Selling Price Revisions in Response to Rising Raw Material and Logistics Costs

「The Group plans to revise sales prices for orders received from 27 July, but the delayed revision will create a time lag and become a factor reducing profit for the period.」

「The revision of list prices for some products progressed, lifting sales prices」

「Against a backdrop of higher raw material prices and logistics costs, the company revised the list prices of some products in December 2024 and also worked to improve profitability.」

「Amid these conditions, revenue exceeded the previous year as the company proceeded to pass higher procurement prices on to sales prices and focused on detailed product proposals centered on new products under the Toli brand.」

「During the period, the company worked to improve profitability further by promoting the penetration of revised selling prices and focusing on establishing a stable supply structure and reducing manufacturing costs, including through the full-scale operation of the new No. 3 line at Koka TOLI Floor, expanded in-house production of nylon yarn for tile carpets, and a higher recycling rate through use of the tile carpet recycling plant.」

「During the current fiscal year, we worked to establish the third sales price revision implemented in September 2022, while focusing on reducing manufacturing costs through the full-scale operation of the new No. 3 line at 広化東リフロア, expanded in-house production of nylon yarn for tile carpets, and improved recycling rates through the tile carpet recycling plant. We also worked to establish a stable supply system and improve profitability.」

「Revenue for the consolidated fiscal year increased substantially, as the effects of the first sales price revision implemented in July 2021 and the second implemented in May 2022 were reflected throughout the year, in addition to the third sales price revision implemented in September 2022.」

「In terms of profit, various initiatives to reduce manufacturing costs and the effects of selling price revisions from May contributed to results, but with raw material prices remaining elevated, the improvement in profitability from passing on these increases through subsequent price revisions remained limited.」

「During the period, to address the multiple increases in raw material costs since the previous year, we focused on reducing manufacturing costs, including in-house production of nylon yarn for carpet tiles and increasing the proportion of recycled raw materials used. We also announced the second sales price revision in May and the third in September, following the first sales price revision implemented in autumn of the previous year, and worked to improve profitability.」

「During the period, to address the multiple increases in raw material costs since the previous year, we worked to improve profitability through sales price revisions from May, along with cost-reduction initiatives. However, as raw material prices remained high, we decided to implement the third sales price revision since last summer from 20 September.」

「The Group implemented another sales price revision in May 2022 and will continue working to improve profitability.」

「We revised prices for some products in July and list prices for products launched, discontinued or revised in October, and have worked to improve profitability. However, the effect of the revisions during the period was limited.」

「We began revising prices for some products in July, but the full-scale price revision, including list prices, was implemented from late October, so the effect of the revisions during the period was limited.」

「Amid expectations that high raw material prices will persist, we will work to improve operating profit by revising sales prices, achieving further cost reductions, and reducing expenses with cost-effectiveness in mind.」

「For the current consolidated fiscal year, net sales increased by ¥4,345 million to ¥94,701 million. In the Products business, sales of tile carpets and other products exceeded the previous year’s results against the backdrop of the Hitoe Series, Japan’s first single-layer vinyl floor sheet launched in the previous fiscal year, and the firm office market. The increasing market penetration of the selling price revisions implemented from June 2018 also contributed to the increase in sales.」

「In terms of profit, segment profit was ¥795 million, up 18.3% year on year, due to higher net sales, revisions to selling prices and efforts to reduce manufacturing costs, among other factors.」

「In terms of profit, although selling promotion expenses and sample expenses increased to strengthen promotional activities, segment profit reached ¥274 million, up 63.8% year on year, due in part to higher sales and efforts to revise selling prices.」

「In terms of profit, segment profit was ¥274 million, up 12.5% year on year, as the company revised selling prices and improved operating efficiency through an update of its core system.」

「In response to higher prices for key raw materials and higher logistics costs, we have revised selling prices since June this year. Although the profit improvement effect during the cumulative second quarter of the current consolidated fiscal year remained limited, we will continue working to penetrate the market and strengthen the business foundation.」