Reducing Manufacturing Losses and Cutting Selling, General and Administrative Expenses

「Lower cost of sales through centralized purchasing Improved labor cost ratio through automation and labor-saving investment Lower cost of sales through reduced manufacturing losses, including fewer minor stoppages and less waste」

「Cost of sales was ¥3,951 million, as manufacturing costs were trending higher due to persistently elevated raw material prices and energy costs, rising labor costs and other factors, despite efforts to improve costs, including reducing manufacturing losses.」

「Cost of sales was ¥3,616 million. Although manufacturing costs were trending higher due to elevated raw material prices, energy costs, and labor costs, the company worked on cost-improvement initiatives, including reducing manufacturing losses.」

「At the production plants, the effects of cost-reduction initiatives have begun to emerge gradually, including improved yield rates and fewer production problems at the Niigata plant, which manufactures ice cream products.」

「In terms of profit and loss, although high raw material prices and elevated energy costs continued, profit margins improved as cost-reduction initiatives reduced manufacturing losses, resulting in」

「・Lower cost of sales ratio Control of selling prices (delivery prices) Centralized procurement Creation of added value Formula changes and shared use of raw materials Reduction of defective products ・Control and reduction of variable costs Optimization of logistics costs Organizational restructuring Automation and labor saving (people and materials)」

「Selling, general and administrative expenses were ¥579 million, up 3.1% from the previous fiscal year. Although sales commissions and transportation costs within transportation and warehousing expenses increased with expanded sales of own-brand frozen confectionery products, rigorous inventory management significantly reduced external warehouse storage costs, among other factors.」

「In terms of profit and loss, although promotional expenses and transportation expenses increased with higher sales of core ice cream products, the company worked to control other operating expenses.」

「In terms of profit and loss, although promotional expenses and transportation expenses increased with higher sales of core ice cream products, the company worked to control other operating expenses. It also strengthened coordination among the sales, production, and logistics departments and reduced storage fees paid and other expenses by advancing optimal inventory management.」

「The improvement in the manufacturing loss rate more than offset this, increasing the gross profit margin by 2.1 percentage points from the previous fiscal year. Although transportation costs within transportation and warehousing expenses increased with expanded sales of own-brand frozen confectionery products, rigorous inventory management significantly reduced external warehouse storage costs, among other factors, resulting in operating income of ¥17 million, compared with an operating loss of ¥72 million in the previous fiscal year.」

「In terms of profit and loss, the company pursued further cost reductions in response to declining sales, resulting in operating income of ¥53 million, compared with operating income of ¥22 million in the same period of the previous year.」

「In terms of profit and loss, the company pursued further cost reductions in response to declining sales, resulting in operating income of ¥109 million, compared with operating income of ¥67 million in the same period of the previous year.」

「In terms of profit and loss, although manufacturing plant productivity improved, labor costs increased as the company expanded production ahead of the busy season, and storage fees paid increased substantially as product inventories rose due to unfavorable weather conditions, resulting in」

「In terms of profit and loss, although plant utilization progressed favorably and productivity improved, labor costs increased as the company expanded production ahead of the busy season, and storage fees paid for products increased substantially, resulting in」

「In terms of profit and loss, although transportation expenses for products and storage fees paid increased substantially as the company expanded production ahead of the busy season, the company reduced manufacturing losses and extended the operating hours of its production lines, resulting in」

「At the Niigata plant, which manufactures ice cream and other products, the company worked to address the substantial manufacturing losses that had previously occurred, optimized production schedules, and sought to improve operating efficiency. As a result, manufacturing costs declined through lower overhead expenses, leading to a significant improvement in plant profit.」

「In terms of profit and loss, although transportation expenses for products and storage fees paid increased substantially as the company expanded production ahead of the summer season, stronger maintenance of the machinery on the production lines at the Niigata plant reduced losses caused by production-line stoppages, resulting in」

「In terms of profit and loss, although transportation expenses for products and storage fees paid increased substantially as the company expanded production ahead of the busy season, stronger maintenance of the machinery on the production lines at the Niigata plant resulted in favorable plant utilization and higher productivity, resulting in」

「In terms of profit and loss, although transportation expenses for products and storage fees paid increased substantially as the company expanded production ahead of the busy season, it strengthened maintenance of the machinery on its production lines and worked to reduce manufacturing losses, resulting in」

「In terms of profit and loss, the company worked to reduce manufacturing losses, but」

「In terms of profit and loss, the company worked to reduce expenses by instilling a company-wide cost-conscious approach, while also seeking to improve production efficiency and plant utilization through plant consolidation.」

「Against this backdrop, in accordance with the medium-term management plan, “Challenge For Next Century” (March 2015 to February 2018), the Company actively pursued the expansion of sales of its own products, improvements in production efficiency and reductions in losses at its manufacturing plants, and the development of high-value-added products, while responding to severe changes in the business environment, continuously pursuing transformation and making the further enhancement of corporate value its basic policy.」

「In terms of profit and loss, in addition to ongoing efforts to reduce manufacturing losses and save on selling, general and administrative expenses, higher plant utilization resulting from increased sales volumes of internally manufactured products led to operating income of ¥97 million, compared with operating income of ¥91 million in the same period of the previous year.」

「The Company worked to reduce manufacturing losses and control selling, general and administrative expenses.」