Restructuring Logistics and Reducing Costs in Production

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「To respond to this intense competition, the Group is proceeding with a restructuring of its production and logistics systems and pursuing further cost reductions and active sales efforts.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「To respond to this intense competition, the Group is proceeding with a restructuring of its production and logistics systems and pursuing further cost reductions and active sales efforts.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「In the refrigerated business, the movement of stored products remained unstable due to the continued spread of COVID-19, but inbound and outbound volumes of frozen foods and agricultural products increased as a result of so-called stay-at-home demand arising from calls to refrain from going out. Handling of ancillary delivery services also remained solid. Consequently, sales were ¥5,490 million, up 1.9% year on year, and segment profit was ¥694 million, up 154.2% year on year, due to lower power costs resulting from energy savings and other factors.」

「Cost of sales decreased 3.7% from the previous fiscal year to ¥252,261 million, as raw material prices stabilized. Operating profit increased 28.6% from the previous fiscal year to ¥36,460 million, mainly as a result of the decrease in cost of sales described above.」

「Segment profit was ¥11,049 million, up 27.8% year on year, as lower raw material, sales promotion, advertising and other expenses more than offset higher personnel and other expenses.」

「In the overseas instant noodle business, segment profit was ¥7,846 million, up 49.8% year on year, as controls on sales promotion expenses and lower advertising and raw material costs more than offset higher logistics and personnel expenses. In the domestic instant noodle business, segment profit was ¥6,038 million, up 93.2% year on year, as lower raw material, sales promotion and advertising expenses more than offset higher personnel and other expenses.」

「Demand for the domestic instant noodle business rose as people had more opportunities to eat at home due to restrictions on going out and other measures to prevent the spread of COVID-19. In cup noodles, the Japanese-style series, including "赤いきつねうどん" and "緑のたぬき天そば", as well as the "ごつ盛り" series and the MARUCHAN QTTA series, which received an active stream of new products, performed well, but cup noodles overall generated lower revenue. In bagged noodles, the business performed well, centered on the "マルちゃん正麺" series, and generated higher revenue. As a result, revenue was ¥30,945 million, up 5.4% year on year. Segment profit was ¥3,495 million, up 146.6% year on year, despite higher personnel expenses and other costs, due to lower raw material, sales promotion and advertising expenses.」

「Segment profit was ¥8,682 million, up 28.1% year on year, due to increased sales volume, controls on sales promotion expenses, reductions in logistics expenses and lower raw material costs resulting from lower unit prices for key raw materials.」

「Consequently, sales were ¥41,860 million, up 2.7% year on year. Segment profit was ¥5,237 million, up 15.6% year on year, as increased sales volume, controls on sales promotion expenses and reductions in logistics expenses more than offset higher personnel and other expenses.」

「Segment profit was ¥2,624 million, up 11.6% year on year, as increased sales volume and controls on sales promotion and logistics expenses more than offset higher raw material and personnel expenses.」

「Segment profit was ¥1,609 million, down 20.9% year on year, due to higher depreciation and other expenses associated with the Saitama-Sugito and Kobe logistics centers, which began operations in January 2019.」

「Consequently, sales were ¥98,351 million, down 0.5% year on year. Segment profit was ¥6,831 million, up 1.4% year on year, as reductions in advertising expenses and other costs more than offset higher logistics expenses.」

「In the domestic instant noodle business, sales increased in cup noodles as the company expanded sales of its Japanese-style series, including “Akaikinitsune Udon,” “Midorinotanuki Tempura Soba,” “Gotsumori” and “Menzukuri,” and as “MARUCHAN QTTA,” which launched new products in the series, performed well. For pouch noodles, the company renewed the “Maruchan Seimen” series in September and worked to expand sales. Consequently, sales were ¥57,135 million, up 1.2% year on year. Segment profit was ¥2,771 million, up 27.9% year on year, due to higher sales and reductions in advertising expenses and other costs.」

「Segment profit was ¥1,610 million, up 28.4% year on year, as higher sales and reductions in advertising expenses and other costs more than offset higher raw material costs.」

「In the refrigerated business, handling volumes for storage and delivery, centered on frozen foods and livestock products, increased as a result of active sales efforts. Consequently, sales were ¥13,598 million, up 4.8% year on year. Segment profit was ¥1,719 million, up 21.1% year on year, supported by lower expenses resulting from improved operating efficiency and other measures.」

「Segment profit was ¥1,188 million, up 19.4% year on year, as efforts to review operations more than offset higher freight, storage and other costs associated with increased handling of contract products.」

「Segment profit was ¥602 million, up 21.0% year on year, as the increase in sales and active efforts to review operations and conserve energy reduced personnel expenses, power costs and other expenses.」

「In this environment, under the corporate slogan “Smiles for All. すべては、笑顔のために。” the Group has continued its efforts based on its responsibility to contribute to society through food and provide customers with safe and reliable food products and services, while pursuing further cost reductions and active sales efforts in response to intense competition.」

「Against this backdrop, under the corporate slogan “Smiles for All. Everything for smiles.”, our Group has regarded “contributing to society through food” and “providing customers with safe, reliable food products and services” as its responsibilities and has pursued these objectives. To respond to intense sales competition, we have also promoted further cost reductions and proactive sales activities.」

「Segment profit was ¥3,833 million, up 4.9% year on year, as the increase in sales and reductions in power costs, logistics costs and other expenses more than offset higher sales promotion and advertising expenses incurred to strengthen the brand.」

「Segment profit was ¥497 million, up 15.9% year on year. Although depreciation expense increased following the launch of the Fukuoka Island City Distribution Center, higher sales and reductions in utility and other expenses contributed to the increase.」

「To respond to increasingly intense sales competition in terms of costs as well, we will focus on restructuring logistics and implementing thorough cost reductions in production.」