Addressing inventory risk through effective inventory management

「Although seafood trading inevitably involves the risk of market fluctuations, the Company aims to optimize operating expenses by reviewing its internal management systems to optimize and accelerate the turnover of inventories held and by making profitability management more detailed,」

「Although seafood trading inevitably involves the risk of market fluctuations, the Company aims to optimize operating expenses by reviewing its internal management systems to optimize and accelerate the turnover of inventories held and by making profitability management more detailed,」

「Regarding this risk, the Company is reviewing its internal management systems to optimize and accelerate the turnover of inventories held. Specifically, it sets target month-end inventory balances for each sales department and conducts regular reviews.」

「Efforts to improve sales efficiency through optimal inventory levels and strengthen profitability management contributed to lower selling costs by reducing storage expenses and focusing sales more closely on profitability.」

「Although the spread of the infectious disease also had an impact, the Group implemented operational measures including the restructuring of group companies, the Company's structural reforms, and more efficient sales through optimal inventory levels. Net sales were ¥13,109 million, compared with net sales of ¥14,244 million in the same period of the previous year, while operating profit was ¥27 million, compared with an operating loss of ¥75 million in the same period of the previous year, due to an increase in gross profit and lower selling costs.」

「For these reasons, sales in the core segment, seafood wholesaling, declined. However, the gross profit margin improved through inventory optimization and responses to changes in distribution channels, storage costs were reduced, and organizational restructuring also improved efficiency, resulting in a substantial improvement in earnings.」

「The company has been implementing the initiatives set out at the beginning of the period: reviewing internal management systems to improve sales efficiency through appropriate inventory levels and optimising selling expenses through more detailed profit management. Gross profit margin improved through improved sales efficiency from appropriate inventory levels and responses to changes in distribution channels, while other expenses were reduced.」

「Against this backdrop, the group has been implementing the initiatives set out at the beginning of the period: organisational restructuring, improved sales efficiency through appropriate inventory levels, and thorough profit management.」

「Current assets amounted to ¥5,721 million, a decrease of ¥8 million. This was because merchandise and finished goods declined as the company optimised its inventory to improve sales efficiency through appropriate inventory levels, as set out in its initiatives, despite an increase in cash and deposits.」

「We will review our internal management systems to optimise inventories held and accelerate inventory turnover. Specifically, we will set target month-end inventory balances for each sales department and conduct regular reviews.」

「We will continue to focus on risk management, including timely collection and efforts to reduce inventory risk and strengthen credit management, while concentrating our efforts on transforming the business into a profitable segment.」

「Under the new management plan, CHALLENGE-2020, the company continues to pursue effective inventory management.」

「Under the new management plan, CHALLENGE-2020, the company continues to pursue effective inventory management.」