Improving Productivity through Procurement Structure Rebuilding and System Enhancements

「Through control of materials costs and manufacturing expenses, the ratio of cost of sales to revenue was 61.7%.」

「The cost of sales ratio decreased to 61.6%, down 1.2 percentage points from 62.7% in the previous fiscal year, due to lower revenue and the implementation of thorough cost management.」

「Although unit procurement prices increased due to higher raw material and packaging material costs, initiatives such as improving operating efficiency reduced the cost of sales ratio to 61.1%, down 1.6 percentage points from 62.8% in the previous fiscal year.」

「The company focused on initiatives including converting labor costs to variable costs, beginning with the optimization of employee numbers implemented since the previous fiscal year, reviewing procurement methods for fresh foods, bringing the production of some processed products in-house and strengthening cost management when creating menus. However, the resulting increase in gross profit and operating profit was outweighed by soaring costs for raw materials and other inputs, causing both gross profit and operating profit to decline.」

「For cost of sales, the company has continued the initiatives undertaken since the previous fiscal year to improve productivity. It has also thoroughly reviewed the procurement methods used by its purchasing department for fresh foods, brought the production of some processed products in-house and strengthened cost management when creating menus.」

「At manufacturing sites, the company is focusing on reviewing work processes through the active introduction of shift work and multiskilling, as well as automating tasks and reducing labor hours. For deliveries to individual homes, it is working to create systems that support automated delivery efficiency and "flexible working styles." These efforts have produced a certain degree of cost-reduction benefits.」

「The company has also begun a major review of its manufacturing processes. It aims to reduce costs by automating tasks, reducing labor hours and improving logistics efficiency from each manufacturing site to sales offices.」

「The company is also considering improving the efficiency of manufacturing processes through the automation of certain tasks and streamlining logistics from each manufacturing site to sales offices. It is advancing the use of AI for deliveries to individual homes and has introduced the delivery support system "Rugia," which has enabled even less-experienced part-time employees to make deliveries efficiently. This has made it easier to secure and retain personnel and shortened the period required for induction training after hiring, producing benefits by alleviating labor shortages.」

「Cost of sales as a percentage of revenue increased to 61.6%, up 0.5 percentage points from 61.1% in the same quarter of the previous year, due to higher prices for raw materials and packaging materials and higher utility costs at manufacturing sites. Selling, general and administrative expenses decreased by ¥35 million year on year to ¥612 million because advertising expenses declined after the marketing strategy was shifted to focus primarily on social media.」

「The cost of sales ratio increased to 61.3%, up 1.0 percentage point from 60.3% in the previous fiscal year, due to higher prices for raw materials and packaging materials and higher fuel costs. Selling, general and administrative expenses increased by ¥41 million to ¥2,514 million. This was mainly because depreciation expenses increased following the replacement of vehicles used for sales activities.」

「Cost of sales as a percentage of revenue increased to 61.2%, up 0.9 percentage points from 60.3% in the same quarter of the previous year, due to higher prices for raw materials, particularly seafood, and packaging materials, as well as higher labor, utility and other costs at manufacturing sites. Selling, general and administrative expenses increased by ¥13 million year on year to ¥1,915 million, mainly because of higher advertising expenses, including television commercials aired in the Kansai region and Shizuoka Prefecture.」

「The cost of sales ratio rose sharply by 1.6 percentage points from 59.8% in the same quarter of the previous year to 61.4%, due to soaring raw material prices, particularly for seafood, higher packaging material costs, and increases in labor, utilities and other expenses at manufacturing sites. The increase exceeded the range that could be absorbed through the company's own efforts, so the company implemented a second price increase from mid-September, following the increase in April.」

「The cost of sales ratio rose sharply by 1.7 percentage points from 59.4% in the same quarter of the previous year to 61.1%, due to soaring raw material prices, particularly for seafood, higher packaging material costs, and increases in labor, utilities and other expenses at manufacturing sites. The recent sharp rise in raw material prices has exceeded the level assumed when the budget for the current fiscal year was prepared and is expected to continue. Accordingly, we plan to raise product prices to a certain extent around September.」

「The cost of sales ratio rose 0.5 percentage points from 59.8% in the previous fiscal year to 60.3%, due to soaring energy and raw material prices, higher logistics costs and other factors.」

「Selling, general and administrative expenses increased by ¥38 million from the same quarter of the previous year to ¥1.901 billion, due to higher marketing expenses for television commercials, flyer distribution and digital activities such as search advertising.」

「Selling, general and administrative expenses increased by ¥25 million from the same quarter of the previous year to ¥1.252 billion. Labor and rent expenses declined following the consolidation of sales offices, but advertising expenses increased.」

「In terms of profit, sales remained solid due to stay-at-home consumption amid calls for people to refrain from going out as COVID-19 infections spread. The cost of sales ratio declined 0.5 percentage points from 59.9% in the same quarter of the previous year to 59.4%, reflecting the effects of reviewing manufacturing expenses and other measures. However, the ratio remained somewhat higher than budget because of the aggressive rollout of the low-price “trial campaign” to acquire new customers and increases in the prices of some raw materials.」

「The consolidation of operating sites reduced manufacturing costs, but vegetable procurement prices rose due to poor growth caused by low temperatures and insufficient sunlight during the summer, as well as increased demand from stay-at-home consumption. As a result, the cost of sales ratio rose 0.2 percentage points from 59.6% in the previous fiscal year to 59.8%. Selling, general and administrative expenses declined by ¥3 million from the previous fiscal year to ¥2.516 billion.」

「Selling, general and administrative expenses declined by ¥66 million from the same quarter of the previous year to ¥1.227 billion, as the consolidation of sales offices reduced labor and rent expenses.」

「The consolidation of operating sites reduced manufacturing costs, but vegetable procurement prices rose sharply due to poor growth caused by low temperatures and insufficient sunlight, as well as increased demand from stay-at-home consumption. Consequently, the cost of sales ratio rose 1.2 percentage points from 58.7% in the same quarter of the previous year to 59.9%.」

「Stable weather throughout the year compared with normal conditions kept vegetable procurement prices stable, while closing the Osaka manufacturing division reduced expenses. As a result, the cost of sales ratio declined 2.1 percentage points from 61.7% in the previous fiscal year to 59.6%.」

「In terms of profit, relatively stable procurement prices for vegetables and other products due to favorable weather, together with efforts to streamline operations, reduced manufacturing costs. As a result, the cost of sales ratio declined 2.1 percentage points from 60.8% in the same quarter of the previous year to 58.7%.」

「Despite the effects of record heat, torrential rains and other adverse weather conditions since summer, as well as natural disasters such as earthquakes, the cost of sales ratio declined 1.0 percentage point from 62.7% in the previous fiscal year to 61.7%. This reflected lower depreciation following the recognition of an impairment loss on the plant in the previous fiscal year, as well as reductions in manufacturing labor and other costs resulting from more efficient operations.」

「In terms of profit, procurement costs for vegetables and other products rose due to record heat since summer, torrential rains and other adverse weather conditions, as well as natural disasters such as earthquakes. However, efforts to improve productivity and review operations reduced manufacturing costs, bringing the cost of sales ratio to 62.3%, broadly in line with the same quarter of the previous year.」

「In terms of profit, efforts to improve productivity and review operations reduced manufacturing costs, bringing the cost of sales ratio down 1.5 percentage points from 62.3% in the same quarter of the previous year to 60.8%.」

「A review and streamlining of operations reduced manufacturing costs, but rising procurement prices for vegetables and other products due to typhoons and prolonged rainfall caused the cost of sales ratio to rise 1.1 percentage points from 61.6% in the previous fiscal year to 62.7%.」

「In terms of profit, procurement prices were generally stable during the second quarter, but higher manufacturing costs due to increases in labor and other expenses caused the cost of sales ratio to rise 1.2 percentage points from the same quarter of the previous year to 62.3%.」

「Although food prices remained elevated due to adverse weather conditions and other factors, system improvements aimed at building an efficient procurement system and efforts to stabilize procurement prices brought the cost of sales ratio to 61.0%, broadly in line with the previous year (60.8% in the previous fiscal year).」

「As a result, sales of core menu products were ¥6.123 billion, or 99.5% of the same quarter of the previous year, while sales of special-promotion products were ¥553 million, or 98.3%. In terms of profit, vegetable crop failures and shortages caused by typhoons and adverse weather conditions continued during the third quarter, raising procurement costs. However, together with continued efforts to strengthen the procurement system and review the production system to improve productivity, this enabled the cost of sales ratio to decline 0.3 percentage points from the same quarter of the previous year to 61.3%.」

「In terms of profit, during the second quarter, crop failures affecting some vegetables due to typhoons and other adverse weather conditions, together with procurement price increases caused by shortages, pushed up costs. However, continued efforts to strengthen the procurement system and review the production system brought the cost of sales ratio down 2.1 percentage points from the same quarter of the previous year to 60.5%.」

「While carefully selecting ingredients, we strengthened the procurement system and reviewed the production system. Along with the stabilization of procurement prices for various raw materials, these measures brought the cost of sales ratio down 2.3 percentage points from the same quarter of the previous year to 60.0%.」

「In addition to system improvements aimed at increasing productivity and building an efficient procurement system, the stabilization of procurement prices for various products from the second half onward brought the cost of sales ratio to 60.8%, broadly in line with the previous year (60.4% in the previous fiscal year).」