Volatility in the Prices of Materials Such as Crude Oil, Steel and PET Resin

「As a result, total overseas business revenue was ¥8,752 million, up 8.2% year on year, but operating profit was ¥452 million, down 23.4%, due to the impact of soaring raw material costs and other factors.」

「However, challenging conditions continued, including soaring raw material prices and energy costs resulting from the yen’s depreciation and the prolonged situation in Ukraine.」

「Purchased materials such as PET resin made from crude oil and steel, logistics costs associated with transportation and storage, and energy costs account for a significant proportion of our Group’s costs. While working continuously to reduce resource use, including through lighter containers and the promotion of renewable energy, to contribute to a resource-circulating and decarbonised society, we strive to pass increases in material purchase prices, logistics costs and energy costs on to product prices. However, if we are unable to do so, profitability could decline significantly and affect our Group’s business results and financial condition.」

「As a result, total revenue from the Containers business was ¥26,452 million, up 5.8% year on year, but operating loss was ¥1,048 million, following a significant impact from soaring raw material costs and energy costs, compared with an operating loss of ¥303 million in the same period of the previous year.」

「As a result, total revenue from the Containers business was ¥16,523 million, up 5.6% year on year, but operating loss was ¥745 million, following a significant impact from soaring raw material costs and energy costs, compared with an operating loss of ¥290 million in the same period of the previous year.」

「During the first quarter of the current consolidated cumulative period, Japan’s economy showed signs of a recovery in corporate capital investment and personal consumption. However, the outlook for the economy remained uncertain due to heightened geopolitical risks, soaring raw material prices and energy costs, and the yen’s rapid depreciation.」

「Japan’s current economy remains in a challenging situation due to soaring raw material prices and energy costs, as well as the materialisation of geopolitical risks. The outlook is also expected to remain uncertain due to the impact of the yen’s rapid depreciation.」

「Purchased materials such as PET resin made from crude oil and steel, as well as logistics costs associated with transportation and storage, account for a significant proportion of our Group’s costs. When purchase prices for materials and logistics costs rise, we strive to pass them on to product prices, but if we are unable to do so, profitability could decline significantly and affect our Group’s business results and financial condition.」

「In the domestic business of our Group during the consolidated fiscal year, sales struggled due to unsettled summer weather, a warm winter and shortages of seafood raw materials, and were also affected by soaring logistics costs and persistently high energy costs.」

「In the food canning industry, shortages of certain raw materials, including crab and scallops, for seafood canned products were gradually easing. However, results fell below the previous year’s level due to persistently high raw material prices and the impact of a record-poor saury catch, among other factors.」

「Although shortages of certain raw materials, including crab and scallops, for food canned products were gradually easing, results fell below the previous year’s level, partly due to the continued high prices of raw materials.」

「Sales of steel empty cans for beverages remained on a downward trend, in line with industry trends, and declined substantially from the previous year, partly due to the shift from the core canned coffee products to PET bottles. As a result, total sales of steel empty cans for beverages fell below the previous year’s level.」

「As a result, total revenue from the Containers business increased to ¥31,993 million, up 4.1% year on year, but operating profit was ¥291 million, partly due to soaring raw material prices and energy costs, down 72.6% year on year.」

「As a result, total revenue from the Containers business increased to ¥20,465 million, up 1.0% year on year, but operating loss was ¥113 million, partly due to soaring raw material prices and energy costs, compared with operating profit of ¥725 million in the same period of the previous year.」

「Higher raw material prices and energy costs are putting further pressure on the earnings of both companies.」

「Regarding the food canning industry, seafood canned products fell below the previous year’s level due to higher product prices resulting from soaring raw material costs, while agricultural canned products also fell below the previous year’s level.」

「Material prices have recently been heavily influenced by global demand, particularly demand in the Chinese market. If increases in material prices, including soaring crude oil prices, cannot be passed on to product prices, profitability could be significantly pressured.」

「The business environment surrounding both companies has become increasingly challenging in recent years, owing to the shrinking domestic market associated with the declining birthrate and aging population, intensifying competition with rival companies, and rising material and energy prices.」

「If increases in material prices, including soaring crude oil prices, cannot be passed on to product prices, profitability could be significantly pressured.」