Reducing costs across all areas

「Through production rationalization and expense reductions, revenue was ¥2,470 million, up ¥681 million, or 38.1%, from the previous consolidated fiscal year, while operating profit was ¥271 million, up ¥184 million, or 210.9%.」

「Although shipments of automotive floor mats for the domestic Japanese market declined, we acquired new customers overseas and increased shipment volumes. We also rationalized our production bases and worked to reduce expenses.」

「The mat business pursued product development with new customers to support a recovery in performance and also focused on reducing costs.」

「Although the proportion of premium products was low and the average selling price declined, we worked to improve production efficiency. As a result, revenue was ¥1,060 million, up ¥133 million, or 14.4%, from the same quarter of the previous year, while operating profit was ¥0 million, compared with an operating loss of ¥85 million in the same quarter of the previous year.」

「In the mat business, despite rising labor costs and other factors in Thailand, the production base, we sought to reduce costs, including by recruiting early retirees, and put in place a production and sales structure」

「Meanwhile, since the previous fiscal year, we have promoted the rationalization of production lines, worked to reduce costs and sought to rebuild our production bases. As a result, revenue was ¥425 million, down ¥35 million, or 7.6%, from the same quarter of the previous year, while the operating loss was ¥0 million, compared with an operating loss of ¥10 million in the same quarter of the previous year.」

「Although orders for jute products increased, orders for resin bags for food-aid rice and paper bags for rice and wheat declined, resulting in lower revenue. However, reductions in selling, general and administrative expenses contributed to profit. As a result, revenue was ¥691 million, down ¥27 million, or 3.9%, from the previous consolidated fiscal year, while operating profit was ¥18 million, up ¥2 million, or 18.8%.」

「Pasta revenue declined due to the impact of imported products and competitors, but we worked to review the cost ratio and reduce selling, general and administrative expenses.」

「As its medium- to long-term management strategy, the company formulated a new medium-term management plan focused on expanding sales and profit, while maintaining the results of the previous medium-term management plan and emphasizing stronger production and sales, and will pursue cost reductions and proactive sales expansion in all areas.」

「The implementation of a review of transactions for profitability improved the efficiency of profit generation, but also resulted in lower revenue.」

「As its medium- to long-term management strategy, the company formulated a new medium-term management plan focused on expanding sales and profit, while maintaining the results of the previous medium-term management plan and emphasizing stronger production and sales, and will pursue cost reductions and proactive sales expansion in all areas.」

「We also worked to reduce selling, general and administrative expenses.」

「We will work to reduce costs in all areas and actively expand sales.」

「As a result, revenue was ¥1,237 million, down ¥43 million, or 3.4%, from the previous consolidated fiscal year, while efforts to reduce selling, general and administrative expenses resulted in operating profit of ¥3 million, an increase of ¥3 million from the previous consolidated fiscal year.」

「For retort products, we worked to develop new products, including the launch in September of four pasta sauces under the Volcano Select Series, targeting women, and the start of online sales, but sales of existing products declined. As a result, revenue was ¥934 million, down ¥51 million, or 5.2%, from the same quarter of the previous year. However, through efforts to reduce selling, general and administrative expenses and other costs, we recorded operating profit of ¥3 million, compared with an operating loss of ¥7 million in the same quarter of the previous year.」

「Although we worked to reduce selling, general and administrative expenses and other costs, the operating loss was ¥6 million, compared with an operating loss of ¥17 million in the same quarter of the previous year.」

「Against this economic backdrop, our Group worked to strengthen production and sales under the new medium-term management plan based on the theme of “Expanding Sales and Profits.” Sales in the industrial materials and mat businesses remained sluggish compared with the same quarter of the previous year, while the food business worked to reduce costs.」

「Sales of pasta and retort products in the food business remained sluggish. Although we worked to develop new products, including gluten-free products, revenue declined.」

「We will continue to seek higher profitability by selecting the products we sell and reducing costs.」

「We worked to review costs for packaging materials and achieved some results, although demand for exports declined.」

「Our medium- to long-term management strategy is centered on the industrial materials, mat and food businesses. We have formulated a medium-term management plan with the goals of developing and expanding sales of new products, expanding new sales channels and strengthening our financial position, and will work to respond nimbly to changes in the business environment through organizational streamlining, strengthen profitability through cost reductions, and shift to a business structure focused on generating profits.」

「The basic policy outlined above is to expand sales and profit, and we will pursue cost reductions and proactive sales expansion in all areas.」