Building a Strong Business and a Highly Profitable Operating Structure for Earnings Growth

「As a result, sales for the fiscal year were ¥47,252 million, down 3.8% year on year, operating profit was ¥4,153 million, up 14.5%, and ordinary profit was ¥4,206 million, up 16.4%. In addition, the company reorganized certain unprofitable manufacturing facilities in the collagen casing business and recorded an impairment loss of ¥438 million. As a result, net income attributable to owners of the parent was ¥2,832 million, up 15.3%.」

「Under these operating conditions, we continued to pursue productivity improvements, review manufacturing, selling and administrative expenses, and develop high-value-added products. … As a result, sales for the six months ended 30 September were ¥24,020 million, down 3.9% year on year, while operating profit was ¥2,056 million, up 24.9%, and ordinary profit was ¥2,146 million, up 37.7%.」

「Although we had expected earnings to decline substantially during the fiscal year due to the prolonged depreciation of the yen and higher costs, including fuel and labor expenses, operating profit increased slightly, supported by productivity improvements in the manufacturing division, a downward trend in gelatin raw material prices and growth in the food and other businesses. Ordinary profit finished 3.4% below the previous fiscal year. As a result, sales were ¥49,141 million, up 0.2% year on year, operating profit was ¥3,627 million, up 0.4%, and ordinary profit was ¥3,615 million, down 3.4%.」

「Under these operating conditions, we continued to pursue productivity improvements, review manufacturing, selling and administrative expenses, and develop high-value-added products. During the six months ended 30 September, the gelatin-related business experienced lower sales and earnings due to the significant impact of import-related foreign exchange movements, while the other reporting segments generally performed well. As a result, sales were ¥25,003 million, up 2.4% year on year, operating profit was ¥1,646 million, down 10.0%, ordinary profit was ¥1,559 million, down 18.6%, and interim net income attributable to owners of the parent was ¥1,109 million, down 19.5%.」

「During the fiscal year, the partial pass-through of higher raw material, energy, freight and import-related foreign exchange costs to prices improved overall sales and the operating profit margin, resulting in higher sales and earnings. As a result, sales were ¥49,046 million, up 9.5% year on year, operating profit was ¥3,612 million, up 145.5%, and ordinary profit was ¥3,740 million, up 140.8%.」

「The partial pass-through of higher raw material, energy, freight and import-related foreign exchange costs to prices improved overall sales and the operating profit margin, resulting in higher sales and earnings. As a result, sales for the nine months ended 31 December were ¥36,853 million, up 8.9% year on year, operating profit was ¥2,450 million, up 128.9%, ordinary profit was ¥2,486 million, up 106.2%, and quarterly net income attributable to owners of the parent was ¥1,788 million, up 123.1%.」

「Under these operating conditions, we continued to pursue reductions in manufacturing, selling and administrative expenses and develop high-value-added products. During the six months ended 30 September, sales increased in almost all reporting segments as the economy recovered, while profit margins improved because part of the increases in raw material, energy, freight and import-related foreign exchange costs was passed on to prices. Operating profit, ordinary profit and quarterly net income attributable to owners of the parent all increased. As a result, sales were ¥24,418 million, up 8.9% year on year, operating profit was ¥1,830 million, up 78.2%, ordinary profit was ¥1,916 million, up 54.7%, and quarterly net income attributable to owners of the parent was ¥1,377 million, up 65.7%.」

「Under these operating conditions, we continued to pursue reductions in manufacturing, selling and administrative expenses and develop high-value-added products. During the three months ended 30 June, sales increased in almost all reporting segments as the economy recovered, while profit margins improved slightly because part of the increases in raw material, energy, freight and import-related foreign exchange costs was passed on to prices. Operating profit, ordinary profit and quarterly net income attributable to owners of the parent all increased. As a result, sales were ¥12,043 million, up 10.5% year on year, operating profit was ¥719 million, up 40.9%, ordinary profit was ¥830 million, up 32.0%, and quarterly net income attributable to owners of the parent was ¥596 million, up 40.4%.」

「During the fiscal year, the group focused on acquiring new customers in Japan and overseas and expanding sales across all reporting segments, including collagen casings, gelatin and peptides, cosmetics and leather. Although sales increased, profit margins narrowed due to surging raw material, energy and logistics costs, resulting in lower operating profit.」

「Under these operating conditions, we continued to pursue reductions in manufacturing, selling and administrative expenses and develop high-value-added products. During the nine months ended 31 December, sales increased in almost all reporting segments amid a gradual economic recovery. However, the company was unable to fully pass on to selling prices the increases in all costs, including manufacturing and purchasing costs, which rose due to surging raw material and energy prices, as well as higher selling costs such as advertising and freight. Operating profit, ordinary profit and quarterly net income attributable to owners of the parent therefore declined. As a result, sales for the nine months ended 31 December were ¥33,850 million, up 15.7% year on year, operating profit was ¥1,070 million, down 23.9%, ordinary profit was ¥1,205 million, down 13.1%, and quarterly net income attributable to owners of the parent was ¥801 million, down 8.1%.」

「Under these operating conditions, we continued to pursue reductions in manufacturing, selling and administrative expenses and develop high-value-added products. During the six months ended 30 September, sales increased in almost all reporting segments amid a gradual economic recovery, although profitability in the leather-related business remained challenging. Meanwhile, manufacturing costs rose due to surging prices for raw materials and energy, and operating profit declined as selling expenses increased, including advertising and freight costs. In addition, a temporary foreign exchange gain arose from significant exchange-rate movements, resulting in higher ordinary profit and quarterly net income attributable to owners of the parent. As a result, sales for the six months ended 30 September were ¥22,417 million, up 15.8% year on year, operating profit was ¥1,027 million, down 10.5%, ordinary profit was ¥1,239 million, up 12.0%, and quarterly net income attributable to owners of the parent was ¥831 million, up 20.3%.」

「We continued to pursue manufacturing cost reductions and develop high-value-added products. … However, manufacturing costs increased due to surging prices for raw materials and energy, while higher selling expenses, including advertising and freight costs, resulted in lower operating profit. As a result, sales for the three months ended 30 June were ¥10,902 million, up 11.8% year on year, while operating profit was ¥510 million, down 24.7%, and ordinary profit was ¥628 million, down 6.2%.」

「As a result, sales for the fiscal year were ¥39,349 million, up 10.5% year on year, operating profit was ¥1,759 million, up 101.1%, and ordinary profit was ¥1,776 million, up 110.8%.」

「Under these operating conditions, we continued to pursue manufacturing cost reductions and develop high-value-added products.」

「Under these operating conditions, we continued to pursue manufacturing cost reductions and develop high-value-added products. During the six months ended 30 September, sales of leather products and imported food ingredients for commercial use remained challenging, but “Nippi Collagen 100” performed well against a backdrop of growing health consciousness, and collagen peptide sales to manufacturers in Japan and overseas returned to growth.」

「Under these operating conditions, we continued to pursue manufacturing cost reductions and develop high-value-added products. Although inbound demand in Japan, demand for leather shoes and sales of food ingredients for commercial use remained sluggish, “Nippi Collagen 100” continued to perform well against a backdrop of growing health consciousness. Inventory adjustments by health food companies in Japan and overseas were also completed, and collagen peptides returned to sales growth. The iMatrix series also performed well as the market expanded. As a result, sales for the three months ended 30 June were ¥9,753 million, up 12.7% year on year. Operating profit was ¥678 million, up 67.8%, ordinary profit was ¥670 million, up 57.5%, and quarterly net income attributable to owners of the parent was ¥407 million, down 89.5%.」

「Sales for the fiscal year were ¥35,595 million, down 16.1% year on year, operating profit was ¥874 million, down 52.9%, and ordinary profit was ¥842 million, down 51.4%.」

「In the rental and real estate business, as described in the notice titled “Notice Regarding the Transfer of Fixed Assets and Recognition of Extraordinary Income” announced on 27 March 2020, part of the land in a redevelopment district in Adachi Ward, Tokyo was sold for residential use on 27 April 2020, and a gain on the sale of fixed assets was recorded. As a result, sales for the nine months ended 31 December were ¥26,330 million, down 19.1% year on year. Operating profit was ¥822 million, down 40.7%, ordinary profit was ¥792 million, down 41.6%, and quarterly net income attributable to owners of the parent was ¥4,239 million, up 365.7%.」

「As a result, sales for the six months ended 30 September were ¥17,094 million, down 22.2% year on year. Operating profit was ¥582 million, down 46.6%, ordinary profit was ¥577 million, down 45.3%, and quarterly net income attributable to owners of the parent was ¥4,129 million, up 451.6%.」

「Under these conditions, the company focused on expanding business by continuing to improve customer satisfaction, pursuing earnings improvement measures in the collagen casing business, which had performed poorly in the previous fiscal year, and strengthening sales of collagen peptides, for which demand was strong. As a result, sales for the fiscal year were ¥42,410 million, down 2.8% year on year. Operating profit was ¥1,856 million, up 123.3%, and ordinary profit was ¥1,733 million, up 105.4%.」

「Under these operating conditions, the company continued to pursue earnings improvement measures for collagen casings, including price revisions for overseas sales and production efficiency improvements, amid sluggish domestic demand. Demand for collagen peptides remained strong and sales performed well. As a result, sales for the nine months ended 31 December were ¥32,554 million, down 2.7% year on year. Operating profit was ¥1,387 million, up 180.5%, ordinary profit was ¥1,358 million, up 150.5%, and quarterly net income attributable to owners of the parent was ¥910 million, up 251.1%.」

「Under these operating conditions, the company continued to pursue earnings improvement measures for collagen casings, including price revisions for overseas sales and production efficiency improvements, amid stagnant domestic demand. Demand for collagen peptides remained strong and sales performed well, while price revisions for fish-derived products proceeded both in Japan and overseas. A new collagen peptide plant was completed and began operations in August. As a result, sales for the six months ended 30 September were ¥21,973 million, down 0.8% year on year. Operating profit was ¥1,090 million, up 448.1%, ordinary profit was ¥1,055 million, up 269.8%, and quarterly net income attributable to owners of the parent was ¥748 million, up 476.8%.」

「As a result, sales for the three months ended 30 June were ¥11,190 million, down 1.6% year on year. Operating profit was ¥485 million, up 120.5%, ordinary profit was ¥487 million, up 51.3%, and quarterly net income attributable to owners of the parent was ¥378 million, up 97.6%.」

「As a result, sales for the fiscal year were ¥43,651 million, up 3.6% year on year. Operating profit was ¥831 million, down 58.6%, due in part to intensified price competition for collagen casings and persistently high manufacturing costs caused by higher prices for fish-derived raw materials used in collagen peptides. Ordinary profit was ¥843 million, down 54.5%. Net income attributable to owners of the parent was ¥172 million, down 81.9%.」

「As a result, sales for the nine months ended 31 December were ¥33,453 million, up 4.9% year on year. Operating profit was ¥494 million, down 74.2%, ordinary profit was ¥542 million, down 70.9%, and quarterly net income attributable to owners of the parent was ¥259 million, down 76.4%.」

「As a result, sales for the six months ended 30 September were ¥22,142 million, up 4.8% year on year. Operating profit was ¥198 million, down 85.3%, ordinary profit was ¥285 million, down 78.5%, and quarterly net income attributable to owners of the parent was ¥129 million, down 83.3%.」

「As a result, sales for the three months ended 30 June were ¥11,372 million, up 7.2% year on year. Higher purchasing and manufacturing costs and increased advertising expenses resulted in operating profit of ¥220 million, down 68.8%, ordinary profit of ¥322 million, down 55.6%, and quarterly net income attributable to owners of the parent of ¥191 million, down 60.0%.」

「Under these conditions, the group worked to build an even stronger business to achieve further earnings growth through cost reductions and efficient capital investment related to its core collagen casings and gelatin-related products, as well as cosmetics-related and leather-related products. As a result, sales for the fiscal year were ¥42,137 million, up 8.1% year on year. Operating profit was ¥2,006 million, down 14.9%, and ordinary profit was ¥1,854 million, down 14.8%, due in part to higher selling, general and administrative expenses, including advertising costs.」

「As a result, sales for the nine months ended 31 December were ¥31,887 million, up 7.2% year on year. Operating profit was ¥1,918 million, down 11.3%, due to higher selling, general and administrative expenses, including advertising expenses. Ordinary profit was ¥1,864 million, down 10.7%, while quarterly net income attributable to owners of the parent was ¥1,100 million, down 41.1%, partly due to the impact of tax expenses.」

「As a result, sales for the six months ended 30 September were ¥21,124 million, up 6.1% year on year. Operating profit was ¥1,349 million, down 8.3%, ordinary profit was ¥1,324 million, down 3.3%, and quarterly net income attributable to owners of the parent was ¥776 million, down 44.6%.」

「As a result, sales for the three months ended 30 June were ¥10,607 million, up 5.6% year on year. Expenses increased, due in part to higher advertising expenses, resulting in operating profit of ¥707 million, down 16.4%, ordinary profit of ¥724 million, down 7.0%, and quarterly net income attributable to owners of the parent of ¥478 million, down 7.8%.」

「We worked to build an even stronger business to achieve further earnings growth through cost reductions and efficient capital investment related to our core collagen casings and gelatin products, as well as cosmetics-related and leather-related products. As a result, sales for the fiscal year were ¥38,976 million, down 7.3% year on year. In terms of earnings, lower raw material prices and energy costs resulting from the stronger yen in the first half reduced manufacturing costs, while a change in the depreciation method also contributed. Operating profit was ¥2,356 million, up 9.3%, and ordinary profit was ¥2,176 million, up 17.3%.」

「Under these operating conditions, sales for the nine months ended 31 December declined to ¥29,738 million, down 8.8% year on year. Capsule gelatin and peptides for export performed well, but transaction volumes for leather used in handles declined substantially. In addition, at a consolidated subsidiary that mainly sells imported products in Japan, both sales and purchases declined due to the stronger yen, while sales of organic grains also declined because shipments shifted between periods. Meanwhile, the appreciation of the yen in the first half lowered raw material prices, fuel costs and electricity charges, reducing manufacturing costs. As a result, gross profit was ¥7,363 million, up 3.4% year on year. Expenses declined as the company worked to allocate advertising expenses efficiently, resulting in operating profit of ¥2,163 million, up 31.5%, and ordinary profit of ¥2,088 million, up 42.4%. Quarterly net income attributable to owners of the parent was ¥1,869 million, up 108.2%, due in part to a ¥185 million gain on the sale of long-outstanding receivables and lower tax expenses resulting from the realization of tax-deductible temporary differences that could not be scheduled for tax purposes.」

「Amid the prolonged appreciation of the yen, raw material prices, fuel costs and electricity charges declined, lowering manufacturing costs. As a result, gross profit was ¥4,821 million, up 3.9% year on year. Operating profit was ¥1,471 million, up 42.0%, due in part to lower advertising expenses, while ordinary profit was ¥1,369 million, up 48.5%. Quarterly net income attributable to owners of the parent was ¥1,402 million, up 146.9%, due in part to a ¥185 million gain on the sale of long-outstanding receivables and lower tax expenses resulting from the realization of tax-deductible temporary differences that could not be scheduled for tax purposes.」

「Amid the trend toward a stronger yen, raw material and import prices, fuel costs and electricity charges declined, lowering manufacturing costs. As a result, gross profit was ¥2,524 million, up 6.8% year on year. Operating profit was ¥845 million, up 86.8%, due to lower advertising expenses, while ordinary profit was ¥778 million, up 59.1%. Net income attributable to owners of the parent was ¥518 million, up 88.0%.」

「We worked to build an even stronger business to achieve further earnings growth through cost reductions and efficient capital investment related to our core collagen casings and gelatin products, as well as cosmetics-related and leather-related products.」