Impact of COVID-19 on sales, manufacturing and logistics

「The economy is showing signs of recovery as people flows increase following the lifting of restrictions related to COVID-19 and inbound demand recovers.」

「The Japanese economy showed signs of recovery as demand for leisure activities and inbound tourism recovered following the lifting of COVID-19 restrictions.」

「During the current fiscal year, the Japanese economy was affected by higher and persistently elevated energy and raw material prices, resulting in price increases for many products. However, personal consumption showed signs of recovery, supported by the easing of restrictions following the decline in COVID-19 cases and by the substantial increase in savings during the pandemic.」

「As efforts to balance COVID-19 containment with economic activity progressed, foot traffic recovered in cities and tourist destinations, and the economy showed signs of recovery.」

「During the cumulative second quarter, Japan's economy saw the impact of higher raw material and energy prices continue amid the worsening situation in Ukraine, while personal consumption regained momentum as activity restrictions were eased and the global economy recovered.」

「During the cumulative first quarter, Japan's economy recovered moderately. Personal consumption showed signs of recovery as the number of COVID-19 cases declined, but energy and raw material prices continued to rise amid the protracted conflict in Ukraine and a sharp depreciation of the yen reflecting interest-rate hikes in the United States and Europe.」

「During the cumulative nine months of the current fiscal year, economic activity showed signs of returning to normal, as the state of emergency related to COVID-19 was fully lifted on 1 October and the movement of people recovered toward year-end. However, the future situation remained difficult to predict, amid concerns over the impact of the spread of variants.」

「During the cumulative second quarter, Japan's economy saw the state of emergency and priority preventive measures extended through the end of September in many prefectures as the spread of COVID-19 constrained economic activity. Meanwhile, the beverage industry began to show signs of recovery from the sharp decline in sales in the same quarter a year earlier.」

「During the cumulative first quarter of the current fiscal year, economic activity was constrained by the spread of COVID-19 and the declaration of a state of emergency, while the beverage industry began to show signs of recovery from the sharp decline in sales in the same quarter of the previous year.」

「During the third quarter of the fiscal year, the number of COVID-19 infections in Japan began rising again from mid-November. Although there were expectations that vaccinations would bring the pandemic under control, the recovery in private investment and personal consumption was expected to be moderate because concerns about economic activity remained due to teleworking and the curtailment of face-to-face sales.」

「However, the number of new infections continues to rise globally, and the pace of recovery in private investment and personal consumption is expected to remain moderate due to the continuation of entry restrictions from overseas and persistent concerns about conventional economic activities such as face-to-face sales in Japan.」

「While the spread of infection remains unpredictable, the Group is working flexibly each day together with its business partners. At the same time, it is steadily pursuing three future-oriented key initiatives: expanding its own brands by unifying product brands through promotions, expanding use of the Aseed Logistics Center (ALC) toward October 2020, and expanding globally, centered on Thailand and Vietnam. As a result, for the cumulative first quarter of the current fiscal year, sales were ¥5,600 million, down 20.3% year on year; operating income was ¥45 million, down 86.8%; ordinary income was ¥55 million, down 82.9%; and quarterly net income attributable to owners of the parent was ¥10 million, down 94.7%.」

「The COVID-19 pandemic that emerged at the end of 2019 is spreading rapidly. The Group operates using multiple business and logistics sites. If the spread of the infection exceeds our assumptions, business operations across sales, manufacturing and logistics may be significantly affected, which could affect our performance and financial condition.」