Fluctuations in raw material and food ingredient purchase prices

「Although higher sales improved production efficiency and temporary stock-building production ahead of the move to a new plant improved operating efficiency, the Company incurred the effects of higher prices for onions, a key raw material for its main products, following a significant decline in harvests caused by record heat and low rainfall centered in Hokkaido in summer 2025, persistently high edible oil prices, soaring prices for other raw materials, higher labor costs and expenses for closing unprofitable stores.」

「Although sales were strong in both the product and store businesses, profit was affected by soaring raw material prices and higher labor costs, closure expenses recognized following the decision to close unprofitable stores and increased costs for developing growth businesses.」

「However, sales volume of the core dressings declined due to the effects of high temperatures and adverse weather from July onward, including vegetable prices rising sharply. As a result, sales in the dressing category fell below the level in the same period of the previous year.」

「Although the product business was affected by soaring raw material and material costs, the effects of price revisions and efforts to reduce manufacturing costs, together with the recovery in same-store sales and improved margins in the store business through profit-structure reforms and strong performance at new stores, enabled the store business to return to profitability. As a result, operating profit was ¥218 million (a loss of ¥75 million in the previous fiscal year).」

「Although the product business was affected by soaring raw material and material costs, the effects of price revisions and the store business returning to profitability through profit-structure reforms, among other factors, resulted in operating profit of ¥209 million (a loss of ¥78 million in the same period of the previous year).」

「Although the product business was affected by soaring raw material and material costs, operating profit was ¥186 million (a loss of ¥36 million in the same period of the previous year) due to the effects of price revisions and the store business returning to profitability through profit-structure reforms, among other factors.」

「Although the product business was affected by soaring raw material costs, the effects of price revisions and efforts to reduce manufacturing costs resulted in operating profit of ¥55 million (a loss of ¥25 million in the same period of the previous year), ordinary profit of ¥57 million (a loss of ¥21 million in the same period of the previous year), and profit attributable to owners of the parent of ¥2 million (a loss of ¥23 million in the same period of the previous year).」

「Although the Company worked to improve productivity, profit declined because lower sales and the significant impact of soaring prices for key raw materials such as edible oils exceeded expectations.」

「Although the Company worked to improve productivity, profit declined because lower sales and the greater-than-expected impact of soaring prices for key raw materials such as edible oils outweighed those efforts.」

「Although losses in the restaurant business improved significantly, profit declined because soaring costs for key raw materials such as edible oils had a greater-than-expected impact, particularly on the food business.」

「Some raw materials used in the Company's products are affected by crude oil prices, agricultural commodity prices and foreign exchange rates due to adverse weather, the spread of various diseases and international conflicts. Energy prices, including electricity and gas, may also rise sharply.」

「Profit was affected by a significant increase in purchase costs due to soaring prices for key raw materials such as edible oils. Although advertising expenses declined after the Company reviewed its marketing strategy to reduce reliance on television commercials, profit declined due to increased investment in human resources for the future and higher store-opening expenses.」

「Although profits were affected by soaring prices for key raw materials, manufacturing costs declined as a result of improved production efficiency through in-house production and other measures. In addition, the Company reviewed its marketing strategy from the current fiscal year to focus on its fans and did not air television commercials, resulting in a significant decline in advertising expenses and higher profit.」

「Some raw materials used in the Company's products are affected by crude oil prices, foreign exchange rates and agricultural commodity prices. The Group seeks to ensure stable procurement of raw materials and other items through planned purchasing, but raw materials account for a significant portion of the manufacturing costs of the Company's products, and an increase in purchase prices could affect its operating results.」

「During the third quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the second quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the third quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「The Company decided to raise prices on 12 dressing products from August 2019 due to higher raw material, logistics and labor costs.」

「The cost of sales ratio increased 0.4 percentage points from the previous consolidated fiscal year to 40.1%. This was due to soaring raw material costs and other factors.」

「During the 3rd quarter cumulative consolidated period, the Japanese economy remained on a moderate recovery track, with improvements in corporate performance and employment conditions. However, attention was required regarding the outlook, including the effects of higher raw material and labor costs, uncertainty in overseas economies and volatility in financial markets.」

「However, although personal consumption was gradually recovering due to factors including higher raw material and labor costs, it remained weak and lacked momentum.」

「During the first quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「Furthermore, affected by vegetable prices rising more than usual, revenue compared with the year-earlier period was 94.3% in the first half and 100.6% in the second half, resulting in lower full-year revenue than in the previous fiscal year.」

「During the third quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the second quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the first quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「In the food and restaurant industries, earnings conditions became challenging as vegetable prices remained elevated for an extended period due to adverse weather, while consumers' preference for economizing strengthened amid anxiety about the future.」

「During the second quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the first quarter of the fiscal year, there were no newly arising business or other risks, nor any material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「Raw materials account for a significant portion of the manufacturing costs of the Company's products, and an increase in purchase prices could affect its operating results.」