Market fluctuation risk from catch volumes, fish prices, and foreign exchange

「Higher selling prices increased revenue, but profit declined due to lower sales volume, lower gross profit margins resulting from higher product procurement costs, and higher selling, general and administrative expenses, particularly personnel and logistics costs.」

「The aquaculture business, which farms yellowtail and tuna in Kyushu and Shikoku, experienced lower sales volume and higher production costs due to delayed growth caused by prolonged high seawater temperatures. However, selling prices rose sharply because nationwide inventories were low, resulting in revenue of ¥4,436 million (106.8% year on year) and segment profit of ¥444 million, compared with a segment loss of ¥523 million in the prior year.」

「The aquaculture business, which farms yellowtail, amberjack and tuna in Kyushu and Shikoku, increased revenue to ¥4,152 million (122.2% year on year) as sales volume rose sharply. However, lower selling prices due to high nationwide inventories of farmed yellowtail, together with higher production costs resulting from soaring feed prices and delayed growth caused by extreme heat, resulted in a segment loss of ¥523 million, compared with segment profit of ¥153 million in the prior year.」

「The seafood wholesale receiving business, which has collection and sales functions centered on central wholesale markets, reported revenue of ¥153,989 million (99.3% of the same quarter of the previous year) and segment profit of ¥1,538 million (72.9% of the same quarter of the previous year). Although sales related to food-service and takeout dining were showing signs of recovery and the company worked to reduce selling, general and administrative expenses, market prices for some major products declined, prompting the company to actively sell the related inventory early.」

「The seafood wholesale receiving business, which has collection and sales functions centered on central wholesale markets, reported revenue of ¥98,083 million (100.5% of the same quarter of the previous year) and segment profit of ¥750 million (54.1% of the same quarter of the previous year). Although sales related to food-service and takeout dining were showing signs of recovery and the company worked to reduce selling, general and administrative expenses, market prices for some major products declined, prompting the company to actively sell the related inventory early.」

「The seafood wholesale receiving business, which has collection and sales functions centered on central wholesale markets, reported revenue of ¥50,985 million (106.8% of the same quarter of the previous year) and segment profit of ¥683 million (105.2% of the same quarter of the previous year). Sales volumes declined as incoming volumes fell, although sales related to at-home dining remained firm while sales related to food-service and takeout dining showed signs of recovery. Higher selling prices and reductions in selling, general and administrative expenses contributed to profit.」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, saw signs of recovery in foodservice and prepared-food sales, while sales related to at-home consumption remained firm. Sales volume declined in response to lower arrivals and higher selling prices, but revenue increased. Higher procurement costs and falling market prices for some frozen fish lowered gross profit margins, resulting in revenue of ¥199,557 million (106.4% year on year) and segment profit of ¥2,459 million (87.8% year on year).」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, saw signs of recovery in foodservice and prepared-food sales, while sales related to at-home consumption remained firm. Sales volume declined in response to higher selling prices, but revenue increased. Higher procurement costs and falling market prices for some frozen fish lowered gross profit margins, resulting in revenue of ¥155,138 million (108.7% of the prior-year quarter) and segment profit of ¥2,111 million (84.5% of the prior-year quarter).」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, saw signs of recovery in some foodservice and prepared-food sales, while sales related to at-home consumption remained firm. Sales volume declined as selling prices rose, but revenue increased. Higher procurement costs lowered gross profit margins and selling, general and administrative expenses increased, resulting in revenue of ¥97,555 million (109.2% of the prior-year quarter) and segment profit of ¥1,388 million (86.4% of the prior-year quarter).」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, experienced a decline in sales volume, including sluggish sales related to at-home consumption, but revenue increased due to higher selling prices. Profit was affected by lower gross profit margins resulting from higher procurement costs, resulting in revenue of ¥47,737 million (109.5% of the prior-year quarter) and segment profit of ¥649 million (83.1% of the prior-year quarter).」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥142,669 million, compared with ¥145,056 million in the prior-year quarter, and segment profit of ¥2,498 million (151.6% of the prior-year quarter). This was despite lower sales volume resulting from procurement difficulties caused by lockdowns in overseas production areas, lower catches and soaring prices for certain products, as well as continued overall increases in seafood prices. Firm sales related to at-home consumption and improved gross profit margins supported the results.」

「Amid generally rising seafood prices, firm sales related to at-home consumption and efforts to balance sales with price trends and demand, particularly for frozen seafood, resulted in revenue of ¥89,314 million, compared with ¥89,387 million in the prior-year quarter, and segment profit of ¥1,606 million (255.1% of the prior-year quarter).」

「Although sales to the Group's main foodservice and hotel customers remained difficult, they were gradually recovering from the sharp decline in the prior period. Firm sales to mass retailers also resulted in revenue of ¥24,767 million, compared with ¥22,375 million in the prior-year quarter, and a segment loss of ¥435 million, compared with a segment loss of ¥686 million in the prior-year quarter.」

「The off-market seafood wholesale business generated revenue of ¥108,503 million (92.5% year on year) and a segment loss of ¥806 million, compared with segment profit of ¥111 million in the prior year, as sales to mass retailers increased but sales to foodservice and hotels declined sharply and selling prices fell.」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥145,056 million (93.4% of the prior-year quarter), as firm demand for at-home consumption was offset by lower foodservice demand and selling prices. However, higher gross profit margins and reductions in overall indirect expenses resulted in segment profit of ¥1,648 million (183.4% of the prior-year quarter). The aquaculture business, which farms yellowtail, amberjack and tuna in Kyushu and Shikoku, generated revenue of ¥6,886 million (95.1% of the prior-year quarter) and segment profit of ¥47 million (9.3% of the prior-year quarter), as a sharp decline in foodservice- and export-related demand and oversupply lowered selling prices.」

「The aquaculture business, which farms yellowtail, amberjack and tuna in Kyushu and Shikoku, generated revenue of ¥3,889 million (97.8% of the prior-year quarter) and segment profit of ¥22 million (8.9% of the prior-year quarter), as a sharp decline in foodservice- and export-related demand and oversupply lowered selling prices.」

「Demand related to foodservice and exports declined sharply, lowering selling prices, while sales volume also decreased. As a result, revenue was ¥1,867 million (94.5% of the prior-year quarter) and segment profit was ¥9 million (5.7% of the prior-year quarter).」

「In the seafood distribution industry, procurement prices for both imported and domestic seafood were generally high in the first half, although prices for some sharply higher-priced species were undergoing adjustment. In the second half, price adjustments progressed and selling prices trended downward, while poor catches of saury and other species reduced sales volume, making it difficult to secure profits.」

「The seafood wholesale receiving business, which has collection and sales functions centered on central wholesale markets, reported revenue of ¥99,252 million (99.4% of the same quarter of the previous year) as higher selling prices were offset by lower volumes handled. Despite efforts to reduce indirect costs overall, segment profit was ¥356 million (50.1% of the same quarter of the previous year) due to a lower gross profit margin.」

「The seafood wholesale receiving business, which has collection and sales functions centered on central wholesale markets, reported revenue of ¥49,294 million (99.3% of the same quarter of the previous year) as higher selling prices were offset by lower volumes handled. Despite efforts to reduce indirect costs overall, segment profit was ¥241 million (62.7% of the same quarter of the previous year) due to a lower gross profit margin.」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥209,200 million (101.4% year on year) and segment profit of ¥1,556 million (119.0% year on year), as higher selling prices more than offset the decline in handled volume caused by adverse weather and other factors. The off-market seafood wholesale business generated revenue of ¥114,679 million (97.7% year on year) and a segment loss of ¥133 million, compared with a segment loss of ¥49 million in the prior year.」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥160,340 million (101.7% of the prior-year quarter) and segment profit of ¥1,401 million (113.8% of the prior-year quarter), as higher selling prices more than offset the decline in handled volume caused by adverse weather and other factors.」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥99,897 million (101.8% of the prior-year quarter) and segment profit of ¥712 million (104.8% of the prior-year quarter), as higher selling prices more than offset the decline in handled volume caused by adverse weather and other factors.」

「The off-market seafood wholesale business generated revenue of ¥26,430 million (98.3% of the prior-year quarter) because lower selling prices offset the increase in sales volume. Lower revenue and gross profit margins resulted in a segment loss of ¥202 million, compared with a segment loss of ¥103 million in the prior-year quarter.」

「The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥206,305 million (103.1% year on year) despite poor catches of certain species. Segment profit was ¥1,307 million (73.8% year on year) due to lower gross profit margins resulting from higher procurement costs and increased freight and storage costs.」

「In the seafood distribution industry, imported seafood faced persistently high procurement costs, while domestic seafood was operating in a difficult business environment partly because of poor catches of certain species. The seafood receiving business, which has collection and sales functions centered on central wholesale markets, generated revenue of ¥157,671 million (100.4% of the prior-year quarter) despite poor catches of certain species. Segment profit was ¥1,232 million (88.1% of the prior-year quarter) due to lower gross profit margins resulting from higher procurement costs and other factors.」

「The seafood wholesaling business, which has collection and sales functions centred on central wholesale markets, recorded revenue of ¥47,267 million, or 99.0% of the same quarter of the previous year, as the decline in selling prices outweighed an increase in transaction volume. Despite efforts to reduce indirect expenses overall, lower gross profit margins resulted in segment profit of ¥221 million, or 82.6% of the same quarter of the previous year.」

「The aquaculture business generated revenue of ¥8,105 million (95.9% year on year) due to lower selling prices and sales volume, while segment profit was ¥203 million (86.2% year on year) owing to higher production costs, including soaring feed prices.」

「Although sales volume increased, lower selling prices resulted in revenue of ¥6,038 million (99.4% of the prior-year quarter), while lower gross profit margins and other factors resulted in segment profit of ¥236 million (73.9% of the prior-year quarter).」

「The Group's principal business is the wholesale of seafood. Fluctuations in supply and demand resulting from changes in catches, the associated fluctuations in seafood prices, and fluctuations in seafood prices caused by foreign exchange movements may affect the Group's results.」