Higher Raw-Material and Packaging Costs Weakening Manufacturing Costs and Margins

「上昇を続ける原材料・資材価格への対応として販売価格の改定は不可避である一方、消費者における根強い節約志向に対応した価格訴求商品や、お値打ち感と安心・安全を兼ね備えた中食商品の開発を推進いたしました。」

「Cost pressures continued, including soaring raw material and energy prices resulting from the prolonged situations in Ukraine and the Middle East, sharp exchange-rate fluctuations, and higher labor and logistics costs.」

「Meanwhile, although the Company was significantly affected by soaring prices of raw materials such as rice and nori, higher costs including persistently high energy prices and rising labor costs, and upfront expenses incurred to establish a system for increased production at its own plant, operating profit was ¥227 million, down 13.3% year on year.」

「Soaring prices of raw materials used in food products and auxiliary materials such as containers could increase manufacturing costs and reduce profit margins. In addition, if services provided by the Company are suspended because an existing business partner goes bankrupt, suspends operations or suspends transactions, this could adversely affect operating results and the financial position.」

「In terms of profit, although logistics and raw material costs soared, the Company cleared its initial profit budget as strong sales and progress in reducing costs by converting directly operated stores to franchises more than offset these factors,」

「In terms of profit, although logistics and labor costs increased and raw material prices soared, the increase in profit accompanying sales growth and the reduction in costs resulting from promoting the conversion of stores to franchises exceeded these effects,」

「During the fiscal year, social and economic activity normalized as COVID-19 was reclassified as a Class 5 disease, resulting in a gradual recovery supported by a recovery in personal consumption and increased inbound demand. However, uncertainty about the outlook continued due to yen depreciation, the prolonged and increasingly tense situations in Ukraine and the Middle East, and persistently high energy and raw-material prices.」

「In terms of profit, although expenses substantially exceeded expectations, including higher logistics costs resulting from soaring fuel prices and higher utility costs, strong store sales contributed to operating profit of ¥231 million (operating profit of ¥2 million in the same period of the previous year) and ordinary profit of ¥194 million (ordinary profit of ¥10 million in the same period of the previous year).」

「Meanwhile, the Company is required to rebuild an earnings structure capable of responding to risks in the operating environment, including higher logistics costs resulting from global increases in raw material and energy prices caused by the situation in Ukraine.」

「Meanwhile, global prices for raw materials and energy continued to rise, and the Company operated in an uncertain environment amid concerns over weaker personal consumption of daily necessities and other goods.」

「During the cumulative second quarter of the fiscal year, the Japanese economy remained in an uncertain environment, as the number of COVID-19 cases surged during the seventh wave and product prices continued to rise amid soaring global raw-material and energy prices partly attributable to the situation in Ukraine. Concerns that personal consumption would weaken persisted.」

「During the cumulative first quarter of the fiscal year, as restrictions under the priority preventive measures were fully lifted in late March 2022, traffic gradually recovered and economic activity began to normalize. However, prices for goods continued to rise amid soaring raw-material and energy prices, and the outlook remained uncertain as concerns grew that personal consumption would weaken.」

「During the fiscal year, the spread of COVID-19 continued for an extended period. Although economic activity showed signs of recovery as vaccinations became more widespread, infections resurged in January 2022 due to the Omicron variant. The outlook nevertheless remained uncertain because of the tense situation in Ukraine and soaring raw-material prices accompanying accelerating global inflation.」

「Soaring prices of raw materials used in food products and auxiliary materials such as containers could increase manufacturing costs and reduce profit margins, potentially adversely affecting operating results and the financial position.」

「Soaring prices of raw materials used in food products and auxiliary materials such as containers could increase manufacturing costs and reduce profit margins, potentially adversely affecting operating results and the financial position.」

「In regional economies, consumers' preference for saving remained firmly entrenched, and personal consumption had yet to recover. The business environment also remained challenging due to higher raw-material costs and rising labor expenses resulting from labor shortages.」

「In addition, the operating environment remains challenging, due to factors including higher labor costs resulting from a serious labor shortage and soaring raw material prices.」

「The prices of raw materials used in food products manufactured at the prepared-foods plant fluctuate with commodity prices and exchange rates. Soaring prices of raw materials and auxiliary materials such as containers could increase manufacturing costs and reduce profit margins, potentially adversely affecting operating results and the financial position.」