Rising Prices for Recovered Paper and Fuel

「The paperboard and paper-processing-related business reported higher revenue and higher income, despite increases in fixed costs, logistics costs and other expenses, as product price revisions contributed.」

「The group's principal raw materials are corrugated-board waste paper, pulp and plastic materials, while its fuels include city gas, LNG and biomass. The prices and supply stability of these materials and fuels are affected by domestic and overseas demand trends and international commodity-market conditions. If demand balances fluctuate or supply chains are disrupted, there is a risk of higher costs due to increased purchase prices or an inability to secure the required volumes.」

「Although we continue internal efforts to absorb cost increases in response to changes in the cost structure across the value chain, including higher labor and logistics costs, environmental measures, and pricing responses in line with the Declaration of Partnership Building, we are undertaking price revisions for paperboard, corrugated, and paper container products delivered from October this year to ensure stable supply and maintain quality.」

「However, operating profit, ordinary profit and net income attributable to owners of the parent declined, mainly due to higher fixed costs and raw-material and fuel prices.」

「In the paperboard and paper-processing-related business, product-price revisions increased revenue, but profit declined due to higher energy and recovered-paper prices. As a result, segment sales were ¥483,851 million (107.8% of the previous year) and operating profit was ¥14,314 million (63.2%).」

「In the paperboard and paper-processing-related business, product-price revisions increased revenue, but profit declined due to higher energy and recovered-paper prices. As a result, segment sales were ¥366,972 million (107.9% of the previous year) and operating profit was ¥12,945 million (61.0%).」

「In response to soaring global raw-material and fuel prices, the company had pursued price revisions since the previous year for various products, including paperboard, corrugating medium, corrugated products, cellophane, polypropylene film and flexible packaging. However, further resource-price inflation against the backdrop of the Russia-Ukraine situation, combined with the depreciation of the yen, made it extremely difficult to absorb the additional cost increases, and therefore」

「In the paperboard and paper-processing-related business, product-price revisions increased revenue, but profit declined due to higher energy and recovered-paper prices. As a result, segment sales were ¥117,145 million (105.7% of the previous year) and operating profit was ¥4,626 million (55.7%).」

「At the profit level, operating profit was ¥29,712 million (95.3% of the previous year) and ordinary profit was ¥32,559 million (96.5%), both declining due to higher raw-material and fuel prices, although」

「In the flexible-packaging-related business, sales increased due to an increase in consolidated subsidiaries, but profit declined because of higher raw-material prices. As a result, segment sales were ¥46,081 million (119.8% of the previous year) and operating profit was ¥1,302 million (70.6%).」

「In the heavy-packaging-related business, the application of accounting standards concerning revenue recognition and higher raw-material prices resulted in lower revenue and profit. As a result, segment sales were ¥10,517 million (96.7% of the previous year) and operating profit was ¥532 million (96.4%).」

「Operating profit increased, as product-price revisions and raw-material prices falling below the previous year offset higher fixed costs.」

「At the profit level, despite higher fixed costs, profit increased from the same period of the previous year due to product-price revisions, raw-material prices falling below the previous year and other factors.」

「In the paperboard and paper-processing-related business, revenue and profit increased as a result of product price revisions and other factors, despite higher fuel prices and increased fixed costs.」

「In the paperboard and paper-processing-related business, higher raw-material and fuel prices and increased fixed costs were offset by an increase in consolidated subsidiaries and product-price revisions, resulting in higher revenue and profit. As a result, segment sales were ¥112,704 million (up 7.4% year on year) and operating profit was ¥8,216 million (up 34.1%).」

「The company had worked to maintain product prices through thorough cost reductions in response to soaring recovered-paper prices, the main raw material for corrugating medium, as well as higher fuel, auxiliary-material and logistics costs. However, the situation became difficult to address through the company's efforts alone, so it pursued price revisions for paperboard products, including corrugating medium, and corrugated products, achieving a certain degree of success.」

「In the flexible-packaging-related business, demand increased, particularly for products supplied to convenience stores, but higher raw-material prices and other factors resulted in higher revenue but lower profit. As a result, segment sales were ¥55,835 million (up 8.0% year on year) and operating profit was ¥1,784 million (down 44.8%).」

「In the flexible-packaging-related business, demand increased, particularly for products supplied to convenience stores, but higher raw-material prices and other factors resulted in higher revenue but lower profit. As a result, segment sales were ¥36,591 million (up 8.3% year on year) and operating profit was ¥1,124 million (down 46.5%).」

「On the profit side, profit declined from the same period a year earlier, despite higher sales volume and a contribution from the Tri-Wall Group, partly because raw material prices surged in the paperboard and paper converting-related business.」

「In the paperboard and paper-processing-related business, sales volume increased and the company worked to revise product prices, but higher recovered-paper prices and energy costs resulted in higher revenue but lower profit. As a result, segment sales were ¥397,118 million (up 3.9% year on year) and operating profit was ¥7,156 million (down 46.2%).」

「For the 3rd quarter cumulative consolidated period, consolidated revenue increased as sales volume of the core corrugated products exceeded the same period a year earlier and the overseas-related business expanded following the acquisition of Tri-Wall Holdings as a subsidiary. On the profit side, profit declined from the same period a year earlier despite higher sales volume and a contribution from Tri-Wall Holdings, partly because recovered paper prices surged in the paperboard and paper converting-related business.」

「We had worked to maintain product prices through thorough cost reductions in response to soaring prices for recovered paper, the main raw material for corrugated containerboard, and rising fuel, chemical, and logistics costs. However, as the situation became difficult to withstand through our efforts alone, we undertook price revisions for paperboard products, including corrugated containerboard, shipped from August 2017, and for corrugated products shipped from October 2017.」

「On the profit side, profit declined from the same period a year earlier, despite higher sales volume and a contribution from the Tri-Wall Group, partly because raw material prices surged in the paperboard and paper converting-related business.」

「The paperboard and paper converting-related business posted higher revenue and higher profit despite higher raw material prices and lower product prices, due to higher sales volume and lower energy prices, among other factors.」

「On the profit side, profit increased from the same period a year earlier due to the effects of higher sales volume and lower energy prices, among other factors.」

「The price of corrugated recovered paper, a major raw material for the Group, is affected by demand trends in Asia, including China. If the domestic supply-demand balance changes, higher purchase prices could increase costs and affect the Group's operating results and financial condition.」