Improving Efficiency, Cutting Costs and Raising Quality in Alcoholic Beverage Manufacturing

「Sales remained broadly flat, but profitability declined year on year because higher raw-material prices and personnel and logistics costs were not fully absorbed. As a result, sales were ¥887 million, up 0.9% year on year, and segment loss, or operating loss, was ¥21 million, compared with segment profit, or operating profit, of ¥0 million in the previous year.」

「Although we reviewed expenses, including advertising costs, gross profit has been trending down because inflation has increased the cost of sales and logistics costs.」

「Although the business continued to be affected by higher product cost ratios caused by recent inflation, thorough cost management, including reductions in advertising expenses, improved the structure to one capable of generating a small profit. As a result, sales were ¥879 million, essentially flat year on year, and segment profit, or operating profit, was ¥0 million, compared with a segment loss of ¥349 million in the previous year.」

「Operating profit was negative because higher costs for inflation, storage-barrel purchases and manufacturing-equipment repairs increased the product cost ratio, while ¥372 million in advertising expenses for Shin ENMA and Shin Prime ENMA was incurred. As a result, sales were ¥1,455 million, up 1.5% year on year, and segment loss, or operating loss, was ¥331 million, compared with segment profit of ¥152 million in the previous year.」

「The product cost ratio increased because costs rose for inflation, storage-barrel purchases and manufacturing-equipment repairs. In addition, the business recorded ¥359 million in advertising expenses for Shin ENMA and Shin Prime ENMA, resulting in a negative operating result.」

「For the next fiscal year, we will invest in additional production equipment to increase sales and prepare a structure capable of supporting the launch of Shin ENMA and Shin Prime ENMA.」

「Amid the prolonged impact of COVID-19, sales and profit were recovering across all categories, particularly exports of liqueurs to Taiwan. We will prepare our production structure to accommodate continued orders. As a result, sales were ¥882 million, up 10.0% year on year, and segment profit, or operating profit, was ¥91 million, up 87.9%.」

「We will prepare our production structure to accommodate continued orders.」

「Although sales declined year on year, thorough cost management and expense reductions resulted in sales of ¥1,930 million, down 7.6% year on year, and segment profit, or operating profit, of ¥154 million, up 32.7%.」

「Although sales declined year on year, thorough expense reductions resulted in higher operating profit. As a result, sales were ¥1,522 million, down 8.7% year on year, and segment profit, or operating profit, was ¥152 million, up 25.3%.」

「As a result, sales were ¥899 million, down 10.9% year on year, but segment profit, or operating profit, was ¥63 million, up 41.4%, mainly because of the benefits of thorough cost management through lower operating expenses.」

「During the three months ended 30 June, sales declined from the previous fiscal year, but thorough cost management, mainly through lower operating expenses, increased segment profit. Sales were ¥464 million, down 13.3% year on year, and segment profit, or operating profit, was ¥50 million, up 57.8%.」

「As a result of continued management-structure reform, including expense reductions through appropriate cost control to minimize the impact of declining sales, sales were ¥2,090 million, down 11.0% year on year, and segment profit, or operating profit, was ¥116 million, up 25.8%.」

「In a difficult industry environment where sake, shochu and beer were broadly below the previous year, our business was no exception. However, the impact of the sales decline from last year’s restructuring and discontinuation of unprofitable sake and other products finally began to subside, and although sales were below the previous year, profit remained solid.」

「The impact of lower sales from the restructuring and discontinuation of unprofitable sake and other products last year finally began to subside. Exports to Asia increased, and temporary front-loaded demand arose in the second half ahead of the consumption-tax increase. Sales were down 9.4% year on year to ¥1,008 million, but segment profit, or operating profit, turned positive at ¥44 million from a segment loss of ¥3 million.」

「Although sales declined because of discontinued sake products and other factors, thorough cost management and lower depreciation following impairment processing of fixed assets in the previous fiscal year contributed to profit. As a result, sales were ¥535 million, down 9.5% year on year, and segment profit, or operating profit, was ¥31 million, up 110.9%.」

「In September 2017, we established a top-down Management Strategy Office. This created an environment in which manufacturing, sales and administration could work together organically and coordinate quickly on product development and proposal-based sales. We were prepared to shift the product mix from the next fiscal year toward products with strong growth and profitability potential and to reduce and rationalize unprofitable products.」

「While continuing to assess the impact on sales of the spread of the law restricting discount sales of alcoholic beverages enacted in June 2017, we will strengthen planning capabilities for product development and sales proposals. We will also seek to recover performance through more efficient management in response to higher logistics costs such as shipping expenses.」

「In the second half, while assessing the impact on sales of the spread of regulations restricting discount sales of alcoholic beverages, we will strengthen planning capabilities for product development and sales proposals. We will also seek to recover performance through more efficient management in response to higher logistics costs such as shipping expenses.」

「Taking into account weak domestic demand, we will pursue company-wide management efficiency and cost reductions to stabilize management, while creating high-quality products that meet market expectations, with the aim of becoming a brewery supported by consumers.」