Weather- and seasonality-driven earnings fluctuations

「Insecticide segment revenue was ¥12,743 million, down ¥1,598 million, or 11.1%, year on year, as poor weather in early spring delayed the market's seasonal recovery and price revisions reduced sales volume.」

「In the insecticide division, sales amounted to ¥7,758 million, down ¥168 million, or 2.1%, year on year, as sales volumes declined due to poor weather in early spring, which delayed the market's start-up, the effects of extreme heat in August, price revisions and other factors.」

「In the insecticide division, the market contracted as temperatures in March 2024 remained lower than the previous year, and sales in the fourth quarter, which marked the start of the 2024 season, declined year on year.」

「Because seasonal products such as insecticides, pollen-control products and gardening supplies account for a high proportion of our Group's sales mix, our business performance is significantly affected by weather conditions. For our core insecticide products, manufacturing and shipments for the summer demand season in Japan are concentrated in the first half of the year. As a result, sales are higher from the consolidated fourth quarter through the consolidated first quarter, while returns occur in the consolidated third quarter after the demand season has ended. These factors cause seasonal fluctuations in sales and operating income.」

「Because seasonal products such as insecticides, pollen-control products and gardening supplies account for a high proportion of our Group's sales mix, our business performance is significantly affected by weather conditions. For our core insecticide products, manufacturing and shipments for the summer demand season in Japan are concentrated in the first half of the year. As a result, sales are higher from the consolidated fourth quarter through the consolidated first quarter, while returns occur in the consolidated third quarter after the demand season has ended. These factors cause seasonal fluctuations in sales and operating income.」

「Domestic sales amounted to ¥27,856 million, down 3.1% year on year, as temperatures remained lower than normal on many days in May and June, the peak season, causing the core insecticide market to fall below the previous year.」

「In the insecticide division, demand in the domestic insecticide market declined due to weather conditions and the adverse reaction to the surge in stay-at-home demand through the previous period, and the market remained below the previous year throughout the season.」

「Domestic sales amounted to ¥15,648 million, down 9.4% year on year, as temperatures remained lower than normal on many days in May and June, the peak season, causing the core insecticide market to fall below the previous year.」

「Domestic sales amounted to ¥9,920 million, down 13.5% year on year, as temperatures remained lower than normal on many days in May and June, the peak season, causing the core insecticide market to fall below the previous year.」

「The domestic insecticide market contracted nationwide in August and September due to prolonged rain, typhoons and other factors, resulting in an increase in returns.」

「In the insecticide division, the domestic insecticide market contracted nationwide in August and September due to prolonged rain, typhoons and other factors, resulting in an increase in returns. However, favorable weather conditions through July kept the overall market strong, and sales also increased as people spent more time at home during the COVID-19 pandemic and ventilation was encouraged. Sales therefore amounted to ¥10,545 million.」

「The domestic insecticide market contracted in August and September nationwide due to prolonged rain, typhoons and other factors.」

「In addition, because insecticides account for a high proportion of our Group's sales mix, sales are concentrated mainly in the first half of the year, creating a seasonal fluctuation factor. On the other hand, personnel expenses and other expenses, excluding discretionary expenses such as advertising and promotion costs, are fixed costs incurred at almost equal levels throughout the year. Consequently, quarterly sales and profits vary substantially within the fiscal year.」

「Because seasonal products such as insecticides, pollen-control products and gardening supplies account for a high proportion of the sales mix in the Japan market, which represents more than 50% of sales, our Group's business performance is significantly affected by weather conditions.」

「Because seasonal products such as insecticides, pollen-control products and gardening supplies account for a high proportion of our Group's sales mix, our business performance is significantly affected by weather conditions. For our core insecticide products, manufacturing and shipments for the summer demand season in Japan are concentrated in the first half of the year. As a result, sales are higher from the consolidated fourth quarter through the consolidated first quarter, while returns occur in the consolidated third quarter after the demand season has ended. These factors cause seasonal fluctuations in sales and operating income.」

「Of this amount, domestic sales declined 6.4% year on year for the full year, as sales of the core insecticide products were affected by lower sales during the peak season from April through June, although the lingering summer heat from August onward improved product sell-through at retail stores and reduced returns.」

「In the insecticide division, domestic sales were strongly affected by adverse weather from early April through June. However, the lingering summer heat from August onward supported a recovery in sales and improved product sell-through in the market, resulting in fewer returns from October onward. Although the impact of lower sales in the first quarter, which remains the peak season, persisted, the decline in sales narrowed, and total insecticide sales increased 1.2% year on year to ¥8,036 million, up ¥97 million year on year.」

「Domestic sales were in line with the previous year as sales increased in the disinfectants and Other divisions, while the insecticide market was affected by adverse weather from April through June and subsequently recovered as the lingering summer heat from late August extended. However, because we were significantly affected by lower sales during the peak season from April through June, insecticide sales declined 7.2% year on year.」

「As temperatures from early April through June, the peak season, were lower than the previous year, the domestic insecticide market as a whole remained substantially below the previous year.」

「While the core insecticide market fell below the previous year due to adverse weather, we were also affected, with sales to external customers amounting to ¥24,884 million, down ¥2,455 million, or 9.0%, year on year.」

「Under these conditions, the domestic insecticide market for the fiscal year remained below the previous year overall, as temperatures from May, the peak season, through June were lower than the previous year and adverse weather caused by the extreme heat from July onward affected the market.」

「Although the core insecticide market declined year on year due to unfavorable weather and the Company's insecticide sales fell 9.3% year on year, sales increased in the household products, public-health chemicals and other businesses.」

「Although the core insecticide market declined year on year due to unfavorable weather and the Company's insecticide sales fell 4.6% year on year, sales increased in the household products, gardening supplies and other businesses.」

「Although the core insecticide market in Japan declined year on year due to unfavorable weather, the group achieved double-digit growth, helped in part by sales contributions from new products.」

「Domestic sales among these increased 8.7% year on year for the Company's insecticides while the core insecticide market declined year on year due to unfavorable weather, resulting in total domestic sales increasing 8.1% to ¥15,731 million.」

「While the core insecticide market declined year on year due to unfavorable weather, the Company's insecticide sales increased 4.2% year on year, and total domestic sales increased 5.2% to ¥14,588 million.」

「As sales of the Company's core insecticides remained at the previous fiscal year's level amid adverse market conditions caused by unfavorable weather, total domestic sales increased 0.5% year on year to ¥9,588 million.」

「In the gardening supplies business, sales of herbicides, including the six-month-effect All Killer granular herbicide, performed well, but were affected by unfavorable weather in April and May, the peak of the gardening season.」

「In the insecticide business, since designating 2015 as the first year of infectious-disease countermeasures in Japan, the Company has delivered higher-grade products, including the Premium Performance series, which achieves unprecedented efficacy.」

「In addition, because insecticides account for a high proportion of the group's sales, sales are concentrated in the first half of the fiscal year, creating a seasonal fluctuation factor.」

「Because seasonal products such as insecticides, pollen-control products and gardening supplies account for a high proportion of the group's sales, performance is significantly affected by weather. In Japan, the selling season is concentrated from early spring through summer, creating seasonal fluctuations that cause sales and operating income or loss to be unevenly distributed.」