Cost Increases in the Supermarket Business Due to Surging Electricity Rates

「Selling, general and administrative expenses for the fiscal year were ¥8,203 million, up 6.7% year on year. This was mainly due to higher personnel and temporary staffing costs accompanying the increase in sales in the frozen-food business, as well as higher fuel costs such as diesel and electricity charges.」

「In addition, we reorganized our organizational structure and undertook a turnaround aimed at recovering performance. Although we have been closing underperforming stores, improving labor productivity and reducing advertising expenses, the business environment remains challenging due to consumers' increasing preference for saving in response to food price increases and higher electricity charges.」

「As a result of reorganizing the organizational structure and working to turn around the business, the company is advancing measures including improvements in labor productivity and reductions in advertising expenses. However, the challenging business environment has continued due to consumers' heightened budget-consciousness following food price increases and surging electricity costs. Sales in the supermarket business were ¥5,971 million, down 9.2% year on year, and the segment loss was ¥27 million, compared with segment profit of ¥57 million in the same quarter of the previous year.」

「The business environment remained challenging due to heightened consumer thrift following food price increases and surging electricity costs. Revenue in the supermarket business was ¥3,900 million, down 10.7% year on year, and the segment recorded a loss of ¥68 million, compared with segment profit of ¥20 million in the same quarter of the previous year.」