Strengthening Business and Development Areas, the Production, Sales and Development Framework, and Cost Efficiency

「加えて、競争力のある低コスト生産体制の確立に向けて、「生産拠点の再編及び生産品目の集約」を推進しており、本年９月末に予定している３工場の再編(当事業年度は再編対象６工場のうち、５工場の生産を終了予定)に向けた準備を計画通り進めております。」

「As part of the restructuring of the fertilizer business under its medium- to long-term growth strategy, the company plans to end production of all fertilizers at the Okoshi, Nagoya, Moji and Yamakawa plants in fiscal 2026 and write off all manufacturing equipment at these plants. At the Tsukuba Plant, which will operate as a satellite plant of the Iwase Plant, production of some compound fertilizers will continue, while production of all other fertilizers will end and the relevant manufacturing equipment will be written off. The company also plans to end production of chemical fertilizers, liquid fertilizers and paste fertilizers at the Himeji Plant in fiscal 2026 and write off the relevant manufacturing equipment. In fiscal 2027, it plans to end production at the Akita Plant of all fertilizers other than small-volume liquid fertilizers and other products, and write off the relevant manufacturing equipment.」

「Amid continued weak demand, the fertilizer business has begun a fundamental transformation toward a business structure that can secure stable profits by establishing a low-cost production system combining efficiency and profitability through the reorganization of production sites and optimization of the product portfolio.」

「We will actively promote restructuring investment in the fertilizer business and growth investment in the chemicals business and other areas, while pursuing the restructuring of existing Group companies and synergies. Through measures such as strengthening the head office’s strategic functions and fundamentally reviewing the organizational management structure of the fertilizer business, we will renew our management foundation.」

「In the fertilizer business, sales volume increased due to the clearance of some distribution inventories and rush demand ahead of fertilizer price increases in June. However, the substantial fertilizer price cuts since June of the previous year resulted in sales of ¥14,609 million, down 3.7% year on year. On the profit side, although performance improved year on year, the business recorded a segment loss of ¥316 million due to weak underlying demand and other factors, compared with a loss of ¥397 million in the year-earlier period.」

「On the profit side, the decline in sales volume and negative effects, including trading-margin losses on inventories held before fertilizer price cuts, resulted in a segment loss of ¥841 million, compared with segment profit of ¥3,218 million in the year-earlier period.」

「Because raw-material costs account for a high proportion of cost of sales in the fertilizer business, inventories of raw materials and products held to ensure stable supply have a substantial impact on profit or loss in accounting periods when raw-material prices rise or fall significantly. In the six months ended the second quarter, sales declined 19.6% year on year to ¥15,165 million due to the reactionary decline from rush demand ahead of fertilizer price increases in the previous year and restrained purchasing ahead of two fertilizer price cuts, in June and November. On the profit side, the decline in sales volume and negative effects, including trading-margin losses on inventories held before the fertilizer price cuts, resulted in a segment loss of ¥35 million, compared with segment profit of ¥2,014 million in the year-earlier period.」

「In the three months ended the first quarter, sales declined 13.2% year on year to ¥8,539 million due to the reactionary decline from rush demand ahead of fertilizer price increases in the previous year and restrained purchasing ahead of fertilizer price cuts from June. On the profit side, inventory valuation losses and other factors associated with fertilizer price declines resulted in segment profit of ¥167 million, down 72.8% year on year.」

「In the nine months ended the third quarter, fertilizer prices rose twice, in June and November, in response to soaring raw-material prices, while rush demand ahead of the increases was higher than in the previous year. As a result, sales rose 42.8% year on year to ¥30,744 million. On the profit side, in addition to rush demand, inventory gains and other factors associated with fertilizer price increases lifted segment profit 304.7% to ¥3,218 million.」

「On the profit side, in addition to rush demand, inventory gains and other factors associated with fertilizer price increases resulted in segment profit of ¥2,014 million, up 237.4% year on year.」

「Despite soaring fuel, electricity and raw-material costs and other factors, rush demand ahead of two fertilizer price increases, in June and November, resulted in sales of ¥21,524 million, up 9.1% year on year, and segment profit of ¥795 million, up 7.9%.」

「In the fertilizer business, sales increased 4.5% year on year to ¥13,484 million due to rush demand ahead of fertilizer price increases from June. However, soaring fuel, electricity and raw-material costs and other factors resulted in segment profit of ¥597 million, down 6.7% year on year.」

「Based on the medium-term management plan for fiscal 2021–2023, with fiscal 2021 as its first year, we pursued various measures to establish the business and earnings foundations needed to grow into “Japan’s premier agricultural solutions company.”」

「To respond to price competition, we implemented thorough rationalization to improve production and sales efficiency and worked to strengthen our earnings base.」

「To respond to price competition, we implemented thorough rationalization to improve production and sales efficiency and worked to strengthen our earnings base.」

「To respond to price competition, we implemented thorough rationalization to improve production and sales efficiency and worked to strengthen our earnings base.」

「On the profit side, efforts to improve production efficiency and reduce costs resulted in operating profit of ¥1,409 million, up 16.2% year on year, and ordinary profit of ¥1,379 million, up 8.6%.」

「In the fertilizer business, orders for centrally procured products with lower margins increased, while efforts to improve the cost ratio resulted in revenue of ¥20,759 million, up 1.3% year on year, and segment profit of ¥912 million, up 1.6%.」

「On the profit side, improved cost ratios and efforts to reduce expenses resulted in segment profit of ¥510 million, up 21.5% year on year.」

「In our core fertilizer division, as domestic fertilizer demand contracts, we will work to improve production efficiency and reduce costs to strengthen price competitiveness.」

「On the profit side, improved cost ratios in the fertilizer business and efforts to reduce expenses resulted in operating profit of ¥1,225 million, up 102.8% year on year, and ordinary profit of ¥1,281 million, up 110.0%.」

「In the fertilizer business, sales volume was maintained at the previous year’s level, but the substantial impact of two major price cuts in the previous year and lower sales in the chemicals business resulted in sales of ¥26,117 million, down 3.6% year on year. On the profit side, improved cost ratios in the fertilizer business and efforts to reduce expenses resulted in operating profit of ¥763 million, compared with ¥11 million in the year-earlier period, and ordinary profit of ¥779 million, compared with ¥19 million.」

「In the chemicals business, the April organizational reform added the Organic Materials Department, which handles the cosmetics business, the Inorganic Materials Department and the Feed Department to the former Chemical Products Department, which handled the chemical products business.」

「On the profit side, improved cost ratios and efforts to reduce expenses resulted in operating profit of ¥312 million, up 26.5% year on year; ordinary profit of ¥331 million, up 40.8%; and quarterly net profit attributable to owners of the parent of ¥183 million, up 56.2%.」

「In addition, to improve operational efficiency and strengthen sales capabilities through greater coordination within the divisions, the Lifestyle Products Headquarters and Chemicals Headquarters were reorganized and integrated in April 2017, creating a new Chemicals Headquarters.」

「To address this situation, our Group is stepping up the initial implementation of various measures to substantially improve profitability from the next fiscal year onward by further advancing thorough expense reductions while strengthening our business foundation.」

「We will improve management efficiency and strengthen our business foundation and competitiveness by expanding our business and development fields, improving and strengthening our production, sales and development structures, and implementing thorough expense reductions.」