Improving the Profitability of the Domestic Dyeing and Finishing Business

「In the textile dyeing and processing business, net sales were ¥8,906 million, down 9.5% year on year, or ¥936 million, and the business posted an operating loss of ¥114 million, compared with operating income of ¥136 million in the previous fiscal year.」

「The dyeing and processing business reported revenue of ¥4,243 million, down 6.1% year on year, or ¥276 million, and an operating loss of ¥83 million, compared with an operating loss of ¥132 million in the same period of the previous year.」

「In Japan, revenue increased on higher sales volume. Profitability has improved through revisions to processing fees and transaction terms, but manufacturing costs have also continued to rise, and sufficient profits have not yet been secured.」

「In Japan, revenue increased on higher sales volume, but sufficient price pass-through has not been achieved in response to continuing increases in manufacturing costs.」

「The dyeing and processing business reported revenue of ¥8,997 million, down 1.7% year on year, or ¥159 million, and an operating loss of ¥274 million, compared with an operating loss of ¥265 million in the previous fiscal year.」

「In Japan, revenue increased on higher sales volume and price revisions, but manufacturing costs, including raw materials and energy, have continued to rise. The company has still been unable to achieve sufficient price pass-through and is struggling to improve profitability.」

「In Japan, revenue increased because of higher sales volume and revised unit prices, while manufacturing costs, particularly raw-material and energy costs, continued to rise. The cost-reduction efforts made independently have improved the cost-of-sales ratio, but sufficient price pass-through has still not been achieved.」

「In Japan, processing volume declined because orders for textile printing remained sluggish, but revenue increased as orders for solid-color dyeing rose and processing unit prices were revised. With all costs, including raw materials and energy, remaining high, sufficient price pass-through has not been achieved. Although the company focused on cost-reduction activities, including reducing consumption per unit of output, the cost-of-sales ratio deteriorated.」

「The company raised processing fees 3 times as part of its price pass-through efforts, but the increases have not been sufficient to offset surging raw-material and energy prices.」

「To address the abnormal and rapid increase in production costs, the company raised processing fees several times, but production costs continue to rise, and sufficient and appropriate pass-through to prices has not been achieved, resulting in lower revenue and profit.」

「In Japan, the order environment deteriorated because of higher greige-fabric prices resulting from surging raw-cotton prices and higher import costs resulting from the weaker yen. Although the company passed higher raw-material and energy costs through to processing fees, this was insufficient to absorb the increase in production costs, resulting in lower revenue and profit.」

「In Japan, revenue increased following higher processing fees, but the increase was insufficient to absorb higher production costs resulting from surging raw-material and energy prices, resulting in lower profit.」

「In Japan, the company won orders for material applications, uniforms and special processing, including antibacterial and antiviral processing, resulting in 13.8% year-on-year revenue growth.」

「In Japan, the company won orders for material applications, uniforms and special processing, including antibacterial and antiviral processing, resulting in 16.0% year-on-year revenue growth.」

「In Japan, the company won orders for material applications, uniforms and special processing, including antibacterial and antiviral processing, resulting in substantial revenue growth. As a result, revenue in the processing-fee segment was ¥3,089 million, up 13.5% year on year, an increase of ¥366 million.」

「In Japan, revenue increased as orders for material applications showed signs of recovery and the company won orders for special processing, including antibacterial processing. As a result, revenue in the processing-fee segment was ¥1,601 million, up 7.9% year on year, an increase of ¥116 million.」

「In the processing-fee segment, there was demand in Japan for gauze processing for masks and antibacterial and antiviral processing and materials, but the substantial decline in standard products for apparel and uniforms caused by store closures and voluntary suspension of business to prevent the spread of COVID-19 resulted in a substantial decline in revenue.」

「In Japan, there was demand for gauze processing for masks and other measures to address mask shortages, but the substantial decline in standard products for apparel and uniforms caused by store closures and voluntary suspension of business to prevent the spread of COVID-19 showed no signs of improving even after restrictions were lifted, resulting in a substantial decline in revenue.」

「In Japan, there was some processing of gauze fabric for masks and demand resulting from government measures to address mask shortages, but standard products stagnated because stores were closed and businesses suspended operations to prevent the spread of COVID-19, resulting in a substantial decline in revenue. The company is pursuing proposals for materials and processing to respond to the coming "with-COVID" era and improve profitability.」

「The company implemented measures including revisions to processing fees, improvements in transaction terms, new product development and cost reductions, but orders for knitted-fabric processing continued to decline, leading to impairment losses on fixed assets at the Gifu plant and the solicitation of voluntary retirements.」

「In Japan, orders in the non-apparel field for corporate uniforms and material applications remained firm in woven-fabric processing, but orders for standard processed products failed to grow because of sluggish market conditions, resulting in lower revenue. In knitted-fabric processing, improvements at production sites are being pursued further, but production volume was reduced from the previous fiscal year, resulting in lower revenue.」

「In Japan, orders in the non-apparel field for uniforms and industrial materials remained firm in woven-fabric processing, but orders for standard products failed to grow because of sluggish market conditions, resulting in lower revenue. In knitted-fabric processing, production volume was reduced from the previous fiscal year as a result of measures focused on profitability, resulting in lower revenue, while further improvements at the production sites are being pursued to improve profitability.」

「In Japan, orders in the non-apparel field, including uniforms, remained firm in woven-fabric processing, but orders for standard products declined because customers were adjusting inventories, resulting in lower revenue. In knitted-fabric processing, production volume was reduced as a result of structural reforms focused on profitability initiated in the previous fiscal year, resulting in lower revenue, but profitability improved.」

「In Japan, increasing the weighting of non-apparel applications in woven-fabric processing proved effective, enabling the company to secure stable orders throughout the year and post higher revenue.」

「In Japan, woven-fabric processing secured stable orders and higher revenue by incorporating more non-apparel applications. However, knitted-fabric processing posted lower revenue while transitioning to a sales policy focused on profitability against a backdrop of weak women's apparel sales.」

「In Japan, both sales volume and value in woven-fabric processing increased substantially. However, knitted-fabric processing posted lower revenue as the company was in the process of shifting to sales measures focused on profitability.」

「In Japan, the company selectively accepted orders for knitted-fabric processing at higher unit prices, resulting in a substantial decline in volume. In woven-fabric processing, it sought a substantial increase in volume to offset the decline in knitted-fabric processing, but revenue for the processing-fee segment as a whole declined.」

「In Japan, the company actively pursued higher orders, particularly for uniforms, but the significant impact of sluggish sales of casual women's apparel resulted in lower revenue in the processing-fee segment, particularly in knitted fabrics.」

「In Japan, revenue increased as the company strengthened initiatives with existing customers, developed new customers and worked to strengthen sales for uniforms and material applications.」

「In Japan, woven-fabric processing sales grew steadily, partly as a result of actively pursuing orders in the non-apparel field, particularly for uniforms, while processing sales for knitted fabrics declined because of sluggish sales of casual women's apparel.」

「Accordingly, the domestic dyeing and finishing business will build a structure capable of securing a stable volume of orders by actively taking on orders for uniforms and standard products, in addition to general apparel applications, while pursuing thorough cost reductions and greater production efficiency at each plant, thereby building a foundation for securing profits on a sustained basis.」

「In Japan, sales of solid-color dyeing grew steadily as the company worked to expand orders in the non-apparel field, but lower revenue from printing because of sluggish sales of casual apparel and lower unit prices associated with the shift toward non-apparel applications resulted in lower revenue for the domestic processing-fee segment as a whole.」

「In Japan, as demand for apparel applications cannot be expected because of structural changes in the market, the company has actively pursued increased orders in the non-apparel field, and sales of solid-color dyeing grew steadily. However, knit printing sales declined because of increased distribution inventories resulting from sluggish sales of casual women's apparel, and lower unit prices associated with the shift toward non-apparel applications also contributed to lower revenue for the domestic processing-fee segment as a whole.」

「In Japan, sales grew strongly as orders for non-apparel applications increased in solid-color dyeing, but the printing business posted lower revenue because of deteriorating market conditions and the large volume of processing for uniforms in the previous fiscal year, resulting in lower revenue for the domestic processing-fee segment as a whole.」

「Accordingly, the domestic dyeing and finishing business will work to improve profitability by building a structure capable of securing a stable volume of orders, including by actively taking on orders for uniforms in non-apparel fields and for standard products, in addition to apparel applications, while each plant will pursue thorough cost reductions and greater production efficiency.」