Strengthening Cultivation Technology and the Production Base of the Mushroom Business

「As a result, sales were ¥3,894 million, up ¥125 million (3.3%) from the previous consolidated fiscal year, and the operating loss was ¥247 million, compared with an operating loss of ¥251 million in the previous consolidated fiscal year.」

「On the profit side, although manufacturing costs such as labor, raw material and energy costs rose, the Company reduced costs through rationalization and labor savings in the packaging division and improved production efficiency. As a result, the loss narrowed and performance exceeded that of the same period of the previous year. Segment sales were ¥2,103 million, up ¥157 million (8.1%) year on year, and segment loss (operating loss) was ¥25 million, compared with segment loss (operating loss) of ¥88 million in the same period of the previous year.」

「Sales prices exceeded those of the previous year due to poor vegetable growth caused by unfavorable weather and increased mushroom demand accompanying the surge in market prices. On the other hand, sales volumes remained sluggish because extreme heat caused poor growing conditions and the start of the hot-pot season was delayed by lingering summer heat and the mild winter.」

「Vegetable prices rose sharply, pushing up prices across the mushroom market, including maitake, and sales prices exceeded those of the previous year. However, sales volumes remained sluggish and fell below the previous year because temperatures continued to be warmer than normal from early autumn onward, when mushroom demand typically increases. On the profit side, the Company pursued cost reductions through rationalization and labor savings in the packaging division and improved production efficiency, but profit fell below the previous year because raw material and energy prices remained elevated. As a result, segment sales were ¥1,945 million, down ¥81 million (4.0%) year on year, and segment loss (operating loss) was ¥88 million, compared with segment profit (operating profit) of ¥57 million in the same period of the previous year.」

「The Company strengthened sales through the renewal of products fortified with vitamin D and proposals for large-size products, but sales fell below the previous year because volumes remained sluggish partly due to last summer's extreme heat and the mild winter. On the profit side, although the Company implemented production efficiency and cost-reduction measures, profit fell below the previous year amid unfavorable weather conditions due to lower sales resulting from insufficient demand stimulation and higher raw material and labor costs. As a result, segment sales were ¥3,790 million, down ¥156 million (4.0%) from the previous consolidated fiscal year, and segment loss (operating loss) was ¥157 million, compared with segment profit (operating profit) of ¥14 million in the previous consolidated fiscal year.」

「Vegetable market conditions and overall mushroom market conditions were stronger than in the same quarter of the previous year, and maitake prices also rose. On the sales side, the Company strengthened sales through the renewal of products fortified with vitamin D and proposals for large-size products. However, volumes remained sluggish due partly to last summer's extreme heat and the mild winter, resulting in sales below the same quarter of the previous year. On the production side, while raw material and energy prices remained elevated, the Company implemented cost-reduction measures, including energy conservation, and worked to improve production efficiency, stable cultivation and quality. As a result, segment sales were ¥3,069 million, down ¥111 million (3.5%) year on year, and segment profit (operating profit) was ¥66 million, compared with segment profit (operating profit) of ¥196 million in the same quarter of the previous year.」

「Vegetable market conditions and overall mushroom market conditions were stronger than in the previous year, and maitake prices also rose. The Company strengthened sales promotion by proposing large-size products, but volumes remained sluggish partly due to this summer's extreme heat and temperatures remaining above normal from October onward, resulting in sales below the same quarter of the previous year. On the production side, while raw material prices and energy costs remained elevated, the Company implemented cost-reduction measures, including energy conservation, and worked to improve production efficiency, stable cultivation and quality. As a result, segment sales were ¥2,027 million, down ¥83 million (4.0%) year on year, and segment profit (operating profit) was ¥57 million, compared with segment profit (operating profit) of ¥133 million in the same quarter of the previous year.」

「The Company strengthened sales by proposing large-size products intended for use at campsites and barbecues, among other occasions. However, consumption was sluggish partly due to this summer's extreme heat. On the production side, it pursued cost reductions, including energy conservation, as well as production efficiency, stable cultivation and quality improvements. Nevertheless, sales and profit fell below the same quarter of the previous year because raw material and energy prices remained elevated. As a result, segment sales were ¥768 million, down ¥73 million (8.7%) year on year, and segment loss (operating loss) was ¥121 million, compared with segment loss (operating loss) of ¥80 million in the same quarter of the previous year.」

「Vegetable market conditions were stronger than in the previous year, and mushroom market conditions also remained stronger than in the previous year. Maitake, however, remained weak due partly to excess supply caused by increased production by other companies. On the sales side, the Company advanced proposals for large-size products and “希なり,” and expanded proposals to the food-service and commercial-use sectors. On the production side, it worked to improve production efficiency and stability and strengthen its quality control systems, but profit declined partly due to higher energy costs. As a result, segment sales were ¥3,947 million, down ¥90 million (2.2%) from the previous consolidated fiscal year, and segment profit (operating profit) was ¥14 million, compared with segment profit (operating profit) of ¥430 million in the previous consolidated fiscal year.」

「Vegetable market conditions were stronger than in the previous year, and mushroom market conditions also remained stronger than in the previous year. Maitake, however, remained weak due partly to excess supply caused by increased production by other companies. The Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it sought to stimulate consumption and strengthen sales through proposals for large-size products and the newly launched “希なり,” as well as by expanding proposals to the food-service and commercial-use sectors. As a result, segment sales were ¥3,181 million, down ¥56 million (1.8%) year on year, and segment profit (operating profit) was ¥196 million, compared with segment profit (operating profit) of ¥529 million in the same quarter of the previous year.」

「Vegetable market conditions were stronger than in the previous year, and mushroom market conditions also remained stronger than in the previous year. Maitake, however, remained weak due partly to excess supply caused by increased production by other companies. The Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it sought to stimulate consumption and strengthen sales through proposals for large-size products and the newly launched “希なり,” as well as by expanding proposals to the food-service and commercial-use sectors.」

「Vegetable market conditions were stronger than in the previous year, while mushroom market conditions remained weak due to excess supply caused partly by sluggish consumption and increased production by other companies. Against this market backdrop, the Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it sought to stimulate consumption and strengthen sales through proposals for large-size products and the newly launched “希なり.” As a result, segment sales were ¥841 million, up ¥8 million (1.0%) year on year, while segment loss (operating loss) was ¥80 million, compared with segment profit (operating profit) of ¥69 million in the same quarter of the previous year.」

「Mushroom market prices remained weak amid sluggish consumption and the impact of increased production by other companies, resulting in excess supply. As a result, segment sales were ¥4,037 million and segment profit (operating profit) was ¥461 million, compared with segment profit (operating profit) of ¥732 million in the previous consolidated fiscal year.」

「On the production side, the Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it strengthened menu proposals aimed at stimulating demand for home cooking and proposals for large-size products. As a result, segment sales were ¥3,238 million and segment profit (operating profit) was ¥553 million, compared with segment profit (operating profit) of ¥830 million in the same quarter of the previous year.」

「In mid-August, market prices for vegetables overall and mushrooms were firm due to poor vegetable growth caused by insufficient sunlight and lower temperatures. In July and from October onward, however, weather conditions were relatively stable and vegetable growth was favorable, resulting in generally weak market prices. In addition, demand itself softened amid ample market supply, creating a challenging environment for mushroom sales. On the production side, the Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it strengthened menu proposals to stimulate demand for home cooking. As a result, segment sales were ¥2,126 million and segment profit (operating profit) was ¥387 million, compared with segment profit (operating profit) of ¥624 million in the same quarter of the previous year.」

「In the first half of the first quarter, temperatures remained relatively high and vegetable growth was favorable, resulting in weak vegetable and mushroom market prices. Combined with the unwinding of the stay-at-home demand seen in the previous year, this created a challenging environment for mushroom sales. Meanwhile, vegetable market prices exceeded the previous year in mid-August due to poor vegetable growth caused by insufficient sunlight and lower temperatures, leading to increased demand for mushrooms. On the production side, the Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it sought to stimulate demand by expanding menu proposals in response to growing demand for home cooking. Profit fell below the same quarter of the previous year due to declining mushroom market prices.」

「Mushroom business sales were ¥4,581 million, down ¥445 million (8.9%) from the previous consolidated fiscal year, and segment profit (operating profit) was ¥732 million, compared with segment profit (operating profit) of ¥952 million in the previous consolidated fiscal year.」

「On the production side, the Company worked to ensure stable cultivation, improve production efficiency and strengthen its quality control systems. On the sales side, it sought to stimulate demand by expanding menu proposals in response to growing demand for home cooking. Although the operations of an underperforming consolidated subsidiary were discontinued, earnings fell below the same quarter of the previous year due to declining mushroom market prices. As a result, segment sales were ¥3,731 million, down ¥203 million (5.2%) year on year, and segment profit (operating profit) was ¥830 million, compared with segment profit (operating profit) of ¥846 million in the same quarter of the previous year.」

「On the earnings front, domestic mushroom demand remained firm, and the suspension of operations at an underperforming consolidated subsidiary also contributed to results exceeding the same quarter of the previous year. As a result, segment net sales were ¥252.7 million, a decrease of ¥7.8 million, or 3.0%, from the same quarter of the previous year, and segment profit (operating profit) was ¥62.4 million, compared with segment profit (operating profit) of ¥50.5 million in the same quarter of the previous year.」

「On the production side, the company worked to improve quality, ensure stable cultivation and achieve efficient production. On the sales side, it strengthened sales promotion, including menu proposals, to stimulate demand. As a result, segment net sales were ¥105.0 million, a decrease of ¥3.0 million, or 2.8%, from the same quarter of the previous year, and segment profit (operating profit) was ¥18.4 million, compared with segment profit (operating profit) of ¥9.9 million in the same quarter of the previous year.」

「In the mushroom business, the company plans to install a more efficient maitake packaging line to further strengthen its high-profit structure and improve earnings, while strengthening technical research and product development to expand its business domain.」

「On the production side, the company worked to ensure stable cultivation and efficient production. On the sales side, it strengthened sales promotion, including menu proposals, to stimulate demand for maitake mushrooms. As a result, net sales fell below the same quarter of the previous year, but profit exceeded the previous year's level. Segment net sales were ¥393.4 million, a decrease of ¥11.7 million, or 2.9%, from the same quarter of the previous year, and segment profit (operating profit) was ¥84.6 million, compared with segment profit (operating profit) of ¥83.3 million in the same quarter of the previous year.」

「On the production side, the company worked to ensure stable cultivation, improve quality and achieve efficient production. On the sales side, it strengthened sales promotion, including menu proposals, to stimulate further demand. As a result, net sales exceeded the same quarter of the previous year, but profit fell below the previous year's level due in part to higher costs such as labor. Segment net sales were ¥260.5 million, an increase of ¥1.7 million, or 0.7%, from the same quarter of the previous year, and segment profit (operating profit) was ¥50.5 million, compared with segment profit (operating profit) of ¥51.1 million in the same quarter of the previous year.」

「On the production side, the company worked to improve quality, ensure stable cultivation and achieve efficient production. On the sales side, it strengthened sales promotion, including menu proposals, to stimulate demand. As a result, segment net sales were ¥108.1 million, an increase of ¥9.1 million, or 9.2%, from the same quarter of the previous year, and segment profit (operating profit) was ¥9.9 million, compared with segment profit (operating profit) of ¥2.5 million in the same quarter of the previous year.」

「On the production side, the company worked to ensure stable cultivation and efficient production. On the sales side, it strengthened sales promotion, including menu proposals, to stimulate demand for maitake mushrooms, resulting in both net sales and profit exceeding the same quarter of the previous year. As a result, segment net sales were ¥405.2 million, an increase of ¥50.6 million, or 14.3%, from the same quarter of the previous year, and segment profit (operating profit) was ¥83.3 million, compared with segment profit (operating profit) of ¥43.4 million in the same quarter of the previous year.」

「On the production side, the company worked to ensure stable cultivation and efficient production. On the sales side, it strengthened sales promotion, including menu proposals, to stimulate demand for maitake mushrooms, resulting in both net sales and profit exceeding the same quarter of the previous year. As a result, segment net sales were ¥258.8 million, an increase of ¥34.5 million, or 15.4%, from the same quarter of the previous year, and segment profit (operating profit) was ¥51.1 million, compared with segment profit (operating profit) of ¥21.9 million in the same quarter of the previous year.」

「On the production side, the company strengthened efficient production and worked to ensure stable cultivation. On the sales side, it strengthened sales promotion, resulting in both net sales and profit exceeding the same quarter of the previous year. As a result, segment net sales were ¥99.0 million, an increase of ¥20.4 million, or 26.0%, from the same quarter of the previous year, and segment profit (operating profit) was ¥2.5 million, compared with a segment loss (operating loss) of ¥13.8 million in the same quarter of the previous year.」

「Against this backdrop, continued efforts to ensure stable production and improve quality, together with ongoing sales promotion, resulted in both net sales and profit exceeding the previous consolidated fiscal year's levels. As a result, segment net sales were ¥438.5 million, an increase of ¥24.6 million, or 6.0%, from the previous consolidated fiscal year, and segment profit (operating profit) was ¥33.6 million, compared with segment profit (operating profit) of ¥12.3 million in the previous consolidated fiscal year.」

「Against this backdrop, continued efforts to ensure stable production and improve quality, together with ongoing sales promotion, resulted in both net sales and segment profit exceeding the same quarter of the previous year. As a result, segment net sales were ¥354.5 million, an increase of ¥16.0 million, or 4.7%, from the same quarter of the previous year, and segment profit (operating profit) was ¥43.4 million, compared with segment profit (operating profit) of ¥35.9 million in the same quarter of the previous year.」

「In this segment, vegetables were abundant in July and vegetable market prices remained weak, but from autumn onward vegetable market prices surged due to unfavorable weather and other factors, while mushroom prices remained firm. Against this backdrop, continued efforts to ensure stable production and improve quality, together with ongoing sales promotion, resulted in both net sales and profit exceeding the same quarter of the previous year. As a result, segment net sales were ¥224.3 million, an increase of ¥5.9 million, or 2.7%, from the same quarter of the previous year, and segment profit (operating profit) was ¥21.9 million, compared with segment profit (operating profit) of ¥19.3 million in the same quarter of the previous year.」

「Although vegetable market prices fluctuated substantially due to continued unfavorable weather from summer through early autumn, mushroom market prices remained firm. On the production side, the company worked to improve quality and ensure stable cultivation, while on the sales side it strengthened sales promotion. Nevertheless, net sales fell below the same quarter of the previous year.」

「Although vegetable and mushroom market prices weakened somewhat from spring through summer due to sluggish consumption and other factors, continued efforts to ensure stable production and improve quality, together with ongoing sales promotion, resulted in both net sales and profit exceeding the previous fiscal year's levels.」

「As a result of efforts to ensure stable production, improve quality and continuously promote sales in the mushroom business, sales and profit both exceeded the same quarter of the previous year. As a result, segment sales were ¥3.385 billion, an increase of ¥42 million, or 1.3%, from the same quarter of the previous year, and segment profit (operating profit) was ¥359 million, compared with segment profit (operating profit) of ¥302 million in the same quarter of the previous year.」

「Amid these conditions, the company worked to ensure stable production and improve quality and continuously strengthened sales, but sales and profit both fell below the same quarter of the previous year.」

「The company actively pursued initiatives to strengthen its business base, including research and development in cultivation technologies aimed at improving cultivation productivity, stabilizing cultivation and enhancing quality. It also actively pursued, with a medium- to long-term perspective, research and development for future business expansion, including the development and verification of varietal development technologies, research into efficient production methods and development of cultivation media.」