Business Structure Reform in Food, Solar Cells and Other Businesses

「At Foods & Agris, price revisions and the shift toward high value-added products progressed in the second quarter of the consolidated fiscal period, improving spreads. In the second half, the company expects to secure high levels of profitability by continuing to shift toward high value-added products and expand sales of new products in the B2C business.」

「At Foods & Agris, the shift toward high value-added products and improvement in spreads have progressed, sustaining strong earnings momentum. In the B2C business, sales of distinctive high value-added products are expanding through initiatives including lineup expansion for new functional foods such as “Watashi no Chikara Q10 Yogurt,” increased sales of “Q10 Fruit Gummies,” and the market launch of organic dairy products.」

「At the Nutrition Solutions Unit, both Foods & Agris and Supplemental Nutrition remained strong. Revenue increased substantially to ¥141,082 million, up ¥9,094 million, or 6.9%, year on year, while operating profit increased substantially to ¥8,395 million, up ¥4,002 million, or 91.1%. At Foods & Agris, the shift in sales toward high value-added products and improvement in spreads made a significant contribution. Expansion of new high value-added businesses, including organic dairy products and yogurt, is also progressing. The company will accelerate the digital transformation of operations at Kaneka Foods and strengthen earnings power.」

「At Foods & Agris, the shift in sales toward high value-added products and improvement in spreads made a significant contribution. The company is expanding new high value-added businesses, including organic dairy products, and strengthening its business foundation. At Kaneka Foods, it is pursuing operational innovation, including the establishment of a customer center covering all domestic locations, and focusing on improving earnings power.」

「Sales of the drink type of “Watashi no Chikara Q10 Yogurt,” launched in August, have remained strong, and production capacity has been doubled. In addition to launching a new Kaneka Foods e-commerce site, the company is strengthening its B2C sales system for dairy products, bread, chocolate and other products. With the newly established Healthy Foods Strategic Unit serving as a driver, the company will strengthen initiatives to provide new value centered on taste and health.」

「At Foods & Agris, amid widespread price increases across food products and sluggish demand, the company focused on expanding sales of high value-added products and revising prices. Business performance expanded. The drink type of “Watashi no Chikara Q10 Yogurt,” launched in August, has been particularly strong. Production capacity had become a constraint, and the first step in establishing an increased-production system has been completed. Kaneka Foods launched a new e-commerce site and is strengthening B2C sales of dairy products, bread, chocolate and other products.」

「The Foods with Function Claims “Watashi no Chikara Q10 Yogurt” and “Watashi no Chikara Q10 Yogurt Drink Type,” newly launched in August, have received strong evaluations from the market and media, and sales are expanding. The company will continue to expand products centered on taste and health.」

「In August, the company launched 2 new Foods with Function Claims, “Watashi no Chikara Q10 Yogurt” and “Watashi no Chikara Q10 Yogurt Drink Type.” It will continue to expand products centered on taste and health.」

「The newly launched marketplace-style e-commerce site “Pan-musubi” has benefited from its media strategy, and membership is increasing. The company will also strengthen its B2C business by utilizing its e-commerce site and social media.」

「The “Bekkai Wellness Farm” dairy farm has begun milking. Through organic dairy farming, the company will accelerate contributions to a sustainable society and expansion of the lineup of authentic dairy products.」

「“Bekkai Wellness Farm” has begun operations, accelerating contributions to a sustainable society and expansion of the lineup of authentic dairy products.」

「The company is prioritizing a fundamental reorganization of the supply chain through DX, including product ordering, production and sales management, as well as productivity improvements. It will make maximum use of DX technologies to build business infrastructure that significantly improves profitability.」

「The company will further strengthen its dairy product lineup, including by launching “Watashi no Chikara Q10 Yogurt” containing reduced coenzyme Q10 and “Pan-zuki no Milk Tea” in January this year.」

「Initiatives to add value to the business are progressing, including the launch of an online shop for Kaneka Group products, such as supplements, dairy products, chocolate and spices, and the expansion of e-commerce sales.」

「Dairy product sales are also firm, and the company will begin organic dairy farming. It established an agricultural production corporation for dairy farming in Bekkai, Hokkaido.」

「In Indonesia, where Japan’s delicious bread and confectionery culture is entering a period of expansion, the company aims to bring the additional new plant online in May without delay and expand earnings. “Pan-zuki no Milk,” “Pan-zuki no Café au Lait” and “Belgian Yogurt Pure Nature” have received highly favorable market reviews, providing momentum for the rapid launch of the new dairy business. The company is accelerating consideration of a new dairy plant and aims to develop circular dairy farming together with dairy farmers.」

「Indonesia is entering a period of explosive growth in Japan’s delicious bread and confectionery culture, and construction of the new plant, scheduled to begin operations in May 2020, is being expedited. In the dairy business, “Pan-zuki no Milk,” “Pan-zuki no Café au Lait” and “Belgian Yogurt Pure Nature,” launched in August, are being actively promoted and are gaining favorable acceptance as the company enters the market. The company is accelerating consideration of a new dairy plant and aims to improve quality, including health benefits, and develop circular dairy farming in partnership with dairy farmers.」

「In the dairy business, “Pan-zuki no Milk” and “Pan-zuki no Café au Lait” are steadily receiving strong market reviews. The company launched “Belgian Yogurt Pure Nature” in August, is expanding its dairy lineup, and is accelerating consideration of constructing a new dairy plant.」

「Indonesia is entering a period of expanding demand for Japan’s delicious bread and confectionery culture, and construction of the previously approved new processed fats and oils plant is progressing smoothly. In the dairy business, following the well-received “Pan-zuki no Milk,” the company has newly launched fermented butter and this spring released “Pan-zuki no Café au Lait.”」

「The company decided to build a new processed fats and oils plant in Indonesia, with total investment of approximately ¥5 billion, and will accelerate the expansion of the Indonesian market by promoting Japan’s delicious bread and confectionery culture. In the newly entered dairy business, “Pan-zuki no Milk” has received favorable reviews for its rich flavor and clean aftertaste, and sales of fermented butter have also begun.」

「The Indonesia business is also expanding steadily, and preparations are under way for a large-scale production capacity expansion. In the newly entered dairy business, the company has begun selling fermented butter in addition to milk. It will expand its lineup with new dairy products such as yogurt and accelerate market development. It is also planning measures to contribute to improving dairy farmers’ productivity and developing circular dairy farming by combining the business with its food production support operations.」

「In the newly entered dairy business, the company has begun selling fermented butter in addition to milk. It will continue to expand its dairy product lineup and, by combining it with its food production support business, contribute to improving dairy farmers’ productivity and developing circular dairy farming.」

「At Foods & Agris, proactive proposal-based sales to major bakeries, convenience stores and food manufacturers, backed by new food ingredients, expanded sales. Sales by group companies in Japan and overseas also remained solid. The company is pursuing market development for new solutions with the aim of developing new business models in the agriculture and livestock sectors.」

「At Foods & Agris, proposal-based sales to major bakeries, convenience stores and food manufacturers, backed by new food ingredients, bore fruit and expanded sales.」

「Continued new product launches and business structure reform aimed at strengthening the supply chain, including group companies, progressed, resulting in increases in both revenue and operating profit.」

「In food products, amid sluggish domestic demand and increasing diversification in food preferences, the company is strengthening its R&D capabilities, developing and selling new products ahead of consumer needs, and upgrading the product mix toward higher value-added products. In the third quarter, although results were affected by unsettled weather after the summer and higher raw material prices, the continued launch of new products and business structure reform aimed at strengthening and improving efficiency across the supply chain progressed, improving profitability. As a result, segment revenue increased to ¥111,075 million, up ¥1,905 million, or 1.7%, year on year, while operating profit increased to ¥3,512 million, up ¥1,040 million, or 42.1%.」

「In solar cells, sales volumes to major homebuilders increased, while continued progress in business structure reform improved profitability.」

「In food products, amid continued sluggish domestic demand and a preference for low prices, the company is focusing on developing and selling new products ahead of consumer needs and upgrading the product mix toward higher value-added products. Business structure reform aimed at strengthening and improving efficiency across the supply chain, including group companies, is progressing, and profitability has improved.」

「The company focused on developing and selling new products ahead of consumer needs, working to increase sales volumes and upgrade the product mix toward higher value-added products. As a result of steadily advancing business structure reform, business profitability improved significantly.」