Risk of price fluctuations in resin, base paper and other materials

「In addition to conventional fluctuations in raw fuel prices, the risk of difficulty in procuring naphtha-derived raw materials has materialised due to the recent situation in the Middle East. Although fluctuations in crude oil and naphtha prices and shortages of naphtha-derived raw materials are difficult for a single company to control, the Group is taking steps to mitigate raw fuel price fluctuation and procurement risks, including concentrating or diversifying suppliers and extending contract terms, and is working to ensure a stable supply of raw fuel and materials.」

「原油価格および石油関連製品の需給動向等により業績見通しに重要な影響を及ぼすと判断した場合には、速やかに開示いたします。」

「Revenue in the film segment was ¥2,203 million, down 6.3% year on year, due to lower sales volumes of polystyrene film for food containers and cast film for automotive applications, as well as lower unit selling prices accompanying declines in raw material market prices.」

「The Pulp Mold Division experienced lower sales of produce trays due to this summer’s extreme heat, but sales volumes increased following the launch of new trays for office equipment. Selling-price revisions also contributed to higher revenue, and division sales totaled ¥3,245 million, up 7.0% year on year.」

「We recognise that there is always a possibility that this risk will materialise. Although fluctuations in crude oil and naphtha prices are difficult for a single company to control, the Group is taking steps to mitigate raw material price fluctuation risk, including concentrating suppliers and extending contract terms, and is working to ensure a stable supply of raw materials.」

「As a result, revenue for the nine months ended 31 December increased 0.5% year on year to ¥16,573 million, despite lower volumes across major products, due to the effect of selling-price adjustments to address soaring raw fuel prices and expanded sales of pulp-moulded food containers, pulp-moulded trays for office equipment and other products.」

「As a result, sales for the cumulative second quarter of the current consolidated fiscal year rose 0.7% year on year to ¥10,811 million, despite lower volumes for each major product, due to the effect of selling-price revisions to address higher raw material and fuel prices, as well as expanded sales of cast film for hygiene materials and automotive applications and food containers made from pulp mold.」

「As a result, revenue for the first three months of the fiscal year increased 5.0% year on year to ¥5,534 million, due to selling-price adjustments for all products to address soaring raw fuel prices, as well as expanded sales of pulp-moulded food containers, cast film and other products.」

「Operating profit was ¥1,125 million, down 12.7% year on year, ordinary profit was ¥1,398 million, down 8.5%, and profit attributable to owners of the parent for the fiscal year was ¥902 million, down 14.6%. The main factor behind the decline in profit was lower margins and other effects resulting from soaring raw fuel prices that exceeded the selling-price adjustments.」

「The main factors behind the increase in profit were progress in price revisions at consolidated subsidiary CORE PAX(M)SDN.BHD., despite a decline in profit margins due to soaring raw material and fuel prices, and an increase in foreign exchange gains, mainly at the Company, as the yen weakened.」

「The main factors behind the increase in profit were progress in selling-price adjustments at consolidated subsidiary CORE PAX (M) SDN.BHD. and, primarily at the Company, an increase in foreign-exchange gains due to the yen's depreciation.」

「Operating profit was ¥367 million, down 7.9% year on year, ordinary profit was ¥442 million, down 4.4%, and profit attributable to owners of the parent for the quarter was ¥311 million, up 0.6%. The main factors behind the declines in operating and ordinary profit were the impact of soaring raw fuel prices for the Group's products in Japan.」

「Looking ahead, the global economy is expected to recover gradually from the impact of COVID-19, but the challenging environment is expected to persist due to rising geopolitical risks stemming from the situation in Ukraine, soaring raw fuel prices and other factors.」

「Looking ahead, the outlook remains uncertain due to the rapid spread of the sixth wave driven by the Omicron variant, the ongoing depreciation of the yen and rising global crude oil prices, among other factors.」

「Although a continued recovery in personal consumption is expected following the lifting of the state of emergency, the outlook remains uncertain due to concerns about a sixth wave, the ongoing depreciation of the yen and rising global crude oil prices, among other factors.」

「We recognise that there is always a possibility that this risk will materialise. Although fluctuations in crude oil and naphtha prices are difficult for a single company to control, the Group is taking steps to mitigate raw material price fluctuation risk, including concentrating suppliers and extending contract terms, and is working to ensure a stable supply of raw materials.」

「Although fluctuations in crude oil and naphtha prices are difficult for a single company to control, the Group is taking steps to mitigate raw material price fluctuation risk, including concentrating suppliers and extending contract terms, and is working to ensure a stable supply of raw materials.」

「For the next fiscal year as well, we expect high crude oil and raw material prices to persist, and believe that the business environment surrounding the Group will become increasingly challenging.」

「In response to a sharp increase in raw material and fuel costs for the Group's products due to significant rises in international crude oil and recovered paper market prices, the Group promoted selling-price adjustments, but passed through only part of the increase. Operating profit was ¥617 million, down 30.3% year on year, ordinary profit was ¥740 million, down 28.4%, and profit attributable to owners of the parent for the quarter was ¥484 million, down 34.0%.」

「In response to a sharp increase in raw material and fuel costs for all products due to a significant rise in international crude oil and recovered paper market prices, the Group promoted selling-price adjustments, but passed through only part of the increase. It also promoted productivity improvements and fixed-cost reductions, but was unable to absorb the higher costs. Operating profit was ¥403 million, down 41.2% year on year, ordinary profit was ¥494 million, down 36.8%, and profit attributable to owners of the parent for the quarter was ¥315 million, down 44.8%.」

「As a result, revenue in this business was ¥2,535 million, up 1.8% year on year. Segment profit was ¥279 million, down 17.6% year on year, due largely to the impact of higher raw material prices in the heavy-duty bag segment.」

「Although higher revenue led to higher profit, profit declined due to increases in variable costs such as raw fuel and electricity costs, as well as higher fixed expenses and other factors.」

「Although higher revenue led to higher profit, increases in variable costs such as raw fuel and electricity costs resulted in operating profit of ¥886 million, down 15.6% year on year, ordinary profit of ¥1,034 million, down 13.5%, and profit attributable to owners of the parent for the quarter of ¥733 million, down 12.3%.」

「In the paper bag business, domestic revenue increased, as weak demand in the synthetic resin and flour-milling sectors was offset by strong demand in the chemicals and animal feed sectors. Overseas, revenue declined despite maintaining strong volume, partly due to the global tightness in delivery schedules for base paper.」

「For the next fiscal year, international crude oil market conditions are expected to recover, and we forecast that the business environment surrounding the Group will become increasingly challenging.」

「Shipments of PS films, including food-container film and functional film, remained strong in the resin segment, but revenue declined due to sluggish selling prices resulting from lower raw material prices.」

「Fluctuations in the prices of resin, base paper and other materials purchased by the Group due to trends in oil prices and other factors may affect the Group's operating performance and financial condition.」