Fluctuations in vegetable prices and salad demand due to weather

「The onions used as raw materials in core products were affected by a sharp decline in harvest volumes, and consequently by higher prices, due to record heat and low rainfall centered in Hokkaido in summer 2025.」

「The onions used as raw materials in core products were affected by a sharp decline in harvest volumes, and consequently by higher prices, due to record heat and low rainfall centered in Hokkaido in summer 2025.」

「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.」

「In our core dressing category, we continued to promote the value of our products and worked to secure further shelf space at mass retailers. We adopted a sales approach focused on communicating value rather than price, while also concentrating on new flavors other than Japanese-style soy sauce, including the "Rich Series" and "Seasonal Limited-Edition Products," which use carefully selected ingredients. However, sales fell below the previous fiscal year due to the impact of higher vegetable prices caused by poor weather in summer, as well as the reduction in the number of product items.」

「In our core dressing category, we continued to promote the value of our products and worked to secure further shelf space at mass retailers. We adopted a sales approach focused on communicating value rather than price, while also concentrating on new flavors other than Japanese-style soy sauce, including the "Rich Series" and "Limited-Edition Products," which use carefully selected ingredients. However, partly due to the impact of higher vegetable prices in summer, sales fell below the year-earlier level.」

「Although sales of the core dressings were negatively affected by higher vegetable prices due to adverse weather, the Company focused on increasing awareness of new flavors other than its core Japanese-style soy sauce flavor to meet diversifying customer needs. As a result, sales of the 280 ml series products Roasted Aromatic Sesame, Mellow Lemon and Rich Series increased from the previous fiscal year.」

「The Company's core dressings are used primarily on salads made with fresh vegetables at home. If weather conditions such as extreme heat, typhoons or severe winters cause vegetables to become scarce and prices to rise, consumption may decline and affect 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.」

「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.」

「Revenue in the dressing category was 96.9% of the previous fiscal year's level. This slight decline was due to the effects of soaring vegetable prices in summer and discontinued products as the Company pursued a strategy of selecting and concentrating its products.」

「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 dressing business was affected by soaring vegetable prices in summer, causing its core product line, Japanese-style soy sauce dressings (orange cap, green and light types), to struggle to grow. Sales were also affected by lower revenue from discontinued products.」

「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 business, the Company concentrated its placement of local spot television commercials in the Kanto region to increase awareness and sales, but sales volume of new products launched in the previous fiscal year declined more than expected in the first quarter. From the second quarter onward, the business was also affected by soaring vegetable prices, resulting in a 3.0% decline in revenue.」

「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.」

「Agricultural products have been damaged by a succession of typhoons since August, and their effects are expected to continue for some time.」

「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.」

「The Company's core dressings are used primarily on salads made with fresh vegetables at home. If adverse weather conditions such as extreme heat, typhoons or severe winters cause vegetables to become scarce and prices to rise, consumption may decline and affect operating results.」