Expansion of FS Centers and the Logistics Network

「Although the segment worked to improve efficiency, including through various cost reductions, segment profit (ordinary profit) declined by ¥21 million, or 15.1%, year on year to ¥120 million, due mainly to the advance burden of rent and other costs related to the Tokai Mother Center, which began operations in April 2026.」

「In addition, under the other basic policies of the medium-term management plan, the Group advanced the construction of new production and logistics sites under “Building Fresh-Produce Distribution Infrastructure.” With the completion of the Osaka FS Center in March 2024, the nationwide rollout of the Group’s proprietary cold chain, the “FS Center,” was completed, and the planned structure of 20 directly operated sites was established.」

「At a meeting of its Board of Directors held on 10 November 2023, the Company resolved that its consolidated subsidiary デリカフーズ Co., Ltd. would borrow funds to finance construction of the Osaka FS Center (tentative name), scheduled for completion in March 2024.」

「In addition, under the other basic policies of the medium-term management plan, namely “Building Fresh-Produce Distribution Infrastructure” and “Promoting Sustainability Management,” the Group is advancing the respective initiatives, including making plans for new logistics sites more concrete, reducing food waste and strengthening investment in human capital to develop next-generation talent.」

「The Group currently has a delivery structure serving approximately 30,000 stores per day through 17 directly operated sites nationwide and regional companies. To address areas with tight supply and demand and newly established areas, the new medium-term management plan calls for adding 3 sites in the Kanto, Kansai and Chugoku regions. Candidate locations are becoming more specific, and the Group will move forward with implementing the plan.」

「In fiscal 2019, the Group established a site in Hokkaido, and during the current consolidated fiscal year it established the Fukuoka FS Center, a state-of-the-art plant in Kyushu, thereby advancing the expansion of logistics centers and plant facilities nationwide. The Group plans to continue expanding its logistics centers and plant facilities. Under the new medium-term management plan, it aims to add 3 sites in the Kanto, Kansai and Chugoku regions and build fresh-produce distribution infrastructure providing services from 20 sites nationwide.」

「In April 2020, operations began at the Fukuoka FS Center of デリカフーズ株式会社 in Munakata, Fukuoka Prefecture. It is positioned as a new FS Center that will contribute to the Group’s future performance through business expansion in Kyushu and the development of contracted production areas.」

「The Group newly opened the Fukuoka FS Center of デリカフーズ株式会社 in the Kyushu region in April 2020, with the aim of building a platform for growth.」

「Customers highly valued the low-temperature storage functions for fresh produce and the latest production equipment at the Saitama and Chukyo FS Centers of デリカフーズ株式会社.」

「In addition, customers highly valued the distribution infrastructure centered on the core logistics operations of the logistics subsidiary エフエスロジスティックス株式会社, as well as the low-temperature storage functions for fresh produce at the Saitama and Chukyo FS Centers. Together with increased demand for cut vegetables and vacuum-heated vegetables amid the worsening labor shortage, this led to steady progress in acquiring new customers and deepening relationships with existing customers.」

「In May 2018, the Chukyo FS Center in Yatomi, Aichi Prefecture, was newly opened at the Nagoya facility of デリカフーズ株式会社, followed by the Saitama FS Center in Yashio, Saitama Prefecture, at the Tokyo facility in December 2018.」

「Although segment profit (ordinary profit) was significantly affected in the first half by higher vegetable procurement prices and disposal losses resulting from adverse weather, typhoons and earthquakes, it increased by ¥148 million, or 33.4%, year on year to ¥592 million in the third quarter, due to stable vegetable procurement prices and quality, the Chukyo FS Center turning profitable, and Group-wide efforts to reduce costs including utilities expenses.」

「Segment sales increased by ¥862 million, or 10.0%, year on year to ¥9,460 million, owing to steady sales in the foodservice industry, a major customer of the Group, increased demand for cut vegetables and vacuum-heated vegetables amid the worsening labor shortage, and the opening of the Chukyo FS Center in May 2018.」

「Additional capacity after completion: sales scale of ¥3.0 billion」

「Under these circumstances, as part of the business strategy of the medium-term management plan, the Group opened the Takatsuki Center in Takatsuki, Osaka, in October 2017 and the Heiwajima Center in Ota, Tokyo, in December 2017, focusing on expanding its sales market and building its own infrastructure for fresh-produce distribution.」

「In addition to the steady increase in the utilization rate of the West Tokyo FS Center」

「Segment profit (ordinary profit) increased by ¥89 million, or 543.2%, year on year to ¥106 million, due to the West Tokyo FS Center turning profitable in March and making a significant contribution to profit, progress in shifting from whole vegetables to higher-value-added cut vegetables, and the effects of productivity improvements, cost reductions and other initiatives.」

「名古屋デリカフーズ Co., Ltd. Chukyo FS Center (tentative name), Yatomi, Aichi Prefecture; July 2017; June 2018; sales scale: ¥3.0 billion」

「Under these circumstances, in addition to the higher utilization rate at the Nara FS Center of 大阪デリカフーズ株式会社, which began operations in April 2015, the West Tokyo FS Center of 東京デリカフーズ株式会社 began operations in June 2016.」

「In addition to the higher utilization rate at the Nara FS Center of 大阪デリカフーズ株式会社, which began operations in April 2015, the company strengthened sales activities following the launch of the West Tokyo FS Center of 東京デリカフーズ株式会社 in June 2016.」

「In addition to the higher utilization rate at the Nara FS Center of 大阪デリカフーズ株式会社, which began operations in April 2015, sales activities were strengthened following the launch of the West Tokyo FS Center of 東京デリカフーズ株式会社 in June 2016.」

「We will continue our policy of expanding sites in order to generate additional sales. First, in May 2016, we will open the West Tokyo FS Center of 東京デリカフーズ株式会社 in Akishima, Tokyo, as a new distribution center in the western Kanto region.」