Improving the Gross Profit Margin and Enhancing Earnings Power Through Cost Control

「Operating income was ¥3,697 million, up 7.0% year on year, as the increase in gross profit accompanying higher revenue offset higher freight and packing expenses and other costs.」

「Operating income increased by 13.8%, as the increase in gross profit from higher sales absorbed increases in freight, packing and other costs.」

「Operating income was ¥7,853 million, up 4.8% year on year, as higher gross profit from increased revenue and the profit contribution from the withdrawal from the food supermarket business offset the lower gross margin at the Singapore subsidiary and higher freight and packing expenses in existing businesses.」

「Operating income and net income attributable to owners of the parent also reached record highs.」

「Operating income was ¥3,454 million, down 0.5% year on year. The withdrawal from the food supermarket business contributed to higher profit, but this was offset by the decline in gross margin at the Singapore subsidiary and higher logistics costs in existing businesses.」

「Meanwhile, amid rising costs such as labor and logistics expenses due to labor shortages, the Group continued to improve efficiency by consolidating back-office operations and to implement cost control.」

「Meanwhile, amid rising costs such as labor and logistics expenses due to labor shortages, the Group continued to pursue back-office efficiency improvements and cost control.」

「In addition, the effects of higher revenue and the lower break-even point resulting from reforms to the earnings structure brought operating income to ¥7,819 million, up 114.2% year on year, and ordinary income to ¥7,971 million, up 105.6%. Profit attributable to owners of the parent for the fiscal year was ¥3,605 million, up 258.1% year on year, with each level of profit reaching the highest since the Company’s founding.」

「For the nine months ended the third quarter of the consolidated fiscal year, sales increased to ¥181,191 million, up 16.6% year on year, as the Group actively deepened relationships with existing customers and developed new accounts in line with the robust recovery in foodservice demand, in addition to the lingering effects of COVID-19 in the previous year. The effects of higher revenue and the lower break-even point resulting from reforms to the earnings structure brought operating income to ¥5,887 million, up 175.7% year on year, ordinary income to ¥6,016 million, up 151.9%, and profit attributable to owners of the parent for the quarter to ¥3,265 million, up 152.6%. Each level of profit was the highest since the Company’s founding for the period under review.」

「Higher revenue and the lower break-even point resulting from reforms to the earnings structure brought operating income to ¥3,682 million, up 196.7% year on year, ordinary income to ¥3,777 million, up 162.4%, and profit attributable to owners of the parent for the quarter to ¥1,776 million, up 181.3%. Each level of profit was the highest since the Company’s founding for the period under review.」

「As a result, sales increased to ¥58,682 million, up 22.2% year on year, reflecting the recovery in demand in the foodservice industry and the rebound from restrictions on activities imposed due to COVID-19 in the previous year. The effects of higher revenue and the lower break-even point resulting from reforms to the earnings structure enabled operating income to reach ¥1,519 million, up 377.9% year on year, the highest profit since the Company’s founding for the period under review.」

「Sales increased to ¥155,413 million, up 15.5% year on year. In addition to higher gross profit resulting from increased revenue, the lower break-even point achieved through continued cost control enabled operating income to reach ¥2,135 million, compared with an operating loss of ¥1,448 million in the previous year, marking a return to profitability for the first time in 3 fiscal years.」

「As a result, sales increased to ¥100,350 million, up 11.8% year on year. Higher revenue and the lower break-even point resulting from reforms to the earnings structure enabled operating income to reach ¥1,240 million, compared with an operating loss of ¥1,113 million in the previous year, marking a return to profitability for the first time in 3 fiscal years.」

「Operating income was ¥317 million, compared with an operating loss of ¥306 million in the previous year, as higher revenue and the lower break-even point resulting from reforms to the earnings structure enabled the Company to return to profitability for the first time in 3 fiscal years.」

「The operating loss for the consolidated fiscal year was ¥446 million, compared with an operating loss of ¥3,141 million in the previous fiscal year. Although this marked the second consecutive fiscal year of operating losses, operating results improved by ¥2,695 million from the previous fiscal year, due to higher gross profit and efforts to lower the break-even point through reforms to the earnings structure.」

「As infections resurged, requests for restaurants and other major customers to close or shorten their operating hours were repeatedly issued, forcing the Group to operate under challenging conditions. Nevertheless, the Group pursued lower break-even points across the Group through reforms to its earnings structure. As a result, for the nine months ended the third quarter of the consolidated fiscal year, sales were ¥134,593 million, down 1.0% year on year, and the operating loss was ¥1,448 million, compared with an operating loss of ¥3,084 million in the previous year.」

「However, partly due to the impact of the spread of COVID-19, sales in this business segment were ¥5,677 million, down 8.4% year on year. Operating income was ¥145 million, up 401.4% year on year, reflecting progress in improving gross margin and the effects of cost control.」

「As a result, sales in this business segment were ¥8,794 million, down 6.4% year on year, partly due to the impact of store closures implemented in the previous fiscal year. However, operating income was ¥137 million, up 278.1% year on year, partly reflecting the effects of cost control, including a review of sales promotion methods.」

「The Company viewed the current fiscal year as an opportunity to become a company capable of adapting to the new normal brought about by the spread of COVID-19, and focused on strengthening cost control further and on selective concentration, including investing limited resources in growth areas, in order to build a leaner cost structure capable of generating profit even in an “80% economy.”」

「As a result, partly due to the impact of the spread of COVID-19, sales in this business segment were ¥28,630 million, down 2.7% year on year. Operating income was ¥463 million, compared with an operating loss of ¥65 million in the previous year, due to the improved gross margin and reduced advertising and promotional expenses.」

「To improve profitability, the Group reviewed product lines, optimized order volumes and strengthened loss control, while continuing its efforts in cost control. As a result, sales in this business segment were ¥9,548 million, down 5.1% year on year, while operating income was ¥16 million, reflecting the improved gross margin, compared with an operating loss of ¥197 million in the previous year.」

「To improve profitability, the Group reviewed product lines, optimized order volumes and strengthened loss control, while continuing its efforts in cost control. As a result, sales in this business segment were ¥4,773 million, down 4.4% year on year, and operating income was ¥45 million, compared with an operating loss of ¥102 million in the previous year.」

「The Group pursued ongoing cost control, including reviews of cost-effectiveness, and business reform. However, mainly due to higher depreciation and M&A-related expenses, the operating margin declined to 0.6%, down 0.2 percentage points from 0.8% in the previous fiscal year.」

「Operating income was ¥680 million, down 22.0% year on year, and ordinary income was ¥726 million, down 25.8%, due mainly to higher logistics costs and other factors.」

「Operating income was ¥361 million, down 13.4% year on year, due mainly to higher logistics costs and other factors. Ordinary income was ¥402 million, down 8.0%.」

「The Group pursued ongoing cost control, including reviews of cost-effectiveness, and business reform. However, mainly due to higher depreciation associated with information systems investment and increased M&A-related expenses, the operating margin declined to 0.8%, down 0.1 percentage points from 0.9% in the previous fiscal year.」

「As a result, although same-store sales at A-Price remained firm, sales in this business segment were ¥29,516 million, down 2.7% year on year, due in part to the impact of store closures implemented in the previous and current fiscal years. Operating income was ¥190 million, up 130.9% year on year, partly due to lower expenses associated with store closures.」

「As a result, although same-store sales at A-Price remained firm, sales in this business segment were ¥9,772 million, down 2.7% year on year, due in part to the impact of store closures implemented in the previous and current fiscal years, involving 5 stores. Operating income was ¥72 million, up 498.9% year on year, reflecting the improved gross margin and lower store-closing costs.」

「The Group pursued ongoing cost control, including reviews of cost-effectiveness, and business reform. However, mainly due to higher personnel expenses, the operating margin declined to 0.9%, down 0.5 percentage points from 1.4% in the previous fiscal year.」

「Operating income was ¥1,138 million, down 39.5% year on year. The decline in gross profit resulting from lower revenue could not be offset despite continued efforts in business reform and cost control.」

「Operating income was ¥806 million, down 36.3% year on year. The decline in gross profit accompanying lower revenue could not be offset despite continued efforts in business reform and cost control.」

「Operating income was ¥430 million, down 34.7% year on year, despite continued efforts in business reform and cost control.」

「Despite delays in the recovery of the food supermarket business segment, operating income was ¥1,881 million, up 0.8% year on year, due to productivity improvement initiatives and cost control.」

「Despite delays in the recovery of the food supermarket business segment, operating income was ¥1,266 million, up 2.3% year on year, due to productivity improvement initiatives and cost control.」