Economic downturn, weaker consumer spending and intensifying competition

「The operating environment surrounding the Group continues to be challenging due to intensifying sales competition in its principal sales markets, persistently high resource prices and higher purchase prices and logistics costs against a backdrop of yen depreciation, growing consumer thriftiness and other factors.」

「Sales volumes of daily necessities, including seasonal products, declined due to adverse weather conditions and growing consumer thriftiness, resulting in revenue of ¥1,830 million for the six-month period ended in the current second quarter, down 6.7% year on year.」

「The operating environment surrounding the Group continues to be challenging due to intensifying sales competition in its principal sales markets, persistently high resource prices and higher purchase prices and logistics costs against a backdrop of yen depreciation, growing consumer thriftiness and other factors.」

「The industry to which the Group belongs continues to face a challenging operating environment due to intensifying sales competition in its principal sales markets, higher purchase prices from manufacturers and others against a backdrop of surging resource prices and yen depreciation, growing consumer thriftiness and other factors.」

「The industry to which the Group belongs has faced a challenging operating environment due to intensifying sales competition in its principal sales markets, higher purchase prices from manufacturers and others against a backdrop of surging resource prices and yen depreciation, growing consumer thriftiness and other factors.」

「The industry to which the Group belongs has also faced a challenging operating environment due to intensifying sales competition accompanying industry reorganisation and other factors in its principal sales markets, a decline in personal consumption resulting from rising prices, higher purchase prices from manufacturers and others against a backdrop of surging resource prices and yen depreciation, and other factors. Against this backdrop, the Group worked to understand changing consumer needs and promoted the enhancement and efficiency improvement of its logistics system, as a bridge for delivering products to consumers, while maintaining and expanding its sales system. However, revenue for the six-month period ended in the current second quarter was ¥1,962 million, down 7.4% year on year, mainly due to a decline in sales to home improvement retailers, its principal customers. As a result, the Group recorded an operating loss of ¥3 million, compared with operating profit of ¥21 million in the same period of the previous year, and ordinary profit of ¥19 million, down 52.2% year on year.」

「The industry to which the Group belongs has also faced a challenging operating environment due to intensifying sales competition accompanying industry reorganisation and other factors in its principal sales markets, higher purchase prices resulting from surging resource prices and yen depreciation, and other factors. Against this backdrop, the Group worked to understand changing consumer needs and promoted the enhancement and efficiency improvement of its logistics system, as a bridge for delivering products to consumers, while maintaining and expanding its sales system. However, revenue for the three-month period ended in the current first quarter was ¥983 million, down 8.4% year on year, mainly due to a decline in personal consumption associated with rising prices and other factors.」

「The industry to which the Group belongs has also seen a challenging operating environment due to intensifying sales and price competition accompanying industry reorganisation and other factors in its principal sales markets, as well as higher cost ratios resulting from surging raw material prices.」

「The industry to which the Group belongs has also seen intensifying sales and price competition accompanying industry reorganisation and other factors in its principal sales markets, increases in manufacturing and purchase costs due to higher raw material prices, and the effects of adverse weather conditions, resulting in a challenging environment for the Group. As a result, revenue for the six-month period ended in the current second quarter was ¥2,119 million in the Household Goods Wholesale Business, which handles household goods, daily necessities and other products, due in part to the impact of the reorganisation of the home improvement retail industry, compared with ¥2,356 million in the same period of the previous year. In terms of earnings, operating profit was ¥21 million, compared with ¥46 million in the same period of the previous year, ordinary profit was ¥39 million, compared with ¥66 million, and profit for the quarter attributable to owners of the parent was ¥24 million, compared with ¥51 million, due in part to the impact of the above-mentioned industry reorganisation and higher cost ratios resulting from surging raw material prices.」

「The industry to which the Group belongs has also seen intensifying sales and price competition accompanying the reorganisation of the home improvement retail industry, its principal sales market, as well as increases in manufacturing and purchase costs due to higher raw material prices, resulting in a challenging operating environment for the Group.」

「In addition, raw material prices and import costs are expected to remain elevated, and the operating environment surrounding the Company is expected to become even more challenging.」

「During the first nine months of the current consolidated fiscal year, COVID-19 significantly affected not only corporate activities but also economic activity across various sectors, including production and consumption. Although signs of a temporary recovery emerged as a result of various policy measures and other factors, concerns remained about a renewed spread of COVID-19, and the economic outlook continued to be uncertain.」

「During the first six months of the current consolidated fiscal year, Japan's economy was severely affected as a state of emergency was declared due to the spread of COVID-19, restricting corporate activities and affecting economic activity across various sectors, with production and consumption activity falling sharply. Although the state of emergency was lifted and economic activity resumed, the recovery was sluggish and the economic outlook remained uncertain.」

「During the first three months of the current consolidated fiscal year, Japan's economy was severely affected as a state of emergency was declared due to the spread of COVID-19, restricting corporate activities and affecting economic activity across various sectors, with production and consumption activity falling sharply. Although the state of emergency was lifted and economic activity resumed, the recovery was sluggish, and the economic outlook was extremely uncertain amid concerns about a second wave of infections.」

「During the consolidated fiscal year, Japan's economy continued to recover moderately, but the outlook remained uncertain due to successive natural disasters, lower consumer sentiment following the consumption tax rate increase, and the effects of the spread of COVID-19.」

「The Group's main customers, supermarkets and home improvement stores, continued to operate in a difficult environment, despite temporary rush demand before the consumption tax rate increase. Factors included the subsequent reversal decline in demand, consumer reluctance to purchase due to a stronger preference for frugality, damage from repeated typhoons, heavy rains and other natural disasters, and intensifying competition to open stores and sales competition extending across industry boundaries. As a result, net sales for the first nine months of the current consolidated fiscal year were ¥36.249 billion, down 1.5% year on year. In terms of earnings, gross margin improved as the Group worked to strengthen sales of highly profitable products, but operating loss was ¥158 million, compared with an operating loss of ¥191 million in the same period of the previous year; ordinary income was ¥176 million, down 46.6%; and net income attributable to owners of the parent was ¥23 million, down 87.6%, due to lower sales in the household goods wholesale business and deteriorating performance in the Other internet retail business.」

「In terms of earnings, operating loss was ¥193 million, compared with an operating loss of ¥153 million in the same period of the previous year; ordinary loss was ¥57 million, compared with ordinary income of ¥38 million; and net loss attributable to owners of the parent was ¥63 million, compared with net income attributable to owners of the parent of ¥20 million, due to lower net sales and higher selling costs, including freight charges.」

「Supermarkets and home improvement stores continued to face difficult conditions, as price competition intensified due to further expansion of the online retail market and entry by businesses from other sectors, while disparities in performance among companies widened.」

「The Group's main customers, including supermarkets and home improvement stores, continued to face difficult conditions as price competition intensified due to further expansion of the online retail market and entry by businesses from other sectors, while disparities in performance among companies widened. Although sales of グリーンパル株式会社, an injection-molding manufacturer acquired in the previous consolidated fiscal year, contributed to the Group's results, securing earnings became more difficult amid intensifying competition, while personnel expenses, freight charges, and other expenses increased, forcing the Group to continue operating under difficult conditions. As a result, net sales for the first nine months of the current consolidated fiscal year were ¥36.797 billion, up 0.3% year on year; operating loss was ¥191 million, compared with operating income of ¥132 million in the same period of the previous year; ordinary income was ¥330 million, down 49.2%; and net income attributable to owners of the parent was ¥189 million, down 43.6%.」

「The Group's main customers, including supermarkets and home improvement stores, continued to face difficult conditions as price competition intensified due to further expansion of the online retail market and entry by businesses from other sectors. Although sales of グリーンパル株式会社, an injection-molding manufacturer acquired in the previous consolidated fiscal year, contributed to the Group's results, securing earnings became more difficult amid intensifying competition, while personnel expenses, freight charges, and other expenses increased, forcing the Group to continue operating under difficult conditions.」

「The Group's main customers, including supermarkets and home improvement stores, continued to face difficult conditions as price competition intensified due to further expansion of the online retail market and entry by businesses from other sectors. Although sales of グリーンパル株式会社, an injection-molding manufacturer acquired in the previous consolidated fiscal year, contributed to the Group's results, securing earnings became more difficult amid intensifying competition, while personnel expenses, freight charges, and other costs increased, forcing the Group to continue operating under difficult conditions.」

「The Group's main customers, including supermarkets and home improvement stores, continued to face difficult conditions as price competition intensified due to further expansion of the online retail market and entry by businesses from other sectors.」

「Meanwhile, the environment surrounding the Group's main customers, including supermarkets and home improvement stores, is becoming increasingly difficult due to intensified price competition following entry by businesses from other sectors and higher expenses resulting from labor shortages. As a result, net sales for the first nine months of the current consolidated fiscal year were ¥36.696 billion, down 0.3% year on year; operating income was ¥132 million, down 68.4%; and ordinary income was ¥650 million, down 31.3%. Net income attributable to owners of the parent was ¥336 million, down 46.5%, due mainly to the recognition of a goodwill impairment loss.」

「Meanwhile, the environment surrounding the Group's main customers, including supermarkets and home improvement stores, is becoming increasingly difficult due to intensified price competition following entry by businesses from other sectors and higher expenses resulting from labor shortages.」

「Meanwhile, the environment surrounding the Group's main customers, including supermarkets and home improvement stores, is becoming increasingly difficult due to intensified price competition following entry by businesses from other sectors and higher expenses resulting from labor shortages. The Group also continues to face difficult conditions, including a decline in gross margin resulting from worsening market conditions and higher labor costs due to labor shortages.」

「The industry is facing increasingly difficult conditions due to the effects of price competition in the retail sector, against a backdrop of lower inbound demand and sluggish personal consumption resulting from a growing preference for frugality.」

「Meanwhile, operating income declined 56.4% year on year to ¥297 million, ordinary income declined 41.1% to ¥638 million, and net income attributable to owners of the parent declined 40.2% to ¥424 million, due mainly to worsening market conditions and higher expenses associated with implementing the management strategy.」

「The industry continues to face difficult conditions due to sales competition in the retail sector, including home improvement stores and supermarkets, and sluggish personal consumption. Under these conditions, the Group focused on expanding its share in existing markets as part of its management strategy, developing new sales channels, expanding sales routes in overseas markets, and strengthening its proprietary original products. As a result, net sales for the first three months of the current consolidated fiscal year were ¥11.892 billion, up 3.9% year on year, while operating loss was ¥54 million, compared with operating income of ¥137 million in the same period of the previous year, due to worsening market conditions and higher expenses.」

「The Group's operating results and financial condition may be adversely affected by intensified sales and price competition with competitors, an economic downturn in Japan, and the resulting decline in personal consumption.」