Earnings Growth in the Domestic Home & Personal Care Business

「In tissue paper, sales volume and net sales exceeded the previous fiscal year, as price revisions implemented in response to higher logistics and labor costs gained traction and sales of value-added products, including soft-pack tissues and long-roll toilet paper, for which demand is growing, remained firm.」

「In converted products, healthcare sales volumes and revenue exceeded the same period of the previous year due to expanded sales of nighttime products aimed at reducing the burden of nighttime caregiving, an increase in new hospitals and facilities adopting the products, and the increasing penetration of price revisions.」

「One year after the launch of the pet care business, the company steadily acquired users through retail outlets and the e-commerce market, centered on Japan's only (note) pant-style dog diapers, and expanded the number of stores carrying the products. As a result, both sales volumes and revenue exceeded the same period of the previous year.」

「Sales of value-added products such as soft-pack tissues and long-roll toilet paper, for which demand is growing, remained solid. The highest-quality toilet paper, The Elleair, launched to mark Elleair's 45th anniversary, was also well received.」

「Drawing on the product development expertise and production technology cultivated through Elleair, we launched 5 categories and 31 SKUs under the Elleair Pet Kimi Omoi brand, based on the theme of how far we can go in being kind to pets and people.」

「The company has also made a full-scale entry into the pet care market with the new brand Elleair Pet Kimi Omoi, launched in September 2023, and is expanding distribution.」

「Overall domestic business sales value exceeded the same period of the previous year as price revisions took hold, despite declines in sales of certain product categories such as masks and baby diapers due to the return to pre-pandemic activities and the declining birth rate.」

「Segment profit fell below the same period of the previous year in both the domestic and overseas businesses, as the deterioration in manufacturing costs caused by soaring raw material, fuel, and packaging-material prices could not be offset through internal efforts and price revisions.」

「Segment profit fell substantially below the same period of the previous year, as the deterioration in manufacturing costs caused by soaring prices of coal, heavy oil, pulp, packaging materials, and other raw materials and fuels could not be absorbed through internal efforts and price revisions alone, both in Japan and overseas.」

「As a result, sales value exceeded the same period of the previous year, partly due to growth in overseas business sales. However, the company was unable to offset the deterioration in manufacturing costs caused by higher-than-expected increases in the prices of raw materials and fuel, including coal and pulp, as well as packaging materials, in addition to a temporary decline in domestic sales following price revisions. Segment profit therefore fell substantially below the same period of the previous year.」

「In the domestic business, sanitary paper sales expanded steadily, supported by increased production capacity at the Kawanoe Mill, the launch of new products centered on paper towels, kitchen towels, and long-roll toilet paper, where demand is growing, and the renewal of the core Elleair Tissue product. Both sales volumes and value exceeded the same period of the previous year.」

「In the domestic business, sales of sanitary paper such as paper towels and soft-pack tissues remained strong amid growing demand, while increased supply capacity following the start-up of new production facilities contributed to higher sales.」

「In the sanitary paper business, sales of the new products Rakuraku Cook Kitchen Paper and Plus+ Kirei Paper Towel, launched in August in the growing sheet-product market, remained strong. Expanded sales of products aligned with market trends, including soft-pack tissues and double-length long-roll toilet paper, also resulted in sales volumes and value exceeding the same quarter of the previous year.」

「Meanwhile, sales volumes and value exceeded the same quarter of the previous year as sales of value-added products such as soft-pack tissues and long-roll toilet paper grew and a new box tissue featuring Disney character designs was launched.」

「Operating profit increased by ¥6,244 million, or 20.4% year on year, to ¥36,873 million, compared with the previous consolidated fiscal year. This was due primarily to growth in exports of highly competitive paperboard in the paper and paperboard business, as well as the expansion of mask production capacity in Japan and the development of a diversified business model through sales of a broad range of products overseas in the Home & Personal Care business.」

「For baby diapers, we launched two products simultaneously: Goon Plus, formulated with the same moisturizing ingredients as Elleair Luxury Moisturizing Tissue, and Goon Fresh and Airy, whose packaging features Disney characters as part of the renewal of an existing product. Supported by consumers, these products achieved a substantial increase in market share.」

「For wet wipes, in response to sustained high demand due to the continuing COVID-19 pandemic, we operated existing facilities at full capacity and added a production line for disinfecting wet wipes in September, working to ensure a more stable supply. As a result, both sales volumes and value exceeded the same quarter of the previous year.」

「In the Home & Personal Care business, as the leading sanitary-paper manufacturer, we maintained product prices following the price revision implemented in June last year and responded to changes in demand, including by operating at full capacity for disinfecting wet wipes in response to heightened hygiene awareness accompanying the spread of COVID-19.」

「For wet wipes, we launched Puana Wet Tissue, the first additive-free formulation under the Elleair brand, in November 2019. Sales remained strong together with existing wet products.」

「In the domestic business, sanitary paper sales remained strong, centered on value-added products such as moisturizing tissues and deodorizing toilet paper. Together with the effects of price revisions, this resulted in both sales volumes and value exceeding the same quarter of the previous year.」

「In the Home & Personal Care business, as the leading sanitary-paper manufacturer, we implemented price revisions from June and their effects emerged. We also worked to strengthen production and supply systems to meet front-loaded demand ahead of the consumption tax increase.」

「Production at the Kawanoe Mill, which began operating in October 2018, has progressed smoothly. By establishing a system for stable supply centered on value-added products such as long-roll toilet paper and moisturizing tissues and expanding sales, we achieved sales volumes and value above the same quarter of the previous year.」

「In the domestic business, sales of value-added products remained strong, including the renewed Cotton Feel Tissue and Deodorizing + Toilet Tissue, long-roll toilet paper benefiting from rising demand following the start-up of new machines at the Kawanoe and Gyoda mills, and moisturizing tissues. As a result, both sales volumes and value exceeded the same quarter of the previous year.」

「As a new initiative, we launched the Hug-Goon Project, Hugging and Nurturing, centered on our original character Hug-Goon during the current fiscal year. The project supports the development of babies' emotional strength during infancy and helps build a foundation for subsequent intellectual development. Going forward, we will further enhance the GOO.N brand's value and link it to expanded sales through information disseminated by the project and proposals for various initiatives.」

「For adult diapers, we launched Attento Thin Pants Underwear Comfort Plus, a new product using stretch material that offers the new value of looking and feeling like underwear, and acquired new users. Together with steady growth in new accounts through institutional channels, this resulted in both sales volumes and value exceeding the same quarter of the previous year.」

「For adult diapers, we carried out organizational reforms to integrate the functions of consumer and institutional sales channels in response to the development of community-based integrated care systems for an aging society. This helped expand sales of the Night-One Secure Pad series linked to new products through consumer channels and increase the number of new accounts acquired through institutional channels.」

「In the domestic Home & Personal Care business, both sales volumes and value exceeded the same quarter of the previous year in every product category.」

「In the domestic Home & Personal Care business, both sales volumes and value exceeded the same quarter of the previous year in every product category. The status of each product category is as follows.」

「In the Home & Personal Care business, we acquired the paper products business from Nisshinbo Holdings Inc., adding value-added products such as Cotton Feel and the toilet paper made for shower toilets with twice the absorbency to our product lineup, thereby strengthening the sanitary paper business.」

「In the domestic Home & Personal Care business, sanitary paper operations progressed smoothly, with the expansion of kitchen-towel production capacity at the Kani Mill in May 2016 leading to increased production and sales. Sales of value-added products such as Deodorizing + Toilet and i:na Double-Length Toilet also expanded steadily.」

「In the domestic market for the Home & Personal Care business, we have worked to strengthen in-store sales capabilities and promote field marketing originating at the point of sale. During the fiscal year, sales declined due to shrinking inbound demand for baby diapers, but continued growth in value-added sanitary paper, the effect of launching new adult diaper products, and substantial growth in wet-wipe sales resulted in total business sales remaining at approximately the same level as the same quarter of the previous year.」

「In the domestic market for the Home & Personal Care business, we have maintained strong sales by stabilizing supply through expanded production capacity for sanitary paper, shifting sales toward value-added products, and introducing a series of promotional initiatives centered on baby and adult diapers this spring.」

「In the domestic market for the Home & Personal Care business, tissue production capacity at the Kani Mill was expanded in September 2015, and the new plant of Elleair Product Corporation in Iwaki, Fukushima Prefecture, began operating in December, strengthening the supply system for eastern Japan. In addition, sales of new and renewed products launched this spring, centered on value-added products, remained strong.」

「The Home & Personal Care paper products business is a field in which we hold the leading market share. We are steadily strengthening production facilities at the Kani Mill, expanding sales of renewed products under our flagship Elleair Tissue brand, and shifting sales toward higher-value-added products, all of which are improving profitability. In the converted products business, sales of new and renewed products, particularly new wet products launched in autumn 2015, have been strong. We will also continue to strengthen production facilities, centered on the new plant of Elleair Product Corporation in Iwaki, Fukushima Prefecture.」