37.2%, and net income attributable to owners of the parent fell ¥2,144 million to ¥4,080 million, down 34.5%.」

「In terms of earnings, the cost of sales ratio rose due to surging raw material prices and other factors. Operating profit fell ¥2,276 million year on year to ¥5,637 million, down 28.8%, ordinary profit fell ¥2,230 million to ¥5,762 million, down 27.9%, and quarterly net income attributable to owners of the parent fell ¥1,412 million to ¥4,249 million, down 24.9%.」

「In terms of earnings, the cost of sales ratio rose due to surging raw material prices and other factors. Operating profit fell ¥1,766 million year on year to ¥3,267 million, down 35.1%, ordinary profit fell ¥1,604 million to ¥3,427 million, down 31.9%, and quarterly net income attributable to owners of the parent fell ¥977 million to ¥2,588 million, down 27.4%.」

「In terms of earnings, the cost of sales ratio rose due to surging raw material prices and other factors. Operating profit fell ¥679 million year on year to ¥2,261 million, down 23.1%, ordinary profit fell ¥532 million to ¥2,469 million, down 17.8%, and quarterly net income attributable to owners of the parent fell ¥329 million to ¥1,792 million, down 15.5%.」

「However, if a significant increase in raw material prices or insufficient procurement volumes were to arise due to changes in global supply-demand balances, poor harvests, changes in laws and other regulations or political turmoil in sourcing countries, international conflicts, or significant foreign exchange fluctuations over an extended period, this could affect the Group's operating results and financial position.」

「In terms of earnings, in addition to a higher cost of sales ratio caused by rising raw material prices, promotional and selling expenses increased. Operating profit fell ¥1,876 million year on year to ¥7,914 million, down 19.2%, ordinary profit fell ¥1,694 million to ¥7,992 million, down 17.5%, and quarterly net income attributable to owners of the parent fell ¥1,297 million to ¥5,661 million, down 18.6%.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no material changes to the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the company and its consolidated subsidiaries, collectively referred to as the group, among the matters concerning the business and accounting situations described in this quarterly securities report, or to the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「The Group is working to diversify sourcing regions by raw material and secure stable supplies so that it can respond quickly to various procurement risks and market changes, including global climate change, supply-demand balances, crop conditions and international market prices. In addition, it seeks to prevent and reduce human rights risks in the supply chain under its Basic Procurement Policy.」

「During the cumulative third quarter of the fiscal year, there were no occurrences of the major risks that management recognizes as potentially having a material impact on the financial condition, operating results or cash flows of the Company and its consolidated subsidiaries (collectively, the "Group"), among the matters concerning the business and financial conditions described in this quarterly report, nor were there any material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter of the current consolidated fiscal year, there were no material changes to the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the company and its consolidated subsidiaries, collectively referred to as the group, among the matters concerning the business and accounting situations described in this quarterly securities report, or to the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「The Group is working to diversify sourcing regions by raw material and secure stable supplies so that it can respond quickly to various procurement risks and market changes, including global climate change, supply-demand balances, crop conditions and international market prices.」

「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「However, if major increases in raw material prices or procurement shortages occur due to changes in the global supply-demand balance, poor harvests, changes in laws and regulations or political turmoil in sourcing countries, or large exchange-rate fluctuations over an extended period, the Group’s operating results and financial position may be affected.」

「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the cumulative first quarter of the fiscal year, no new business or other risks arose. There were also no significant changes to the business and other risks described in the securities report for the previous fiscal year.」

「However, if major increases in raw material prices or procurement shortages occur due to changes in the global supply-demand balance, poor harvests, changes in laws and regulations or political turmoil in sourcing countries, or large exchange-rate fluctuations over an extended period, the Group’s operating results and financial position may be affected.」

「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「However, if major increases in raw material prices or procurement shortages occur due to changes in the global supply-demand balance, poor harvests, changes in laws and regulations or political turmoil in sourcing countries, or large exchange-rate fluctuations over an extended period, the Group’s operating results and financial position may be affected.」

「No new business or other risks arose during the cumulative third quarter of the current consolidated fiscal year. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「However, if major increases in raw material prices or procurement shortages occur due to changes in the global supply-demand balance, poor harvests, changes in laws and regulations or political turmoil in sourcing countries, or large exchange-rate fluctuations over an extended period, the Group’s operating results and financial position may be affected.」