Performance pressure from the post-peak decline in stay-at-home demand, frugality and higher costs for raw materials and other inputs

「Although sales of the “Gohan ga Susumu Kimchi” series remained firm, revenue declined due to consumers’ increased cost-consciousness, lower sales to convenience stores, and the continued streamlining of the number of items as part of the profitability improvement measures included in the Company’s medium- to long-term strategy. Profit declined as a result of lower sales and higher manufacturing costs for packaging materials and other items, as well as the impact of higher prices for raw-material vegetables caused by adverse weather, including lower yields of Chinese cabbage due to extreme summer heat and low rainfall and delayed cucumber growth due to rainy and cool weather in early summer. As a result, during the interim consolidated accounting period, net sales were ¥21,516 million, down 3.6% year on year, operating profit was ¥1,225 million, down 21.9%, ordinary profit was ¥1,271 million, down 21.6%, and interim net profit attributable to owners of the parent was ¥847 million, down 23.2%.」

「Consolidated ordinary profit for the June–August period (2Q), representing results for the latest 3 months, fell 43.4% year on year to ¥560 million, while the operating profit margin on sales deteriorated sharply from 8.4% in the same period of the previous year to 4.8%.」

「Profit increased because purchase prices for vegetables used as raw materials remained more stable than initially forecast, the optimization of sales conditions such as price revisions and discounts for products including ご飯がススムキムチ proceeded as scheduled, and raw-material, labor and logistics costs were contained.」

「Net sales increased as sales remained strong due to campaigns conducted by convenience stores and other factors. Profit increased due to the effect of higher sales, the greater-than-expected stability of purchase prices for vegetables used as raw materials, the on-schedule optimization of sales conditions such as price revisions and discounts for products including ご飯がススムキムチ, and the containment of raw-material, labor and logistics costs. As a result, during the interim consolidated accounting period, net sales were ¥22,321 million, up 2.9% year on year, and operating profit was ¥1,569 million, up 40.5%.」

「Although sales of the 「ご飯がススムキムチ」 series remained firm, net sales declined due to consumers’ cost-consciousness resulting from higher prices across a range of products and lower sales to convenience stores. Profit declined due to soaring prices for vegetables such as Chinese cabbage and cucumbers used as raw materials, caused by high temperatures in summer, unsettled weather after summer and stronger demand resulting from shortages of leafy vegetables, as well as higher logistics and labor costs and lower sales. ロ　経営成績 Net sales during the consolidated fiscal year were ¥41,518 million, down 3.5% year on year, and operating profit was ¥1,279 million, down 23.3%.」

「Net sales declined due to consumers’ cost-consciousness resulting from higher prices across a range of products and lower sales to convenience stores. Profit declined due to soaring prices for vegetables such as Chinese cabbage and cucumbers used as raw materials, caused by weather factors including unsettled weather in early spring and high temperatures in summer, as well as lower sales and higher logistics and labor costs. As a result, during the interim consolidated accounting period, net sales were ¥21,694 million, down 6.1% year on year, operating profit was ¥1,117 million, down 12.7%, ordinary profit was ¥1,171 million, down 13.6%, and interim profit attributable to owners of the parent was ¥798 million, down 12.8%.」

「Net sales declined due to consumers’ cost-consciousness resulting from higher prices across a range of products and lower sales to convenience stores. Profit declined due to soaring prices for vegetables such as Chinese cabbage and cucumbers used as raw materials, caused by weather factors including an unusually warm winter and unsettled weather in early spring, as well as lower sales and higher logistics costs. As a result, during the first quarter of the consolidated fiscal year, net sales were ¥10,812 million, down 5.9% year on year, operating profit was ¥504 million, down 32.9%, ordinary profit was ¥520 million, down 34.0%, and profit attributable to owners of the parent was ¥362 million, down 31.1%.」

「Although profit was affected by higher prices for raw materials such as seasonings and packaging materials and higher logistics costs, as well as soaring prices for vegetables used as raw materials due to record-breaking summer heat, operating profit increased as a result of higher sales to ¥1,668 million, up 8.4% year on year.」

「Although profit was affected by higher prices for raw materials such as seasonings and packaging materials and higher logistics costs, as well as soaring prices for vegetables used as raw materials due to record-breaking summer heat, profit increased as a result of higher sales.」

「In the food industry, although demand for eating out continued to recover, demand for food consumed at home was affected by a growing focus on protecting household finances and stronger cost-consciousness as price increases continued across food, energy and other items. As a result, the business environment for related products consumed with rice, such as pickles, remained challenging. Net sales exceeded the initial forecast because the decline in stay-at-home demand eased and sales to convenience stores remained strong. Although profit was affected by higher raw-material prices such as those for seasonings and packaging materials, as well as higher utility and logistics costs, profit increased because the benefit from higher sales exceeded the initial forecast.」

「In the food industry, demand for eating out continued to recover as behavioral restrictions related to COVID-19 were eased. Demand for food consumed at home has been affected by a growing focus on protecting household finances and an increasingly cost-conscious mindset as prices for food, electricity and various other items rose successively. As a result, the business environment for related products consumed with rice, such as pickles, also remained challenging. Net sales increased as the decline in stay-at-home demand eased and sales to convenience stores remained strong. Although profit was affected by higher prices for raw materials such as seasonings and packaging materials, as well as higher utility and logistics costs, profit increased as a result of higher sales.」

「Although the 2 volume-increase campaigns had an effect on revenue, net sales declined due to the application of the revenue recognition accounting standard and other standards, the decline in stay-at-home demand as the number of COVID-19 cases fell, and consumers’ cost-consciousness following price increases across food categories due to soaring raw-material prices. In terms of profit, prices for vegetables used as raw materials remained stable because weather conditions were relatively favorable, but profit declined due to lower sales and the effects of higher costs for raw materials such as seasonings and packaging materials, as well as higher utility and logistics costs.」

「Although the 20g volume-increase campaign for 「ご飯がススムキムチ」 had an effect on revenue, net sales declined due to the application of the revenue recognition accounting standard and other standards, the decline in stay-at-home demand as the number of COVID-19 cases fell, and consumers’ cost-consciousness following price increases across food categories due to soaring raw-material prices. In terms of profit, prices for vegetables used as raw materials remained stable because weather conditions were relatively favorable, but profit declined due to lower sales and the effects of higher costs for raw materials such as seasonings and packaging materials, as well as higher utility and logistics costs.」