Strengthening the Earnings Structure through Expanded Contracted Production Areas and Automation

「下期では、本部集中仕入制度の対象品目拡大、入荷時検品体制の定着および現場オペレーションの効率化を一層徹底いたします。」

「Although some products were affected by price increases resulting from extreme heat, the fresh produce business appropriately responded to market fluctuations by strengthening management of procurement costs and inventory and reducing disposal losses, helped by the centralized procurement system at headquarters introduced this fiscal year, and by further improving field-operating efficiency through optimization of staffing and logistics.」

「The successful introduction of the centralized head-office procurement system launched this fiscal year enabled stricter management of procurement costs and inventory and reduced disposal losses. We also further improved the efficiency of on-site operations by optimizing staffing and logistics, allowing us to respond appropriately to market fluctuations.」

「On the earnings front, vegetable prices were generally stable, and the centralized procurement system introduced at headquarters this fiscal year began to produce results. This led to stricter management of procurement costs and inventory and reductions in disposal losses. In addition, the company further improved the efficiency of field operations by optimizing staffing and logistics, while its logistics subsidiary acquired new, highly profitable customers and contributed to higher consolidated profit. As a result, the company continued to steadily generate profit in the second quarter of the consolidated fiscal year.」

「In addition to the benefit of higher sales, the company continued to implement thorough efficiency measures and focused on improving selling prices. As a result, segment profit (ordinary profit) was ¥1,155 million, an increase of ¥439 million, or 61.5%, from the previous fiscal year.」

「In addition to the benefit of higher sales, the company continued to implement thorough efficiency measures and focused on improving selling prices. As a result, segment profit (ordinary profit) was ¥751 million, an increase of ¥313 million, or 71.7%, from the same period of the previous year.」

「Although the segment was affected by sharp increases in the procurement prices of tomatoes and other vegetables amid abnormal summer weather, as well as higher expenses, segment profit (ordinary profit) increased by ¥288 million, or 531.5%, year on year to ¥343 million, as the company focused on improving selling prices while implementing thorough efficiency measures.」

「On the earnings front, the company continued to pursue efficient operations through strict management of purchasing and inventory, reductions in disposal losses, and optimization of staffing and logistics, while working to strengthen its earnings base. In addition, selling-price improvements following careful explanations to customers began to produce results. Although earnings were affected by higher expenses resulting from rising raw-material prices, improvements in earnings power have become pronounced.」

「The company continued to pursue efficient operations through strict management of purchasing and inventory, reductions in disposal losses, and optimization of staffing and logistics, while working to strengthen its earnings base. In addition, selling-price improvements following careful explanations to customers began to produce results. Although earnings were affected by soaring prices for some imported products and higher expenses resulting from rising raw-material prices, improvements in earnings power have become pronounced.」

「Against this backdrop, our group continued to prioritize infection prevention for employees, customers and other business partners while pursuing efficient operations through strict management of purchasing and inventory, reductions in disposal losses, and optimization of staffing and logistics. In addition, we promoted transformation of the business portfolio, one of the basic policies under the medium-term management plan Transformation 2024, and continued new-business and account-development sales activities to broaden our customer base. As a result, six-month sales recovered to a record high, exceeding pre-COVID levels. On the earnings side, despite higher costs resulting from increases in electricity charges, fuel costs, raw-material prices and labor costs, we focused on improving selling prices after carefully explaining the situation to customers, and the benefits are beginning to emerge gradually.」

「While continuing to prioritize infection prevention for employees, customers and other business partners, our group pursued efficiency through strict management of purchasing and inventory, reductions in disposal losses and the restructuring of logistics routes. At the same time, we actively pursued new-business and account-development sales activities, focusing on expansion into COVID-resilient formats such as takeout, drive-through, home delivery and delivery services, as well as into food prepared outside traditional food service, retail and mass retail, school and institutional meals, and other channels.」

「Against this backdrop, our group made the continued safety of employees, customers and other business partners its top priority while implementing thorough efficiency measures, including strict management of purchasing and inventory, rigorous reductions in disposal losses, restructuring of logistics routes, and reductions in overtime labor costs, to lower the break-even point.」

「Our group implemented thorough efficiency measures, including strict management of purchasing and inventory, rigorous reductions in disposal losses, restructuring of logistics routes, and reductions in overtime labor costs, to lower the break-even point.」

「Taking the transformation of the business environment seriously, our group implemented thorough efficiency measures, including strict management of purchasing and inventory, rigorous reductions in disposal losses, restructuring of logistics routes, and reductions in overtime labor costs, to lower the break-even point.」

「Although we worked to achieve thorough cost reductions, including the temporary downsizing of some plants and reductions in overtime labor costs through greater operating efficiency, the impact of the decline in sales was substantial.」

「We recognize that strengthening the earnings structure by reducing procurement costs through the expansion of contracted sourcing regions and labor costs through factory automation and the use of IoT remains an ongoing challenge for the group as a whole.」

「Although segment profit (ordinary profit) was affected by start-up costs, including consumables, and higher depreciation expenses associated with renovations to the cut-vegetable plant at デリカフーズ株式会社’s Aichi facility, higher labor costs due to labor shortages and increases in the minimum wage, and soaring vegetable procurement prices caused by adverse weather, increased sales of higher-value-added cut vegetables and vacuum-heated vegetables, strategic purchasing using cold-storage capabilities, and stronger cost-reduction initiatives resulted in profit of ¥627 million, an increase of ¥34 million, or 5.8%, from the same quarter of the previous year.」

「Profit was affected by start-up costs, including consumables, and higher depreciation expenses associated with renovations to the cut-vegetable plant at デリカフーズ株式会社’s Aichi facility, higher labor costs due to labor shortages and increases in the minimum wage, and soaring vegetable procurement prices caused by adverse weather. However, higher sales, strategic purchasing using cold-storage capabilities, and stronger inspections upon receipt of vegetables and inventory management resulted in operating profit of ¥342 million, up 45.0% year on year, ordinary profit of ¥373 million, up 35.6%, and quarterly net profit attributable to owners of the parent of ¥233 million, up 58.7%.」

「Segment profit (ordinary profit) was ¥211 million, an increase of ¥18 million, or 9.6%, from the same quarter of the previous year, owing to stable vegetable procurement prices and quality in the first quarter, progress in shifting from whole vegetables to higher-value-added cut vegetables and vacuum-heated vegetables, and stronger inspections upon receipt of vegetables and inventory management.」

「The ordinary profit margin on sales for the consolidated fiscal year was 1.9%. Although the margin temporarily declined due to the impact of the new plant coming on stream and other factors, we are confident that it will rise in the future as we further pursue group synergies from integrating operating companies and strengthen the earnings structure through cost reductions, including lower procurement prices, the development of domestic and overseas sourcing regions as a hedge against procurement difficulties caused by adverse weather, factory automation, and the development of group infrastructure.」

「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 profit (ordinary profit) was ¥192 million, an increase of ¥37 million, or 24.4%, from the same quarter of the previous year, owing to stable vegetable procurement prices and quality in the first quarter, progress in shifting from whole vegetables to higher-value-added cut vegetables and vacuum-heated vegetables, and the cost-reduction effects of the organizational restructuring conducted in October of the previous year.」

「The ordinary profit margin on sales for the consolidated fiscal year was 2.0%. Although the margin temporarily declined due to the impact of the new plant coming on stream and other factors, we are confident that it will rise in the future as we further pursue group synergies from integrating operating companies and strengthen the earnings structure through cost reductions, including lower procurement prices, the development of domestic and overseas sourcing regions as a hedge against procurement difficulties caused by adverse weather, factory automation, and the development of group infrastructure.」

「Although profit was affected by insufficient sunlight due to prolonged rain and cloudy weather from late July, soaring vegetable procurement prices and deteriorating quality due to typhoons and low temperatures from October onward, as well as costs associated with organizational restructuring and the development of the logistics network, steady sales growth, the 西東京FSセンター’s return to profitability, and group-wide efforts to improve productivity and reduce disposal losses resulted in operating profit of ¥470 million, up 11.9% year on year, ordinary profit of ¥518 million, up 15.2%, and quarterly net profit attributable to owners of the parent of ¥336 million, up 23.4%.」

「Profit increased by ¥161 million, or 1,329.0%, year on year to ¥173 million, owing to the contribution from the 西東京ＦＳセンター, which became profitable in March, the shift from whole vegetables to higher-value-added cut vegetables, and the effects of productivity improvements and cost-reduction initiatives.」

「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.」

「The ordinary profit margin on sales for the consolidated fiscal year was 1.8%. Although the margin temporarily declined due to the impact of the new plant coming on stream and other factors, we are confident that it will rise in the future as we strengthen the earnings structure through cost reductions, including the pursuit of group synergies from integrating operating companies, lower procurement prices, the development of domestic and overseas sourcing regions as a hedge against procurement difficulties caused by adverse weather, factory automation, and the development of group infrastructure.」

「Although segment profit (ordinary profit) was affected by higher vegetable procurement prices due to adverse weather and other factors, reductions in disposal losses through rigorous inventory management, lower logistics costs from improvements to the logistics system, and stronger labor-cost management resulted in profit of ¥140 million, an increase of ¥30 million, or 27.2%, from the same quarter of the previous year.」

「In addition to reducing disposal losses through rigorous inventory management and logistics costs by improving the logistics system, the company strengthened labor-cost management. As a result, profit increased by ¥38 million, or 96.3%, year on year to ¥78 million.」

「Segment profit (ordinary profit) was ¥23 million, an increase of ¥2 million, or 12.4%, from the same quarter of the previous year, owing to the benefits of reviewing contracted sourcing regions and negotiating procurement prices, as well as active efforts to reduce disposal losses and labor costs.」

「We recognize that strengthening the earnings structure by reducing procurement prices through the expansion of contracted sourcing regions and reducing labor costs through factory automation remains an ongoing challenge for the group as a whole.」