Reviewing Low-Profitability Categories

「Revenue in the processed foods business increased against a backdrop of growing demand for time-saving and convenient products and soaring rice prices. Despite the effect of higher sales, the segment result was a ¥441 million loss, compared with segment profit of ¥27 million in the previous year, owing to higher raw material costs, depreciation expense and other expenses.」

「Demand for cooked rice products remained solid, centered on aseptic rice products, despite another price revision in June. Revenue was ¥10,830 million, up 0.8% year on year. Although the June price revision increased revenue, the segment result was a ¥562 million loss, compared with segment profit of ¥319 million in the previous year, owing to further increases in raw material costs and higher depreciation expense associated with the launch of the new freeze-dried food plant.」

「Demand for cooked rice products increased, and both sales volume and sales value grew. Segment profit was ¥27 million, down 96.3% year on year, mainly owing to higher raw material and other costs, particularly the sharp rise in the price of rice.」

「The processed foods business expanded as volumes recovered following the completion of the price revisions implemented in April last year and the revised prices took hold. Demand for cooked rice products remained high owing to rice shortages and other factors, and revenue increased as both aseptic and retort rice products performed well. Freeze-dried products recovered from the sales decline caused by last year’s price revisions and the shortage of liquid eggs, resulting in higher revenue. Revenue was ¥10,747 million, up 16.8% year on year. Despite higher raw material and labor costs, segment profit rose 109.5% year on year to ¥319 million owing to higher sales.」

「The company recognizes that the operating environment for its cooked rice business, included in the processed foods business segment, is not persistently stable and that there are indicators of impairment, because, in addition to the initial burden of investment in manufacturing equipment, considerable uncertainty has recently accompanied trends in sales volume and manufacturing costs, including raw materials and utility costs.」

「Fish meat ham and sausage products and cooked rice products remained solid, but freeze-dried products and others struggled. Revenue was ¥20,155 million, down 0.9% year on year. Despite higher labor costs and other expenses, segment profit rose 499.1% year on year to ¥742 million owing to lower utility costs and other expenses.」

「Fish meat ham and sausage products performed well, while cooked rice products and others remained solid, but freeze-dried products struggled. Cooked rice products remained generally solid without a significant decline, despite the effects of price revisions and the subsiding of demand from people recuperating at home. Sales of freeze-dried products declined owing to the price revisions and extreme heat, resulting in lower revenue, but showed signs of recovery as the autumn and winter demand season began. Revenue was ¥14,889 million, down 2.1% year on year. Despite higher sales promotion expenses and labor costs, segment profit rose 39.3% year on year to ¥577 million owing to lower utility costs and other expenses.」

「The processed foods business’s cooked rice products and fish meat ham and sausage products performed well, but freeze-dried products and others struggled. Cooked rice products were broadly in line with the previous year, despite the effects of price revisions and the subsiding of demand from people recuperating at home. Sales of freeze-dried products declined owing to the price revisions and extreme heat, resulting in lower revenue. Revenue was ¥9,204 million, down 3.9% year on year. Despite lower utility costs and other expenses, segment profit fell 56.9% year on year to ¥152 million owing to higher sales promotion expenses and labor costs.」

「Amid rising manufacturing costs, the processed foods business implemented price revisions in April and is working to rebuild demand at the revised prices in order to ensure a stable supply of safe, reliable products. Demand for cooked rice products remained high after the price revisions, and revenue increased as both aseptic and retort rice products performed well. Sales of freeze-dried products declined after the price revisions, resulting in lower revenue. Revenue was ¥4,492 million, up 2.2% year on year. Despite the effect of the price revisions, the segment result was a ¥21 million loss, compared with segment profit of ¥228 million in the same quarter of the previous year, owing to higher temporary repair costs and other expenses.」

「Demand for cooked rice products remained high because of the impact of COVID-19, and revenue increased as both aseptic and retort rice products performed well. Demand for freeze-dried products also remained high, and revenue increased as sales of the core “Sozai no Chikara” series performed well. Revenue was ¥15,214 million, up 5.6% year on year. Despite higher utility costs, segment profit was ¥414 million, up 380.2% year on year, owing mainly to higher revenue and lower depreciation expense.」

「Demand for freeze-dried products remained high compared with the previous year, and revenue increased as the core “Sozai no Chikara” series performed well. Demand for cooked rice products also remained high, and both aseptic and retort rice products performed well, resulting in higher revenue. Revenue was ¥9,573 million, up 3.9% year on year. Despite higher utility costs, segment profit was ¥354 million, compared with a segment loss of ¥68 million in the same quarter of the previous year, owing to higher revenue and lower labor costs.」

「Revenue was ¥4,394 million, down 0.6% year on year. Despite higher utility costs, segment profit was ¥228 million, compared with a segment loss of ¥67 million in the same quarter of the previous year, owing mainly to lower labor costs.」

「Demand for the processed foods business remained higher than before the spread of COVID-19. Revenue from cooked rice products increased as the additional serving in retort rice products and new product launches performed well, while aseptic rice products also remained solid. Freeze-dried products, led by the five-serving bagged soup “Sozai no Chikara” series, continued to perform well, with revenue increasing owing to expanded distribution and more opportunities to eat at home. Revenue was ¥19,494 million, up 4.6% year on year. Despite higher utility costs, segment profit was ¥230 million, compared with a segment loss of ¥666 million in the previous year, owing to higher revenue and lower labor costs.」

「Demand for the processed foods business remained higher than before the spread of COVID-19. Revenue from cooked rice products increased owing to initiatives adding one serving to retort rice products and the launch of new products. Freeze-dried products, led by the five-serving bagged soup “Sozai no Chikara” series, continued to perform well, with revenue increasing owing to expanded distribution and more opportunities to eat at home. Revenue was ¥14,401 million, up 2.3% year on year. Despite higher utility costs, segment profit was ¥86 million, compared with a segment loss of ¥445 million in the same quarter of the previous year, owing to higher revenue and lower labor costs.」

「Demand for the processed foods business remained higher than before the spread of COVID-19. Revenue from cooked rice products increased owing to initiatives adding one serving to retort rice products and higher demand for aseptic rice caused by the resurgence of COVID-19 infections from August. Freeze-dried products, led by the five-serving bagged soup “Sozai no Chikara” series, continued to perform well, with revenue increasing owing to expanded distribution and more opportunities to eat at home. Revenue was ¥9,215 million, up 3.2% year on year, while the segment loss improved by ¥421 million owing to higher revenue and lower labor costs and amounted to ¥68 million, compared with a segment loss of ¥490 million in the same quarter of the previous year.」

「Demand for the processed foods business remained higher than before the spread of COVID-19. Cooked rice products, led by the “Attaka Gohan” white rice series, remained solid overall but generated lower revenue. Freeze-dried products, including the five-serving bagged soup “Sozai no Chikara” series, performed well. Revenue was ¥4,421 million, up 0.6% year on year, while the segment loss improved by ¥114 million owing to higher revenue and lower labor costs and amounted to ¥67 million, compared with a segment loss of ¥182 million in the same quarter of the previous year.」

「Demand for the processed foods business increased as opportunities to eat at home rose and demand for food stockpiling grew. Revenue was ¥25,609 million, up 5.9% year on year, while the segment loss improved by ¥641 million owing to higher revenue and lower raw material costs and amounted to ¥666 million, compared with a segment loss of ¥1,307 million in the previous year.」

「Demand for the processed foods business increased as opportunities to eat at home rose due to requests to refrain from going out and other measures to prevent the spread of COVID-19, while demand also increased for food stockpiling. In cooked rice, the white rice series, including “Attaka Gohan,” the seasoned rice series, including “Fukkura Osekihan,” and the health-oriented series, including “Genmai Gohan,” performed well. Freeze-dried products, including the five-serving bagged soup “Sozai no Chikara” series, also performed well. Revenue was ¥19,344 million, up 9.3% year on year, while the segment loss improved by ¥537 million owing to higher revenue and lower raw material costs and amounted to ¥445 million, compared with a segment loss of ¥983 million in the same quarter of the previous year.」

「Going forward, the company will expand operations on a solid scale using new facilities, improve low-margin categories, address labor shortages and rising labor costs, and expand overseas by applying domestic technologies.」

「Amid increasingly difficult conditions caused by lower catches and intensifying competition in the domestic market, the seafood products business increased sales by strengthening sales activities with business partners and reviewing its procurement policies. Sales of roe, salmon and trout products with strong product appeal remained robust, resulting in higher revenue. Revenue was ¥24,472 million, up 1.2% year on year. Segment profit was ¥354 million, up 38.2% year on year, owing to higher sales and efforts to improve the cost ratio.」

「Segment profit was ¥298 million, compared with a segment loss of ¥22 million in the same quarter of the previous year, owing to efforts to improve the cost ratio in addition to higher sales.」

「Segment profit was ¥4,943 million, up 28.3% year on year, owing to higher profit from growth in core products, lower raw material prices and efforts to strengthen profitability, including the review of unprofitable products.」

「Segment profit was ¥3,807 million, up 30.4% year on year, owing to higher profit from growth in core products, lower raw material prices and efforts to strengthen profitability, including the review of unprofitable products.」

「Segment profit was ¥2,487 million, up 21.9% year on year, owing to higher profit from growth in core products and efforts to strengthen profitability, including the review of unprofitable products.」

「Alongside measures to expand sales, such as developing value-added products, we will work to reduce costs and improve productivity.」