Earnings volatility caused by soaring material prices and exchange-rate fluctuations

「In the next fiscal year, Japan's economy is expected to remain uncertain as international conditions continue to be unstable, with the yen declining against major currencies, prices rising and logistics affected. In particular, risks across the entire supply chain are beginning to materialize, including higher costs and impacts on the procurement of production materials due to heightened geopolitical risks in the Middle East.」

「円安進行に伴う諸資材価格の高止まりに加えて、中東情勢の緊迫化による原油価格上昇に伴い更なる物価高が見込まれるなど、依然として景気の先行きは不透明な状況が続いております。」

「Foreign-exchange loss 183」

「Efforts to revise selling prices in response to higher procurement costs for paperboard caused by further yen depreciation and increases in some paperboard prices, logistics costs from the 2024 logistics issue, energy costs and other materials prices」

「Although energy prices, including LNG and electricity, remained high, operating income rose 146.8% year on year to ¥5,456 million through price revisions and cost-reduction measures involving streamlining of manufacturing processes.」

「During the third quarter cumulative period, Japan's economy was moving toward normalization as COVID-19 restrictions were substantially eased, but the outlook remained uncertain due to the prolonged geopolitical issues surrounding Ukraine and the Middle East, the weaker yen, and surging materials prices and resulting inflation.」

「During the second quarter cumulative period, Japan's economy was moving toward normalization as COVID-19 restrictions were substantially eased, but the outlook remained uncertain due to downside risks to overseas economies from monetary tightening centered in the United States and Europe, the prolonged international situation surrounding Ukraine, and surging materials prices and resulting inflation against the backdrop of the weaker yen.」

「During the first quarter cumulative period, Japan's economy was moving toward normalization as COVID-19 restrictions were substantially eased, but the outlook remained uncertain due to the prolonged international situation surrounding Ukraine, surging materials prices caused by the weaker yen and other factors, and the resulting increase in prices.」

「During the third quarter cumulative period, the Japanese economy remained in an extremely difficult situation. Although restrictions on activities related to COVID-19 were eased and economic activity showed signs of recovery, the yen weakened due partly to heightened geopolitical risks surrounding the situation in Ukraine and differences between the monetary policies of Japan and Western countries, causing energy and other materials prices to surge. Energy prices are expected to remain high for the time being and are expected to be a downside factor for future results.」

「During the second quarter cumulative period, the Japanese economy remained in an extremely difficult situation. In addition to heightened geopolitical risks surrounding the situation in Ukraine, the yen weakened due partly to differences between the monetary policies of Japan and Western countries, causing prices of energy and other materials to surge. Despite efforts to raise some prices and reduce costs across the Group, operating income was ¥1,563 million, down 22.8% year on year. LNG prices are expected to rise further, and the fuel-cost adjustment rates announced by electric power companies have also increased substantially, which is expected to be a downside factor for future results.」

「During the first quarter cumulative period, the Japanese economy remained in an extremely difficult situation. The economy continued to be affected by COVID-19, while heightened geopolitical risks surrounding the situation in Ukraine caused prices of energy and other materials to surge.」

「Although brighter signs are emerging, including a higher vaccination rate in Japan and the lifting of the state of emergency, conditions remain uncertain, with increasing downside risks from surging crude oil and other materials prices.」

「The procurement prices of the main raw materials, fuels and other inputs used in the Group's manufacturing processes are affected by crude oil prices, foreign-exchange movements and market conditions, and may affect the Group's operating results.」

「Although energy prices increased, operating income rose 10.6% year on year to ¥2,444 million, partly due to the earnings benefit from higher sales.」

「Although energy prices increased, operating income rose 6.2% year on year to ¥1,562 million, partly due to the earnings benefit from higher sales.」

「Although revenue increased, operating profit declined 7.4% year on year to ¥797 million due mainly to higher raw material and fuel prices and logistics costs.」

「Although cross-group functional enhancements produced cost savings, operating income was ¥2,355 million, down 8.8% year on year, due mainly to surging raw-material and fuel prices.」

「Although revenue increased, operating profit declined 10.1% year on year to ¥2,209 million due mainly to higher raw material and fuel prices.」

「Although revenue increased, operating profit declined 17.0% year on year to ¥1,470 million due mainly to higher raw material and fuel prices.」

「Although revenue increased, operating profit declined 1.7% year on year to ¥860 million due mainly to higher raw material and fuel prices.」

「Although sales declined, cost of sales increased 0.2% from the previous fiscal year to ¥56,573 million due to surging energy prices, particularly for LNG and electricity.」

「Although operating rates at the overseas manufacturing subsidiary for houseware improved and forward exchange rates also improved, operating profit declined 14.2% year on year to ¥2,457 million due to lower revenue and soaring energy prices. Ordinary profit declined 11.5% year on year to ¥2,162 million.」

「Although revenue declined, operating profit increased 2.7% year on year to ¥1,771 million, partly due to higher operating rates at the overseas manufacturing subsidiary for houseware and the impact of forward exchange rates. Ordinary profit rose 94.0% year on year to ¥1,560 million, as foreign exchange losses on foreign-currency-denominated receivables and payables recorded in the previous fiscal year declined substantially.」

「Sales increased in paper containers due to sales of filling machines for small cartons, but glass bottles, housewares, plastic containers and industrial equipment struggled to grow, resulting in Group-wide sales of ¥18,662 million, down 1.6% year on year. Although sales declined, operating income increased 10.3% to ¥875 million due in part to higher operating rates at the overseas manufacturing subsidiaries for paper containers and housewares. Foreign-exchange losses on foreign-currency-denominated receivables and payables recorded in the previous fiscal year declined substantially, resulting in ordinary income of ¥691 million, up 174.9% year on year.」

「Although energy prices, particularly for LNG and electricity, declined, lower sales reduced operating income to ¥2,912 million, down 2.1% year on year. Ordinary income was ¥2,519 million, up 36.6%, partly due to gains on derivatives related to foreign-exchange forward transactions as the yen weakened.」

「Although cost reductions across the Group and lower energy prices, particularly for LNG and electricity, increased operating income to ¥2,863 million, up 3.0% year on year, ordinary income was ¥2,443 million, up 6.2%, partly due to gains on derivatives related to foreign-exchange forward transactions as the yen weakened.」

「Although cost reductions across the Group and lower energy prices, particularly for LNG and electricity, increased operating income to ¥1,724 million, up 19.9% year on year, foreign-exchange losses on foreign-currency-denominated assets and liabilities were recorded due to exchange-rate movements. As a result, ordinary income was ¥804 million, down 28.5%, and net income attributable to owners of the parent was ¥319 million, down 36.8%.」

「The Company also recorded foreign-exchange losses on foreign-currency-denominated receivables and payables due to exchange-rate movements, resulting in ordinary income of ¥251 million, down 69.3% year on year.」

「If the prices of the main raw materials and fuels used in the Group's manufacturing processes rise sharply due to fluctuations in foreign-exchange rates or market conditions, this may affect the Group's operating results.」