Sustained profitability in the Food Business from fiscal 2021 onward

「Although the saccharification business became profitable through a review of its product mix, cost reductions, and other measures, the business environment remains difficult, and the Group will continue working to transform its business portfolio.」

「利益面では、採算是正に取り組んだ結果、セグメント利益（営業利益）は前年比4.1%増加の35百万円となりました。」

「The food segment showed signs of recovery on demand from food-service businesses, including the restaurant industry, and inbound demand. However, sales volume declined following a review of the product mix, and sales decreased 9.4% year on year to ¥2,432 million. On the earnings front, efforts to improve profitability resulted in segment profit (operating profit) increasing 3.7% year on year to ¥114 million.」

「In the food segment, demand for soft drinks resulting from the exceptionally hot summer and inbound demand led to signs of recovery, but sales volume declined following a review of the product mix. As a result, sales decreased 7.6% year on year to ¥2,684 million, while segment profit (operating profit) decreased 8.7% year on year to ¥110 million.」

「In the food segment, demand from food-service businesses, including the restaurant industry, showed signs of recovery as economic activity picked up following the easing of restrictions on activities. Meanwhile, beverage sales volume declined as rising prices strengthened consumers' preference for saving. Although we made price adjustments to reflect higher raw material costs, sales were broadly unchanged year on year at ¥4,082 million. On the earnings front, segment profit (operating profit) was ¥69 million, partly due to the effect of cost reductions, compared with a segment loss (operating loss) of ¥169 million in the same period of the previous year.」

「In the food segment, demand from food-service businesses, including the restaurant industry, showed signs of recovery as economic activity picked up following the easing of restrictions on activities. Meanwhile, beverage sales volume declined as rising prices strengthened consumers' preference for saving, but price adjustments were made to reflect higher raw material and other costs. As a result, sales increased 3.3% year on year to ¥2,903 million, while segment profit (operating profit) was ¥120 million, compared with a segment loss (operating loss) of ¥81 million in the same period of the previous year.」

「In the food segment, the beverage market recovered as economic activity picked up following the easing of restrictions on activities, and price adjustments were made to reflect higher raw material costs. As a result, sales increased 11.4% year on year to ¥1,545 million, while segment profit (operating profit) was ¥90 million, compared with a segment loss (operating loss) of ¥3 million in the same period of the previous year.」

「In the Food business, the effects of COVID-19 began to ease, and sales to the alcoholic-beverage market declined as stay-at-home demand subsided, while sales to the soft-drink market recovered due to the extremely hot summer. As a result of correcting prices to reflect higher raw-material costs, revenue increased 17.1% year on year to ¥5,499 million. On the profit side, higher raw-material prices weighed on earnings, resulting in a segment loss (operating loss) of ¥211 million, compared with a segment loss (operating loss) of ¥0 million in the same period of the previous year.」

「In the Food Business, products for alcoholic beverages declined as stay-at-home demand subsided, while products for soft drinks moved toward recovery due to extreme heat. In addition, partial price adjustments to reflect higher raw material costs resulted in net sales of ¥4,084 million, up 15.7% year on year, but the impact of cost increases, including continuing rises in raw material prices, resulted in a segment loss (operating loss) of ¥169 million, compared with segment profit (operating profit) of ¥47 million in the same period of the previous year.」

「In the Food Business, the impact of COVID-19 began to ease, and the business moved toward recovery due to extreme heat. In addition, partial price adjustments to reflect higher prices for raw materials and other items resulted in net sales of ¥2,812 million, up 14.8% year on year, but the impact of cost increases, including continuing rises in raw material prices, resulted in a segment loss (operating loss) of ¥81 million, compared with segment profit (operating profit) of ¥64 million in the same period of the previous year.」

「In the Food Business, the impact of COVID-19 began to ease, and the business moved toward recovery due to an early end to the rainy season and extreme heat. In addition, partial price adjustments to reflect higher raw material costs resulted in net sales of ¥1,387 million, up 9.4% year on year, but the impact of cost increases, including continuing rises in raw material prices, resulted in a segment loss (operating loss) of ¥3 million, compared with segment profit (operating profit) of ¥38 million in the same period of the previous year.」

「In the food business, despite the effects of COVID-19 and adverse summer weather, some products for beverages recovered and prices were adjusted to reflect soaring raw material costs. As a result, revenue increased 9.2% year on year to ¥3,530 million, and segment profit (operating profit) was ¥47 million, compared with a segment loss (operating loss) of ¥58 million in the same period of the previous year.」

「In the food business, despite the effects of COVID-19 and adverse summer weather, some products for beverages recovered and prices were adjusted to reflect soaring raw material costs. As a result, revenue increased 6.5% year on year to ¥2,448 million, and segment profit (operating profit) increased 595.1% to ¥64 million.」

「In the Food Business, as the impact of COVID-19 continued to ease, the recovery of some beverage products and price adjustments to reflect higher raw material costs resulted in net sales of ¥1,268 million, up 6.7% year on year, and segment profit (operating profit) of ¥38 million, compared with a segment loss (operating loss) of ¥22 million in the same period of the previous year.」

「Although the profitability of saccharified products such as high-fructose corn syrup and starch syrup had remained weak, the Group intends to decisively improve productivity and review its product mix, aiming for sustained profitability from FY2021 onward.」