Improving Profit Structure and Increasing Productivity

「To move away from a production system dependent on overtime, we brought forward production planning and reduced production-line changeover times. We also improved production efficiency through labour-saving robotics and the replacement of ageing equipment, reducing overtime by 49% year on year and improving energy-use efficiency by 7%.」

「At the same time, we will improve profit margins and costs by discontinuing or refurbishing unprofitable and low-margin products and rationalising production sites. Where these measures are insufficient, we will revise product prices as appropriate and set sustainable selling prices that reflect higher costs.」

「In particular, with regard to labour costs, we worked to rationalise production planning and optimise inventory as measures to reduce overtime. However, the measures were less effective than expected, partly due to increased production, and labour costs rose year on year. Expenses also increased due to a renewed rise in fuel unit prices and higher consumption accompanying increased production, higher depreciation expenses following the full-scale operation of software, and higher-than-expected transport unit prices and unplanned deliveries.」

「We will reorganise the company-wide cross-functional project for cost reduction, which has been in place since the previous year, to fundamentally review conventional assumptions, and pursue reforms from a medium- to long-term perspective that are sustainable and beneficial to customers, suppliers and the company.」

「Although water, utilities and fuel costs remained high, they declined because unit prices turned lower year on year and the company worked to reduce consumption.」

「In this environment, we implemented cost-reduction activities through a company-wide cross-functional project and worked to improve profitability, pursuing fundamental reviews in areas including production efficiency, raw-material procurement and logistics optimisation. However, as it was difficult to absorb the sharp increase in manufacturing costs through internal efforts alone, we revised the prices of some products on 1 October 2022 to fund investments to further enhance product value and sustainable activities.」

「We implemented cost-reduction activities through a company-wide cross-functional project and worked to improve profitability, pursuing fundamental reviews in areas including production efficiency, raw-material procurement and logistics optimisation. However, as it was difficult to absorb the sharp increase in manufacturing costs through internal efforts alone, we revised the prices of some products on 1 October 2022 to fund investments to further enhance product value and sustainable activities.」

「We also implemented cost-reduction activities through a company-wide cross-functional project and worked to improve profitability. By examining fundamental revisions in areas including production efficiency, raw-material procurement and logistics optimisation, we achieved expense reductions for the second consecutive year.」

「In addition, higher selling prices following shipment-price revisions and sales activities timed to seasonal and other demand enabled us to secure shelf space, resulting in higher sales of our core meatball products.」

「We also worked to reduce and manage costs, including revising shipment prices for some customers and standardising packaging materials, in response to the sharp increase in manufacturing costs, chiefly due to higher prices for raw materials such as rapeseed oil.」

「We also worked to reduce and manage costs, including standardising packaging materials, in response to increases in manufacturing costs, chiefly due to higher prices for raw materials such as rapeseed oil.」

「We also worked to reduce manufacturing costs by standardising packaging materials and taking other measures. However, these activities did not fully offset increases in the prices of raw materials such as rapeseed oil. As a result, net sales for the cumulative second-quarter period were ¥4,251 million, up ¥267 million year on year. Selling, general and administrative expenses were ¥1,397 million, up ¥29 million year on year, and operating profit was ¥2 million, compared with an operating loss of ¥174 million in the same period of the previous year.」

「In this environment, we have focused on maximising the value of our core processed meat products and other products by developing standard products and taking other measures.」

「③ We will improve profit margins by discontinuing or refurbishing unprofitable and low-margin products, while strengthening relationships with sales channels that share our corporate philosophy. ④ We will improve productivity by investing in mechanisation, automation and labour-saving measures for production equipment and systems.」

「We worked to improve the profitability of existing businesses by improving logistics costs, reviewing expenses and improving sales management.」

「Although sales of the core chicken hamburg steak series increased in response to stronger demand for prepared foods, sales in the hamburg steak category declined because the company reduced foodservice products caught in price competition and discontinued unprofitable products, among other measures.」

「In the prepared-foods business, we launched, for a limited period, bamboo-shoot rice made with bamboo shoots from Otaki, Chiba Prefecture; Kyotamba, Kyoto Prefecture; and Karatsu, Saga Prefecture. From September, we also began selling chestnut rice from 6 regions at department stores and elsewhere: Kyotamba, Kyoto Prefecture; Kasama, Ibaraki Prefecture; Hidaka, Saitama Prefecture; Narita, Chiba Prefecture; Yamagata, Gifu Prefecture; and Yamae, Kumamoto Prefecture. Sales have remained strong. However, as a result of streamlining unprofitable products, including frozen foods, sales in the prepared-foods business were 91.1% of the level in the same period of the previous year.」

「Our basic management policy is to develop brands and markets distinctive to the food industry, backed by advanced technical capabilities centred on the proprietary additive-free cooking and quality-control methods we have developed, while establishing a profit structure focused on more efficient production systems and stronger product competitiveness and pursuing prudent management that does not rely on borrowings, thereby becoming a food company capable of sustainable growth.」

「Regarding improvement of the profit structure of existing businesses, the company shifted toward higher-value-added activities, products and transactions and streamlined its products and channels, resulting in lower net sales.」

「Based on this understanding, our basic management policy has been to develop brands and markets distinctive to the food industry, backed by advanced technical capabilities centred on the proprietary additive-free cooking and quality-control methods we have developed, while establishing a profit structure focused on more efficient production systems and stronger product competitiveness and pursuing prudent management that does not rely on borrowings, thereby becoming a food company capable of sustainable growth and working to enhance corporate value and the common interests of shareholders, although」

「The production division is reviewing and improving the manufacturing processes for each product.」

「Based on this understanding, our basic management policy has been to develop brands and markets distinctive to the food industry, backed by advanced technical capabilities centred on the proprietary additive-free cooking and quality-control methods we have developed, while establishing a profit structure focused on more efficient production systems and stronger product competitiveness and pursuing prudent management that does not rely on borrowings, thereby becoming a food company capable of sustainable growth and working to enhance corporate value and the common interests of shareholders, although」

「In the production division, we analysed losses and yields across all processes and worked on improvements one by one, resulting in progress in value-added productivity.」

「In the production division, we discontinued poorly selling products, analysed each process, reviewed losses and other issues, switched to small-lot production to improve product losses and yields, and improved value-added productivity through rigorous time management.」

「In the production division, we discontinued poorly selling products, analysed each process, reviewed losses arising from mass production, switched to small-lot production to improve product losses and yields, and improved value-added productivity through rigorous time management.」

「Based on this understanding, our basic management policy has been to develop brands and markets distinctive to the food industry, backed by advanced technical capabilities centred on the proprietary additive-free cooking and quality-control methods we have developed, while establishing a profit structure focused on more efficient production systems and stronger product competitiveness and pursuing prudent management that does not rely on borrowings, thereby becoming a food company capable of sustainable growth and working to enhance corporate value and the common interests of shareholders.」

「In the production division, we analysed each process and reviewed losses arising from mass production. From the second half of the period, we switched to small-lot production, improving product losses and yields, and improved value-added productivity through rigorous time management.」

「In the production division, we have worked to improve product losses and yields, thoroughly manage time by analysing each process, and improve value-added productivity.」

「In the production division, we have worked to improve product losses and yields, thoroughly manage time by analysing each process, and improve value-added productivity.」

「In addition to establishing a profit structure centred on more efficient production systems and stronger product competitiveness, our basic management policy is to become a food company capable of sustainable growth by pursuing prudent management that does not rely on borrowings.」

「We will improve productivity by thoroughly analysing each step of the production process, clarifying the gaps between the ideal state and actual results, and implementing improvements. We will work to improve the profit structure by establishing a framework for determining quality acceptance or rejection at each stage of production.」