Diversification of Sales Channels and On-Demand, Small-Lot Order Fulfillment

「As a measure to secure a competitive advantage, we introduced the Glory1606, Japan's first six-color inkjet printer introduced for commercial use, which can print directly onto corrugated sheets, in the decorative corrugated board business. We will use it to address new packaging needs, including high-mix, low-volume production and variable printing.」

「Although the mainstay produce-related products were somewhat sluggish due to weather conditions and growth in digital printing machine products also slowed, the effect of product price revisions contributed to net sales of ¥1,036 million, up 0.1% year on year.」

「Although the core fresh produce-related products were somewhat weak due to weather conditions and growth in digital printing machine products also slowed, revenue was ¥741 million, up 0.1% year on year, partly due to the effect of the product price revisions. Segment profit was ¥12 million, compared with a segment loss of ¥12 million in the same period of the previous year.」

「Although decorative cases for fresh-produce gifts struggled somewhat, at 95.2% of the previous fiscal year's level, the decline was offset by customer diversification, particularly expanded sales of products made using the six-color Glory1606 inkjet printer, which can print directly onto corrugated sheets, as well as new orders. Revenue increased 5.0% from the previous fiscal year.」

「In this business, digital printing products offset sluggish growth in the core products related to fresh produce. Revenue increased to ¥741 million, up 3.3% year on year, but the segment recorded a loss of ¥12 million, compared with segment profit of ¥13 million in the same period of the previous year, due to factors including higher labor and transportation costs.」

「The decline in these sales was offset by diversifying customers, particularly through expanded sales of products made using the Glory1606, Japan's first six-color inkjet printer introduced for commercial use, which can print directly onto corrugated sheets. Revenue declined 1.6% from the previous fiscal year.」

「Accordingly, we are actively promoting sales of products made using the Glory1606, Japan's first six-color inkjet printer introduced for commercial use, which can print directly onto corrugated sheets.」

「In this business, the core products for fresh produce and communications equipment-related products performed relatively steadily, while sales of inkjet digital printer products also expanded. Revenue increased to ¥1,013 million, up 6.6% year on year, but soaring raw material, fuel and supplies prices resulted in a segment loss of ¥26 million, compared with a segment loss of ¥12 million in the same period of the previous year, representing a decline in profit.」

「In this business, the core products for fresh produce and communications equipment-related products performed relatively steadily, while sales of inkjet digital printer products also expanded. Revenue increased to ¥735 million, up 5.6% year on year, but soaring raw material, fuel and supplies prices resulted in a segment loss of ¥0 million, compared with segment profit of ¥0 million in the same period of the previous year, representing a decline in profit.」

「In this business, the core products for fresh produce and communications equipment-related products performed relatively steadily, while sales of inkjet digital printer products also expanded. Revenue was ¥424 million, up 9.5% year on year, and segment profit was ¥10 million, up 2.1%.」

「In this business, sales increased 9.0% year on year to ¥1,277 million, supported by firm telecommunications equipment-related products and the effect of expanding sales of the inkjet printer products introduced in the previous fiscal year. However, higher depreciation expense from capital investment resulted in a segment loss of ¥12 million, compared with a segment loss of ¥24 million in the previous fiscal year.」

「In this business, sales increased 6.8% year on year to ¥951 million, supported by telecommunications equipment-related products and the effect of expanding sales of the inkjet digital printer products introduced in the previous fiscal year. However, higher depreciation expense from capital investment resulted in a segment loss of ¥12 million, compared with a segment loss of ¥16 million in the same quarter of the previous year.」

「In this business, sales increased 3.4% year on year to ¥696 million as telecommunications equipment-related products and the effect of expanding sales of the inkjet digital printer products introduced in the previous fiscal year offset the decline in core produce-related products. However, segment profit was ¥0 million, down 95.8% year on year, due to higher depreciation expense from capital investment.」

「In the coated corrugated-board business, sales were ¥387 million, up 4.9% year on year, and segment profit was ¥9 million, up 9.6%, supported by relatively steady performance in the core produce and telecommunications equipment-related products and the effect of expanding sales of the inkjet digital printer products introduced in the previous fiscal year.」

「In January 2021, we introduced the Glory1606, a 6-color inkjet printer and the first of its kind installed in Japan, capable of printing directly on corrugated-board sheets, and began expanding sales.」

「Of the significant new facilities planned at the end of the previous fiscal year, those completed during the cumulative third quarter period are as follows: Head office (Minami-ku, Okayama City) Coated corrugated-board business New plant for on-demand digital printer 647 Internal funds 2021.1」

「In this business, sales were ¥673 million, up 2.7% year on year, and segment profit was ¥10 million, compared with a segment loss of ¥6 million in the same quarter of the previous year, supported by firm performance in produce and telecommunications equipment-related products and increased demand for e-commerce packaging cases.」

「These 2 segments have long been pillars of sales in the Company's coated corrugated-board division. However, there are concerns about their outlook, including declining produce production due to the aging of producers and a shortage of successors, and the relocation of telecommunications equipment production overseas. We therefore believe it is necessary to diversify end markets, particularly by meeting on-demand and small-lot requirements. In addition, an on-demand digital printer and a new plant for the printer are scheduled for completion in November 2020 as capital investment for the coated corrugated-board business (planned investment of approximately ¥700 million).」