Simultaneous Sales Growth and Profit Decline

「As a result, net sales for the fiscal year reached ¥62,219 million, up 5.9% year on year, setting a new record for the fourth consecutive year. Operating profit of ¥2,109 million, up 161.9%, ordinary profit of ¥2,172 million, up 145.7%, and net income attributable to owners of the parent of ¥1,515 million, up 179.6%, all increased substantially and reached new record highs.」

「As a result, operating profit rose 161.9% year on year to ¥2,109 million, ordinary profit rose 145.7% to ¥2,172 million, and net income attributable to owners of the parent rose 179.6% to ¥1,515 million. All three reached record highs after substantial increases.」

「Based on the above, operating profit for the interim consolidated accounting period was ¥1,228 million, compared with an operating loss of ¥111 million in the same period of the previous year; ordinary profit was ¥1,258 million, compared with an ordinary loss of ¥73 million; and interim net income attributable to owners of the parent was ¥842 million, compared with an interim net loss of ¥66 million. All three items therefore returned substantially to profitability and reached new record highs.」

「As a result, net sales for the interim consolidated accounting period reached a record ¥28,056 million, the highest ever for an interim consolidated accounting period, up 10.7% year on year. ... Operating loss was ¥111 million, compared with operating profit of ¥329 million in the same period of the previous year; ordinary loss was ¥73 million, compared with ordinary profit of ¥379 million; and interim net loss attributable to owners of the parent was ¥66 million, compared with interim net income attributable to owners of the parent of ¥320 million.」

「As a result, net sales for the fiscal year reached a record ¥52,823 million, up 10.2% year on year. Profit also increased substantially year on year, with operating profit of ¥1,134 million, up 78.4%, ordinary profit of ¥1,258 million, up 63.5%, and net income attributable to owners of the parent of ¥1,013 million, up 44.3%. All items exceeded their levels in the fiscal year ended March 2020, before the COVID-19 pandemic, setting new record highs for profit.」

「As a result, net sales for the cumulative third quarter of the fiscal year reached a record ¥39,325 million, the highest ever for a third quarter, up 10.2% year on year. Profit also increased substantially year on year, with operating profit of ¥730 million, up 62.1%, ordinary profit of ¥807 million, up 57.5%, and quarterly net income attributable to owners of the parent of ¥633 million, up 37.0%. All items exceeded their levels in the third quarter of the fiscal year ended March 2020, before the COVID-19 pandemic, setting new record highs for profit.」

「Net sales for the cumulative second quarter of the fiscal year reached a record ¥25,344 million, the highest ever for a second quarter, up 9.1% year on year. Profit also increased substantially year on year, with operating profit of ¥329 million, up 359.9%, ordinary profit of ¥379 million, up 231.9%, and quarterly net income attributable to owners of the parent of ¥320 million, up 196.2%. All items exceeded their levels in the second quarter of the fiscal year ended March 2020, before the COVID-19 pandemic, except operating profit, setting new record highs for profit.」

「As a result, net sales for the cumulative first quarter of the fiscal year reached a record ¥12,233 million, the highest ever for a first quarter, up 7.5% year on year. Profit also increased substantially year on year, with operating profit of ¥299 million, up 767.3%, ordinary profit of ¥321 million, up 429.2%, and net income attributable to owners of the parent of ¥267 million, up 515.3%. All items exceeded their levels in the first quarter of the fiscal year ended March 2020, before the COVID-19 pandemic, setting new record highs for profit.」

「Revenue for the nine months ended the third quarter was a record ¥35,701 million, up 21.0% from the same period of the previous year. Profit also recovered substantially: operating profit was ¥450 million, compared with an operating loss of ¥348 million in the same period of the previous year; ordinary income was ¥512 million, compared with an ordinary loss of ¥224 million; and net income attributable to owners of the parent was ¥462 million, compared with a net loss attributable to owners of the parent of ¥411 million. All items returned to profitability. Profit for the three months of the third quarter exceeded the previous year's level, marking a record high on a quarterly basis and a recovery from COVID-19, and the full-year consolidated earnings forecast was revised upward.」

「As a result, revenue for the six months ended the second quarter reached a record ¥23,227 million, up 28.2% from the same period of the previous year. Although expenses increased due in part to higher electricity, fuel, raw material and labor costs, operating profit recovered to ¥71 million, compared with an operating loss of ¥709 million in the same period of the previous year; ordinary income was ¥114 million, compared with an ordinary loss of ¥611 million; and net income attributable to owners of the parent was ¥108 million, compared with a net loss attributable to owners of the parent of ¥768 million. All items returned to profitability.」

「As a result, revenue for the three months ended the first quarter was a record ¥11,382 million, up 32.7% from the same quarter of the previous year. Although results were affected by higher prices for some imported products due to the lockdown in China, operating profit recovered substantially to ¥34 million, compared with an operating loss of ¥282 million in the same period of the previous year; ordinary income was ¥60 million, compared with an ordinary loss of ¥219 million; and net income attributable to owners of the parent was ¥43 million, compared with a net loss attributable to owners of the parent of ¥322 million. All items returned to profitability.」

「As a result, full-year revenue increased 25.4% year on year to ¥39,788 million, but losses in the first half, particularly those caused by the spread of COVID-19, could not be fully offset by improved conditions in the second half. Operating loss was ¥397 million, compared with an operating loss of ¥1,467 million in the previous fiscal year; ordinary loss was ¥242 million, compared with an ordinary loss of ¥1,031 million; and net loss attributable to owners of the parent was ¥746 million, compared with a net loss attributable to owners of the parent of ¥953 million. On a half-year basis, ordinary loss was ¥611 million in the first half, from April to September 2021, while ordinary income was ¥368 million in the second half, from October 2021 to March 2022, securing profitability.」

「As a result of these intensified activities, revenue for the three months of the third quarter was ¥11,394 million, up 19.4% year on year, and ordinary income was ¥386 million, up 66.2%, both record highs on a quarterly basis. Revenue for the nine months ended the third quarter was ¥29,512 million, up 25.1% from the same period of the previous year. Operating loss was ¥348 million, compared with an operating loss of ¥1,142 million; ordinary loss was ¥224 million, compared with an ordinary loss of ¥782 million; and net loss attributable to owners of the parent was ¥411 million, compared with a net loss attributable to owners of the parent of ¥591 million. Losses in the first half were substantially recovered in the third quarter, but profitability was not restored.」

「While the Company intensified these activities, the impact of the state of emergency and priority preventive measures was substantial. Revenue for the three months ended the first quarter was ¥8,578 million, up 57.1% from the same period of the previous year. Profitability was not restored: operating loss was ¥282 million, compared with an operating loss of ¥1,058 million in the same period of the previous year; ordinary loss was ¥219 million, compared with an ordinary loss of ¥755 million; and net loss attributable to owners of the parent was ¥322 million, compared with a net loss attributable to owners of the parent of ¥600 million.」

「As a result, revenue for the consolidated fiscal year was ¥31,725 million, down 21.5% year on year. Operating loss was ¥1,467 million, compared with operating profit of ¥571 million in the previous fiscal year; ordinary loss was ¥1,031 million, compared with ordinary income of ¥641 million; and net loss attributable to owners of the parent was ¥953 million, compared with net income attributable to owners of the parent of ¥360 million.」

「Monthly ordinary income returned to profitability in September, and ordinary income recovered to ¥232 million in the three months of the third quarter as the Company worked to strengthen its financial base. However, in the nine months ended the third quarter, the impact of the particularly sharp decline in first-quarter revenue could not be fully offset. Revenue was ¥23,582 million, down 24.0% from the same period of the previous year. Operating loss was ¥1,142 million, compared with operating profit of ¥635 million in the same period of the previous year; ordinary loss was ¥782 million, compared with ordinary income of ¥681 million; and net loss attributable to owners of the parent was ¥591 million, compared with net income attributable to owners of the parent of ¥433 million.」

「As a result, revenue for the three months ended the first quarter was ¥5,459 million, down 45.0% from the same period of the previous year. Although the Company pursued thorough cost reductions, including temporary reductions at certain plants and lower overtime labor costs through greater operating efficiency, the impact of lower revenue was substantial. Operating loss was ¥1,058 million, compared with operating profit of ¥207 million in the same period of the previous year; ordinary loss was ¥755 million, compared with ordinary income of ¥223 million; and net loss attributable to owners of the parent was ¥600 million, compared with net income attributable to owners of the parent of ¥138 million.」

「As a result, revenue for the consolidated fiscal year increased 2.4% year on year to ¥40,413 million, while operating profit was ¥571 million, down 16.6%, ordinary income was ¥641 million, down 15.7%, and net income attributable to owners of the parent was ¥360 million, down 21.5%.」

「As a result, revenue for the nine months ended the third quarter was ¥31,020 million, up 4.3% from the same period of the previous year. Profit was affected by start-up costs such as consumables expenses and higher depreciation associated with renovations to the cut-vegetable plant at the Aichi facility of デリカフーズ株式会社, as well as higher labor costs due to labor shortages and the increase in the minimum wage and higher vegetable procurement prices due to adverse weather. However, revenue growth, strategic purchasing using low-temperature storage facilities, Group-wide cost reduction initiatives, and strengthened inspections upon receipt and inventory management resulted in operating profit of ¥635 million, up 6.0% year on year, ordinary income of ¥681 million, up 5.0%, and net income attributable to owners of the parent of ¥433 million, up 11.0%.」

「As a result, revenue for the six months ended the second quarter was ¥20,429 million, up 5.0% from the same period of the previous year. Profit was affected by start-up costs such as consumables expenses and higher depreciation associated with renovations to the cut-vegetable plant at the Aichi facility of デリカフーズ株式会社, as well as higher labor costs due to labor shortages and the increase in the minimum wage and higher vegetable procurement prices due to adverse weather. However, revenue growth, strategic purchasing using low-temperature storage facilities, and strengthened inspections upon receipt and inventory management resulted in operating profit of ¥342 million, up 45.0% year on year, ordinary income of ¥373 million, up 35.6%, and net income attributable to owners of the parent of ¥233 million, up 58.7%.」

「As a result, revenue for the three months ended the first quarter was ¥9,930 million, up 4.7% from the same period of the previous year. Profit was affected by start-up costs such as consumables expenses and higher depreciation associated with renovations to the cut-vegetable plant at the Aichi facility of デリカフーズ株式会社, as well as higher labor costs due to labor shortages and the increase in the minimum wage. However, steady revenue growth, stable vegetable procurement prices and quality, and strengthened inspections upon receipt and inventory management resulted in operating profit of ¥207 million, up 17.1% year on year, ordinary income of ¥223 million, up 11.9%, and net income attributable to owners of the parent of ¥138 million, up 28.1%.」

「As a result of these management initiatives, revenue for the consolidated fiscal year was ¥39,448 million, up 5.9% year on year.」

「As a result, revenue for the nine months ended the third quarter was ¥29,751 million, up 7.9% from the same period of the previous year. Although the first half was significantly affected by higher vegetable procurement prices and waste caused by heat, torrential rain and other adverse weather, typhoons and earthquakes, the third quarter benefited from favorable weather and stable vegetable procurement prices and quality. Together with steady revenue growth and Group-wide productivity improvement and cost reduction initiatives, this resulted in operating profit of ¥599 million, up 27.5% year on year, ordinary income of ¥649 million, up 25.1%, and net income attributable to owners of the parent of ¥389 million, up 15.8%.」

「As a result, revenue for the six months ended the second quarter was ¥19,460 million, up 9.0% from the same period of the previous year. The record heat following the end of the rainy season, torrential rain in western Japan, the Hokkaido Eastern Iburi earthquake and successive landfalls of powerful typhoons caused extensive damage to fresh produce production areas nationwide. Harvests declined for almost all vegetables, resulting in higher vegetable prices due to procurement difficulties, substantially lower operating efficiency and yields due to deteriorating quality, and significant waste.」

「Profit was affected by start-up costs such as labor and consumables expenses and higher depreciation following the opening of the Chukyo FS Center in May 2018, as well as higher labor costs due to labor shortages and higher logistics costs. However, steady revenue growth, stable vegetable procurement prices and quality, and the benefits of cost reductions following last October's organizational reorganization resulted in operating profit of ¥176 million, up 6.2% year on year, and ordinary income of ¥199 million, up 10.3%. Net income attributable to owners of the parent was ¥108 million, down 8.9% year on year, due to the recognition of an impairment loss on investment securities as an extraordinary loss.」

「As a result of these management initiatives, revenue for the consolidated fiscal year was ¥37,252 million, up 7.8% year on year. Although the prolonged impact of higher vegetable prices and deteriorating quality caused by the lack of sunshine from late July, typhoons and low temperatures from early autumn onward, as well as logistics network construction costs, weighed on results, Group-wide productivity improvement and waste reduction initiatives and the effects of the organizational reorganization from October onward led to operating profit of ¥694 million, up 24.5% year on year, ordinary income of ¥762 million, up 26.0%, and net income attributable to owners of the parent of ¥475 million, up 44.4%.」

「As a result, revenue for the nine months ended the third quarter was ¥27,564 million, up 5.9% from the same period of the previous year. The impact of higher vegetable procurement prices and deteriorating quality caused by a lack of sunshine due to prolonged rain and cloudy weather from late July, and typhoons and low temperatures from October onward, continued in the third quarter. Although costs related to the organizational reorganization and logistics network construction were recorded, revenue grew steadily, the Nishi-Tokyo FS Center returned to profitability, and the Group pursued productivity improvement and waste reduction initiatives. Operating profit was ¥470 million, up 11.9% year on year, ordinary income was ¥518 million, up 15.2%, and net income attributable to owners of the parent was ¥336 million, up 23.4%.」

「As a result, revenue for the six months ended the second quarter was ¥17,861 million, up 7.0% from the same period of the previous year. Although vegetable procurement prices rose and waste increased from August onward due to the very small number of rainy days during this year's rainy season and the low temperatures and lack of sunshine caused by prolonged rain and cloudy weather from late July, and costs related to the organizational reorganization and logistics network construction were recorded, the Nishi-Tokyo FS Center's return to profitability in March made a significant contribution. Operating profit was ¥293 million, up 58.2% year on year, ordinary income was ¥323 million, up 61.9%, and net income attributable to owners of the parent was ¥206 million, up 61.0%.」

「As a result, revenue for the three months ended the first quarter was ¥8,614 million, up 6.8% from the same period of the previous year. The Nishi-Tokyo FS Center turned profitable in March and made a significant contribution to profit. In addition, procurement prices and quality were stable because vegetables grew well without adverse weather, while Group-wide productivity improvement and waste reduction initiatives also contributed. Operating profit was ¥166 million, up 101.1% year on year, ordinary income was ¥181 million, up 100.4%, and net income attributable to owners of the parent was ¥118 million, up 131.9%.」

「Revenue was ¥34,559 million, up 9.5% year on year. Profit fell below the initial forecast because the impact of higher vegetable prices and deteriorating quality caused by successive typhoons, record-low sunshine and temperatures continued for an extended period, while the introduction of advanced production and sanitation equipment at the Nishi-Tokyo FS Center, including the industry's first mass-production line for vacuum-heated vegetables, also resulted in higher costs. Operating profit was ¥557 million, down 18.4% year on year, ordinary income was ¥605 million, down 14.5%, and net income attributable to owners of the parent was ¥329 million, down 17.7%.」

「As a result, revenue for the nine months ended the third quarter was ¥26,023 million, up 9.9% from the same period of the previous year. In addition to the continued impact in the third quarter of higher vegetable prices and deteriorating quality caused by successive typhoons, record-low sunshine and temperatures, start-up costs such as labor and consumables expenses and depreciation increased substantially year on year following the introduction of advanced production and sanitation equipment at the Nishi-Tokyo FS Center, including the industry's first mass-production line for vacuum-heated vegetables. Operating profit was therefore ¥420 million, down 28.9% year on year, ordinary income was ¥450 million, down 25.3%, and net income attributable to owners of the parent was ¥272 million, down 27.5%.」

「As a result, revenue for the six months ended the second quarter was ¥16,695 million, up 7.4% from the same period of the previous year. Torrential rain mainly in western Japan in July, successive typhoons from August onward, and record-low sunshine and temperatures in the Tohoku and Kanto regions in September, described as once-in-30-years conditions, caused extensive damage to fresh produce production areas nationwide. This led to shortages of many vegetables, higher procurement prices, substantially lower operating efficiency due to deteriorating quality, and waste. In addition, start-up costs such as labor and consumables expenses and depreciation increased substantially year on year following the introduction of advanced production and sanitation equipment at the Nishi-Tokyo FS Center, including the industry's first mass-production line for vacuum-heated vegetables. As a result, operating profit was ¥185 million, down 10.9% year on year, ordinary income was ¥199 million, down 5.3%, and net income attributable to owners of the parent was ¥128 million, down 1.3%.」

「Revenue was ¥8,065 million, up 6.9% from the same quarter of the previous year. Although the Group worked to improve productivity and reduce waste, start-up costs such as labor and consumables expenses, as well as depreciation, increased substantially year on year following the introduction of advanced production and sanitation equipment at the Nishi-Tokyo FS Center, including the industry's first mass-production line for "vacuum-heated vegetables." As a result, operating profit was ¥82 million, down 29.5% year on year, ordinary income was ¥90 million, down 22.9%, and net income attributable to owners of the parent was ¥51 million, down 28.3%.」

「As a result, revenue for the consolidated fiscal year was ¥31,573 million, up 12.6% year on year. Profit remained below the previous fiscal year due to higher vegetable procurement prices caused by adverse weather, typhoons and torrential rain in the first half, lower operating efficiency and waste, as well as start-up costs and increased depreciation associated with the opening of the Nara FS Center of 大阪デリカフーズ株式会社.」