Foreign exchange risk associated with import and export transactions

「Raw material prices showed some signs of stabilizing, contributing to more stable earnings. Measures such as reviewing the countries supplying raw materials also reduced the effects of foreign exchange movements despite the yen's depreciation trend, improving profitability.」

「Profitability improved in Italian food ingredients imported for the food-service industry, despite the effects of import exchange rates.」

「Ordinary profit ended 3.4% lower year on year. … Ordinary profit declined by ¥125 million from the previous consolidated fiscal year due to the fair value valuation of foreign-currency-denominated receivables and payables and forward exchange contracts, to ¥3,615 million, down 3.4% year on year.」

「In terms of profit, the continued depreciation of the yen after the price revisions caused purchase prices to rise, resulting in lower profit.」

「The ability to pass on part of the cost increases for raw materials, power, freight and import exchange rates to prices improved overall net sales and the operating profit margin, resulting in higher revenue and profit.」

「Foreign exchange gain 19」

「Foreign exchange gain 67」

「The ability to pass on part of the cost increases for raw materials, power, freight and import exchange rates to prices led to a modest improvement in profit margins. Operating profit, ordinary profit and quarterly net profit attributable to owners of the parent increased.」

「Foreign exchange gain 122」

「Temporary foreign exchange gains arose from significant exchange rate movements, resulting in higher ordinary profit and higher quarterly net profit attributable to owners of the parent.」

「However, both organic grains and Italian food ingredients struggled in terms of profitability because of higher purchase prices and the effects of import exchange rates.」

「Exports performed well as the successive price revisions gradually implemented began to bear fruit, with foreign exchange movements also contributing.」

「Although exports continued to be affected by container shortages and other factors, they progressed steadily, and higher revenue and profit were achieved with the benefit of favorable export exchange rates.」

「Foreign exchange loss 19」

「Foreign exchange loss 15」

「The Group imports raw materials and products and exports products, and is exposed to fluctuations in foreign exchange rates. Although it seeks to mitigate this risk in these transactions by using hedging instruments such as forward exchange contracts, sharp movements in foreign exchange rates may affect the Group's operating results.」

「Foreign exchange losses 42」

「The Group imports raw materials and products and exports products, and is exposed to fluctuations in foreign exchange rates. Although it seeks to mitigate this risk in these transactions by using hedging instruments such as forward exchange contracts, sharp movements in foreign exchange rates may affect the Group's operating results.」

「Foreign exchange loss 21」

「Foreign exchange loss　34」

「Sales of Italian food ingredients, fertilizers, iPS cell-related products and linker products remained firm, but profit margins declined partly due to the effects of foreign exchange movements and other factors.」

「Organic grains performed strongly, with results growing on the acquisition of new customers and other factors. Sales of Italian food ingredients, fertilizers, iPS cell-related products and cross-linked polyvinyl chloride also remained firm, but profit margins declined due to the effects of foreign exchange movements and other factors.」

「In the gelatin-related business, raw material costs rose due to the effects of import exchange rates and other factors,」

「Across the segments, raw material prices remained stable, partly due to favorable import exchange rates. Manufacturing costs also trended lower because of declines in crude oil and natural gas prices and lower depreciation expenses, among other factors, and earnings exceeded those of the previous consolidated fiscal year.」

「At a consolidated subsidiary that primarily sells imported products in Japan, yen appreciation reduced both net sales and purchases. Organic grains also declined due to timing differences in shipments and other factors.」

「At consolidated subsidiaries mainly engaged in foreign-currency-denominated imports, yen appreciation reduced both purchase prices and net sales.」

「As the yen appreciated, raw material and import prices, fuel costs and electricity costs declined, lowering manufacturing costs. As a result, gross profit was ¥2,524 million, up 6.8% year on year.」

「The Group imports raw materials and products and exports products. In these transactions, price fluctuations resulting from foreign exchange movements may affect operating results.」