Fluctuations in the prices of raw materials such as edible oils, eggs and vegetables

「As a result of these factors, prices for packaging materials and edible oil, our principal raw material, rose, while cost pressures from higher personnel and logistics expenses, among others, continued, resulting in a challenging operating environment for the Group.」

「Regarding eggs, market prices rose after the outbreak of highly pathogenic avian influenza in the second half of fiscal 2024 and remained elevated throughout fiscal 2025.」

「Profit declined year on year due to higher raw material costs resulting from the delayed timing of price revisions and persistently high chicken egg prices, higher selling, general and administrative expenses, and forward-looking investments such as head office relocation costs.」

「Profit declined year on year due to higher raw material costs caused by the persistently high egg market prices, in addition to the impact of lower sales and the lag in implementing price revisions to reflect increases in raw material, labor and logistics costs.」

「However, market prices for raw materials, particularly eggs, rose, and the burden gradually increased from the first to the second quarter.」

「Domestic edible oil prices in the January–March 2024 period were slightly lower than in the same period of the previous year. The limited incidence of highly pathogenic avian influenza in fiscal 2023 was also a factor behind the resulting decline in market prices.」

「Although edible oil and egg prices have begun to ease, raw material prices and energy costs remain a significant burden.」

「However, raw material prices, including those of edible oils and eggs, continue to be a significant burden.」

「Egg-processing products recorded lower revenue because the spread of highly pathogenic avian influenza made it difficult to secure a stable supply of eggs, requiring us to impose sales restrictions.」

「Regarding edible oils, in fiscal 2022, tight inventories of North American soybeans harvested in 2021, a sharp decline in rapeseed production caused by the severe drought in Canada in 2021, and reduced sunflower oil supplies resulting from Russia's invasion of Ukraine caused edible oil prices to surge throughout the year. Domestic oil processors announced 6 price increases between 2021 and 2022. Regarding eggs, prices surged due to the culling of approximately 17 million laying hens following the spread of highly pathogenic avian influenza in autumn 2022, as well as soaring feed prices.」

「However, in addition to edible oil prices remaining high, the spread of highly pathogenic avian influenza nationwide is expected to result in a further surge in egg prices and a decline in supply.」

「Regarding profit, although we pursued price revisions, including for mayonnaise products, improved factory utilization accompanying higher sales, and other measures to improve profitability in response to further increases in raw material prices and energy costs, including those caused by the weakening yen, consolidated operating profit and consolidated ordinary profit both declined year on year.」

「Surging raw material prices, particularly for edible oils, and energy costs have become a significant burden for both businesses and households. Conditions remain difficult, with edible oil prices continuing to rise.」

「In particular, exports of sunflower seeds and rapeseed from Russia and Ukraine have ceased, causing prices of oilseeds and edible oils worldwide to rise further.」

「In addition, the outlook for the economy is expected to remain uncertain, amid concerns about supply shortages of raw materials and other goods caused by the spread of infections overseas and natural disasters, reduced production of soybeans, a key raw material for edible oils, due to dry weather in North America, competition with food demand resulting from the expansion of biofuel production, and rapid inflation and downside risks to economic activity caused by a sharp rise in resource prices. Regarding profit, we pursued company-wide expense reduction initiatives, including reductions in factory costs, and proceeded with price revisions for mayonnaise products in response to a substantial increase in costs caused by a further surge in raw material prices. However, profit declined year on year.」

「In addition, raw material prices, including edible oils, have remained at high levels. There was also a substantial increase in costs due to a further surge in raw material prices.」

「In addition, raw material prices, including edible oils, have remained at high levels.」

「With regard to edible oils, domestic oil processors implemented price revisions from March 2021, and further price revisions are planned. As old-crop inventories of soybeans and rapeseed are tight, new-crop prices have already risen, and unusually severe market price increases are expected. Egg prices also rose from the beginning of 2021 due to the spread of avian influenza, which expanded rapidly from November last year. In addition, compound feed prices, which account for 60% of egg production costs, have continued to rise due to surging Chicago market prices for corn and soybean meal, and are expected to remain at high levels in fiscal 2021.」

「Meanwhile, the average egg price was ¥182, up ¥11 from the previous fiscal year. The main factor was the extensive damage sustained by poultry farms as a result of the major typhoon last autumn.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Profit declined due to costs related to the new plant incurred from its start-up through the ramp-up to full operation, as well as higher raw material prices, rising labour costs, and other factors.」

「Profit declined due to costs related to the new plant incurred from its start-up through the ramp-up to full operation, as well as higher raw material prices, rising labour costs, and other factors.」

「Profit declined due to temporary costs incurred in connection with the start-up of a new plant, as well as higher raw material prices, rising labour costs, and other factors.」

「A nationwide shortage of vegetables, including potatoes harvested every autumn, occurred due to typhoon damage in Hokkaido and other factors last summer. As a result, higher raw material procurement costs and lower production efficiency continued to affect the company until September of that year, when the use of newly harvested Hokkaido potatoes began, contributing to lower profit.」

「The nationwide supply of vegetables, including potatoes, became insufficient due to typhoon damage in Hokkaido and other factors last summer. We consequently recorded lower profit as higher procurement costs and lower production efficiency affected our operations.」

「To hedge the risk of fluctuations in market prices, we diversify sourcing regions, including overseas procurement, and enter into year-round price contracts. However, fluctuations in market prices could affect operating results.」

「Profit increased because, although procurement costs for vegetables, including potatoes, rose due to adverse weather conditions and other factors, the increase was absorbed by benefits from key raw materials, while efforts were made to expand sales.」

「Profit also benefited from the slight easing of egg prices, which had remained at elevated levels, and reductions in fuel and logistics costs driven by lower crude oil prices.」

「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「Our group's major raw materials are edible oils, including soybean and rapeseed oil, eggs, and vegetables. Purchase prices are significantly affected by domestic and overseas commodity market prices and foreign exchange rates.」