Damage to Production Equipment and Operating Impact from the Fire at the Chiba Plant

「Under an insurance policy covering property damage and lost profits resulting from the fire that occurred at the company's Chiba Plant in Yoshioka, Narita, Chiba, on 27 October 2024, the amount of business interruption insurance covering ordinary expenses, including labor costs, depreciation and rent, attributable to the assumed decline in production from the time of the fire until completion of restoration, as well as part of operating income, has been finalized. Accordingly, we plan to record ¥434.163 million as insurance proceeds under extraordinary income. Negotiations with the contracted insurer remain ongoing regarding fire insurance proceeds covering the replacement cost and repair expenses for the plant buildings, machinery and equipment. We will provide an update once the amount has been finalized.」

「In connection with the fire at the Chiba Plant, ¥111 million in operating suspension-related costs was recognized as a non-operating expense and ¥23 million in fire losses as an extraordinary loss. Ordinary profit was ¥375 million, down 30.4% year on year, and net income was ¥212 million, compared with a net loss of ¥422 million in the previous fiscal year.」

「In September 2025, we also fully restored our production capacity.」

「Through company-wide efforts to restore operations and resume supply, all manufacturing lines that had been shut down resumed operations in September. The company will continue working to ensure a stable supply of products and to deliver products that provide greater satisfaction to customers.」

「During the fiscal year, revenue was ¥15,403 million, down 13.4% from the previous fiscal year, and operating profit was ¥561 million, down 54.0%, due to reduced transactions with a major pizza-chain customer and the suspension of sales of certain products following a fire. Although compensation income was recorded as non-operating income and gains on the sale of investment securities and government subsidies received were recorded as extraordinary income, the Company recognized ¥164 million in operating suspension-related costs as non-operating expenses and ¥1,147 million in fire-related losses as extraordinary losses. As a result, ordinary profit was ¥539 million, down 57.5%, and the Company posted a net loss of ¥422 million, compared with net profit of ¥599 million in the previous fiscal year.」

「On 27 October 2024, a fire occurred at the Chiba Plant, which manufactures pizza dough and other products, burning part of the production equipment. Adjacent production equipment was also damaged by firefighting and related activities. This is expected to result in lower sales during the period until the production equipment is restored, as well as costs for restoring the production equipment, but it is currently difficult to reasonably estimate the actual amount of damage, the impact on business performance and the outlook for restoration, including the amount assessed by insurers for the damage.」