Decline in Rush Demand Following the Consumption Tax Hike

「The Consumer business has multiple sales channels: the funeral channel, which sells tatami mats for funerals and other products; the consumer channel, which sells special-function tatami mats for individuals and special-function tatami mats for corporate customers, including judo and bath mats; and the online business channel, which receives orders for tatami installation work through local JA agricultural cooperatives and home improvement stores. Unique products such as soundproof and vibration-damping floor materials for the fitness market and tatami mats with partitions for evacuation shelters performed well. However, sales were ¥524 million, down 22.4% year on year, due to the pronounced decline following the consumption tax rate increase in the online business channel and a decrease in large orders from hotels, inns and other customers as the COVID-19 pandemic spread.」

「The tatami mat replacement brokerage business was also significantly affected by the decline in demand following the consumption tax increase during the quarter.」

「The company had expected to recover during the period from the decline in demand following the rush in demand ahead of the consumption tax increase, through higher sales from Business Catalogue No. 15 published in July of the previous year and other measures. However, due also to the continuing difficult overall business environment, it was unable to fully recover, and both revenue and earnings remained sluggish. As a result, first-quarter cumulative-period results were revenue of ¥1,815 million, down 10.3% year on year, an operating loss of ¥19 million, compared with operating income of ¥32 million in the same quarter of the previous year, an ordinary loss of ¥22 million, compared with ordinary income of ¥22 million, and a quarterly net loss of ¥19 million, compared with quarterly net income of ¥11 million.」