Expanding sales in the hygiene materials sector

「The Company will launch an OEM business for pet-care products next spring as a joint venture with Unicharm Products Co., Ltd. This will be the first step in developing a strategic processing business that leverages the Company's materials.」

「しかしながら、両不織布ともに、価格改定に伴う受注の減少に加え、安価な中国製製品や代替素材への切り替えの進展などが、業績に影響を与えました。」

「The Company will newly construct a plant for this new business and aims to begin operations in April 2027. All products manufactured at the new plant will be purchased by Unicharm Products Co., Ltd.」

「Under these circumstances, the Company worked to expand the product lineup of Kireine, its hygiene-products brand for the medical and nursing-care sectors, while continuing fundamental reforms, including revising selling prices to reflect soaring personnel and raw-material costs and further improving production efficiency. As a result, the Company strengthened its corporate structure to secure earnings. Net sales for the fiscal year amounted to ¥13,403 million, up 1.5% year on year, operating profit was ¥695 million, down 8.0%, ordinary profit was ¥792 million, down 10.2%, and profit attributable to owners of the parent was ¥672 million, down 0.4%.」

「In addition to expanding sales of existing products and revising selling prices to reflect soaring raw-material and other costs, the Company worked to further improve production efficiency and secure earnings. Based on its Long-Term Management Vision 2030, it is also actively pursuing initiatives to expand the lineup of products under Kireine (キレイネ), its hygiene-products brand for the medical and nursing-care sectors. As a result, net sales for the interim consolidated accounting period amounted to ¥6,661 million, up 1.9% year on year, operating profit was ¥339 million, up 30.5%, ordinary profit was ¥364 million, up 1.6%, and interim profit attributable to owners of the parent was ¥303 million, up 9.6%.」

「Net sales in the nonwoven-related business for the fiscal year amounted to ¥7,513 million, up 12.1% year on year, and segment profit was ¥1,018 million, up 72.7%. Net sales in the paper-related business for the fiscal year amounted to ¥5,690 million, up 5.7% year on year, and segment profit was ¥626 million, up 785.7%.」

「Pulp nonwoven products recorded higher net sales as sales volume of the main product, commercial cooking paper, increased as the food-service market continued to recover. Chemical-fiber nonwoven products also recorded higher net sales as sales of products for disposable diapers remained strong. Segment profit increased as the Company advanced selling-price revisions and cost reductions. As a result, net sales for the third quarter of the current consolidated cumulative period amounted to ¥5,688 million, up 15.4% year on year, and segment profit was ¥723 million, up 69.0%.」

「Amid this environment, the Company promoted fundamental reforms, including expanding product sales, revising selling prices and reducing manufacturing costs, and worked to improve earnings. As a result, net sales for the second quarter of the current consolidated cumulative period amounted to ¥6,537 million, up 13.9% year on year, operating profit was ¥260 million, up 483.8%, ordinary profit was ¥358 million, up 170.4%, and profit attributable to owners of the parent was ¥276 million, up 95.9%.」

「Pulp nonwoven products saw sales of its main products, commercial cooking paper and products for oshibori towels, trend toward recovery, resulting in higher net sales. Chemical-fiber nonwoven products recorded lower net sales because sales of products for baby disposable diapers to certain customers remained weak, among other factors. Meanwhile, as energy prices continued to soar, the Company advanced selling-price revisions in line with the increase and cost-reduction initiatives, resulting in higher profit. As a result, net sales for the first quarter of the current consolidated cumulative period amounted to ¥1,854 million, up 22.1% year on year, and segment profit was ¥195 million, up 23.3%. The hygiene paper segment recorded higher net sales and profit because selling-price revisions advanced since the previous fiscal year began to take hold, imported pulp prices trended downward, and the Company worked to improve productivity and reduce costs, among other factors. As a result, net sales for the first quarter of the current consolidated cumulative period amounted to ¥1,477 million, up 22.6% year on year, and segment profit was ¥93 million, up 4.9%.」

「Pulp nonwoven products saw sales of its main products, commercial cooking paper and products for oshibori towels, trend toward recovery as signs of a gradual recovery emerged in the food-service market, among other factors. Net sales also increased because the Company advanced selling-price revisions. Chemical-fiber nonwoven products recorded lower net sales and profit because sales of products for baby disposable diapers declined, among other factors. As a result, net sales for the third quarter of the current consolidated cumulative period amounted to ¥4,929 million, up 10.1% year on year, and segment profit was ¥427 million, down 39.3%.」

「Pulp nonwoven products saw sales of its main products, commercial cooking paper and products for oshibori towels, trend toward recovery as signs of a gradual recovery emerged in the food-service market, among other factors. Net sales also increased because the Company advanced selling-price revisions. Chemical-fiber nonwoven products recorded higher net sales because sales of products for baby disposable diapers to certain customers increased, among other factors. As a result, net sales for the second quarter of the current consolidated cumulative period amounted to ¥3,200 million, up 16.8% year on year, and segment profit was ¥318 million, down 24.0%.」

「Amid this environment, the Group continued to strengthen its corporate structure and improve profitability by having all employees focus on preventing COVID-19 infections while actively pursuing sales activities, revising selling prices to reflect soaring raw-material and other costs, and promoting fundamental management-platform reforms at all locations, including quality improvements, higher productivity and cost reductions. As a result, net sales for the first quarter of the current consolidated cumulative period amounted to ¥2,724 million, up 3.5% year on year, operating profit was ¥42 million, down 38.6%, ordinary profit was ¥104 million, up 43.6%, and profit attributable to owners of the parent was ¥96 million, up 87.5%. Pulp nonwoven products saw sales of its main products, commercial cooking paper and products for oshibori towels, trend toward recovery as signs of a temporary recovery emerged in the food-service market, among other factors, resulting in higher net sales. Chemical-fiber nonwoven products also recorded higher net sales, as sales of products for baby disposable diapers to certain customers remained firm, among other factors. However, profit declined because of the sharp rise in raw-material and crude-oil prices. As a result, net sales for the first quarter of the current consolidated cumulative period amounted to ¥1,519 million, up 10.3% year on year, and segment profit was ¥158 million, down 32.8%. The hygiene paper segment actively pursued sales expansion, focusing on products for disposable diapers, pet sheets and toilet cleaners in the hygiene materials market. However, net sales declined because sales of products for baby disposable diapers to certain customers remained weak, among other factors.」

「The Group actively pursued sales activities to secure sales volume while revising selling prices. As a result, net sales for the fiscal year amounted to ¥10,897 million, up 2.4% year on year. On the earnings front, pulp, the principal raw material, rose sharply in a short period and remained at unprecedentedly high levels. Fuel costs and prices of chemical materials also rose sharply, resulting in a challenging earnings environment.」

「The hygiene paper segment actively pursued sales expansion, focusing on products for disposable diapers, pet sheets and toilet cleaners in the hygiene materials market. However, sales declined because orders for products for the food-service market fell substantially amid COVID-19, the domestic market for children's disposable diapers stagnated, and sales volume of products for export-oriented disposable diapers remained weak.」

「Against this backdrop, while all employees focused on preventing COVID-19 infections, the Group continued its sales activities and pursued fundamental reforms at all locations, including revising selling prices to reflect soaring raw material and other costs, improving quality, increasing productivity and reducing costs, to strengthen its corporate structure and improve profitability. However, the effects of sluggish sales volumes due to the spread of COVID-19 and soaring raw material and fuel prices substantially exceeded initial assumptions, and the effect on performance was limited. As a result, sales for the first six months of the current fiscal year were ¥5,180 million, down 1.3% year on year, operating loss was ¥58 million, compared with operating profit of ¥287 million in the same period of the previous year, ordinary loss was ¥43 million, compared with ordinary profit of ¥269 million in the same period of the previous year, and profit attributable to owners of the parent was ¥37 million, down 79.5% year on year.」

「The Company also actively pursued sales expansion to existing and new customers for chemical-fiber nonwoven fabrics. As a result, sales for the first quarter of the current fiscal year were ¥1,377 million, up 5.1% year on year, and segment profit was ¥236 million, up 18.4%. For sanitary paper, the Company actively pursued sales expansion, primarily for products used in disposable diapers, pet sheets and toilet cleaners in the hygiene materials market. However, sales declined due in part to sluggish orders for products for disposable diapers for export. Profit also declined substantially because pulp prices, the principal raw material, rose sharply over a short period. As a result, sales for the first quarter of the current fiscal year were ¥1,254 million, down 4.8% year on year, and segment profit was ¥69 million, down 61.6%.」

「During the fiscal year, the foodservice industry sector, one of the Group's existing fields, faced extremely challenging conditions due to various requests from the government accompanying the spread of COVID-19. In the hygiene materials sector, the Group worked to ensure stable operation and promote sales of the sanitary paper manufacturing equipment in the paper-related business that began operating at the end of the year before last. However, sales volumes remained sluggish due to restrained consumer spending amid the economic downturn and other factors, resulting in sales of ¥10,647 million, down 17.3% year on year.」

「Against this backdrop, while all employees focused on preventing infections, the Group continued its sales activities and pursued fundamental reforms at all locations, including quality improvement, higher productivity and cost reductions, to strengthen its corporate structure and improve profitability. However, the impact on performance was limited. As a result, sales for the first nine months of the current fiscal year were ¥8,155 million, down 17.3% year on year, operating profit was ¥618 million, down 21.7%, ordinary profit was ¥589 million, down 31.6%, and profit attributable to owners of the parent was ¥401 million, down 32.1%.」

「Against this backdrop, while all employees focused on preventing infections, the Group continued its sales activities and pursued fundamental reforms at all locations, including quality improvement, higher productivity and cost reductions, to strengthen its corporate structure and improve profitability. However, the contribution to performance was limited. As a result, sales for the first six months of the current fiscal year were ¥5,249 million, down 20.8% year on year, operating profit was ¥287 million, down 39.4%, ordinary profit was ¥269 million, down 47.8%, and profit attributable to owners of the parent was ¥183 million, down 48.3%.」

「The Company actively pursued sales expansion to new customers for chemical-fiber nonwoven fabrics, but performance in the segment remained generally stagnant. As a result, sales for the first quarter of the current fiscal year were ¥1,310 million, down 31.3% year on year, and segment profit was ¥199 million, down 33.4%.」

「During the fiscal year, the Group continued to expand sales in its existing hygiene materials and foodservice industry sectors, while working to ensure stable operation and promote sales of the sanitary paper manufacturing equipment in the paper-related business that began operating in December of the previous year. Sales were ¥12,869 million, up 0.4% year on year.」

「Against this backdrop, the Group worked to expand sales of existing products and reduce costs. As a result, sales for the first nine months of the current fiscal year were ¥9,862 million, down 1.1% year on year, operating profit was ¥789 million, up 24.2%, ordinary profit was ¥861 million, up 33.3%, and profit attributable to owners of the parent was ¥591 million, up 33.1%.」

「Against this backdrop, the Group worked to expand sales of existing products and reduce costs. As a result, sales for the first six months of the current fiscal year were ¥6,628 million, up 1.2% year on year, operating profit was ¥474 million, up 11.5%, ordinary profit was ¥516 million, up 20.9%, and profit attributable to owners of the parent was ¥355 million, up 22.2%.」

「Against this backdrop, the Group worked to expand sales of existing products and reduce costs. As a result, sales for the first quarter of the current fiscal year were ¥3,246 million, down 1.1% year on year, operating profit was ¥210 million, down 14.6%, ordinary profit was ¥218 million, down 12.4%, and profit attributable to owners of the parent was ¥152 million, down 12.1%.」

「Sales were ¥12,823 million, down 0.3% year on year. This was mainly because, despite efforts to expand sales of existing products and other products and revise selling prices, sales of products for disposable diapers to some customers declined, among other factors.」

「Sales and profit from pulp-based nonwoven fabric base materials both declined due to lower sales of products for drip-absorbent sheets. Sales and profit from processed pulp-based nonwoven products also declined due to lower sales of cooking paper, reflecting inventory adjustments at some customers. Although sales of chemical-fiber nonwoven fabrics for cosmetics began, sales and profit both declined because sales of products for disposable diapers to some customers decreased. As a result, sales for the fiscal year were ¥5,714 million, down 2.1% year on year, and segment profit was ¥982 million, down 8.9%.」

「Against this backdrop, the Group worked to expand sales, primarily in the hygiene materials sector, resulting in sales of ¥6,552 million, up 1.0% year on year. Profit was affected by higher pulp and crude oil prices. Operating profit was ¥425 million, down 36.8%, ordinary profit was ¥427 million, down 36.9%, and profit attributable to owners of the parent was ¥290 million, down 42.9%.」

「Against this backdrop, the Group worked to expand sales, primarily in the hygiene materials sector, resulting in sales of ¥3,281 million, up 1.0% year on year.」

「Against this backdrop, the Group worked to expand sales, primarily in the hygiene materials sector, where the market continues to grow. As a result, the Group's financial position and operating results for the fiscal year were as follows.」

「Against this backdrop, the Group worked to expand sales, primarily in the hygiene materials sector, where the market continues to grow, while continuing to improve production efficiency. As a result, sales for the first nine months of the current fiscal year were ¥9,830 million, up 2.6% year on year, operating profit was ¥973 million, down 16.6%, ordinary profit was ¥982 million, down 15.2%, and profit attributable to owners of the parent was ¥717 million, down 10.7%.」

「Against this backdrop, the Group worked to expand sales, primarily in the hygiene materials sector, where the market continues to grow, while continuing to improve production efficiency. As a result, sales for the first six months of the current fiscal year were ¥6,486 million, up 2.5% year on year, operating profit was ¥672 million, down 5.8%, ordinary profit was ¥677 million, down 4.0%, and profit attributable to owners of the parent was ¥509 million, up 3.3%.」

「Against this backdrop, the Group worked to improve performance by continuing to aggressively expand sales, primarily in the hygiene materials sector, where the market continues to grow, while also working to improve production efficiency. As a result, sales for the first quarter of the current fiscal year were ¥3,249 million, up 3.1% year on year, operating profit was ¥341 million, up 3.1%, ordinary profit was ¥343 million, up 4.1%, and profit attributable to owners of the parent was ¥281 million, up 24.2%.」

「Against this backdrop, the Group worked to improve performance by continuing to aggressively expand sales, primarily in the hygiene materials sector, where the market is expected to grow, while also working to improve production efficiency. In addition, prices for pulp and fuel, the Company's principal raw materials, remained subdued partly because of the stronger yen. As a result, sales for the fiscal year were ¥12,555 million, up 5.6% year on year, operating profit was ¥1,440 million, up 124.8%, ordinary profit was ¥1,457 million, up 135.1%, and profit attributable to owners of the parent was ¥1,044 million, up 128.9%.」

「Against this backdrop, the Group worked to improve performance by continuing to aggressively expand sales, primarily in the hygiene materials sector, where the market is expected to grow, while also working to improve production efficiency. In addition, prices for pulp and fuel, the Company's principal raw materials, remained subdued partly because of the stronger yen. As a result, sales for the first nine months of the current fiscal year were ¥9,578 million, up 6.7% year on year, operating profit was ¥1,168 million, up 147.2%, ordinary profit was ¥1,158 million, up 145.9%, and profit attributable to owners of the parent was ¥802 million, up 139.7%.」

「Against this backdrop, the Group worked to improve performance by continuing to aggressively expand sales, primarily in the hygiene materials sector, where the market is expected to grow, while also working to improve production efficiency. In addition, prices for imported pulp and fuel, the Company's principal raw materials, remained subdued partly because of the stronger yen. As a result, sales for the first six months of the current fiscal year were ¥6,329 million, up 8.3% year on year, operating profit was ¥714 million, up 169.7%, ordinary profit was ¥705 million, up 164.7%, and profit attributable to owners of the parent was ¥493 million, up 149.9%.」

「Against this backdrop, the Group worked to improve performance by continuing to aggressively expand sales, primarily in the hygiene materials sector, where the market is expected to grow, while also working to improve production efficiency. Sales and profit from pulp-based nonwoven fabric base materials both increased as sales of products for drip-absorbent sheets and hygiene materials remained solid. As a result, sales for the first quarter of the current fiscal year were ¥1,968 million, up 19.6% year on year, and segment profit was ¥308 million, up 41.4%.」

「We aim to expand sales in the disposable diaper market, where demand is expected to grow, by actively pursuing sales activities targeting new customers, including overseas customers, in addition to our existing customers.」